The Dutch government has allocated €1bn from its climate fund to support the build-out of 2GW offshore wind capacity next year.
An Offshore Wind Energy Action Plan published by the country’s Ministry of Climate and Green Growth proposes the cash will be used to help stimulate wind farm construction or the development of electricity demand.
A further €150m has been budgeted to support the latter via an extension of the Indirect Cost Comparison scheme to make electricity costs more competitive by another year to 2028.
In the longer term, the government is preparing a bill to introduce Contracts for Difference as an option for developers and is exploring the development of a guarantee fund to support the conclusion of long-term power contracts.
Climate and green growth minister Sophie Hermans said: “In various places in the world and in Europe, the sector is struggling with rising costs, rising interest rates and uncertainty about sufficient demand. This means that the pace of rollout of offshore wind farms is slower than in recent years.
“Without intervention, the rollout threatens to come to a standstill. The action plan provides additional guidance for the sector in the coming period and is developing a number of measures.
“This way, the cabinet can make choices quickly.”
Trade body NedZero welcomed the budget allocations and the steps being taken to boost electrification which it said would give confidence to the sector.
“NedZero is pleased with the government’s support for offshore wind and new action agenda for industrial electrification,” said NedZero chairman Jan Vos.
“This package provides support to continue projects and reduce capital costs. We look forward to the new government’s measures to ensure a balanced growth of supply and demand for green energy.”