This was reported by outgoing local weather and vitality minister Rob Jetten this week in a parliamentary letter to the Dutch Home of Representatives on the progress of the roll-out of offshore wind energy.
The minister started the parliamentary letter by mentioning milestones. As an example, the Netherlands is on track to fulfill the Power Settlement’s goal of 4.5 GW put in capability for offshore wind energy by the top of this yr, nicely on time and inside finances. In accordance with the minister, this demonstrates that the Dutch method to the realisation of offshore wind vitality, by which the central authorities, in shut cooperation with the wind sector, co-governments and the North Sea Session Committee, designates wind vitality areas, carries out location research, and prepares and streamlines allow procedures, works.
Trying forward, the permits have been issued for the development and operation of wind farms within the Hollandse Kust (west) wind vitality space websites VI and VII, and the licensing procedures for IJmuiden Ver wind vitality space websites Alpha and Beta will happen within the first quarter of 2024. The IJmuiden Ver websites Alpha and Beta might be awarded utilizing the process of a comparative take a look at with monetary bidding. In early 2024, it is going to be determined by which process the permits for wind vitality areas IJmuiden Ver lot Gamma and Nederwiek I might be granted. Licensing procedures are scheduled for 2025.
Worldwide collaborations
Inside North Seas Power Cooperation (NSEC), which the Netherlands chairs this yr, the minister is working intently with different international locations on offshore wind vitality. On this worldwide partnership of ministries, regulators and transmission system operators (TSOs), data is exchanged and cooperation takes place on the longer term market design and regulation of offshore wind vitality. Agreements are additionally being made on the infrastructure wanted to interconnect vitality programs.
Massive improve in anticipated prices
Alongside these optimistic developments, there may be additionally much less optimistic information; the anticipated prices for offshore wind might be larger than beforehand estimated. That is evident from the up to date value estimate the minister acquired from grid operator TenneT. Whereas the entire prices for the interval 2032-2057 have been estimated final yr to common over €2 billion per yr, they now come to round €3.6 billion per yr. This quantities to a mean of €0.038 per kilowatt-hour (kWh) transported over the offshore grid.
The rise in anticipated prices has a lot of causes. As an example, larger prices are anticipated for the development of the offshore grid on account of elevated uncooked materials costs, personnel prices and the exclusion of suppliers from high-risk international locations. Whole funding prices for the offshore grid are actually estimated at €35.5 billion as an alternative of €26 billion.
As well as, financing prices are estimated to be considerably larger on account of larger rates of interest on the capital market. Within the up to date value estimate, financing prices are assumed to stay structurally larger, though if capital market rates of interest fall, the estimated financing prices might be decrease once more. Lastly, operational prices (upkeep, grid losses and unavailability of the grid) are additionally estimated to be larger on account of up to date estimates of future electrical energy costs and elevated inflation.
After 2057, prices lower considerably within the interval as much as 2062, because the offshore grid might be totally depreciated by then.
Within the Local weather Settlement, it was agreed that the prices of the offshore grid might be paid from community tariffs, similar to the onshore grids. The pass-through in grid prices can’t but be decided, the minister mentioned within the parliamentary letter. Amongst different issues, the minister is consulting with TenneT on methods to cut back the prices for the Netherlands of the offshore grid till 2030 – and for the ambitions after 2030 – and specifically to restrict the pass-through in grid tariffs within the additional future.
Upcoming parliamentary letters on offshore wind
The minister ends the parliamentary letter by itemizing upcoming parliamentary letters on the topic. These are parliamentary letters on Offshore Wind Power Improvement Framework (late October), Offshore Hydrogen Demonstration Tasks (early 2024) and North Sea Power Infrastructure Plan 2050 (within the first half of 2024). Supply: Rijksoverheid
