Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 171
Offshore Wind Worldwide 2023
2. THE OFFSHORE WIND
PROMOTION SYSTEM
The Netherlands Enterprise Agency ("NEA")
("Rijksdienst voor Ondernemend Nederland") conducts the offshore wind energy
subsidy and permit tenders on behalf of the
Dutch State (or the Minister of Economic
Affairs and Climate Policy).
In preparation for these tenders, the NEA
commissions various studies in relation to
the wind farm zones. A so-called Project
and Site Description ("PSD") will be published to help any party with an interest in
participating in the planned tenders. The
PSD describes the site, surroundings, and
characteristics.
Four types of tender procedures are distinguished in the Dutch Offshore Wind Energy
Act ("OWEA") ("Wet windenergie op zee"):
(a) the procedure with subsidy in which the
participant who requests the least subsidy wins;
(b) the procedure with, instead of a subsidy,
a comparative test in which a winner is
selected on the basis of ranking criteria;
(c) the procedure with, instead of a subsidy,
a comparative test including a financial
bid as one of the ranking criteria; and
(d) an auction procedure in which the participant who bids the highest amount of
money wins the tender without subsidy.
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In tenders with subsidy, the subsidy comes
from the subsidy programme Stimulation of
Sustainable Energy Production ("SDE+") of
the State. Production of renewable energy is
not always profitable because the cost price
of renewable energy may be higher than the
market price. SDE+ compensates OWFs for
the difference between the cost price and
the market price ("the unprofitable component") for a fixed number of years.
The subsidy application procedure is linked
to the permit application procedure. The Minister simultaneously decides on the permit
application and the subsidy application (Art.
21(2) OWEA). If several applications comply
with Article 14 of the Act, the Minister will
issue the permit to the party that is granted
the subsidy (Art. 21(1) OWEA).
In tenders with a comparative test, amongst
other things, the likelihood that the wind
farm will actually be realised and the contribution of the wind farm to the energy supply
will be taken into account when preparing
the ranking (Art. 24 OWEA).
In principle, the Minister decides on the
applications within 13 weeks of the tender
period. This time limit can be extended once
with another 13 weeks (Art. 25 OWEA).
