Offshore Wind Worldwide 2022 edition - Flipbook - Page 174
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B.Regulatory permits required for
the construction and operation of
the offshore wind farm and the
onshore grid connection
Pursuant to Article 12 of the OWEA, it is not
allowed to build or operate OWFs in Dutch
territorial waters or in the Dutch exclusive
economic zone (“EEZ”) without a permit
from the Minister.
C. Permitting process
The permit required for building or
operating OWFs in Dutch territorial waters
or the Dutch EEZ is issued by the Minister.
The criteria for the granting of a permit are
set out in Article 14, Section 1, of the OWEA.
Pursuant to these criteria, a permit can only
be obtained if the construction and operation
of the OWF are financially, economically and
technically feasible. Furthermore, the
operation and construction must be started
within a certain period of time after the
permit has been granted definitively (Art.
14(1)(d) OWEA). This period of time can
vary between farm sites. Finally, the permit
application must comply with the Wind
Farm Site Decision. Additional criteria may
be set by ministerial regulation per farm site.
Ultimately, a tender process will determine
to whom a permit is granted. After winning a
tender procedure, the permit holder will
submit a project plan which details a
construction plan for the OWF. This plan will
not be subject to objection (in Dutch:
bezwaar) or appeal (in Dutch: beroep). If a
subsidy is required for the construction of
the OWF, the permit procedure coincides
with the subsidy procedure.
Hogan
Lovells
Netherlands
IV. Offtake issues
A. Offtake, remuneration
and tariff scheme
The development of an OWF involves a lot of
costs. The development process takes time
and requires many studies, procedures and
consultations with local residents and other
interested parties. There are construction
costs of the OWF, the purchase of the wind
turbines, the grid integration and the costs
once the wind farm is up and running.
At the same time, a wind farm also generates
revenue. During the operation of an OWF,
there are revenues in the form of the sale of
electricity, green certificates (“Garanties van
Oorsprong”) and SDE+ subsidies.
The use of long-term contracts for the
purchase or sale of electricity (“PPAs”) is
increasing. A PPA is intended to reduce
financial risks by providing for a long-term
price agreement with a customer. As there is
no legislation on these PPAs, no specific
stipulations for the content of such PPAs
exist. However, in practice, there is a certain
established market practice as to the usual
and required contents.
B. Consequences of a project delay
The consequences of delayed project
completion with regard to the offtake regime
may depend on what is agreed upon by the
involved parties.
When a PPA is involved, the consequences
may depend on the respective provisions in
the PPA. Usually a delay of the project would
entitle the offtaker to demand a reasonable