The Netherlands will allocate €1 billion from its climate fund to support the development of 2 gigawatts (GW) of offshore wind capacity in 2025, according to a new Offshore Wind Energy Action Plan published by the Ministry of Climate and Green Growth.
The funding aims to stimulate both wind farm construction and electricity demand development, amid mounting cost pressures and slower deployment rates seen across global wind markets.
“In various places in the world and in Europe, the sector is struggling with rising costs, rising interest rates and uncertainty about sufficient demand,” said climate and green growth minister Sophie Hermans. “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.”
In addition to the core €1 billion allocation, a further €150 million has been earmarked to extend the Indirect Cost Comparison (ICC) scheme by another year to 2028. The ICC is designed to improve electricity cost competitiveness for industrial users, supporting wider electrification efforts.
The Dutch government is also preparing legislation to introduce Contracts for Difference (CfDs) as an optional support mechanism for wind developers and is examining the feasibility of a guarantee fund to underwrite long-term power purchase agreements.
“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,” Hermans added.
Industry association NedZero welcomed the action plan and financial commitments, describing them as a positive step toward maintaining momentum in offshore wind development.
“NedZero is pleased with the government’s support for offshore wind and new action agenda for industrial electrification,” said 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.”
The Netherlands is targeting 21 GW of offshore wind capacity by 2030 as part of its broader climate and energy transition goals.
