​Dutch U-turn on wind with €1 billion pledge

Announcing the subsidies, to be issued in 2026, and unveiling an ‘Offshore Wind Energy Action Plan’ this week, the government has changed course quickly since abandoning the IJmuiden Ver Gamma-A and Gamma-B wind farms in May because of ‘deteriorating market conditions for offshore wind energy projects, partly due to lack of large-scale demand for electricity’.

The Action Plan, which has been published after a report said the Netherlands was unlikely to hit climate goals, includes legislation to enable the Contracts for Difference (CfD) method, used in the UK, which guarantees wind farm operators are subsidised during low-price periods but repay them when prices rise.

The Netherlands has about 4.7GW of installed offshore wind, way short of the government’s target of 21GW by 2032. The deadline has actually been extended by two years and the report, the Klimaat- en Energieverkenning (KEV) 2025 (Climate & Energy Outlook Netherlands 2025), said climate targets were very likely going to be missed.

”The chance that the Netherlands will achieve the climate target is less than 5%,” it says. “The Netherlands is also not on track to achieve binding European targets for renewable energy and energy consumption.”

On the demand side, the government will extend its “Indirect Cost Compensation” scheme for energy-intensive industries until 2028, with about €150 million earmarked to keep power affordable for businesses as renewable output grows.

Other steps include adjusting site planning, such as potentially merging offshore zones to optimise shared infrastructure, and easing certain permitting requirements to reduce upfront risks for developers. 

Long-term policy changes will be needed rather than piecemeal measures, says the report, partly blaming rising demand combined with slower-than-expected efficiency gains.