Dutch government reduces offshore wind plans due to lagging industry transition

The Netherlands has scaled back its offshore wind energy ambitions in the North Sea, reducing its target from 50 GW to a minimum of 30 GW by 2040, with a potential increase to 40 GW. Climate Minister Rob Jetten Hermans stated in a letter to parliament that the previous goal of achieving 50 gigawatts of offshore wind capacity by 2040 is "no longer realistic."

Climate Minister Rob Jetten Hermans highlighted slower progress in the green transition and challenges in the industrial sector. Currently, offshore wind farms provide 4.7 GW, about one-sixth of the country's energy needs.

Postponed tenders for new wind farm zones reflect market feasibility concerns. The difficulties in making heavy industry sustainable mean reliance on fossil fuels will continue longer. Demand for green hydrogen has also been weak, affected by high energy prices and grid congestion.

Rising construction costs and high interest rates further threaten the sector, leading 21 companies to seek government support to mitigate financial risks.