he Dutch government has unveiled its Offshore Wind Energy Action Plan, pledging nearly €1 billion from the national Climate Fund to support the construction of 2 GW of new offshore wind farms next year. The plan aims to safeguard the Netherlands’ energy transition at a time when rising costs and global uncertainty are slowing offshore wind development in many countries.

The Netherlands currently has 4.7 GW of offshore wind capacity in operation. With the new measures, the government seeks to ensure that growth continues despite challenges such as higher interest rates, increased construction costs, and concerns about sufficient demand.

“Across Europe and the world, the sector is facing rising costs, higher interest rates, and uncertainty over demand. Without intervention, the rollout of offshore wind risks coming to a halt,” said Climate and Green Growth Minister Mariëlle Paul-Hermans. “This action plan offers stability for the sector in the near term and lays out measures that the next cabinet can build upon.”

Two-pronged strategy

The Action Plan sets out two main directions:

• Stimulating offshore wind construction (supply-side support).
• Boosting electricity demand (demand-side stimulation).

In the short term, alongside next year’s subsidy for new projects, the government is extending the Indirect Cost Compensation scheme (IKC-ETS) for industry until 2028, allocating €150 million to keep electricity prices competitive. This step is expected to improve the business case for future offshore wind projects.

Long-term measures

Looking ahead, the cabinet is preparing legislation to introduce Contracts for Difference (CfD), under which wind farm operators would receive subsidies when market revenues fall below a certain threshold and pay back to the state when electricity prices are high.

The plan also outlines:

• The creation of a guarantee fund to support long-term power purchase agreements (PPAs).
• A possible extension of construction deadlines for wind developers.
• An assessment of whether the planned wind farm Ten Noorden van de Waddeneilanden can be integrated into the Doordewind wind energy zone, to optimize output per turbine and better use existing infrastructure.

Finally, the Action Plan leaves additional options open for the next cabinet to further strengthen the sector.

By securing stable investment conditions and demand growth, the government aims to keep offshore wind as the driving force of the Dutch energy transition and reduce reliance on imported energy.