Energy company Eneco has pulled out of bidding to develop two new offshore wind farms, saying the financial risks are too great and there is a growing risk of delays.

Tendering has begun to build two new wind farms off the coast at IJmuiden, which should produce enough electricity for four million households. However, Eneco said on Thursday, it is not taking part.

“In the early years high subsidies were paid for the production of electricity but this has been reduced to nothing. And with the most recent tender, the government itself wants paying,” Eneco said.

“The current approach to offshore wind power is not future proof, including high interest rates, the cost of equipment and supplies, and the uncertain electricity market.”

Eneco wants the government to introduce a new system for offshore wind farm projects, which take price fluctuations into account.

The company is involved in four existing offshore windfarms and one in development. The company is owned jointly by Mitsubishi Corporation (80%) and Chubu Electric Power.