Expensive offshore wind farms out of favour with energy firms

Energy provider Eneco has decided not to take part in a new tender round to build a wind farm 50 kilometres off the coast of IJmuiden, current affairs show Nieuwsuur reported at the weekend.
Offshore wind farms currently account for 15% of the electricity used by Dutch households, but Eneco said it is becoming too expensive to build new ones. The company currently has stakes in four.
“The demand for green energy needs to be stimulated more and this has to translate into higher prices,” said Eneco chairman As Tempelman. “Otherwise we cannot earn back the cost of wind farms. It has become too expensive.”
Joël Meggelaars of energy firm Ørsted told NOS that the cost of cables, steel and turbines is rising, as are financial costs. “If the Dutch government does not change its strategy, I find it hard to imagine that we will bid for new wind farms,” he said. “We see much more attractive options abroad.”
Grid operator Tennet has also urged the government to subsidise wind farm development. “Offshore wind energy is one of the most important parts of the shift away from gas,” said Tennet project chief Marco Kuijpers. “The Netherlands’ energy independence is at risk.”
Climate minister Sophie Hermans told Nieuwsuur she recognised the problems facing energy companies and was prepared to look at ways to make it more attractive for companies to keep building at sea.
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