Wind and solar united at offshore renewable energy projects
Dutch government policy on solar and storage at sea has been announced
In recent years, wind energy in the Dutch part of the North Sea has been developing well. The offshore grid has the capacity to accommodate other forms of energy, which can lead to better utilization of existing infrastructure, such as cables and purchasing stations. However, until recently, there has been a lack of policy and guidance on this matter. To fill this gap, the Minister of Infrastructure and Water Management issued a letter on 8 June 2023 regarding the shared use of areas designated for wind energy.
Shared use at existing and new offshore wind farms
This shared use includes not only fishing and nature formation but also energy generation from other sources and energy storage. The policy has two objectives: first, to explore possibilities for shared use at existing or already licensed wind farms, and second, to explicitly include shared use for new offshore wind farms. The first objective will be implemented through so-called ‘area passports’, which will indicate which forms of shared use are permitted in each wind farm area. The second objective will be implemented through inclusion of shared use provisions in future site decisions for locations 2028-onward. Currently, there is no overarching shared use policy for the entire North Sea area, but further guidelines are expected to be available soon through the partial revision of the North Sea Program 2022-2027.
Unanswered questions
While the shared use policy is a positive step for the sector, several questions remain unanswered. For instance, it is unclear how multiple permit applications for an offshore solar project?will be handled, who gets priority, and to what extent wind farm manufacturers can be required to connect solar farm projects to their wind farm. Additionally, the financing of floating solar projects is uncertain, particularly in the Energy Act bill version sent to the Second Chamber of the Dutch Parliament. Wind farms have direct access to the offshore grid, but solar farms may only use it indirectly by connecting to one or more turbines of the wind farm, creating a dependence on the wind farm. If a solar farm is financed and operated as an independent project, it is only financeable if the solar farm operator can take over the connection in a situation where the wind farm is not realized or ends up in an insolvency scenario. However, solar parks are not entitled to a connection to the offshore grid under current regulations, and the Energy Act bill does not change this. Clarity is needed regarding these and related questions.
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The United Project
We at Ventolines are currently in the process of completing the EU-funded United report, which involves conducting extensive legal research on integrated offshore energy projects. The policy on shared use and the partial revision of the North Sea Program are crucial to our report, and we will closely monitor any developments and include them in the United report. We look forward to providing further updates on this matter in the near future as to shine further light on the future of the integration of wind and solar energy at sea.