In 1991 the first offshore wind project was installed off the coast of Denmark. Over the past 25 years offshore wind has become an integral part of the European energy mix. More than 3 GW of new offshore wind capacity was commissioned in Europe during 2015. This has resulted in a cumulative installed capacity exceeding 11 GW at the end of 2015, most of which is located in the North Sea, making Northern Europe a frontrunner in offshore wind. 

Recent tender awards in the Netherlands and Denmark show that offshore wind energy is rapidly improving its competitive position vis-a-vis conventional generation. Important structural cost reductions have been achieved and the industry’s cost reduction objectives for 2020 have been achieved well ahead of schedule. 

Looking ahead, we see that many countries aim to increase their offshore wind capacity. The targets for the main offshore wind markets in Northern Europe –Belgium, Denmark, France, Germany, the Netherlands and the UK – add up to 20 GW in 2020. The North Sea is expected to remain the main region for offshore deployment in the coming years, with significant developments also foreseen in the Baltic Sea and the Irish Sea. 

While there are similarities between some of these markets, there are also important differences, e.g. in terms of location-specific factors, such as distance from shore and water depth, and applicable legislation in relation to spatial planning, permit, subsidy mechanisms and grid connection. The CMS Guide to offshore wind in Northern Europe provides insight into the regulatory framework for offshore wind in Belgium, Denmark, France, Germany, the Netherlands and the UK. It is designed to assist in understanding the offshore wind sector across Northern Europe and highlights similarities as well as differences across the different jurisdictions. 

The publication of this guide will take place in six phases. Each month a chapter on a certain jurisdiction will be made available on this webpage, starting with the Netherlands, followed next month by Denmark. 

CMS has been, and continues to be, deeply involved in the development of offshore wind energy. We have worked on over 50 offshore wind projects in several jurisdictions, and have advised many leading companies in the sector on all aspects of offshore wind farms. 

This guide is published in association with Bech-Bruun, Denmark’s largest law firm with a strong and highly specialized practice within offshore wind. We are delighted that Bech Bruun has agreed to contribute the chapter on the Danish regulatory framework. 

If you would like to receive more detailed information about the legal regime in a particular jurisdiction, please contact one of the authors of this guide, who will be happy to provide further

The Netherlands

1. Introduction

The Energy Agreement for Sustainable Growth that was entered into in 2014 between, inter alia, the Dutch government, environmental and nature protection organisations and energy companies, has been an important driver for the development of offshore wind parks in the Netherlands. While there was some activity in the field of offshore wind prior to the Energy Agreement, resulting in approximately 1000 MW offshore wind capacity in operation and under development, the Energy Agreement announced an increase in offshore wind energy capacity to 4,450 MW in 2023 in order to meet the Dutch renewable energy target of 16% in 2023.

Consequently, a total extra capacity of 3,450 MW has to be constructed and made operational ultimately by 2023. For this purpose, the Dutch State has developed a new legislative framework of phased tenders for subsidy and wind permits to take place in the period 2015-2019.

This process is strictly controlled by the Dutch government, setting parameters for, inter alia: the pace at which the proposed new capacity will be developed; the maximum capacity of the wind parks; planning and zoning; and the grid connection. An important prerequisite for the development of the additional offshore wind energy capacity is a 40% cost reduction over the period 2015-2019.

The below table provides the tender schedule and key parameters. 

Click here to view table. 

The first tender took place in April 2016. On 5 July 2016 the government announced that wind permits and subsidy for the development of wind parks on the sites Borssele I and II have been awarded to DONG Energy Borssele I B.V. for a strike price of EUR 0.073/kWh. With this strike price, the government’s 40% cost reduction requirement for the entire period up to 2019 was achieved in the first tender. The permits and subsidy for the wind park sites Borssele III and IV were awarded on 12 December 2016 to the consortium of Shell, Van Oord, Eneco and Mitsubishi/DGE for a strike price of 0.054/kWh.

2. Subsidy

2.1 General

The Sustainable Energy Incentive Scheme or SDE+ offers an operating (premium feed-in-tariff) subsidy for renewable energy. It compensates the difference between the production costs of renewable energy(the “base amount”) and the cost price for fossil energy (the “correction amount”). Accordingly, the amount of the SDE+ contribution depends on the correction amount and therefore on the evolution of the energy price.

The SDE+ subsidy decision reflects the maximum subsidy over the entire period of the subsidy (depending on the renewable technology being a period of 5, 8, 12 or 15 years). This maximum is determined based on the indicated capacity and the maximum number of full load hours for the relevant technology. The final subsidy payments are calculated per year, based on the actual amount of energy produced and the actual energy price.

Although the SDE+ scheme resembles the UK contract for difference, there are many differences. Two important ones, for example, are that in the Netherlands: 

  • the premium is capped at a certain floor for the market price (referred to as the base price). Consequently, if the market price is below the base price, the difference will not be compensated in the subsidy
  • if the market price exceeds the reference price, the upside can be retained by the producer.

If the maximum production eligible for subsidy in a certain year has not been used, the remaining production capacity eligible for subsidy can be used in the following year. On top of the subsidy period of 15 years, another whole year can be taken to reach the remaining unused production eligible for subsidy, in effect stretching the subsidy period to a total of 16 years (forward banking). On the other hand, if production in a certain year exceeds the maximum production eligible for subsidy in that year, the excess production can be used in a following year if production is lower than expected in the later year, provided that this form of banking is restricted to no more than 25% of the annual production eligible for subsidy (backward banking).

No SDE+ subsidy is granted for renewable electricity fed into the grid in case of negative electricity prices over a period in excess of six hours.

2.2 Offshore wind subsidy

SDE+ subsidy for offshore wind parks is obtained through a tender procedure that is to be distinguished from the regular SDE+ programme. The SDE Decree and its General Implementing Regulations form the basis for the offshore subsidy tenders. In addition, for each tender a specific Ministerial Order is issued, containing further – to a large extent site specific – tender rules for the relevant sites. 

At present Ministerial Orders for the first two tenders have been published: the Tender Regulation 2015 and the Tender Regulation 2016. Key issues addressed in these Tender Regulations include: 

  • the timing of the tender
  • the duration of the subsidy period (15 years)
  • the deadline for commencement of operation (five years after the subsidy award)
  • the maximum tender amount and base electricity price (see table in section 1)
  • the minimum and maximum capacity of the wind park (for the sites Borssele I, II and IV: respectively 351 MW minus the number of MW of the turbine with the lowest capacity and 380 MW; for the site Borssele III: 331 MW minus the number of MW of the turbine with the lowest capacity and 360 MW)
  • tender eligibility criteria (see below)
  • criteria for ranking the bids (see below).

The subsidy tender procedure for offshore wind as set out in the SDE Decree and its subordinate regulations were approved by the European Commission as compatible aid. The individual subsidy decisions with respect to installed capacities in excess of 250 MW will not require notification to the European Commission under the state aid rules.

The subsidy application process is linked to the application procedure for the wind permits through the Offshore Wind Energy Act, which contains the key requirements in relation to the wind permits5. Wind permits will only be awarded to a party that has been granted SDE+ subsidy in the tender, aiming to ensure an efficient use of the sea.

2.3 Eligibility requirements

Subsidy applications must satisfy the below criteria. Applications that do not meet these requirements will be disregarded.

Financial feasibility 

The development and operation of the wind park should be financially feasible. To determine whether this requirement is fulfilled, the applicant’s equity capital is required to equal at least 10% of the total investment of the wind park. The fulfilment of this equity capital requirement can be demonstrated by the most recent annual accounts of the applicant, its consortium partners or its parent company, as the case may be. The annual accounts may not date back more than three calendar years from the year of application.

For the fulfilment of this equity capital requirement the applicant may rely on its parent company (or in case of a joint venture, on the equity of one or more of its joint venture partners). A company under incorporation may rely on both the equity capital of its parent company and of its incorporator. A limited partnership may rely on the equity of the general partner and the general partner’s parent company (or parent companies). The 10% equity requirement only applies in relation to the period prior to the permit and subsidy award.

Unlike the Tender Regulation 2015, the Tender Regulation 2016 contains restrictions on the reliance on a parent company/joint venture partner(s). Pursuant to the Tender Regulation 2016 an applicant has to provide the written consent of its parent company/joint venture partner(s) and such parent company/joint venture partner(s) may not be relied on by more than two applicants. Pursuant to the explanatory notes to this Regulation, this has been introduced to avoid submission, for tactical reasons, of a large number of applications through different bidding entities.

The subsidy application must include a plan for the development and operation of the envisaged wind park, as well as a financing plan. If the applicant’s own assets amount to less than 20% of the investment required for the wind park, the applicant is required to provide a letter of intent from a financier in relation to the financing of the remaining part of the 20%. 

Economic feasibility 

A second requirement is economic feasibility. In order to determine whether the applicant meets this requirement it has to submit an income statement specifying the envisaged investment costs, project costs and benefits and the projected return during the subsidy period. In addition, the application must contain a wind energy generation calculation by a reputable independent organization, including the technical specifications of the wind park and the P50-value for the annual electricity production. The full load hours on the basis of the net P50-value constitute the maximum number of full load hours that are used to determine the annual number of kWh that is eligible for subsidy.

Start of construction 

The application must include a time schedule, setting out a number of milestones (including the start dates for commencement of construction, operation and the subsidy period), demonstrating that it is possible for construction to start within four years after the date on which the wind permit has become irrevocable.

Achievability and technical feasibility 

The applicant’s project plan should be “achievable” and “technically feasible”. It is felt that the bank guarantees required of the winning bidder under the implementation agreementwith the Dutch State provide important comfort that the subsidy receiver meets these conditions.

Compliance with site decision 

The application must comply with a so-called “site decision”, which is a new instrument, developed specifically for the offshore wind tenders. See Section 3.2 for detailed information on the site decision.

2.4 Ranking the applications

Eligible applications that meet the above requirements will be ranked on the basis of the tender amounts, with subsidy awarded to the application with the lowest tender amount. This means that per-site subsidy will be awarded to only one project. The Tender Regulations 2015 and 2016 however allow parties to submit three separate subsidy applications: for site I, for site II and a combined application for sites I and II jointly. In the event of multiple applications for one site by one applicant, all applications by that applicant for the site in question will be denied. The same applies in the event of multiple combined applications by one applicant: all combined applications will be denied.

A combined application is deemed to constitute one bid and will therefore either be rejected or awarded as a whole. The rationale is that it would otherwise not be possible to realise the envisaged synergy benefits. Although considered as one bid, a combined application must specify the tender amount per site and will only be successful if these tender amounts constitute the lowest amount for each of the sites.

2.5 Subsidy award

After the tender closure, the Minister of Economic Affairs will decide on the award within 13 weeks, which may be extended by a further 13 weeks. The tender award is subject to objection and appeal proceedings. Objections must be filed within six weeks of the date of the tender award. Subsequent appeals can be filed within six weeks of the date of the decision on the objection.

2.6 Implementation agreement and bank guarantees

The subsidy is awarded subject to two conditions precedent: 

  • the winning applicant entering into an implementation agreement with the Dutch State in the form as attached to the Tender Regulation, within two weeks from the date of the subsidy award
  • the provision of a bank guarantee in the amount of EUR 10m by a bank established within the EU, in the form as attached to the implementation agreement, within four weeks of the date of the subsidy award.

The main aim of these conditions is to give the Dutch State comfort that the wind park will become operational on time. If the winning applicant fails to satisfy these conditions within the deadlines, the subsidy will be awarded to the next ranked application.

A second bank guarantee– in lieu of, and in the same form as, the first bank guarantee, but for an amount of EUR 35m – shall be due within 12 months after the date of the subsidy award.

Pursuant to the implementation agreement, the bank guarantees provide financial security for any and all claims the State may have under that agreement. A one-off penalty of EUR 10m will be immediately due and payable if the subsidy decision is revoked within 12 months at the request of the applicant or if the second bank guarantee is not provided on time. In addition, the subsidy receiver will incur a penalty in the amount of EUR 3.5m in case of a delay in the start of operation of the wind park, increased by EUR 3.5m for each month that the delay continues (the penalty may become due a maximum of ten times). The penalties will be due without any proof of default or summons. The implementation agreement provides for an escape route if the site decision is amended following legal proceedings post subsidy award. In that case the subsidy receiver can withdraw from the implementation agreement without incurring any penalty.

2.7 Essential changes in the project plan post subsidy award

Pursuant to the SDE Decree, the winner of the tender must comply with its plan for the construction and operation of the wind park, as submitted together with its subsidy application. However, the SDE Decree allows for “essential changes” to this plan in relation to the development or operation of the wind park, providing for flexibility with regard to key characteristics of the wind park to enable bidders to use the most up-to-date technology and pursue cost reductions through innovation, as envisaged by the Energy Agreement. Any such deviation from the original plan requires an exemption granted by the Minister of Economic Affairs.

The Policy Rules Amendment of the Production Installation for Offshore Wind Energy provide insight into the decision-making process of the Minister in case of exemption requests in relation to essential changes with respect to characteristics of the production installation.

Pursuant to the policy rules “essential changes” are changes to the production installation that influence: 

  • its location
  • its nominal capacity
  • the start of production within four years after the permit has become irrevocable
  • compliance with the site decision
  • compliance with the Offshore Wind Energy Implementing Regulations
  • the technical, financial and economic feasibility of the project plan.

The following changes shall in any event qualify as essential changes: 

  • the number of turbines of the production installation
  • the positioning of the turbines
  • the hub height
  • type of turbine
  • type of foundation.

A request for an exemption must be accompanied by an explanation of the effect of the change on the aspects set out above, as well as by an amended wind energy yield calculation, if applicable. The request for an exemption shall be granted if the Minister would have granted the subsidy application, had the change been included in the original subsidy application. This ensures that after the change, the realisation and operation of the production installation remains in compliance with the criteria as set during the application phase. Consequently, the change will not affect the position of the application in the ranking.

According to the explanatory notes to the policy rules, the grant of an exemption does not affect the tender price per kWh and the maximum number of kWh for the subsidy period, as set out in the subsidy decision.

An exemption is subject to objection and appeal proceedings.

2.8 Subsidy transfer

Pursuant to the SDE Decree the subsidy may – unless exempted by the Minister of Economic Affairs – not be transferred to a third party prior to the start of operation of the wind park. However, it is possible to transfer the SDE+ decision after the start of operation of the park, without an exemption.

3. Spatial planning

3.1 Designated areas for offshore wind

One of the key elements of the new legislative framework for offshore wind is the central role played by the Dutch government in the planning and zoning of the wind parks, through the appointment of designated areas for offshore wind and subsequently adopting, within these areas, so-called site decisions for the development of the wind parks.

In the National Water Plan– which finds its legal basis in the Water Act and contains the water policy and related spatial planning for the Netherlands – the Dutch Ministers of Economic Affairs and Infrastructure & Environment have allocated four areas for offshore wind parks. The development of offshore wind parks will be restricted to these areas; wind permits will not be awarded for areas outside these designated areas.

Click here to view iamge. 

These designated areas offer a total capacity of over 17,500 MW (assuming a 6 MW per km2 ratio). However, due to conflicting interests with other offshore activities, the areas that may actually be used for wind parks are likely to be smaller. The five tenders organised by the Dutch State to meet its renewable targets for 2023 are for the areas Borssele and Hollandse Kust.

Except for two strips in the Hollandse Kust area that are located 10-12 nautical miles off the Dutch coast, the four designated areas lie behind the 12-mile zone (the zone 22 km off the Dutch shore).

3.2 Site decisions

Within aforementioned designated areas wind parks may only be developed on locations designated by the Minister of Economic Affairs in a so-called site decision (in Dutch: kavelbesluit). The site decision is a new instrument that finds its legal basis in the Offshore Wind Energy Act that entered into effect on 1 July 2015.

Pursuant to this Act, the Minister of Economic Affairs shall in the site decision take into consideration: 

  • the fulfilment of social functions of the sea, including an efficient use of the sea
  • the implications of the site decision for third parties9
  • environmental interests, including ecological interests
  • wind park development costs on the relevant site
  • the interest of having an efficient grid connection.

The site decision shall in any event include terms and conditions in relation to: 

  • the rights and interests of third parties in relation to the relevant site
  • the protection of the environment
  • the preservation of Natura 2000 areas and compensation measures pursuant to the Nature Protection Act
  • the provision of exemptions under the Flora and Fauna Act
  • the interest of an efficient use of the site by the wind park
  • the term of the wind permit
  • the costs incurred for the preparation of the site decision, including the conduct of relevant surveys and the required security for decommissioning.

In addition, the site decision shall contain a description of: 

  • the measures that aim to reduce or mitigate the effects of the development and operation of the wind park
  • temporary measures to develop the wind park
  • the geographical dimension of the site and the cable route
  • the results of the meteorological and oceanographic survey, the soil survey, the ecological soil survey, the archeological survey and other ecological surveys.

To integrate the aforementioned interests and measures into the site decision, the Dutch State conducts a large number of surveys. The results of these surveys will be published in the site decision. Permit applicants therefore do not have to make an individual assessment of these aspects. Costs incurred by the State in relation to these surveys will ultimately be borne by the party that wins the tender.

The terms and conditions of the site decision shall to a large extent be location specific. The site decisions that have already been published include a number of specific pre-conditions for the wind park, such as the minimum rotor surface of individual turbines and the aggregate rotor surface of all wind turbines jointly, the maximum number of turbines that may be installed, the minimum and maximum capacity of the individual wind turbines, the minimum distance between the turbines, the minimum tip height and the maximum height and the permitted turbine foundations (other foundations may be permitted pursuant to an environmental impact assessment). Mitigation measures that have been included in the current site decisions include, for example: measures to reduce bird-wind turbine collisions; noise reduction requirements to avoid disruption of the habitat of porpoises, seals and fish; and the rotation of the turbine blades out of the wind in the event of large bird migration. Other mitigation measures may consist of noise reduction during pile driving to protect porpoises and seals, as well as measures to protect bats. Pursuant to the site decisions that have currently been published the permit holder is obliged to make demonstrable efforts to design and build the wind park in such a way that it actively enhances the sea’s ecosystem and contributes to the local and regional economy and to cooperate in the environmental monitoring and evaluation programme of the Minister of Economic Affairs.

4. Permit

Ultimately, the tender process will determine to whom a wind permit is granted to build an offshore wind park on a site that is designated pursuant to a site decision. The Offshore Wind Energy Act sets out the legal basis and the key requirements for the wind permits. The permit requirements are further elaborated on in the implementation regulation to this Act.

The wind permit will be a relatively concise document, since many issues that would generally be addressed in the permit will be included in the site decision.

A permit will only be awarded if the permit application sufficiently demonstrates that the development and operation of the wind park is achievable – it is technically, financially and economically feasible; can start within four years of the date on which the permit has become irrevocable; and complies with the site decision. These requirements are identical to the eligibility requirements in relation to the SDE+ subsidy.10 

For as long as subsidy is required for the development and operation of offshore wind parks,11 the wind permit application process is linked to the SDE+ subsidy application:

  • the wind permit procedure will coincide with the SDE+ subsidy procedure. The Minister will decide on the permit applications simultaneously with the SDE+ applications
  • wind permit applicants will need to comply with the applicable subsidy requirements
  • if more eligible permit applications are submitted, the Minister will issue the wind permit to the party that is awarded the subsidy.

The wind permit award is subject to objection and appeal proceedings. Objections must be filed within six weeks of the date of the award. Subsequently appeal can be filed within six weeks of the date of the decision on the objection.

Pursuant to the Offshore Wind Energy Act, the term for which the wind permit is granted shall not exceed 30 years.

The wind permit may be transferred to a third party with the consent of the Minister of Economic Affairs. Neither the Offshore Wind Energy Act nor its explanatory memorandum address the grounds for obtaining such consent. It is possible for two or more parties to jointly submit a permit application and to jointly become permit holder. A transfer by one of the joint permit holders of its share in the permit also requires the consent of the Minister. However, if one of the joint permit holders ceases to exist, this will not affect the validity of the permit, which will in that case be held by the remaining permit holders.

5. Grid connection

5.1 Offshore grid

The new offshore wind parks shall be connected to an offshore grid to be developed and operated by Dutch transmission system operator TenneT TSO.12 The offshore grid aims to realise a 40% cost reduction for the connection of the offshore wind parks and a 10% overall cost saving for offshore wind energy due to a reduction in investment costs, financing charges and maintenance costs as a result of synergy benefits, as well as cost savings for the wind parks due to the higher availability of the connection to the offshore grid.

For each of the five offshore wind tenders TenneT will construct a platform at sea. Each platform will connect two wind parks13 to the national onshore transmission system through two 220kV-cables, each cable providing a guaranteed capacity of 350 MW. Capacity in excess of 350 MW will not be guaranteed by TenneT. Pursuant to the Tender Regulations 2015 and 2016 it will, however, be allowed to exceed this capacity up to 380 MW14 (overplanting). The wind turbines will be connected to the TenneT platform through 66kV cables, making the Dutch offshore wind farms the first in the world to be connected by a voltage level of 66kV instead of 33kV.

5.2 Development framework and investment plan

In order to plan the investment in the offshore grid, the Dutch government deemed it desirable to provide guidance in the form of a development framework. This framework outlines the design and construction of the offshore grid and describes its main functional and technical requirements. It determines the duties of TenneT as offshore transmission system operator, provides the sequence of the development of the sites and sets the timetable for commissioning of the connection for the sites, as illustrated by the table below.

Click here to view table. 

On the basis of the development framework, TenneT draws up a bi-yearly investment plan setting out the envisaged investments, performance targets, deadlines and plans for capacity expansion. The investment plan has to be approved by the Dutch regulator, ACM.

TenneT shall in principle be compensated for the costs of the offshore grid through the regulated transmission tariffs. However, to avoid a substantial increase in the transmission tariffs, TenneT is granted a direct subsidy as compensation for its costs incurred in developing the offshore grid.

5.3 Realisation Agreement and Connection & Transmission Agreement

The operator of the wind park shall enter into a realisation agreement and a connection & transmission agreement with TenneT. The realisation agreement sets out the terms and conditions regarding the development of the connection for the wind park, addressing aspects such as the basic design and technical specifications of the connection and the TenneT platform, as well as operational arrangements and the exchange of information between TenneT and the wind park developer. Pursuant to this agreement, TenneT is obliged to realise the connection on or before the date set in the development framework. After the realisation of the connection, the relationship between the wind park operator and TenneT will be governed by the connection and transmission agreement.

Pursuant to these agreements, the implications of a delay or unavailability of the connection or the offshore transmission system will be solely addressed in the Electricity Act 1998.

5.4 Compensation for delay and unavailability

The Electricity Act 1998 and the Ministerial Order Offshore Electricity Grid Compensation Rules set out the liability regime applicable to TenneT in case of a delay in the completion of the offshore grid or the unavailability of the offshore grid. Pursuant to this liability regime, the wind park may be compensated for postponed revenues and consequential damages (including, inter alia, costs of mitigation measures, hiring additional equipment and staffing – but excluding financing costs, which are deemed to be included in the postponed revenues).

Damages due to delayed completion of the grid  A delay in the construction of the offshore grid is deemed to occur when the completion of the connection of the wind park and the system between the wind park and the onshore transformer station exceeds the completion date set out in the development framework. To qualify for damages, the foundation of the wind park has to be in place and the wind park operator is required to demonstrate that the wind park would have been ready to start operations, had it not taken measures to mitigate damages. A delay in the construction of (part of) the offshore wind park shall therefore affect the compensation payable by TenneT.

Postponed revenues are calculated based on the assumption that missed subsidy revenues due to the delayed completion will be received at the end of the subsidy period (banking to year 16) and missed electricity sales will be realised at the end of the lifetime of the park. On the basis of a discount rate of 7%, the postponed revenues are calculated as follows:

  • [(SDE+ Subsidy Amount – SDE+ Subsidy Amount/2.95) + (SDE+ annual electricity price pursuant to the SDE Decree – SDE+ annual electricity price pursuant to the SDE Decree /3.87)] x electricity that could not be transported.  Where:
    • The SDE+ Subsidy Amount is the base amount per kWh for which SDE+ subsidy has been granted pursuant to the SDE Decree minus the SDE+ electricity price applicable for that year pursuant to the SDE Decree.
    • The electricity that could not be transported is determined on the basis of the wind speed, and the electricity production profile of the wind park, while taking into account any interruptions in the production of electricity by the wind park due to delays, disruptions or maintenance, as well as any electricity that was transported through the grid. For this purpose a computation model will be set out in a ministerial order.

In this calculation missed electricity over a period of five days per year shall not be taken into account, since this period is deemed necessary for scheduled maintenance of the grid. By disregarding this period, wind park operators are encouraged to schedule their own maintenance as much as possible within the same period. The resulting damages will be increased with legal interest as of the occurrence of the damages.

Damages due to unavailability of the grid  In case of an interruption of transmission of electricity, the postponed revenues are calculated based on the assumption that missed subsidy revenues can be made up by production in later years. On the basis of the assumption that missed electricity production will be made up in a period of five years and a discount rate of 7%, the postponed revenues are calculated as follows:

  • [(SDE+ Subsidy Amount – SDE+ Subsidy Amount/1.4) + SDE+ annual electricity price pursuant to the SDE Decree] x electricity that could not be transported].

Missed electricity over a period of five days per year shall not be taken into account in the determination of postponed electricity sales and postponed subsidy revenues.

6. Decommissioning

Decommissioning shall take place in accordance with a decommissioning plan to be developed by the wind park operator. The Directorate General for Public Works and Water Management (Rijkswaterstaat), the competent authority in relation to the Water Act, is currently preparing guidelines for decommissioning.

Pursuant to the site decisions, decommissioning has to be started within two years after the operation of the wind park is discontinued and must be completed ultimately 30 years after the date on which the wind permit has become irrevocable. The wind park operator shall provide financial security for decommissioning in the amount of EUR 120,000 per MW, as of the start of the construction of the wind park. This amount shall be annually indexed (for the first 12 years resulting in an annual increase by 2%). The amount and index are subject to a periodic review by the Minister of Economic Affairs.