Last week, the Ministerial Order for Offshore Wind Energy 2016 (Regeling windenergie op zee 2016, the Order) by the Dutch Minister of Economic Affairs was published in the Dutch Gazette (Staatscourant). The Order contains the subsidy tender information for Borssele sites III and IV, which tender will open on 15 September 2016 and will close on 29 September 2016 at 5 PM (CET).

The nameplate capacity of the wind farms will be at least 331 MW and 351 MW for sites III and IV, respectively. The maximum tender amount is set at 11.975 Euro cents/kWh.

The SDE+ subsidy amount shall not exceed EUR 2.4 billion for site III and EUR 2.6 billion for site IV. The SDE+ subsidy floor price (the base electricity price) is equal to 3 Euro cents/kWh and the maximum number of full load hours shall be equal to the net P50 value of the full load hours stated in the application.

The subsidy will be granted under the conditions precedent that (i) a realization agreement (uitvoeringsovereenkomst) will be entered into, and (ii) a bank guarantee will be provided. Attached to the Order are a draft realization agreement and a precedent bank guarantee. The realization agreement states that a bank guarantee of EUR 10,000,000 has to be provided to the Dutch state by a bank holding residence in the European Union. It also states that a second bank guarantee in an amount of EUR 35,000,000 has to be provided.

Late commissioning of the wind farm will lead to the forfeiture of a penalty of EUR 3,500,000 per month. Being late in the provision of the second bank guarantee will lead to another penalty in the amount of EUR 10,000,000. Once the subsidy is granted, it can be withdrawn at the request of the party receiving the subsidy, but such a withdrawal will also lead to the forfeiture of a penalty of EUR 10,000,000.