The construction of the world’s first zero subsidy offshore wind farms in coming years is expected to render coal-based power plants unviable in the Netherlands, leading to their closure much before an official ban on them begins in the country in 2030, GlobalData said.
The closure of these plants should lead to an increase in Dutch wholesale power prices, making the operation of the wind power projects at sea profitable even without the aid of subsidies, according to the analytics firm.
“Under the zero subsidy mechanism, the power generated from the offshore wind farm will be sold in the wholesale market instead of a continuous revenue scheme which locks in a fixed income,” said Mohit Prasad, project manager at GlobalData.
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