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Eneco pulls out of recent tender and proposes new approach

By: Chloe Emanuel 02/04/2024 Eneco

Corporate General Turbines Windfarms

Eneco, along with its partner Equinor, has opted out of recent tenders due to structural flaws in the existing framework.
Eneco, a leader in sustainable energy solutions, announces a proposed shift in the approach to offshore wind contracts in response to evolving market conditions. With the current model facing challenges such as high interest rates, material costs, and market uncertainties, Eneco advocates for a more sustainable and future-proof strategy.

Key Highlights:

Introduction of Contract-for-Difference: Eneco proposes the introduction of a Contract-for-Difference mechanism to absorb price fluctuations, providing developers with certainty and fostering a responsible business environment.

Combined Tenders: Recognizing the need for innovation, Eneco suggests the introduction of combined tenders for wind and hydrogen projects at select offshore locations, promoting efficiency and integration within the energy landscape.

Background:

Eneco has been at the forefront of offshore wind development in the Netherlands, having successfully completed four operational parks and with ongoing projects in the pipeline. However, amidst changing dynamics in the market and evolving government regulations, Eneco, along with its partner Equinor, has opted out of recent tenders due to structural flaws in the existing framework.

Challenges and Proposed Solutions:

The current tender process, while initially successful in fostering innovation and sustainability, has shifted focus towards financial bids rather than qualitative criteria. Eneco emphasizes the need to prioritize social and environmental goals while ensuring cost-effectiveness.

Moreover, market conditions have posed significant challenges, including cost increases across the supply chain and uncertainties regarding electricity prices and sales volumes. Eneco calls for a revised approach that addresses these challenges while maintaining the momentum towards a sustainable energy transition.

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Eneco pulls out of recent tender and proposes new approach

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