Which obstacles are slowing down the Dutch offshore wind supply chain? And what is needed to make the sector future-proof? Commissioned by and in collaboration with Invest-NL, Ventolines conducted an in-depth study into the challenges and opportunities within the Dutch offshore wind chain. The results were published today (August 31th) in a joint report.
It goes without saying that offshore wind is burdened by difficult investment decisions. However, the underlying obstacles and the impact they have on the chain of Dutch suppliers are not always immediately apparent.
Based on interviews with relevant market parties, Ventolines and Invest-NL identified four interconnected obstacles that impair suppliers’ ability to contribute to offshore wind projects in a timely and sufficient manner. Key finding: Although many obstacles are not primarily financial in nature, they do translate into financial risks, pressure on balance sheets and credit lines, and reduced financial flexibility. Consequently, they limit timely investments in additional capacity and reduce the sector’s contribution to the execution of offshore wind projects.
Niels de Fijter, Head of Financial Advisory at Ventolines, sees the study as a good reflection of where we stand in the sector. “The failure of tenders and the lack of project starts are not only due to exploding construction costs and a delayed energy transition, but also to a complex interplay of mechanisms regarding supply chains, contracts, and finance. Addressing these obstacles requires not only government intervention but also active involvement from developers, suppliers, and financiers. Together, they must improve contracting practices, risk sharing, and investment conditions throughout the entire offshore wind energy value chain.”
Invest-NL commissioned Ventolines for this study due to its expertise in financial advisory combined with in-depth knowledge of the production and trading of sustainable energy, both nationally and internationally.
The report by Invest-NL and Ventolines can be downloaded here via the Invest-NL website.