13 billion euros available for sustainable projects with SDE++ | news item

News item | 18-03-2022 | 15:30

From June 28, the Stimulation Scheme for Sustainable Energy Production and Climate Transition (SDE++) will be opened for this year. Due to the high CO2 price and the extra budget announced by the previous government on Budget Day, an opening budget of €13 billion is available. The scheme will be opened up to a number of new categories, including hydrogen linked to a wind or solar park.

Minister Jetten for Climate and Energy:

I am pleased that a substantial budget is available for the upscaling of renewable energy and other sustainable measures. This is not only necessary to become more sustainable more quickly and to achieve our climate goals. But also to reduce our dependence on the import of fossil fuels as quickly as possible.

Higher budget

The budget of the SDE++ is considerably higher than in previous years. Due to the expectation that the European CO2 price (ETS) will be higher, less subsidy is needed than expected for previously approved projects and a one-off € 2 billion extra budget is available. In addition, the cabinet decided during Budget Day 2021 to release an extra budget, which means that the opening budget can be increased once by € 6 billion. Due to the higher opening budget, more technologies and projects are eligible and CO2 emissions in the Netherlands can be reduced more quickly.

The opening budget of the SDE++ scheme is the maximum amount for which subsidy applications can be approved in a certain round. The opening budget is always higher than the amount reserved in the budget (cash resources) because part of the subsidy is not necessary in practice. For example, due to rising energy or CO2 prices, causing the ‘unprofitable top’ to shrink. By working with a higher opening budget, the central government prevents a large amount of budget ‘staying on the shelf’.

New categories and adjustments

Since 2020, the SDE++ scheme has also been open to other CO2-reducing techniques in addition to renewable energy production. This year, the scheme will be opened up to a number of new categories, such as hydrogen installations that are directly linked to wind or solar parks and electrification in industry by means of hybrid glass furnaces.

In this round, geothermal energy projects (geothermal energy) are given longer time to realize the project after the subsidy application. This makes the SDE++ more suitable for geothermal projects that are being developed in the Netherlands. Because CO2 capture and storage (CCS) has the potential to significantly reduce CO2 emissions in the short term, the ceiling for industry from the Climate Agreement will be raised by 1.5 megatons. In addition, CCS projects are also given an extra year to complete projects. Due to the ceiling, sufficient budget remains available for other techniques.

Opening rounds

The SDE scheme works with opening rounds. Techniques with a lower subsidy per tonne of CO2 can be submitted earlier and are therefore discussed earlier.

Opening round SDE++ 2022 Phase limits €/ton CO₂
June 2865
July 1175
August 29105
September 12th165
September 26 to October 6300

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