€ 8 billion available this year for sustainable energy and reduce CO2 emissions with SDE++ | News item

News item | 17-02-2023 | 13:30

Minister Jetten for Climate and Energy: “I am pleased that we can once again make a substantial budget available this year for scaling up the production of sustainable energy and other projects that structurally reduce CO2 emissions. This year, just like last year, there is again more budget available than in previous years. The €3 billion on top of the usual budget is expected to provide additional CO from 2030₂savings of about 1.5 megatons per year. This will allow as many sustainable projects as possible that are in preparation to start. This is not only necessary to accelerate sustainability and to achieve our climate goals. But also to reduce our dependence on the import of fossil fuels as quickly as possible.”

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This year, ‘fences’ will be introduced in the SDE++ scheme for the first time. With a fence around part of the budget, a minimum amount is reserved for a specific category. As a result, techniques that are less cost-effective in the short term, but are necessary for the energy transition in the longer term, are more often discussed. For this reason, the maximum subsidy within the fences will also be increased from €300 to €400 per tonne of CO.₂. The fences consist of three categories: Low-temperature heat (such as solar and aquathermal energy), High-temperature heat (such as ultra-deep geothermal energy and electric boilers) and Molecules (such as green gas and renewable fuels). € 750 million has been reserved for all three categories. Within the fences, the competitive principle continues to apply, whereby cost-effective projects are discussed earlier.

Categories and customizations

The SDE++ will be open again in 2023 for most categories that were also eligible in 2022. Including sun, wind, geo- and aquathermal energy, electric boilers, hydrogen and CCS. This year, the air-to-water heat pump, which uses heat from the outside air to heat water, will be added for the first time for companies and organisations. The ceiling for renewable electricity and CCS lapses, because this is no longer necessary with the arrival of the fences. The ceiling for renewable electricity will disappear from the SDE scheme, so that the production of solar and wind energy can grow along with the expected demand for sustainable electricity.

Opening rounds

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