The Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) will be open for this year from 28 June. Due to the high CO2 price and the extra budget announced by the previous cabinet on Budget Day, an opening budget of € 13 billion is available. The scheme will be opened 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 scaling up 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 SDE++ budget is considerably higher than in previous years. Due to the expectation that the European CO2 price (ETS) will be higher, less subsidy is required than expected for previously approved projects and a one-off € 2 billion extra budget is available. In addition, during Budget Day 2021, the cabinet decided to release an additional budget, allowing the opening budget to be increased by €6 billion on a one-off basis.* The higher opening budget means that more technologies and projects are eligible and CO2 emissions in the Netherlands can be reduced more quickly.
New categories and adjustments
Since 2020, the SDE++ scheme has been open to other CO2-reducing techniques in addition to renewable energy production. This year, the scheme will be opened to a number of new categories, such as hydrogen installations that are directly linked to wind or solar parks and electrification in industry through hybrid glass ovens.
In this round, geothermal heat projects (geothermal) are given longer time to realize the project after the subsidy application. This makes the SDE++ better suited to geothermal heat projects 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 under the Climate Agreement will be increased by 1,5 megatonnes. In addition, CCS projects will also be given one year longer to complete projects. The ceiling ensures that sufficient budget remains available for other techniques.
Opening rounds
The SDE scheme works with opening rounds. This means that techniques with a lower subsidy per tonne of CO2 can be submitted earlier and will therefore be discussed sooner.
| Opening round SDE++ 2022 | Phase limits €/ton CO₂ |
|---|---|
| June 28 | 65 |
| July 11 | 75 |
| 29 August | 105 |
| September 12 | 165 |
| 26 September to 6 October | 300 |
*The opening budget of the SDE++ scheme is the maximum amount for which subsidy applications can be approved in a specific round. The opening budget is always higher than the reserved amount in the budget (cash resources) because part of the subsidy is not necessary in practice. For example, due to rising energy or CO2 prices, which reduces the 'unprofitable top'. By working with a higher opening budget, the government prevents a lot of budget from being 'left on the shelf'.
Source: Rijksoverheid.nl
