Budget limit SDE++ 2021 round well exceeded

A preliminary result shows that €12 billion worth of subsidy has been applied for in the 2021 opening round of the Stimulation of Sustainable Energy Production and Climate Transition (SDE++) subsidy scheme. The available budget is €5 billion. This means that more applications have been submitted than is available.

In the SDE++ 2021, a total of 4,109 applications have been submitted. Together, these projects account for 7.26 megaton CO2 reduction per year. Subsidy applications for €12 billion have been submitted. The available budget is €5 billion.

Solar panels and CO2 capture and storage popular

The highest claim was submitted for CO2 capture and storage (CCS; €6.1 billion) and solar PV (€2.2 billion) projects. There is also interest this year in new technologies, such as advanced renewable fuels and CO2 capture and usage (CCU).

Wind energy

Six applications have been submitted for wind energy projects with a total capacity of 29 MW. The joint budget claim is 33 million.

Assessing applications

Due to the budget overwrite, a number of more expensive technologies may not qualify for subsidy. These are applications that were submitted at a later stage (The 2021 application round for the SDE++ scheme had four phases). The Netherlands Enterprise Agency, which implements the scheme, is currently assessing the applications submitted. The allocation of the budget is based on the moment of submission (first come, first served) and on the lowest subsidy intensity (the project with the lowest subsidy requirement per tonne of CO2). The projects are also validated for technical, financial and economic feasibility.

Adjustment of SDE++ scheme

The SDE++ scheme will be gradually adjusted in 2022 and 2023, as stated in the ‘Miljoenennota 2022’. The aim of this is for all sectors to be able to take steps towards energy transition in the coming years. In 2022, the budget for the scheme will be increased. The ceiling for CO2 capture and storage (CCS) will also be increased.

Holland Solar, The Dutch industry association for the solar industry, has already indicated in a reaction that it regrets the overbidding. Because of the criteria that are used to allocate the budget, the SDE++ round threatens to discourage market parties to develop new projects, it said, especially considering the discussion about the future of the SDE++ for solar and wind on land. This would impede structural sustainability. Holland Solar pleads for an adjustment of the scheme.

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