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Update SDE++ 2020 round

19/01/2021

By letter dated 14 January 2021 the Minister of Economic Affairs and Climate Policy published the first figures relating to the first ever SDE++ round. This is the first round of the Stimulation of Sustainable Energy Transition (SDE++), which has replaced the previous SDE+ scheme. The goal of the SDE++ scheme is to reduce CO2 and greenhouse gas emissions. As a consequence, technologies will no longer compete on the basis of amounts of renewable energy produced, but rather on the amounts of CO2 that have been avoided. 

For the SDE++ 2020 round a total budget of EUR 5 billion has been made available. The Netherlands Enterprise Agency received 4,112 subsidy applications for a total budget claim of EUR 6,4 billion. This is far less than the 7,562 applications that were received in the 2020 SDE+ spring round. However, the budget claim is far more than the EUR 4,1 billion budget claim during the 2020 SDE+ spring round. It may therefore be concluded that applications for larger projects have been submitted during this first SDE++ round. 

As was the case with the SDE+ scheme, solar is still the largest source, with 3,989 project applications for a total budget claim of EUR 2,4 billion. However, due to the broadening of the subsidy scheme, new technologies have been able to apply for subsidy under the SDE++ scheme, which is clearly reflected in the figures. For example, applications have been received for CO2-reducing production through carbon capture, utilisation and storage (CCUS) for a total budget claim of EUR 2,1 billion. In addition, applications have been received for CO2-reducing heat techniques, i.e. aqua thermal energy, e-boilers and heat pumps.

Below you will find an overview of the applications for the different energy sources. 

Category

No. of applications

Budget claim (in millions)

Capacity (in MW)

Solar

3,989

2,360

4,195

CCUS

7

2,135

329

E-boilers

27

618

563

Geothermal

6

355

125

Heat pumps

38

240

192

Biomass gas

8

215

55

Biomass heat / TES

5

139

50

Waste heat

5

137

88

Wind

16

100

107

Aqua thermal

4

96

68

Hydropower

1

2

2

Solar thermal

6

1

2

Total

4,112

6,397

5,776

The SDE++ scheme offers an operating premium feed-in tariff subsidy for renewable energy that aims to compensate the difference between the cost price of the technology and the market price of the avoided CO2. Priority is given to the applications with a lower cost price, so project developers are provided with an incentive to realize their projects at the lowest costs possible. The first application phase (up to EUR 65 / tonne of Co2) and the second phase (up to EUR 85 / tonne of Co2) mainly consisted of applications for CCUS and solar (i.a. large solar-PV systems on roofs). The third phase (up to EUR 180 / tonne of Co2) consisted mainly of applications for solar PV projects on fields and e-boilers. During the fourth and final phase (up to EUR 300 / tonne of Co2) mainly applications for geothermal and e-boilers have been submitted.

The results on the SDE++ 2020 round are expected end-spring 2021. As soon as those results become publicly available, we will update you accordingly.

Authors

Picture of Cecilia Weijden
Cecilia van der Weijden
Partner
Amsterdam
Marcellina-Rietvelt-CMS-NL
Marcellina Rietvelt
Advocaat
Amsterdam
Maurits-Rabbie-CMS-NL
Maurits Rabbie
Advocaat
Amsterdam