Launched in 2013 to compensate the renewable energy production price, Dutch 2018 SDE+ scheme is about to open. In 2018 and divided in 2 rounds, 12 billion should be made available by the Government.
The implementation of the Sustainable Energy Production (SDE +) Regulation in 2018 was announced on 6 December 2017 in the letter to the Dutch Parliament. The SDE+ is an exploitation subsidy, whereby the difference between the cost price of gray (fossil) energy and that of renewable energy is reimbursed over a period of up to 15 years. The amount of subsidy depends on the type and amount of renewable energy produced.
The SDE + accelerates the rollout of renewable energy. As in previous years, the SDE+ will open in 2018 for projects that generate energy from renewable sources such as wind, biomass, solar, geothermal and water.
Spring round
The budget for the SDE + spring round 2018 is of € 6 billion.
The first round runs from March 13th to April 5th, 2018. Just like in 2017, there will be one single integral budget for all technologies per round and each technology will compete for available properties on the basis of the cost price. 2018 Spring round will be divided in 3 phases:
- In the first week, only projects with a basic amount of up to € 9 cents / kWh can bid.
- The other two weeks gradually open up to more expensive projects up to 11 and € 13 cents / kWh.
A second round is expected to open in Autumn. The minister intends to make the same budget available final decision will be taken in June 2018.
Whether for Spring or Autumn round, applicants also have the possibility to apply for a subsidy in the so-called “free category”. Entrepreneurs are encouraged to submit projects for a lower amount than the maximum basic amount of the category in question and thereby have a better chance of receiving a subsidy. Initiators can the subsidy application even more specify on their business case.
Our analysis:
The Government is sending a positive signal as once again, about 12 billion are made available and dedicated to the development of renewable energy. Nevertheless, and having a look at the granted subsidy in 2017, the amount to be granted should have increased. Indeed, in 2017, more applications that budget available were made. As a consequence, many of these applications didn’t receive a subsidy, hopefully they will be considered now. In order for the Dutch market to reach its objective and truly support the development of renewable energy, the amount of subsidy made available need to increase, so more projects can be achieved.
