The new application round for the Dutch SDE++ grant starts on 28 June. Organisations like industrial companies and project developers are already busy preparing their applications. They often engage a partner such as EGEN, which has years of experience with this fairly complex scheme. We can, for example, implement a strategic study that can significantly improve the likelihood of a successful application. This article provides more information about this.
About the SDE++ grant scheme
With the ‘Sustainable Energy Transition Grant Scheme’ (SDE++) the Dutch government aims to promote CO2 reduction in companies and non-profit and for-profit organisations. This annually recurring scheme offers project developers compensation for the so-called ‘unprofitable component’ in the operation of sustainable energy generation installations, such as wind turbines, solar farms and industrial heat pumps. The more cost efficient the generation installation is in reducing CO2, the higher the likelihood that an SDE++ application will be successful.
Application round and submission strategy
This year’s SDE++ application round opens from 28 June (9:00 am) to 6 October 2022 (5:00 pm). A good application strategy is extremely important as this is the determining factor for an SDE++ project’s feasibility and returns. After all, applying for a higher grant amount leads to higher project returns, but simultaneously reduces the likelihood of a grant being awarded. It is therefore good to know what the competition is doing. This offers applicants an important strategic advantage in optimising their chances of submitting a successful SDE++ grant application.
Important questions in determining a good submission strategy are:
- What is the expected total SDE++ budget?
- For how much money are other project developers applying?
- Within which phase is it best to apply?
SDE++ Market Intelligence Study
EGEN provides insights into the above questions with the SDE++ Market Intelligence Study. We use this market study to predict total budgets per SDE++ category. We also analyse how much of the budget is claimed over time. The scheme comprises five submission phases, in which phase 1 contains the most cost-effective technologies, followed by phases 2, 3, 4 and 5. The Market Intelligence Study offers a sound basis for determining the optimal total budget for the application.
The 2022 SDE++ call for proposals has a grant budget of 13 billion euros. This is a considerable amount, but applicants must take into account that a significant proportion will be claimed by several extremely large projects, for example relating to carbon capture and storage (CCS). Experts are also expecting a lot of competition in projects relating to solar farms (particularly because many applications are expected).
If you’d like to know more about EGEN’s Market Intelligence Study and the advantages of our predictions, please contact one of our SDE experts.
NEWS UPDATE: On 4 May 2022, the new ‘SDE aanwijzingsregeling’ was officially published in the Dutch Government Gazette (Staatscourant). This publication contains the categories of production installations for which SDE++ grant can be applied for in 2022 (and the requirements that are attached to them). Those who are interested can find the text here (in PDF, Dutch only).