SDE++ opens from 28 June, 13 billion euros to be distributed

25/03/2022

The SDE++ (Stimuleringsregeling Duurzame Energieproductie en Klimaattransitie, Sustainable Energy Production and Climate Transition Incentives Scheme), is reopening for grant applications from 28 June to 6 October 2022. The funds available for distribution total 13 billion euros – substantially more than in previous years!

New categories and amendments

Since 2020, the SDE++ grant has not only been intended for the production of renewable energy (electricity, gas, heat), but also for the application of other CO2-reducing technologies. In 2022, the scheme will expand to include a number of new categories, such as hydrogen plants directly linked to wind or solar farms, and electrification in industry by means of hybrid glass furnaces.

Because CO2 capture and storage (CCS) has the potential to significantly reduce CO2 emissions in the short term, the ceiling for industrial CCS projects is being increased by 1.5 megatons. CCS projects will also be granted an extra year for realisation.

In this round, geothermal projects will also receive more time for realisation following the grant application. This means that the SDE++ is a better fit for Dutch geothermal projects.

Substantially higher budget

At 13 billion euros, the SDE++ budget for 2022 is substantially higher than it has been in previous years. In 2021, the budget was still only five billion euros.

On Prinsjesdag 2021, the cabinet at the time announced an initial budget increase of three billion euros. This increase later rose to six billion euros. In addition, the European CO2 price (ETS) is expected to be higher than first presumed, which means that less grant funding will have to be paid out to previously approved projects. This windfall provides an additional two billion euros for the budget.

The higher opening budget means that more technologies and projects are eligible for grants. This will eventually lead to a significant reduction in CO2 in the Netherlands.

Opening of the 2022 round

SDE++ 2022 is set to open on Tuesday 28 June at 9:00 am and will close on Thursday 6 October at 5:00 pm. An additional criterion is that funding for technologies with a lower grant intensity – that is, a lower grant amount per tonne of CO2 – can be applied for earlier, and will therefore be addressed earlier. The 2022 phases are as follows:

  • Phase 1 – 65 euros per tonne of CO2: 9:00 am on 28 June to 5:00 pm on 11 July
  • Phase 2 – 75 euros per tonne of CO2: 5:00 pm on 11 July to 5:00 pm on 29 August
  • Phase 3 – 105 euros per tonne of CO2: 5:00 pm on 29 August to 5:00 pm on 12 September
  • Phase 4 – 165 euros per tonne of CO2: 5:00 pm on 12 September to 5:00 pm on 26 September
  • Phase 5 – 300 euros per tonne of CO2: 5:00 pm on 26 September to 5:00 pm on 6 October

This system ensures that the grant money goes to projects with the best cost efficiency (measured by the amount of CO2 emissions avoided). EGEN’s consultants will be happy to advise you on the best application strategy and timing. Make no mistake: even though the opening may seem a long way off, thorough preparation takes time. The turnaround times for permit procedures alone are important to take into account. We therefore advise you to get started soon!

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