Global menu

Our global pages

Close

The Netherlands renewable energy industry – EUR 12 billion subsidy scheme 2017

  • Netherlands

    06-12-2016

    On 30 November 2016 the Dutch Minister of Economic Affairs published the new subsidy model for the production of renewable energy in the Netherlands. The budget for 2017 is set at a total of EUR 12 billion.

    The Netherlands lags behind its national target for renewable energy sources. In 2020 at least 14% of the final energy consumption must come from renewables. In 2023 the share of renewables in final consumption must have increased to 16%. The Dutch government has implemented a variety of measures in order to meet these sustainability goals. The main support instrument for renewable energy in the Netherlands is the so-called SDE+ scheme.

    The SDE+ scheme is an operating grant, which provides producers of renewable energy financial compensation for the production of energy. The production of renewable energy is usually more expensive than the production of fossil energy. The difference between the cost price of fossil energy and renewable energy is the so-called unprofitable component. The SDE+ scheme compensates producers of renewable energy for the unprofitable component for a period of 15 years. The amount of SDE subsidy is dependent upon the development of the cost price of fossil energy. A high fossil energy price implies a low SDE+ subsidy, whereas a low fossil energy price implies that the renewable energy producer will receive a higher compensation from the Dutch government.

    The table below shows the maximum budget for the SDE+ scheme over the past years. It follows from this table that the total amount of support to renewable energy has increased considerably since 2011.

    Year

    SDE+ 2011

    SDE+ 2012

    SDE+ 2013

    SDE+ 2014

    SDE+ 2015

    SDE+ 2016

    SDE+ 2017

    Max. budget

    1.5
    billion

    1.7
    billion

    3
    billion

     

    3.5
    billion

    3.5 
    billion

    4 billion (spring)

    6 billion (spring)

    5 billion (autumn)

    6 billion (spring)

    Different types of renewable energy projects can apply for a SDE+ subsidy. For each category of renewable energy, specific requirements are laid down in the SDE+ scheme. Applications can be done for wind energy, energy production from biomass, co-firing of biomass, thermal conversion, fermentation, solar energy, geothermal energy and energy from water. Off-shore wind energy is not included in the SDE+ scheme, but will be tendered in a separate tender procedure.

    In its letter of 30 November 2016 to the Dutch Parliament the Minister published the maximum budget for SDE+ subsidies in 2017, as well as the specific subsidy amounts which are available for a particular category of renewable energy. It follows from the publication that on the one hand the subsidy amount per technology has been decreased, which is in line with the decreasing price of renewable energy in the Netherlands. On the other hand, the total amount of SDE+ subsidies has increased from EUR 9 billion in 2016 to EUR 12 billion in 2017. The larger SDE+ budget for 2017 provides more opportunities for renewable energy projects in the Netherlands. 

     

    Year

    SDE+ 2011

    SDE+ 2012

    SDE+ 2013

    SDE+ 2014

    SDE+ 2015

    SDE+ 2016

    SDE+ 2017

    Max. budget

    1.5 billion

    1.7 billion

    3
    billion

     

    3.5 billion

    3.5

    billion

    4 billion (spring)

    6 billion (spring)

    5 billion (autumn)

    6 billion (spring)

    Disclaimer

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

    < Go back

    Print Friendly and PDF
    Register to receive regular updates via email.