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Stimulation of Sustainable Energy Production - SDE+

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Stimulation of Sustainable Energy Production (SDE+) is a subsidy for the production of renewable energy in the Netherlands in 6 categories: biomass, geothermal, water, wind (land, lake and flood defense) and sun. Renewable energy comes from clean and limitless sources. It is better for our planet, makes us less dependent on fossil fuels and benefits the economy.

What is SDE+?

SDE+ is an operating subsidy. Energy producers can receive financial compensation for the renewable energy they generate. It is not always profitable to produce renewable energy as the cost price is higher than the market price. This price difference is the unprofitable part. SDE+ compensates the unprofitable component for some years. The compensation depends on the technology used to create renewable energy. SDE+ is available for the production of renewable:

• electricity;
• gas;
• heat;
• heat and electricity combined.

For some installations producing energy with biomass, there is a system of controls in place to ensure that it meets criteria for sustainability.

SDE+ qualifications

  • SDE+ is for companies and non-profit organisations with renewable energy projects in the Netherlands;
  • The Dutch national government cannot take part;
  • Private producers do not qualify for this subsidy as their costs exceed the benefits.

Are you interested in SDE+? Read more on application and the step-by-step guide on our application page.

Tender rounds and budget

The 2020 SDE+ spring tender round is now closed. You can no longer apply for a subsidy.

2020 SDE+ spring tender round

On 19 December 2019, minister Wiebes announced his plans for the 2020 SDE+ spring tender round. The 2020 SDE+ spring tender round was open from 17 March 9 am CET to 2 April 5 pm CEST with a budget of €4 billion.

Phases 2020 SDE+ tender round

The 2020 SDE+ spring tender round has had 3 phases. The phase limits have been lowered compared to the 2019 SDE+ autumn tender round. To take account of cost price reduction and to allow sufficient competition between techniques.

 
2020 SDE+ springPhase limit renewable electricity and/or heat (€/kWh)Phase limit renewable gas (€/kWh*)

Phase 1
17 March 9:00 am CET to 23 March 17:00 pm CET

0.0700.049

Phase 2
23 March 17:00 pm CET to 30 March 17:00 pm CEST

0.0800.056

Phase 3
30 March 17:00 pm CEST to 2 April 17:00 pm CEST

0.1300.092

*The phase-limit for renewable gas has been corrected for the contribution to the sustainability objective (78.5%) and the factor lower/higher heating value of Groningen natural gas (31.65/35.17).

Transmission capacity indication

Your network operator can supply you with a transmission capacity indication. From 17 February 2020 on, it is possible to request a transmission capacity indication for the 2020 SDE+ spring tender round. Because the transmission capacity can change, a transportation indication from 2019 is not sufficient. The transmission capacity indication must be issued after 16 February 2020.
 
If you do not know who your network operator is, perform the check at www.eancodeboek.nl.

Grid operators

Approval from the location owner

Are you not the owner of the intended location? Then you are required to send a statement from the owner with your application. Stating that the owner of the location has given you permission to install and operate a production installation at the location during the duration of the subsidy. For this statement you can use the model statement 'Model toestemming locatie-eigenaar' which you can find on mijn.rvo.nl.

SDE+ cornerstones

One integral budget ceiling

One budget ceiling has been determined for all categories together for every SDE+ tender round. The budget is distributed according to the principle of first come, first serve. Subsidy applications involving the lowest production costs (base amount) can apply earlier.

Phased opening

SDE+ involves a phased release of funds; each phase has a maximum phase amount. The maximum phase amount increases after each phase. There is a maximum number of full-load hours per year for each technology for which the subsidy is available.

A maximum base amount

The SDE+ has a maximum base amount. Technologies that are able to produce renewable energy for this sum or less can be eligible for a grant.

Open category

Applications for subsidies less than the maximum base amount are the so-called open category. The subsidy amount in this category is less than the maximum phase amount, but higher than the base price for energy. Are you a renewable energy producer? Or do you want to become one? Then you can apply for amounts equal to multiples of a tenth of a eurocent per kilowatt-hour. This way, you can tailor your subsidy application closer to your business case.

SDE+ contribution

The cost price for the production of renewable energy is set in the base sum for the technology. The energy price is established in the correction sum. The SDE+ contribution is the base sum minus the correction sum. The level of the SDE+ contribution depends on the development of energy costs.

  • When the cost price for energy is high, you receive less SDE+ subsidy and more from your energy trader.
  • When the cost price for energy is low, you get more SDE+ subsidy and less from the energy trader.

The correction amount is the average price of energy per category during the production year. The base price for energy is the lower limit for the correction amount.

When the correction amount is equal to the base price for energy, we reach the maximum subsidy amount. We calculate the final subsidy amount per year. We base it on the amount of energy produced and the actual price of energy.

Banking of production

SDE+ allows for the option of banking. In case less sustainable energy is produced than predicted, you can use the difference in later years. Producers can also carry over any excess output to the following year.

The latest form of banking cannot be more than 25% of the subsidised yearly production of energy, except wind. The wind factor provides an alternative to banking in covering the operator's risk of losing out on subsidy.

This infographic (pdf) explains the banking system.

More information

Every year, we publish information brochures about the various rounds of SDE+ applications. Once the regulation on the 2020 SDE+ spring tender round is officially published, the SDE+ brochure will be updated.

Find older versions of the SDE+ brochures on our SDE+ publications page.

Information in Dutch: Stimulering Duurzame Energieproductie (SDE+).

2020: expanding SDE+ to SDE++

The 2020 SDE+ spring tender round was the last time the SDE+ subsidy will be awarded in its current form. After the 2020 SDE+ spring round, the SDE+ stimulation subsidy will be expanded to an incentive for sustainable energy transition (SDE++).