The SDE++, the stimulation scheme for sustainable energy production and climate transition, is the main Dutch operating subsidy for renewable energy and carbon reduction. It does not fund the investment but compensates the unprofitable component: the difference between the cost price of the technology and the market revenue, paid out over a fixed operating period.
Statutory basis
The scheme rests on the Framework Act on economic affairs subsidies and the decree and ministerial regulation on the stimulation of sustainable energy production and climate transition. The Netherlands Enterprise Agency (RVO) administers the scheme and takes the decisions; objection and appeal follow the ordinary administrative route under the General Administrative Law Act.
How it works in practice
There is one opening round each year, divided into phases with rising subsidy intensity. Applications compete not on technology but on cost effectiveness: the ranking is by requested subsidy per tonne of carbon dioxide avoided, so cheap abatement is awarded first and the budget can be exhausted before the later phases. A grant obliges the recipient to realise the installation within a set period, and payment is based on actual production, corrected annually for the market price of energy.
Where it goes wrong
Most losses are procedural. A permit that is not yet irrevocable, a missing transport indication from the grid operator or an incomplete feasibility study leads to rejection without any assessment of the merits. After grant, the realisation deadline is the main risk: a project delayed by congestion or supply problems must apply in time for an extension, because the subsidy lapses automatically once the period expires. Finally, the correction for market prices is regularly underestimated in financial models, so the actual pay-out is lower than the headline figure.
Related terms
Guarantee of origin, grid congestion and power purchase agreement.
Has an application been rejected or is a realisation deadline approaching? Our energy lawyers handle objections and appeals and advise on the conditions.
