Nine geothermal projects seek funding under renewables grant scheme in the Netherlands

Drilling rig on site in the Netherlands (source: Daldrup & Söhne AG)
Alexander Richter 14 Nov 2017

Under the SDE+ renewable energy operating grant scheme more than 5,000 applications have been received by renewable energy developers, of which are 9 geothermal projects with a combined capacity of 264 MW.

With the Sustainable Energy Production Stimulation Scheme (SDE +), the Ministry of Economic Affairs and Climate (EZK) in the Netherlands wants to stimulate the production of renewable energy. As part of the second round for the SDE+ this fall, 5,783 applications for renewable energy projects have been received. The total subsidy budget requested amounts to over EUR9.9 billion ($12 billion).

We reported in September this year on the first round. Now, from 3 to 26 October 2017, companies and (non-profit) institutions were able apply for SDE + grants.

On 10 November 2017, Minister Wiebes informed the Chamber about the course of the second opening of the SDE + in the fall of 2017. currently evaluates applications based on the requirements of the scheme and reviews the projects on technical, financial and economic feasibility. The opening of the opening round of the opening round is expected in spring 2018.

Aanvragen_SDE plus_najaar_ 2017

For geothermal, 9 projects sought funding with an investment volume of together EUR 883 million ($1 billion) for a planned installed generation capacity of 264 MW.

The SDE+ essentially is an operating grant. The primary target groups for SDE+ are companies, institutions and non-profit organisations. The project must be realised in the Netherlands. The national government is excluded from participation. Private producers of renewable energy are not eligible for a SDE+ grant because the costs exceed the benefits. Other local or national incentive regulations sometimes apply.

There are two rounds of SDE+ applications in 2017. The SDE+ round of applications for spring 2017 is closed and has now been announced. The autumn round is open from 3 until 26 October 2017 5pm.

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 = base – correction sum. This makes the level of the SDE+ contribution dependent on energy-price developments. When the price of energy is high, you receive less SDE+ and more from your energy consumer. When the price of energy is lower, you get more SDE+ and less from the energy consumer. The correction amount is the average price of energy per category during the year of production. The base price of energy is the lower limit for the correction amount. The maximum grant is reached when the correction amount is equal to the base price of energy. The final payments are calculated per year on the amount of energy produced and the actual price of energy.

Source: RVO