Premium tariff (SDE+)

Updated: 09.01.2019

Author: Stijn Anciaux

The SDE+ scheme grants a premium on top of the market price to the producers of renewable energy in order to compensate for the difference between the wholesale price of electricity from fossil fuel sources and the price of electricity from renewable sources. The sum of the premium, paid on top of the market price, is variable and depends on the annual electricity market price development and is adjusted by a correction value accordingly (art. 13 (5) SDE+). The premium is paid for a period of up to 15 years. The support is made available in 2 stages with both 3 phases and is allocated on a ‘first come, first serve’ basis. The amount of the tariff increases with each stage, but since there is only one budget for the whole support scheme foreseen, applicants applying at a later stage run the risk of being rejected due to a lack of funds. In general, the SDE+ scheme gives an advantage to those applying for lower tariffs and at an early stage of the allocation process. The maximum base rate eligible under the SDE+ scheme corresponds to the maximum base rate in phase 6. For the first time in 2016, a two-stage application (both stages with three phases) procedure was available throughout the year. Thanks to the increased available budget and the amended application procedure for the SDE+, the Dutch government aims at coming one step closer to the 2020 goals of the EU for renewable energy. The two-stage procedure continued in 2017, with the first stage in March 2017 and the second stage in October 2017. The same procedure took place in 2018, with a first stage in March and a second in October.

Eligible technologies

In general, all renewable energy sources are eligible for the scheme. The support is made available in 2 stages both with 3 phases respectively. The eligible technologies differ at each stage. The regulation RAC 2018 describes the eligible technology categories  As confirmed by the Netherlands Enterprise Agency, all installations shall be completed and put into operation within 4 years after the application for support was granted. The premium tariff will be paid once the installation goes into operation.

Wind energy

Eligible.

Onshore wind: Eligible for all plants. Funding is provided based on the list of municipalities dived by average windspeed. (§ 3.1.3 art. 1 RAC 2018).

Replacement of existing plants are also eligible under the following conditions ((§ 3.1.3 art. 1 RAC 2018):

  • Nominal capacity of the wind turbines has to increase with 1MV at least.
  • Old turbines have to be in use for a minimum of 15 years at the time of replacement and at least 13 years before the subsidy request.

Wind in dams: Eligible (§ 3.1.4) with the same conditions as onshore wind installations.

Wind in lake: Eligible (§ 3.4 RAC 2014) for lakes with a minimum size of 1 km². Core of the plant has to be located at least 25 meters from the shore.

Offshore wind (in national waters and in the sea): no longer eligible under the SDE+ premium since 01.10.2014. Tendering procedures are available. 

Full-load hours of wind-energy plants vary from project to project based on the net P-50 values. (§ 5.1, art.41 RAC 2018)

Solar energy

Eligible.

The following PV installations are eligible, all with a maximum throughput value of 3*80A. of the connection to the electricity grid (§ 3.1.6 art. 14 RAC 2018):  

  • Installations with a capacity greater than or equal to 15KWp or smaller than 1MWp
  • Installations with a capacity greater than 1MWp. 

Funding is provided for a maximum of 950 full load hours per year (§ 5.1 art. 41 RAC 2018)

Biogas

Eligible.

Biogas fermentation: The following plants are eligible for support of a maximum of 8,000 full load hours (§ 3.2.1 art. 16 RAC 2018 in conjunction with § 5.2 art. 42 RAC 2018):

  • Plants producing biogas by all-fermentation.
  • Plants producing biogas by (co)fermentation of manure.
  • Plants producing biogas solely by fermentation of manure with a capacity lower than 400kW. 

Biomass gasification: (§ 3.2.3. art. 20 RAC 2018): Biomass gasification is eligible for 7,500 full load hours (§ 5.2 art. 42 RAC 2018) under the condition that at least 95% of the used fuel in the plant is biogenic.

RWZI Improved Sludge Fermentation (§ 3.2.2. art. 18 RAC 2018): Improvements of existing plants with an increase of minimum 25% in production of biogas per ton sludge are eligible for support up to 8,000 full load hours per year. (§ 5.2 art. 42 RAC 2018)

Extension of operating period of existing installation: No longer eligible under SDE+ premium since 2018. 

Hydro-power

Eligible in 2 categories (§ 3.1.1 RAC 2018). 

Head height of at least 50cm (art. 4 (b-c) RAC 2018): New plants are eligible for support for 5,700 full load hours per year (art. 41 RAC 2018). Renovated plants, in which at least the turbines have been renewed, are eligible for support for up to 2,600 full load hours per year (art. 41 RAC 2018).

Head height lower than 50cm (art. 4 (a) RAC 2018): Eligible for installations with a head height ≤ 50 cm, under this category can the use of free running water which has not been pumped specifically for the purpose of electricity production and the use of tidal power be placed. The maximum number of full load hours per year is 3,700 (art. 41 RAC 2018)

Osmosis: Eligible up to 8,000 full load hours per year (§ 3.1.2 RAC 2018 in conjunction with art. 41 RAC 2018)

Biomass

Eligible. Installations for the combined heat and power production from thermal conversion or fermentation of solid or liquid biomass as in NTA 8003:2008 (Dutch Technical Agreement) 

Fermentation CHP (§ 3.3.3. art. 26 RAC 2018)

  • Fermentation of all substances: Eligible for a maximum of 7,623 full load hours. (§ 5.3 art. 43 RAC 2018)
  • (Co)fermentation of animal waste: Eligible for a maximum of 7,322 full load hours. (§ 5.3 art. 43 RAC 2018)
  • Mono-fermentation: only animal waste ≤ 400kW: Eligible for a maximum of 6,374 full load hours. (§ 5.3 art. 43 RAC 2018)

RWZI Improved Sludge Fermentation CHP (§ 3.3.4. art. 28 RAC 2018): Improvements of existing plants with an increase of minimum 25% in production of biogas per ton sludge are eligible for support up to 5,729 full load hours per year. (§ 5.3 art. 43 RAC 2018)

Thermal Conversion CHP

  • Boiler liquid biomass:  Eligible for installations with a nominal thermal capacity higher than or equal to 0,5 MWth and a nominal electrical capacity smaller than or equal to 100 MWe. The following categories of biomass written down in the NTA 8003:2008 (Dutch Technical Agreement) are eligible for a maximum of 7,000 full load hours: 500,550, 573, 587, 592, 594, 596 and 802. (§ 3.3.5. art. 30 RAC 2018 in conjunction with § 5.3 art. 43 RAC 2018)
  • Boiler liquid or solid biomass: Eligible for installations with a nominal thermal capacity higher than or equal to 0,5 MWth and lower than 5 MWth. All categories of the NTA 8003:2008, except 100, 150, 170-179, are eligible up to 3,000 full load hours. (§ 3.3.6. art 32. RAC 2018 in conjunction with § 5.3 art. 43 RAC 2018)
  • Boiler on liquid or solid biomass: Eligible for installations with a nominal thermal capacity higher than or equal to 5 MWth, where at least 95% of the fuel used is biogenic. All categories of the NTA 8003:2008, except 100, 150, 170-179, are eligible, funding however is divided into tranches based on maximum full load hours, from 3,000 to 8,500. (§ 3.3.6. art 32. RAC 2018 in conjunction with § 5.3 art. 43 RAC 2018) 
  • Boiler industrial steam on wood pellets (§ 3.3.8, art. 36 RAC 2018) : Eligible for installations with a nominal thermal capacity higher than or equal to 5 MWth, where at least 95% of the fuel used is biogenic. The following categories are eligible for a maximum of 7,000 full load hours. (§ 5.3 art. 43 RAC 2018): 
    • Produced wood pellets as referred to by numbers 110-132 in the NTA 8003: 2003 (art. 36 (1) a RAC 2018)
    • Produced wood pellets as referred to by numbers 160-169 in the NTA 8003:2003 with a maximum of fifteen eighty-fifth part of the number of kWh that is eligible for subsidy in a calendar year, produced with biomass as referred to under a. (art. 36 (1) b RAC 2018)
  • Burner on wood pellets (§ 3.3.9, art. 38 RAC 2018): Eligible for installations with a nominal thermal capacity higher than or equal to 5 MWth and a nominal electrical capacity higher than or equal to 100 MW. The following categories are eligible for a maximum of 3,000 full load hours. (§ 5.3 art. 43 RAC 2018): 
    • Produced wood pellets as referred to by numbers 110-132 in the NTA 8003: 2003 (art. 38 (1) a RAC 2018)
    • Produced wood pellets as referred to by numbers 160-169 in the NTA 8003:2003 with a maximum of fifteen eighty-fifth part of the number of kWh that is eligible for subsidy in a calendar year, produced with biomass as referred to under a. (art. 38 (1) b RAC 2018)

Extension of operating period of existing installation: No longer eligible under the SDE+ premium since 2018.

Amount

The SDE+ scheme grants a premium on top of the market price to the producers of renewable energy in order to compensate for the difference between the wholesale price of electricity from fossil sources and the price of electricity from renewable sources. The sum of the premium, paid on top of the market price, is variable and depends on the annual electricity market price development and is adjusted by a correction value accordingly (art. 13 (5) SDE+). Moreover, the amount of support is different for each renewable energy generation technology. The maximum basic premium and the level of funding awarded in each of the 6 stages differ according to the technology and the plant size. 

Wind energy

Onshore:

Installations ≥ 8 m/s (no maximum full load hours)

  • Phase 1: €ct 5.4 per kWh
  • Phase 2: €ct 5.4 per kWh
  • Phase 3: €ct 5.4 per kWh

Installations ≥ 7.5 m/s and < 8 m/s (no maximum FLH)

  • Phase 1: €ct 5.9 per kWh
  • Phase 2: €ct 5.9 per kWh
  • Phase 3: €ct 5.9 per kWh

Installations ≥ 7.0 m/s and < 7.5 m/s (no maximum FLH)

  • Phase 1: €ct 6.4 per kWh
  • Phase 2: €ct 6.4 per kWh
  • Phase 3: €ct 6.4 per kWh

Installations < 7 m/s (no maximum FLH)

  • Phase 1: €ct 7.3 per kWh
  • Phase 2: €ct 7.3 per kWh
  • Phase 3: €ct 7.3 per kWh

Dams (‘primaire waterkering’) ≥ 8 m/s (no maximum FLH)

  • Phase 1: €ct 5.8 per kWh
  • Phase 2: €ct 5.8 per kWh
  • Phase 3: €ct 5.8 per kWh

Dams (‘primaire waterkering’) ≥ 7.5 m/s and < 8 m/s (no maximum FLH)

  • Phase 1: €ct 6.3 per kWh
  • Phase 2: €ct 6.3 per kWh
  • Phase 3: €ct 6.3 per kWh

Dams (‘primaire waterkering’) ≥ 7.0 m/s and < 7.5 m/s (no maximum FLH)

  • Phase 1: €ct 6.9 per kWh
  • Phase 2: €ct 6.9 per kWh
  • Phase 3: €ct 6.9 per kWh

Dams (‘primaire waterkering) < 7m/s (no maximum FLH)

  • Phase 1: €ct 7.7 per kWh
  • Phase 2: €ct 7.7 per kWh
  • Phase 3: €ct 7.7 per kWh

Wind in lake with area > 1 KM² (no maximum FLH)

  • Phase 1: €ct 8.5 per kWh
  • Phase 2: €ct 8.5 per kWh
  • Phase 3: €ct 8.5 per kWh

Solar energy

Photovoltaic solar cells ≥ 15 kWp and connection > 3*80A (maximum 950 FLH)

  • Phase 1: €ct 9.0 per kWh
  • Phase 2: €ct 10.6 per kWh
  • Phase 3: €ct 10.6 per kWh

Photovoltaic solar cells ≥ 1 MWp

  • Phase 1: €ct 9.0 per kWh
  • Phase 2: €ct 9.9 per kWh
  • Phase 3: €ct 9.9 per kWh

Biogas

Biogas:

Fermentation of all substances (maximum of 8000 FLH)

  • Phase 1: €ct 5.5 per kWh
  • Phase 2: €ct 5.5 per kWh
  • Phase 3: €ct 5.5 per kWh

(Co)fermentation of animal waste (maximum of 8000 FLH)

  • Phase 1: €ct 6.4 per kWh
  • Phase 2: €ct 6.5 per kWh
  • Phase 3: €ct 6.5 per kWh

Mono-fermentation: only animal waste ≤ 400kW ( maximum of 8000 FLH)

  • Phase 1: €ct 6.4 per kWh
  • Phase 2: €ct 7.8 per kWh
  • Phase 3: €ct 9.2 per kWh

Biomass gasification (maximum of 7500 FLH)

  • Phase 1: €ct 6.4 per kWh
  • Phase 2: €ct 7.8 per kWh
  • Phase 3: €ct 9.2 per kWh

RWZI improved Sludge Fermentation (maximum of 8000 FLH)

  • Phase 1: €ct 4.6 per kWh
  • Phase 2: €ct 4.6 per kWh
  • Phase 3: €ct 4.6 per kWh

Hydro-power

Head height ≥ 50 cm

New installations (maximum of 5700 FLH)

  • Phase 1: €ct 9.0 per kWh
  • Phase 2: €ct 11.0 per kWh
  • Phase 3: €ct 13.0 per kWh

Renovations with new turbine (maximum of 2600 FLH)

  • Phase 1: €ct 9.0 per kWh
  • Phase 2: €ct 10.0 per kWh
  • Phase 3: €ct 10.0 per kWh

Free running hydropower <50 cm and tidal power. New installations (maximum of 3700 FLH):

  • Phase 1: €ct 9.0 per kWh
  • Phase 2: €ct 11.0 per kWh
  • Phase 3: €ct 13.0 per kWh

Osmosis (maximum 8,000 FLH):

  • Phase 1: €ct 9.0 per kWh
  • Phase 2: €ct 11.0 per kWh
  • Phase 3: €ct 13.0 per kWh

Biomass

Thermal Conversion CHP: 

Fermentation of all substances (maximum of 7623 FLH) 

  • Phase 1: €ct 6.7 per kWh 
  • Phase 2: €ct 6.7 per kWh 
  • Phase 3: €ct 6.7 per kWh

(Co) fermentation of animal waste (maximum of 7322 FLH) 

  • Phase 1: €ct 6.8 per kWh
  • Phase 2: €ct 6.8 per kWh
  • Phase 3: €ct 6.8 per kWh

Mono-fermentation: only animal waste ≤ 400kW (maximum of 6374 FLH) 

  • Phase 1: €ct 9 per kWh
  • Phase 2: €ct 11 per kWh 
  • Phase 3: €ct 12.4 per kWh 

RWZI- Improved Sludge Fermentation (maximum of 5,729 FLH)

  • Phase 1: €ct 4.9 per kWh 
  • Phase 2: €ct 4.9 per kWh 
  • Phase 3: €ct 4.9 per kWh

Thermal Conversion CHP

Boiler liquid biomass ≥ 0,5 MWth and ≤ 100 MWe (Maximum of 7000 FLH)

  • Phase 1:  €ct 7.3 per kWh,
  • Phase 2: €ct 7.3 per kWh
  • Phase 3: €ct 7.3 per kWh

Boiler liquid or solid biomass ≥ 0,5 MWth and < 5 MWth (Maximum of 3000 FLH)

  • Phase 1:  €ct 5.5 per kWh
  • Phase 2: €ct 5.5 per kWh
  • Phase 3: €ct 5.5 per kWh

Boiler on liquid or solid biomass ≥ 5 MWth 

  • Phase 1,2,3:  €ct 5.0 per kWh, (Maximum of 5000 FLH)
  • Phase 1,2,3:  €ct 4.9 per kWh, (Maximum of 5500 FLH)
  • Phase 1,2,3:  €ct 4.8 per kWh, (Maximum of 6000 FLH)
  • Phase 1,2,3:  €ct 4.8 per kWh, (Maximum of 6500 FLH)
  • Phase 1,2,3:  €ct 4.8 per kWh, (Maximum of 7000 FLH)
  • Phase 1,2,3:  €ct 4.7 per kWh, (Maximum of 7500 FLH)
  • Phase 1,2,3:  €ct 4.7 per kWh, (Maximum of 8000 FLH)
  • Phase 1,2,3:  €ct 4.7 per kWh, (Maximum of 8500 FLH)

Boiler industrial steam on wood pellets ≥ 5 MWth (Maximum of 7000 FLH)

  • Phase 1:  €ct 6.6 per kWh
  • Phase 2: €ct 6.6 per kWh
  • Phase 3: €ct 6.6 per kWh

Burner on wood pellets ≥ 5 MWth and ≤ 100 MWe (Maximum of 3000 FLH)

  • Phase 1:  €ct 5.0 per kWh,
  • Phase 2: €ct 5.0 per kWh
  • Phase 3: €ct 5.0 per kWh

Addressees

Entitled party. Every producer is eligible for premium tariff, e.g. private individuals, companies and institutions that generate electricity from renewable sources (art. 8 par. 1 SDE).

Obligated party. The Netherlands Enterprise Agency, Rijksdienst voor Ondernemend Nederland is obligated to provide support.

Procedure

Process flow

In order to receive a premium tariff under the SDE+, a producer must apply (online) to the Dutch energy agency through the Netherlands Enterprise Agency, Rijksdienst voor Ondernemend Nederland.There are different stages (see below) for the specific categories and the open category.

Applicants may submit only one application per address on which the plant is planned to be installed per category (art. 2 (3) RAC 2018).

According to information from the Netherlands Enterprise Agency, applications are processed in order of receipt. The energy agency will decide on an application, i.e. on the award of a premium tariff, within three months.

Premium tariff under the SDE+ scheme is awarded only under the condition that the applicant presents certificates of origin to the Netherlands Enterprise Agency to prove that the electricity offered was generated from renewable sources (art. 1 (GGOEHE in conjunction with Article 1(1) RETO 2015).

Competent authority

Netherlands Enterprise Agency – Rijksdienst voor Ondernemend Nederland

Certificates of origin are issued, in line with the regulations specified in the GGOEHE, and examined by CertiQ, an independent body for the issue of certificates of origin in the Netherlands.

Degression

The base tariffs for the different categories of technologies are set on annual basis by the Minister of Economic Affairs and Climate Policy. The base tariffs should reflect the generation costs for the specific technologies. (art. 11 (1 and 2) SDE).

Cap

The scheme's budget is capped at € 6 billion for the autumn of 2018. Just like in 2017, a two-stage application procedure is available throughout the year 2018. The first stage took place in March and the second stage in October 2018. With two stages that both have 3 phases respectively more projects can be submitted. Thanks to the increased available budget and the amended application procedure for the SDE+, the Dutch government aims at coming one step closer to the 2020 goals of the EU for renewable energy. For the maximum number of eligible full load hours per year, please refer to the specific technology field under the eligible technologies. 

Eligibility period

Premium is paid for a period of 15 years starting at the date of commissioning of the plant in question (art. 7 SDE in conjunction with art. 5 (1), 9 (1), 11 (1), 13 (1), 15(1) RAC 2018). Support for the generation of biomass and biogas however, is paid for a period of up to 12 years (art. 7 SDE in conjunction with art. 17 (1), 19 (1), 21 (1), 27 (1), 29 (1), 31 (1), 33 (1), 35 (1), 39 (1) RAC 2018). There is one exception on this matter, boilers of industrial steam on wooden pellets receive a payment period of 8 years (art. 37 RAC 2018).

Distribution of costs

State

Costs are covered by the state budget. The Ministry of Economic Affairs and Climate Policy has provided funds amounting to € 6 billion for the SDE+ scheme in spring 2018 as well as autumn 2018 (art. 2 (1) RAC 2018). 

Netherlands

Further information

  • Rijksdienst voor Ondernemend Nederland (RVO) - Netherlands Enterprise Agency
  • +31 88 042 42 42
  • Agency's website

Basic information on legal sources