5 questions about investment impulse around energy transition

Item date:

21 July 2022

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Nieuws

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Photo: © Ruud Ploeg

 

For the first time since the energy crisis, the government is meeting the greenhouse horticulture sector halfway. The SDE subsidy is being adjusted and the EGH scheme is receiving extra money. Five questions about this investment impulse.

 

What was decided?

The Lower House has passed the motion for a temporary correction scheme on the Stimuleringsregeling Duurzame Energieproductie (SDE). The cabinet must now give hands and feet to this.

In addition, agriculture minister Henk Staghouwer has indicated that the Energy Efficiency and Renewable Energy (EGH) subsidy budget will be increased from 35 to 60 million euros.

 

What does the temporary correction of the SDE mean for greenhouse growers?

With this, the Lower House wants to prevent growers from unnecessarily burning additional natural gas and delaying the energy transition in greenhouse horticulture.

 

What about that?

The amount of the SDE subsidy is linked to the average market value for electricity. The higher the market value, the less subsidy agricultural entrepreneurs receive.

At the moment, due to high energy prices, it is more interesting for entrepreneurs to generate electricity with a cogeneration installation - which runs on natural gas - and to deliver it to the grid, than to invest in sustainable energy solutions. The Lower House wants to turn that around.

 

What does the extra amount for the EGH scheme deliver to the greenhouse horticulture sector?

The government wants even more growers to take investment measures to save fossil energy. This is of great importance in this gas crisis. The scheme includes, for example, investments for sustainable LED lighting. With the decision to increase the EGH subsidy budget, the Rijksdienst voor Ondernemend Nederland is taking up the processing of applications again.

This does not mean that all applications can be accepted. According to Glastuinbouw Nederland the willingness of growers to invest is high. Moreover, the agriculture minister must still consult with his colleague from the Ministry of Finance in order to release the promised extra budget. A concrete commitment is not expected before September.

 

Are we there?

Glastuinbouw Nederland does not think so. First, the association warns that the extra budget comes too late for growers who want to make investments for the coming growing season. In addition, Staghouwer has still not arranged an extension to the agricultural guarantee for greenhouse horticulture.

Also, the minister has not yet taken advantage of the European Commission's support package. Nor has he shown any interest in the investment plan handed over by the sector.

 

Source: newharvest