New round of Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++)

From June 6, 2023, the Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) will open for this year. The SDE is the main scheme through which the government supports sustainable (energy) projects. An opening budget of €8 billion is available for 2023. If the full budget is applied for and realized, it is expected to deliver CO2 savings of 4 megatonnes by 2030.

Fences

This year, for the first time, 'fences' are being introduced in SDE++ scheme. With a fence around part of the budget, a minimum amount is reserved for a specific category. As a result, techniques that are less cost-effective in the short term, but are necessary in the longer term for energy transition, are given more consideration. For this reason, the maximum subsidy within the hashes is also being increased from €300 to €400 per ton of CO2. The hashes consist of three categories: Low-Temperature Heat (such as solar and aquathermy), High-Temperature Heat (such as ultra-deep geothermal and electric boilers) and Molecules (such as green gas and renewable fuels). €750 million has been set aside for all three categories. Within the gates, the competitive principle continues to apply with cost-effective projects being considered earlier.

Categories and adjustments

The SDE++ is open again in 2023 for most categories that were also eligible in 2022. Including solar, wind, geo- and aquathermal, electric boilers, hydrogen and CCS. This year, air-to-water heat pumps, which use heat from outdoor air to heat water, will be added for the first time for businesses and organizations. The cap for renewable electricity and CCS is eliminated, as it is no longer needed with the advent of the gates. The ceiling for renewable electricity disappears from the SDE scheme so that solar and wind energy production can grow along with the expected demand for renewable electricity.

More information? 

Would you like more information about the SDE++? For example, about the opening rounds?

Click the button below for the central government website.