Review of the Dutch SDE plus Renewable Energy Scheme

In the National  Energy Agreement it was agreed that there needs to be a substantial increase in the share of renewables in the energy mix. At the moment the main policy instrument to this end is the SDE+ Renewable Energy Incentive Scheme. This compensates the difference between the cost price of a renewable energy project and the market value of its energy output: the so-called ‘inefficient top’. In this way the SDE+ scheme seeks to incentivize the roll-out of renewable energy technologies. 
 
In this study, commissioned by the Dutch Ministry of Economic Affairs, CE Delft and SEO Economisch Onderzoek review the efficacy and cost-effectiveness of the SDE+ over the period 2011-2015. The overall conclusion is that this instrument is better designed than the preceding subsidy schemes MEP and SDE. Without SDE+-funding, much of the output from SDE+-subsidized projects would probably not have materialized. There is potentially scope for improving implementation of the scheme, though: among other things, more allowance could be made for the specific characteristics of the various biomass markets. 

Review of the Dutch SDE plus Renewable Energy Scheme (only available in Dutch)

Authors CE

Martijn Blom
Ellen Schep
Robert Vergeer
Lonneke Wielders

Delft, November 2016