The Netherlands moves to CO2-based green energy subsidies in €5bn new push

Facebook
Twitter
LinkedIn
Reddit
Email
Minister Wiebes (first from the left) said the shift to CO2-based subsidies stems from a will to deliver Dutch GHG targets by 2030. Image credit: EU2016 SK / Flickr

Solar projects bidding for Dutch state support will for the first time see themselves ranked based on their potential to slash carbon dioxide (CO2) emissions, under plans reconfirmed this week.

On Monday, Dutch Economy and Climate minister Eric Wiebes confirmed the ability to slash emissions will be a core parameter of the €5 billion (US$5.41 billion) new wave of renewable energy subsidies set to launch this autumn, as the government had already announced in recent years.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The so-called SDE++ subsidy round – following its SDE+ predecessors, which did not account for CO2 emissions – will be open to PV, wind and many other renewable technologies and will have them compete based on how much state money they require to save per tonne of CO2 (tCO2).

In a letter to Dutch MPs, minister Wiebes explained actual bidding will take place through various stages between 29 September and 22 October 2020. Renewable projects requiring more than €300 (US$324) of subsidies to save one tonne of CO2 will be excluded in principle, the official said.

The ministerial letter offered numbers showing all solar segments lie below the €300/tCO2 threshold. The document assigned PV on buildings (>1MWp) a “subsidy intensity” of €90/tCO2, lower than ground-mounted (€116/tCO2) and floating solar (€175/tCO2) systems.

The actual solar subsidies will also differ on a segment-by-segment basis, the minister’s letter indicates. Ground-mounted PV systems on buildings will be offered basic incentive amounts of €0.069/kWh, rising to €0.074/kWh for PV on buildings and €0.08/kWh for floating installations.

‘Socially desirable’ PV carports in country of land scarcity

The shift to CO2-based incentives follows years of renewable subsidy splurge by the Dutch state. This year’s €5 billion of SDE++ money aside, the government has committed another €5 billion for 2020 carried over from the earlier SDE+ iteration, plus a €1.5-2 billion bonus round.

The transition will SDE++ will see the pot of government money expanded to encompass various emerging renewable technologies, including carbon capture and storage, hydrogen production through electrolysis, industrial residual heat and aquathermy.

According to Wiebes, the scope might be broadened even further in 2021, with green transport fuels and plastic recycling among the potential candidates. All these SDE++ changes stem, the minister said, from the state’s intention to deliver the country’s 49%-by-2030 emission curbing target.

For solar – which has vastly dominated past SDE+ rounds – the shift to SDE++ brings a certain refocusing on carport installations. Going forward, the country will be allowing these systems to bid for support as building-related plants, which are eligible for higher incentives.

The keenness to support what Wieber termed “socially desirable” carports comes as scrutiny builds on ground-mount PV, with worries by Dutch ministers, MPs and regulators that rapid growth may trigger land shortages and choke the grid in a small, densely populated country.

The Netherlands is not the first to embrace renewable subsidies accounting for CO2 reduction potential. In France, ground-mount and rooftop PV projects looking to compete in government auctions must certify their PV components as low-carbon.

The prospects and challenges of solar's new era in the Netherlands and the rest of Europe will take centre stage at Large Scale Solar Europe 2020 (Lisbon, on 31 March-1 April 2020).

2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

June 9, 2025
Sonnedix has signed a power purchase agreement (PPA) with Renfe to supply 420GWh of renewable energy annually for its commercial operations.
June 6, 2025
Eternal Sun has acquired German solar simulator provider Wavelabs, which has resulted in the formation of a new subsidy, Wavelabs Eternal Sun.
Premium
June 6, 2025
Europe must secure the 'strategic segments' of the solar supply chain, according to experts at a PV Tech panel at this year's Intersolar event.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 4, 2025
Independent power producer (IPP) Enlight Renewable Energy is expanding its Gecama Wind Project in Castilla La Mancha, Spain, by integrating solar PV and battery energy storage systems.
June 3, 2025
A joint venture featuring global oil major bp will begin construction on a 240MW solar PV project in Azerbaijan.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece