Supporting the Evolution of the Dutch Subsidy Scheme SDE++

Guidehouse provides analyses on CCS and electrification to Dutch Ministry of Economic Affairs and Climate

This month, the Dutch Ministry of Economic Affairs and Climate has sent a letter to the Dutch parliament to share details on the SDE++ regulation for 2020. SDE++ is a Dutch subsidy scheme to promote CO2 emissions reduction measures. The Ministry based its recommendations in part on three Guidehouse reports: an analysis regarding base levels (“basisbedragen”) for Carbon Capture and Sequestration (CCS), an assessment of the cost-effective alternatives to CCS (the so-called Sieve (“Zeef”) regulation), and an identification of industrial electrification technologies for future SDE++-rounds.

With the first analysis, Guidehouse supported PBL in calculating the SDE++ 2020 base levels for three CCS sub-technologies. The SDE++ advice provides the basis on which the Ministry determines the final volumes for CCS, to be announced in spring this year.

The Sieve is a set of selection criteria to ensure that CCS is only eligible for subsidy if no cost-effective alternatives are available to reduce the CO2-emissions. Guidehouse concluded that the Sieve should favor the use of biomass for heat and the direct use of CO2 over CCS in some applications. Furthermore, Guidehouse recommends updating the Sieve annually to reflect changing conditions.

In the third report, Guidehouse identified industrial electrification options to be potentially implemented in future SDE++ rounds. Three promising technologies were analysed: glass furnaces, electric crackers and electrification of drives. The team assessed the respective CO2-reduction potential, costs and possible implementation barriers for each technology.
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