Policies Supporting Development
In 2011, the Encouraging Sustainable Energy Production (SDE+) subsidy was introduced for renewable energy, excluding offshore wind. This operating grant fills the gap between the market price of energy and the cost of electricity, heat, or gas produced in the renewable energy market. Each generating technique has a unique maximum allowed base tariff, and the cheapest option is granted first.
Applications can be submitted for the SDE+ throughout the year. Applications completed earlier in the year receive a lower SDE+ subsidy (but a higher chance for grant approval). In 2016, the total SDE+ budget increased from 3.5 billion EUR (3.7 billion USD) to 9.0 billion EUR (9.5 billion USD) Two rounds of land-based SDE+ tendering were completed during the year.
Offshore, the Netherlands has moved from one-by-one deployment to a system of constant deployment. The country installed 3,500 MW of new capacity across two wind farm zones (Borssele and Hollandse Kust), which was broken down into five 700-MW tenders. Each tender consisted of two parcels of 330–350 MW each. This plan fosters a culture of innovation, technique, and approach, and aims for offshore wind costs to fall by 40% compared to 2014.