SDE Outperformer for Renewable Energy Producers

Market revenue and subsidy cannot be viewed separately

For a renewable project operating under an SDE decision, electricity revenues form part of a wider subsidy calculation.

The SDE framework compensates an eligible project based on the difference between defined amounts within the subsidy methodology. The applicable correction amount represents expected market revenues and is used when determining subsidy payments.

That creates a commercial challenge: the revenue your individual asset actually realises in the market does not automatically equal the correction amount used in the subsidy calculation.

Production profile, market prices and imbalance can therefore influence the relationship between realised electricity revenues and the subsidy methodology.

SDE Outperformer is designed specifically around that relationship.

SDE Outperformer

What is SDE Outperformer?

Attero Wijster (4)

SDE Outperformer is an electricity offtake structure for applicable Dutch renewable projects operating under an SDE framework.

Rather than treating the subsidy and electricity contract as unrelated elements, the settlement structure is aligned with the applicable correction amount methodology.

Scholt Energy purchases the generated electricity and manages forecasting, scheduling, nomination, balancing and imbalance exposure within the agreed proposition.

The objective is a more predictable relationship between electricity settlement and the subsidy framework.

Because SDE rules differ by technology, application round and individual decision, eligibility and commercial treatment must always be assessed against the project's own subsidy conditions.

1.

Review the applicable SDE decision

The starting point is your project's subsidy position, technology, application round, production profile and relevant SDE conditions.

2.

Align electricity settlement

The settlement methodology for your production is structured around the applicable SDE correction amount.

3.

Scholt purchases your production

You continue to operate your solar or wind installation. Scholt Energy purchases the generated electricity and brings it to market.

4.

Scholt manages market responsibilities

We manage forecasting, scheduling and nomination and take responsibility for the agreed profile and imbalance exposure.

5.

Optimisation is considered within the subsidy rules

Where relevant and contractually agreed, balancing, congestion mechanisms or controlled curtailment can be considered. Any action must remain compatible with the project's applicable subsidy conditions.

The central value of SDE Outperformer is alignment.

Revenue alignment

Your electricity settlement is aligned with the applicable SDE correction methodology, reducing the commercial mismatch between your realised market value and the subsidy calculation.

Managed imbalance exposure

Scholt manages the agreed forecasting and imbalance exposure, reducing another source of short-term revenue variation.

Subsidy conditions still apply

Your actual subsidy entitlement remains governed by your individual SDE decision and applicable regulations.

Your SDE round matters

Rules differ between application rounds, including the treatment of negative electricity prices, net delivery and high market revenues.

Relevance

When is SDE Outperformer relevant?

This may be relevant if you...

operate a Dutch solar or wind project with an applicable SDE decision;
want electricity settlement to align more closely with the subsidy methodology;
want to reduce direct exposure to profile and imbalance differences under the agreed structure;
value predictable cash flows for an operating renewable asset;
want Scholt to manage forecasting, nomination and balancing;

A Full Flex PPA may be more suitable when you deliberately want greater wholesale-market exposure and control over hedging.

A CPPA may be more relevant when your commercial objective is longer-term revenue certainty linked to corporate renewable demand.

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Scholt connects your market position and subsidy context

You remain the owner and operator of the renewable installation and the beneficiary responsible for complying with your SDE decision.

Scholt Energy purchases the electricity and manages the agreed market activities around that production. These include forecasting, scheduling, nomination, balancing and imbalance management.

Where optimisation or curtailment is considered, we assess it within the applicable commercial and regulatory boundaries.

Scholt does not determine your subsidy entitlement. RVO and the applicable SDE decision remain leading for the subsidy framework.

From energy offtake to asset optimisation

Negative price periods, grid congestion and balancing needs increasingly affect renewable production.

For some assets, controlled curtailment or other flexibility can complement the offtake structure. Whether this is appropriate depends particularly on the asset's SDE decision, because subsidy treatment during negative-price periods varies between application rounds.

Flexibility should therefore be assessed as a separate optimisation layer rather than assumed as part of every SDE Outperformer contract.

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A proposition designed around SDE mechanics

The structure connects electricity settlement with the applicable correction methodology instead of treating market revenues and subsidy in isolation.

Forecasting and nomination

Scholt manages production forecasting, scheduling and nomination within the agreed structure.

Balancing responsibility

Profile and imbalance exposure covered by the proposition is managed by Scholt.

Renewable market expertise

We combine renewable offtake with day-to-day market activities and can assess relevant optimisation opportunities.

Flexibility capabilities

Where appropriate, Scholt can connect renewable assets to balancing and congestion mechanisms through its wider flexibility activities.

Does SDE Outperformer change my SDE subsidy?

No. Your subsidy remains governed by your individual SDE decision and applicable regulations. SDE Outperformer structures the commercial settlement of your electricity around the relevant subsidy methodology.

Does every SDE project qualify?

Not necessarily. Applicability depends on factors including technology, application round, subsidy decision and project configuration. These need to be reviewed before determining whether the structure fits.

What happens to imbalance risk?

Within Scholt's existing SDE Outperformer proposition, Scholt manages forecasting, balancing and the agreed profile and imbalance exposure.

What happens during negative electricity prices?

This depends strongly on your subsidy round and installation. Current SDE rules contain different negative-price provisions for different application years and installation categories. Your individual decision must therefore be checked before an operating or curtailment strategy is agreed.

Are Guarantees of Origin relevant to the SDE calculation?

For applicable solar and wind projects, RVO includes an annually determined GvO value in the correction amount. The commercial transfer and administration of the actual GvOs should be specified in the offtake agreement.

Can Scholt curtail my installation? Controlled curtailment can be relevant in specific circumstances where the contractual and regulatory framework allows it. Activation rights, commercial consequences and SDE treatment must be explicitly agreed rather than assumed.

Can SDE Outperformer be combined with battery storage? Potentially, but the subsidy treatment requires particular care. Electricity discharged from a battery does not automatically retain the same SDE treatment as directly generated renewable electricity. The project configuration should therefore be reviewed before combining storage and an SDE structure.

How does SDE Outperformer differ from Full Flex PPA? SDE Outperformer centres on alignment with the applicable SDE methodology and reducing defined revenue variability. Full Flex PPA centres on market participation, price exposure and strategic hedging.

Take action

Assess your SDE project in its full commercial context

Your preferred route to market depends on your production profile, existing contracts, risk appetite and the amount of price exposure you want to retain.

Share your asset and commercial objectives with our specialists. We can assess whether Full Flex PPA or another offtake structure is the better fit.

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Create more revenue predictability
for your SDE project

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Your subsidy and electricity revenues are closely connected. SDE Outperformer structures your electricity settlement around the applicable SDE correction methodology while Scholt Energy manages offtake, forecasting and balancing.

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Market revenue and subsidy cannot be viewed separately

What is SDE Outperformer?

How does SDE Outperformer work?