Description
The Development Fund for Energy Cooperatives (‘Ontwikkelfonds voor energiecoöperaties’) has been established by the Ministry of Economic Affairs of the Netherlands. EnergieSamen manages the Development Fund in collaboration with regional umbrella organizations and project offices. The Development Fund for Energy Cooperatives is dedicated to financing the early-stage development for wind and solar production projects, which are owned and developed by cooperatives in the Netherlands. The tool is meant to finance pre-development and development costs, which are often the most risky yet lowest cost of the project development. The fund works according to a “no gain, no fee” principle, also called a “loan to grant” scheme. Cooperatives can apply to get a loan from the fund to finance those early-stages. If the project is indeed successful, the cooperatives will reimburse the investment made by the fund, with interest. If on the other hand the project is unsuccessful for reasons outside of the control of the cooperative, the loan will be waived.
level of support
Regional
type of funding
Loans
Funding amount
Typically €30,000 to €100,000 (Depending on project need, typically up to 70% of the expenses associated with the development phase of the project (from idea to financial close).
Eligibility criteria
The Development Fund extends loans to energy cooperatives officially registered with the Chamber of Commerce. Even if a cooperative is still in the process of being established, it is encouraged to apply. The fund supports projects focused on the large-scale generation of wind or solar energy, with the requirement that the energy cooperative becomes a majority owner (at least 50%) of the corresponding wind or solar park. Eligible projects must be in the provinces of Drenthe, Limburg, Utrecht, Zuid-Holland, or the Achterhoek.
Application Process and Timeline
Cooperatives submit a project proposal outlining the development stage, feasibility, and expected outcomes. Decisions are typically made within 2-3 months. Approved cooperatives receive loans to cover up to 70% of project development costs, which are repayable once the project become successful and secures long-term funding.
Evidence Of Success
Since its establishment in 2021, the fund today represents 12 million euros of public money. Those funds are split at 50% between the budget of the Dutch federal government (ministry of the economy), and 50% from provincial funds from 4 of the 12 country's provinces. The fund is therefore active, and finances projects only in those provinces. The development fund has triggered a potential additional 100 million euros of debt financing in projects from ethical banks, however none of the projects currently funded reached financial close, as the scheme is still at an early stage. The fund has supported 23 projects across the 4 funding provinces.
Expert Opinion
The Development Fund for Energy Cooperatives and communities plays a critical role in helping small energy cooperatives overcome early-stage barriers. By covering essential development costs like feasibility studies and permits, it enables cooperatives to take their renewable energy projects from concept to reality. It’s ideal for those needing financial backing to de-risk and prepare projects for larger funding rounds.
