Mediators stuck between Regulations: The Role of Dutch Utility Companies in Phasing Out Fossil Fuels

Bram Donker

“The Dutch utilities can act as a mediator by coordinating parties in the energy system and providing them with knowledge to stimulate the energy transition. Besides this, new regulations are essential to provide the utilities with more operating space, enabling them to make a more significant impact in coordinating and executing the energy transition.”

Abstract

Countries worldwide are committed to reducing greenhouse gas emissions and phasing out fossil fuels. As the energy sector accounts for almost three quarters of global greenhouse gas emissions, this is one of the most important and largest sectors that is bound to make a sustainable transition. This energy transition is already ongoing. However, the Netherlands is relatively slow in this process compared to other European countries. Dutch utility companies are responsible for the energy infrastructure in the Netherlands. This infrastructure is a major component in the energy system that needs to be adjusted following the energy transition. This study examines the role of Dutch utility companies in phasing out fossil fuels and identifies the regulatory, infrastructural, and systemic challenges they face. Through a combination of literature review, document analysis, and interviews, the research finds that Dutch utility companies act as mediators between regulatory bodies, energy producers, and consumers. Their ability to accelerate the transition is constrained by strict regulations, such as yardstick competition, which limits financial flexibility and discourages large-scale investment in grid expansion. Additionally, infrastructural and institutional lock-ins hinder rapid adaptation to renewable energy. The findings suggest that a revision of existing regulations is necessary to provide utility companies with greater autonomy in facilitating the transition. While Dutch utilities have the technical capability to support a renewable energy system, policy adjustments are needed to enable them to take a more proactive role. Future research should explore the specific regulatory changes required to optimize the role of utility companies in the Dutch energy transition and critically assess their performance in meeting sustainability goals.

stay up to date

Interested in our latest results? Sign up for the newsletter.

About

The CLIFF project was financed by the European Research Council (ERC) Advanced Grant under the European Union's Horizon 2020 research and innovation programme.

 

Grant agreement: No. 101020082

Contact

+31 20 5254366

J.Gupta@uva.nl

Nieuwe Achtergracht 166, 1018 WS Amsterdam

Scroll to Top