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