Liberalizing the Dutch Electricity Market: 1998-2004

Abstract

We describe the evolution of the structure of the Dutch electricity market since the E-Act 1998 that implemented the first EU Electricity Directive. The initial idea of the government was to combine liberalization in supply with concentration in generation, with the attempt to create a national champion that could compete on the European market. As the producers could not agree, the attempt failed and competition could develop. The production side now is less concentrated than in several other EU countries and the competition authority has played an active role in keeping it that way, among others by means of its intelligent analysis of the Nuon-Reliant merger, in which a VPP auction was proposed as a remedy. In contrast, regulation of the network business cannot be considered a success as bad drafting of the law prevented effective incentive regulation. Finally, the liberalization of the retail market for green energy, in effect since July 2001, has shown that retail competition may not yield many consumer benefits.

Pioneering Renewable Energy in an Economic Energy Policy System: The History and Development of Dutch Grassroots Initiatives

“…The search for appropriate policy strategies was appointed to the Exploration Committee Energy Research, which fittingly called its 1996 report "Search for directions in a maze". In 1996, the government established the aim to achieve a 10% share of RE by 2020 [43] and sought collaboration with the market, mostly because a new, major complication had been added to the already complex sector: the EU plan to liberalize the energy market.…”

Social barriers in wind power implementation in The Netherlands: Perceptions of wind power entrepreneurs and local civil servants of institutional and social conditions in realizing wind power projects

“…We asked participants to reflect on statements with respect to social and institutional conditions in this operational process. The statements were derived from results of a literature study, from stakeholder's analyses of wind power planning processes 8 and from results of surveys conducted amongst different types of entrepreneurs. 9 We propounded 15 statements on institutional conditions and 15 statements on social conditions.…”

“…It is a supply side measure providing a fixed subsidy per kWh of domestically produced renewable electricity for a maximum of 10 years 3. For a detailed description of the liberalization of the Dutch electricity market over the period 1998-2004 is referred to Van Damme, 2005[8] 4. Nuon, a Dutch distributor sold 'Natuurstroom' (natural electricity), which consisted mainly of wind and solar electricity (both domestic and imported); biomass explicitly excluded.…”

“…Four representatives of energy distributors, 11 representatives of new independent wind power developers, nine representatives of small private investors and three wind cooperatives 7. Twelve provincial wind coordinators and 45 municipal civil servants in the fields of spatial planning, environment and/or energy 8. Results of the following two cases were used: 'solitary installations by small private investors in the municipality Zeewolde' and 'large-scale implementation by the energy distributor in the municipality Zeewolde' 9.…”

Dertig jaar privatisering, verzelfstandiging en marktwerking

“…Zo werd wetgeving aangenomen om marktwerking te introduceren in de telecom, de energiesector, de post en het openbaar vervoer. Bij de liberalisering van deze sectoren speelde eu-wetgeving een belangrijke rol, omdat vanuit de eu getracht werd een , maar Nederlandse liberalisering ging sneller, elektriciteitstransport en -productie moesten juridisch worden ontvlecht (in plaats van enkel boekhoudkundig, wat de eu voorschreef) en de netwerken moesten voor derden toegankelijk worden (Van Damme 2005).…”