Green electricity policy in the Netherlands: An analysis of policy decisions

Abstract

Over the last decades, fundamental changes in both market conditions and the national and international policy framework in the Netherlands can be observed. The Dutch Government has intervened in markets regularly, demonstrating fundamental shifts in policy and approach. This study aims to analyse the developments in renewable energy policy making in the Netherlands. It assesses changes in the choice of policy instruments and target groups, the role of stakeholders and offers explanations behind policy successes and failures. The following conclusions can be drawn on the policy choices: First, the objectives and targets of Dutch renewable energy policy were frequently ambiguous. Although the government emphasised the importance of investments in local capacity, imports were always (implicitly) seen as an alternative option in meeting targets. Second, for a long period the government focused on reducing investment costs and dismantling administrative barriers. Only recently has the lack of a stable investment climate been identified as a potential barrier. Third, although many stakeholders have advocated a mandatory approach, Dutch policies stimulating renewable energy have always been voluntary. Finally, the Ministry of Economic Affairs has always played a very dominant role in renewable energy policy formulation and implementation, which may explain the fact that some unfavourable market reactions to policies have not been foreseen.