Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-12-03T20:37:17.077Z Has data issue: false hasContentIssue false

Sharing Energy

Dealing with Regulatory Disconnection in Dutch Energy Law

Published online by Cambridge University Press:  20 January 2017

Anna Butenko*
Affiliation:
Energy Law and Economics, Amsterdam Center for Energy, University of Amsterdam and Tilburg Law and Economics Center (TILEC), Tilburg University, [email protected].

Abstract

The sharing economy has become a reality in many sectors, including energy. Energy consumers are increasingly able and willing not only to produce their own energy and thus become prosumers, but also to sell this energy on the local or national energy market along with ‘traditional’ energy market players. Thus, the role of prosumers is de facto extended as to include the parallel roles of consumers, producers, suppliers and traders. Against this background, this article inquires whether it is possible for prosumers to share energy under the current Dutch regulatory framework. This question has been evaluated from the theoretical perspective of the regulatory disconnection between innovation and regulation.

Type
Special Issue on the Risks and Opportunities of the Sharing Economy
Copyright
Copyright © Cambridge University Press 2016

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

2- Miller, Stephen R., ‘First Principles for Regulating the Sharing Economy’ (2016) 53 Harvard Journal on Legislation 156 Google Scholar.

3- Edelman, Benjamin G. and Geradin, Damien, ‘Efficiencies and Regulatory Shortcuts: How Should We Regulate Companies like Airbnb and Uber?’ (2016) 19(2) Stanford Technology Law Review 1 Google Scholar.

4- Ranchordás, Sofia, ‘Does Sharing Mean Caring? Regulating Innovation in the Sharing Economy’ (2015) 16 Minnesota Journal of Law, Science & Technology 414 Google Scholar; Edelman and Geradin (n3).

7- See <https://www.taskrabbit.com/about>, accessed 2 November 2016.

8- The definitions of sharing economy extectedly differ, but most of them refer to an economic model, in which people are able to use (e.g. rent, borrow) assests owned by other people, who systematically have excess capacity of such assets, possess a ‘sharing attitude or motivation’, and for whom ‘transaction costs related to the coordination of economic activities within specific communities are low’. See Ranchordás (n4), at p. 4.

9- Lavrijssen, Saskia Anna Catharina Maria, ‘The different faces of the energy consumers: Towards a behavioral economics approach’ (2014) 10(3) Journal of Competition Law and Economics CrossRefGoogle Scholar.

10- Bommel, Simone Pront-van, ‘De elektriciteitsconsument centraal?’, in Bommel, Simone Pront-van (ed.), De consument en de andere kant van de elektriciteitsmarkt, (Centrum voor Energievraagstukken, Universiteit van Amsterdam, 2010)Google Scholar.

11- Lavrijssen (n9).

12- Huygen, Annelies, ‘De consument en de (on)vrije elektriciteitsmarkt’, in Bommel, Simone Pront-van (ed.), De consument en de andere kant van de elektriciteitsmarkt, (Centrum voor Energievraagstukken, Universiteit van Amsterdam, 2010)Google Scholar.

13- Huygen (n12).

14- Lavrijssen (n9).

15- Lavrijssen (n9).

16- Commission Staff Working Document, Best practices on Renewable Energy Self-consumption, Brussels, 15.7.2015, SWD(2015) 141 final; Sociaal- Economische Raad, Energieakkoord voor duurzame groei, available online (in Dutch) <http://www.energieakkoordser.nl/energieakkoord.aspx>, accessed 2 November 2016.

17- Best practices on Renewable Energy Self-consumption (n16).

18- Brownsword, Roger and Goodwin, Morag, Law and Technologies of the Twenty-First Century, (Cambridge University Press 2012)CrossRefGoogle Scholar; Brownsword, Roger and Somsen, Han, ‘Law, Innovation and Technology: Before We Fast Forward-A Forum for Debate’ (2009) 1(1) Law, Innovation and Technology Google Scholar.

19- Butenko, Anna and Larouche, Pierre, ‘Regulation for Innovativeness or Regulation of Innovation?’ (2015) 7(1) Law, Innovation and Technology Google Scholar.

20- Lavrijssen (n9).

21- Pront-van Bommel (n10), at p. 24.

22- Huygen (n12), at p. 101.

23- Whereas the focus of the current paper is on the prosumers producing electricity (as it is a more frequent occurence), it is noted that prosumers could also produce gas, for example by the means of producing biogas at their farm, and upgrading it to biomethane, with quality equivalent to natural gas.

24- See <http://www.hieropgewekt.nl/faq-page#n2305>, accessed 2 November 2016; <http://www.hieropgewekt.nl/initiatieven>, accessed 2 November 2016.

25- Rijksoverheid, Visie lokale energie, 8 November 2013, available online (in Dutch) at <https://www.rijksoverheid.nl/documenten/rapporten/2013/11/08/visie-lokale-energie>, accessed 2 November 2016; Netbeheer Nederland, De Proeftuin ‘Decentrale Duurzame Collectieven’, Van realisatie naar de toekomst. Energieke burgers, duurzaam decentraal en de betekenis voor de netbeheerders en netbeheer, 30 September 2013, available online (in Dutch) at <http://nbn-assets.netbeheernederland.nl/p/32768//files/Onderzoek%20Decentrale%20Markten.pdf>, accessed 2 November 2016.

26- Self-sufficiency means that self-generation of the prosumers covers 100% of their energy demand (e.g. on a yearly, monthly, daily basis). Best practices on Renewable Energy Self-consumption (n16).

27- Self-consumption refers to the share of self-generation that is instantly (at the moment of production) consumed by the prosumers. Best practices on Renewable Energy Self-consumption (n16).

28- Self-consumption usually does not exceed 30% for small and medium consumers in the absence of local energy storage. Visie lokale energie (n25), at p. 3.

29- Best practices on Renewable Energy Self-consumption (n16), at p.2.

30- The prosumers have no financial incentive to balance their production and consumption and instead pass the imbalance to the market parties (e.g. energy suppliers), who assume the the balancing responsibility on their behalf. The costs incurred by market parties on behalf of the prosumers are recovered through the energy price paid by the final energy consumers. See Simone Pront-van Bommel and Gerrit Buist, Balanceren - naar een nieuw evenwicht tussen aanbod en vraag in energie, (Centrum voor Energievraagstukken, Universiteit van Amsterdam, 2014), available online (in Dutch) at <http://dare.uva.nl/record/1/434359>, accessed 2 November 2016.

31- Congestion is addressed by the distribution system operators (DSO), who finance the grid expansion and renovation though the socialized network tariffs paid by the energy consumers as part of their energy bill.

32- Pront-van Bommel and Buist (n30).

33- Best practices on Renewable Energy Self-consumption (n16), at p. 6.

35- Of course other types of consumers could also have a preference for local sustainable energy, while not being prosumers themselves.

36- De Proeftuin ‘Decentrale Duurzame Collectieven’ (n25).

37- Kedia, Simi and Kedia, Xing Zhou, ‘Local market makers, liquidity and market quality’ (2011) 14(4) Journal of Financial Markets 4 Google Scholar.

38- Competition Policy Brief, Market definition in a globalised world, Issue 2015-12, March 2015, at p. 4, available online at <http://ec.europa.eu/competition/publications/cpb/2015/002_en.pdf>, accessed 2 November 2016.

39- Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Progress towards completing the Internal Energy Market, COM(2014) 634; Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank, Energy Union Package, A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy, Brussels, 25.2.2015, COM(2015)80 final; Best practices on Renewable Energy Self-consumption (n16).

40- Best practices on Renewable Energy Self-consumption (n16).

41- Best practices on Renewable Energy Self-consumption (n16), at p.3.

42- Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions, Delivering a New Deal for Energy Consumers, Brussels, 15.7.2015, COM(2015) 339 final, at p. 6.

43- Künneke, Rolf W. and Groenewegen, John, ‘Challenges for readjusting the governance of network industries’, in Künneke, Rolf W., Groenewegen, John and Auger, Jean-François (eds), The governance of network industries. Institutions, technology and policy in reregulated infrastructures, (Edward Elgar Publishing 2009)Google Scholar.

44- Marchant, Gary E., Abbott, Kenneth W., Allenby, Braden R. (eds), Innovative Governance Models for Emerging Technologies, (Edward Elgar Publishing 2013)CrossRefGoogle Scholar; Marchant, Gary E., Allenby, Braden R., and Herkert, Joseph R. (eds), The Growing Gap between Emerging Technologies and Legal-Ethical Oversight. The Pacing Problem, (Springer 2011)CrossRefGoogle Scholar.

45- Brownsword and Goodwin (n19); Brownsword and Somsen (n18).

46- Moses, Lyria Bennett, ‘How to Think about Law, Regulation and Technology: Problems with ‘Technology’ as a Regulatory Target’ (2013) 5(1) Law, Innovation and Technology 1 CrossRefGoogle Scholar.

47- Moses, Lyria Bennett, ‘Agents of Change: How the Law ‘Copes’ with Technological Change’ (2011) 20(4) Griffith Law Review 1 Google Scholar.

48- Brownsword and Goodwin (n19); Bennett Moses (n48); Koops, Bert-Jaap, ‘Ten Dimensions of Technology Regulation: Finding your Bearings in the Research Space of Emerging Technologies’, in Goodwin, Morag, Koops, Bert-Jaap and Leenes, Ronald (eds), Dimensions of Technology Regulation, Conference proceedings of TILTing Perspectives on Regulating Technologies, (Wolf Legal Publishers 2010)Google Scholar.

49- Ranchordás, Sofia, Constitutional Sunsets and Experimental Legislation: A Comparative Perspective, (Edward Elgar Publishing 2014)CrossRefGoogle Scholar.

50- Brownsword and Goodwin (n18).

51- Hirschman, Albert O., The Rhetoric of Reaction: Perversity Futility Jeopardy, (Belknap Press 1991)Google Scholar.

52- Baldwin, Robert, Cave, Martin, and Lodge, Martin, Understanding Regulation. Theory Strategy and Practice, (Oxford University Press 2012) 73 Google Scholar.

53- Baldwin, Cave and Lodge (n52) at 73.

54- Baldwin, Cave and Lodge (n52) at 73.

55- Butenko and Larouche (n19).

56- Butenko and Larouche (n19).

57- Butenko and Larouche (n19).

58- See Sunstein, Cass, Laws of Fear: Beyond the Precautionary Principle, (Cambridge University Press 2005)CrossRefGoogle Scholar; Harding, Ronnie and Fisher, Elizabeth, Perspectives on the Precautionary Principle (Federation Press 1999)Google Scholar.

59- Risk-based regulation generally refers to ‘the prioritizing of regulatory actions in accordance with an assessment of the risks’ and the goal of such regulation is ‘principally to control relevant risks, not to secure compliance with sets of rules’. See Baldwin, Cave and Lodge (n52).

60- Ranchordás (n49).

61- Butenko and Larouche (n19); Bennett Moses (n46); Koops, Bert-Jaap, ‘Should ICT Regulation be Technology-Neutral?’, in Koops, Bert-Jaap, Lips, Miriam, Prins, Corien, Schellekens, Maurice (eds), Starting Points for ICT Regulation. Deconstructing Prevalent Policy One-liners, (Asser Press 2006)CrossRefGoogle Scholar.

62- Butenko and Larouche (n19).

63- Brownsword and Goodwin (n18).

64- Mandel, Gregory N., ‘Regulating Emerging Technologies’ (2009) 1(1) Law, Innovation and Technology 75 Google Scholar.

65- Mandel, Gregory N., ‘Emerging technologies governance’, in Marchant, Gary E., Abbott, Kenneth W., Allenby, Braden R. (eds), Innovative Governance Models for Emerging Technologies, (Edward Elgar Publishing 2013)Google Scholar; Bowman, Diana M., ‘The hare and the tortoise: am Australian perspective on regulating new technologies and their products and processes’, in Marchant, Gary E., Abbott, Kenneth W., Allenby, Braden R. (eds), Innovative Governance Models for Emerging Technologies, (Edward Elgar Publishing 2013)Google Scholar.

66- Regulatory reforms presume ‘enacting entirely new regulatory regimes or substantially overhauling existing laws’. See Mandel (n65).

67- Regulatory update refers to the change in regulation, introduced to accommodate a change in technology, which is not paired with the change in societal norms and values. See Bennett Moses (n48).

68- Visie op lokale energie (n25) at 3.Total electricity demand in the Netherlands amounted to 412,47 PJ in 2013 according to CBS, see <http://statline.cbs.nl/StatWeb/publication/?DM=SLNL&PA=70846NED>, accessed 2 November 2016

69- Energieakkoord voor duurzame groei (n16).

70- This is a policy vision statement of the government, and it therefore does not have the status of a legal document. Visie Lokale Energie (n25).

71- Rijksoverheid, Kamerbrief over visie op locale energie, 8 November 2013, available online (in Dutch) at <https://www.rijksoverheid.nl/documenten/rapporten/2013/11/08/visie-lokale-energie>, accessed 2 November 2016.

72- Kamerbrief over visie op locale energie (n71).

73- See Kamerbrief over visie op locale energie (n71); Energieakkoord voor duurzame groei (n16), at 79.

74- Visie op lokale energie (n25), at 3.

75- Whish, Richard and Bailey, David, Competition Law (Oxford University Press 2012), at 184 Google Scholar. Communication from the Commission 2009/C 45/02, Guidance on the Commission’s enforcement priorities in applying Article 82 of the EC Treaty to abusive exclusionary conduct by dominant undertakings, para. 17.

76- See Article 95a of the Dutch Electricity Act 1998, and Article 43 of the Dutch Gas Act 2000.

78- See Article 95d.1 of the Dutch Electricity Act 1998.

79- See Article 95b.1 of the Dutch Electricity Act 1998.

80- Futility outcome is described as ‘no change to the existing problem […] regardless of regulatory intervention’. See Baldwin, Cave and Lodge (n52) at 73; Hirschman (n51).

81- See Article 1.1.c of the Dutch Electricity Act 1998, and Article 1.1.o of the Dutch Gas Act 2000.

82- See Article 1.1.g of the Dutch Electricity Act 1998, and Article 1.1.ag of the Dutch Gas Act 2000.

83- See Article 31.1.h and Article 28.3 of the Dutch Electricity Act 1998. This echoes Recital 36 of the Directive 2009/72/EC, which states that ‘transmission and distribution tariffs [should be] non-discriminatory and cost-reflective, and should take account of the long-term, marginal, avoided network costs from distributed generation and demand-side management measures’. See Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC.

84- See Article 1.1.f of the Dutch Electricity Act 1998, and Article 1.1.ah of the Dutch Gas Act 2000.

85- See Article 1.1.h of the Dutch Electricity Act 1998, and Article 1.1.ai of the Dutch Gas Act 2000.

86- See Article 1.7 and Article 1.8 of Regulation 1227/2011/EU of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency.

87- Article 1.1.o of the Dutch Electricity Act 1998.

88- Large market parties usually solve the imbalances created by the injection in the grid of locally produced sustainable electricity by the means of their (usually large) portfolio optimization. Individual prosumers do not have such a portfolio, and therefore could not effectively fulfil the role of a program-responsible party. See Pront-van Bommel and Buist (n31).

89- Best practices on Renewable Energy Self-consumption (n16) at 9-10.

90- See Article 31c of the Dutch Electricity Act 1998.

91- Best practices on Renewable Energy Self-consumption (n16) at 10.

93- See Article 31c of the Dutch Electricity Act 1998.

97- Visie op lokale energie (n16), at 18.

98- Baldwin, Cave and Lodge (n52), at 73.

99- Visie op lokale energie (n16).

100- See <http://www.hieropgewekt.nl/faq-page#n2305>, accessed 2 November 2016.<http://www.hieropgewekt.nl/initiatieven>, accessed 2 November 2016.

101- Oteman, Marieke, Wiering, Mark and Helderman, Jan-Kees, ‘The institutional space of community initiatives for renewable energy: a comparative case study of the Netherlands, Germany and Denmark’ (2014) 4(11) Energy, Sustainability and Society 7 CrossRefGoogle Scholar; De Proeftuin ‘Decentrale Duurzame Collectieven’ (n25) at 11.

102- See for example <http://www.windvogel.nl/?page_id=5042>, accessed 2 November 2016.

103- See Article 59 of the Dutch Environmental Taxes Act; see also <http://www.hieropgewekt.nl/kennis/verlaagd-tarief/de-regeling-het-kort>, accessed 2 November 2016.

104- See Article 59 of the Dutch Environmental Taxes Act; see also <http://www.hieropgewekt.nl/kennis/verlaagd-tarief/de-regeling-het-kort>, accessed 2 November 2016.

106- Visie op lokale energie (n25).

107- Visie op lokale energie (n25) at 18.

108- See Article 7a of the Dutch Electricity Act 1998.

109- Besluit experimenten decentrale duurzame elektriciteitsopwekking, 28 February 2015, available online (in Dutch) at <http://wetten.overheid.nl/BWBR0036385>, accessed 2 November 2016.

110- Visie op lokale energie (n25).

111- Energieakkoord voor duurzame groei (n16).

112- Energieakkoord voor duurzame groei (n16), at 84-85.

113- Energieakkoord voor duurzame groei (n16), at 84-85.

114- See Article 7.i., Besluit experimenten decentrale duurzame elektriciteitsopwekking (nl 10).

115- The first category concerns the projects where the distribution network in question remains in the hands of the regional system operators (DSOs). The second category concerns the so called ‘project networks’, owned and operated by the cooperation or association in question. See Article 1, Article 2.1., Article 7.g. Besluit experimenten decentrale duurzame elektriciteitsopwekking (n109).

116- See Articles 10-14, Besluit experimenten decentrale duurzame elektriciteitsopwekking (n109).

117- See Article 6, Besluit experimenten decentrale duurzame elektriciteitsopwekking (n109).