Innovation and institutional change: the transition to a sustainable ...

Chapter 5
Evolution of decentral cogeneration in the Netherlands
5.1 Introduction
This chapter focuses on the development of decentral combined heat and
power production, in short: decentral cogeneration, in the Netherlands. The
development of Dutch cogeneration is remarkable because of the high
penetration within the Dutch electricity system, and because of the rapid
uptake of decentral cogeneration from the mid eighties to the end of the
nineties. From a comparative perspective it is salient because the share of
decentral cogeneration of around 40% is high relative to the EU average of
around 10%. In countries such as Germany, the UK, Belgium and France the
share of cogeneration is lower than 10%, while cogeneration in Denmark
and Finland has a share in electricity generation comparable to the
Netherlands. The main relevance of decentral cogeneration for this thesis lies
in its character: it represents a fundamentally different way of electricity
generation, both in the way it is perceived to fulfil the function of energy
provision as in the way this function is organised. Decentral cogeneration
implies a different actor constellation with different roles for actors as
compared to the central station electricity system 1 , such as for example the
stronger user orientation due to the importance of heat demand within the
cogeneration package. It demands different types of knowledge because the
topology of the network changes as electricity flows become more
heterogeneous and as heat demand determines the location of power plants.
Different planning procedures and regulations are required as more entry
points and units for electricity generation emerge within the system and its
network infrastructure, with more heterogeneity in supply profiles. Decentral
cogeneration is mainly dimensioned along local demand for heat, which
implies that its optimal scale is dependent upon, and varies according to, the
heat demand profile of the user(s). In short, it requires a different
1
The central station electricity system involves generation of electricity in a power plant
and transport and distribution through a power network to a variety of users.
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