The role of distribution system operators in the Netherlands: Exploring the necessary strategies, resources and capabilities of the distribution system operators in the Nehterlands to enable the Regional Energy Strategies

Abstract

Regional Energy Strategies (RES) are conducted in the Netherlands in pursuit of the goals set by the Paris Agreement. Distribution System Operators (DSO) are important actors in the RESs, as they need to prepare the energy infrastructure based on the proposed changes in the strategies. Moreover, they are seen as essential stakeholders and are asked to support the conduction of the RESs. Therefore this research investigates what the necessary strategies, resources and capabilities of the DSOs are for enabling the RESs in the Netherlands. A conceptual model is designed combining the Resource-Based view and dynamic capabilities theory, to inventory the necessary strategies, resources and (dynamic) capabilities (Barney, 1991; Teece, Pisano & Shuen, 1997). A multiple case study design is used in which the five pilot RESs and the three DSOs operating in these pilot regions are studied. Document analysis is conducted on the RESs and the DSOs’ strategies, in combination with interviewing RES professionals and DSO representatives. The outcomes of this research propose that the DSOs should better align their strategies with the position they want to take in the RESs. This will result in internal alignment, which enhances the enabling of the RESs. Moreover, it is found that knowledge and experience are crucial unique resources of DSOs in a changing environment. The complementary resources of the DSOs should include a subsidiary in the non-regulated domain, as well as strong lobby activities. By this Dutch law is influenced, and more freedom in the operating space for the DSOs can be achieved. For substitutable resources, it is crucial to acquire sufficient technical employees, as well as financial assets. In addition to resources, (dynamic) capabilities are required to enable the RESs. R&D activities, collaboration and knowledge creation are essential organisational processes that enhance the learning of an organisation. Learning on its turn is crucial to formulate the DSOs’ dynamic capabilities to enable the RESs. The DSOs should specifically focus on increasing their internal learning ability to further develop and upscale solutions or innovations that can enable the RESs. Increasing the internal learning and strengthen the lobby activities will allow the DSOs to seize their opportunities and transform the organisation, which will eventually enable the RESs.