The Collaboration between Distribution System Operators and Local Governments for the effective expansion of the electricity grid in the Netherlands A study of the impact of the collaboration between distribution system operators and local governments on the renewable energy transition

Abstract

This thesis analyses the collaborative relationship between Distribution System Operators (DSOs) and local governments in the Netherlands. To reduce greenhouse gas emissions, the energy transition asks for the electrification of current energy systems. This electrification is shown due to the rapid increase of Distributed Energy Resources (DER), which also increases the demand for electricity. However, the current electricity grids do not have sufficient transport capacity yet, potentially halting the energy transition. The expansion of the electricity grid is a substantial spatial task as it significantly impacts public space. Especially at a neighbourhood level, grids have to be expanded. The DSOs implemented the ‘neighbourhood-orientated approach’ in which, through standardized processes, medium-voltage substations (essential elements in the grid expansion) are implemented in bulks per neighbourhood. This approach requires intensive collaboration with local governments.

The main question of this thesis is therefore: “To what extent and how does the collaboration between distribution system operators and local governments shape the expansion/adjustments of the energy grid in relation to the renewable energy transition in the Netherlands?” Data is collected by interviewing 26 key informants of the DSOs and the local governments. These key informants are directly involved in the collaborative process surrounding the grid expansion and the finding of space for the necessary infrastructures. Here, a multi-stakeholder perspective approach has been chosen to capture both sides of the collaborative process.

The most important findings relate to the key issues present in the collaboration. DSOs and local governments have conflicting interests: DSOs prioritize speed and standardisation (one-fit solutions), while local governments seek integrated, context-dependent solutions. However, these conflicting interests appear primarily in neighbourhoods with limited public space. In this context, DSOs and local governments should engage in more integrated collaborative approaches, balancing interests in public space and making trade-offs. Engaging in an integrated collaborative form asks for a change in the organisation of both actors, organizational-wise and capacity-wise. DSOs, for example, to effectively collaborate with local governments, should adopt a spatial planning-related role beyond their traditional technical role.

The role of data/information is essential for an effective integrated collaborative approach. Providing insight into the number of medium-voltage substations, potential locations for the stations, and the order of the neighbourhoods in which the infrastructure will be implemented, creates input for an effective decision-making process and the making of trade-offs of interests in public space.

In conclusion, collaboration between DSOs and local governments significantly impacts the expansion of the electricity grid and, therefore, directly impacts the renewable energy transition. If both actors operate siloed from each other, the collaboration will halter the expansion and, therefore, also halter the renewable energy transition. By implementing an integrated collaborative structure, critical issues in the collaboration can be overcome. Central here is the acknowledgement of each other’s interests and the alignment of interests to balance speed and local context-based solutions.