1
Policy Types Influencing Entrepreneurs in the Dutch
Green Energy Sector
Author: Joost Elffers Student Number: 10805958 Date: 27-06-2017
Supervisor: Willem Dorresteijn Faculty of Economics and Business
2 This document is written by Joost Elffers, who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used creating it. The faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
3 Abstract
In 2001, the energy transition is initiated by the Dutch government, which aims to reduce the use of conventional energy sources to the utmost and increase sustainability. As entrepreneurs in the green energy sector have the potential to be a dominant force in the realisation of this energy transition, entrepreneurial activities in this area must be stimulated and supported. As governmental influences have significant impact on entrepreneurs, this research will examine which policy types are used to influence entrepreneurs in the green energy sector. The different types are subdivided into five categories, labelled G1 to G5. To provide an answer to this question, the most significant
governmental agreements considering sustainable energy are analysed for mentioned policies. Hereafter, two qualitative interviews are conducted with entrepreneurs in the energy sector to acquire practical information about which policy types are used by the government. The results are that G1, G3 and G5 policies are mostly used to influence entrepreneurs in the green energy sector. G2 and G5 policies are unaddressed by the Dutch government. Concluding, policies affecting the quantity and accessibility of entrepreneurial opportunities and the cognitive and regulatory environment are the most significant measures of the Dutch government to influence entrepreneurs. Furthermore, it can be concluded that the demographic composition of the potential group of entrepreneurs and the relevant norms and values and the occupational preferences of this group are minimally influenced.
4 Table of Contents 1. Introduction………...5 2. Literature Review……….6 3. Conceptual Framework……….8 4. Methodology………..………...10 5. Results…………..………..……….11
5.1.1. Results Policy Analysis NMP4………....11
5.1.2. Policy Table NMP4………..13
5.2.1. Results Policy Analysis Energy Agreement………....13
5.2.2. Policy Table Energy Agreement………..19
5.3.1. Results Policy Analysis Presentation Heat Vision………...19
5.3.2. Policy Types Presentation Heat Vision………....21
5.4. Results Policy Analysis International Climate Agreement……….21
5.5.1. Results Policy Analysis Energy Report………...22
5.5.2. Policy Table Energy Report……….25
5.6. Results Policy Analysis Energy Dialogue………..25
5.7.1. Policy Analysis Energy Agenda………..25
5.7.2. Policy Table Energy Agenda………...28
5.8. Results Policy Analysis Agreement Energy-Intensive Industry………...28
5.9.1. Results Interview Analysis Project and Process Manager ETPA………28
5.9.2. Policy Table Project and Process Manager ETPA………...30
5.10.1. Results Interview Analysis Founder Nudge………..30
5.10.2. Policy Table Founder Nudge………...33
5.11. Complete Policy Table………..34
6. Conclusions……….35
7. Discussion………...37
References………...40
5 1. Introduction
The discovery of the extensive gas supplies of Slochteren in 1959 started a Dutch energy transition. Within ten years, a large-scale gas infrastructure was constructed, providing almost all Dutch households with gas for cooking and heating (Rotmans, 2010). Since 2001, an ensuing transition is initiated. This transition does not promote and facilitate the use of conventional energy sources like natural gas, but aims to reduce this use to the utmost.
The publication of the fourth national environmental policy plan (NMP4) by the Dutch
Ministry of Housing, Spatial Planning and the Environment in 2001 is the foundation of this transition. First, seven substantial environmental problems in The Netherlands are mentioned, whereafter the energy transition is launched and required policy innovations are considered. This policy paper distinguishes itself from its predecessors, as it does not provide environmental policies, but a way of thought that induces a permanent process of improvement: the energy transition.
Entrepreneurial innovation is needed to successfully achieve sustainable development (Boer, 2013). Drucker (2014) also concludes that entrepreneurs are crucial for the realization of a transition, as he states that entrepreneurship from every actor within an industry is required to achieve change and innovation. Michael (2009) agrees by examining that innovation is crucial for societal
development, and entrepreneurship is essential to produce societal innovation.
Concluding, entrepreneurs and entrepreneurial activities focussed on reducing CO2-emissions and increasing sustainability must be stimulated and supported to successfully realize the transition. As governmental influences have significant impact on entrepreneurs, it must be examined how these influences occur. Therefore, this research will analyse which policy types are used to influence entrepreneurial activities since the publication of the NMP4. Only the Dutch green energy sector will be examined, as many entrepreneurial opportunities are present in this area. Also, as stimulations in the green energy sector contribute the utmost to increased sustainability and therefore maximum effectiveness of the energy transition, only policy influences in this sector will be analysed. Considering the above-mentioned importance, positive governmental influences in this sector will significantly alter the success of the transition. Activities that impose less CO2-emissions and therefore cause less negative effects on the environment are classified as green. Research will examine which policy types are used by the Dutch government to affect the green energy sector, trying to realize a successful energy transition. To provide the relevant information, significant governmental agreements considering sustainable energy will be analysed for mentioned policies. The following research
question facilitates this research:
Which policy types are used by the Dutch government to influence entrepreneurs in the green energy sector since the start of the Dutch energy transition in 2001?
This research will firstly provide a literature review, wherein relevant literature is examined and mapped. Hereafter, the theoretical framework is provided, which presents a framework structuring
6 the policy type analysis. Henceforth, the method used for the provision of this research will be
displayed, by means of a methodology section. Then, the results of the agreement and interview analyses will be presented. Following a chronological order, all policy agreements since the start of the energy transition in 2001 will be analysed, ensued by individual policy tables. After this, the interview policy analyses are provided, including separate policy tables. Concluding, a comprehensive table is presented, including all mentioned policy measures within the agreements and interviews. Hereafter, the conclusions regarding the agreement and interview analyses are provided. Lastly, a discussion section is appended.
2. Literature review
First, the definition and characteristics of entrepreneurs must be examined. Combining the examinations of Gartner (2002), Reynolds (2006) and Davidsson, Delmar and Wiklund (2006), entrepreneurship is the creation of new organisations or economic activities. The Schumpeterian approach advocates that the entrepreneurial creation of change can pre-empt mature industries
(Holden, 2007). Hereupon, Johnson (2001) recognises that entrepreneurial behaviour can provide large organizations with significant value. Entrepreneurial opportunities originate from change:
entrepreneurs pursue, respond to and exploit alterations in the entrepreneurial environment (Drucker, 2014). This research uses the following definition: An entrepreneur is someone who recognizes, assesses, and exploits opportunities, originated from change, by creating new organizations or economic activities, hereby generating value.
Hereafter, the relation between entrepreneurship and sustainable development is mapped. Schaper (2002) concluded that sustainable entrepreneurship is crucial for innovation, as new opportunities will be exploited. Furthermore, Hall, Daneke and Lenox (2010) examined that
entrepreneurship is increasingly recognized for generating a transformation to sustainable products and processes. Therefore, entrepreneurs have the potential to be a dominant force in the realisation of the energy transition.
As stated, this research will examine policy influences for entrepreneurs in the Dutch green energy sector. This sector is appointed as the renewable energy sector by Wüstenhagen and Bilharz (2004). Midilli, Dincer and Ay (2006) distinguish fossil-based and renewable energy types, declaring the last type as green. Such green sources have minimal environmental impact, as they are
environmentally favourable and sustainable (Midilli et al., 2006). However, as energy savings and increased energy efficiency together with renewable energy sources will realise sustainable energy development (Lund, 2007), these three activities are all considered when mentioning the green energy sector.
Henceforward, literature about the Dutch energy transition is reviewed. First, Rotmans (2010) and Nooteboom (2008) provided an analysis of the Dutch energy transition project. Kern and Smith (2008) and Rotmans (2011) identified bottlenecks and generic dilemmas regarding transition
7 implementations. Both papers confirm that large companies are the focal point of the transition
management. Furthermore, an uncertain business climate is created by inconsequent policy making by the Dutch government. Kemp, Rotmans and Loorbach (2007) also identified transition management problems. Subsequently, an analysis of Dutch policies used to handle transition management complications is provided by Kemp & Loorbach (2006).
As shown above, many academics have written about entrepreneurs and entrepreneurship and its role regarding innovation and sustainable development. This literature concludes that entrepreneurs have the potential to significantly influence the realization of a Dutch energy transition. Subsequently, many analyses are performed on the Dutch energy transition. The general findings of the Dutch energy transition analyses are that various dilemmas and bottlenecks are encountered, which suppress the impact of the transition.
However, the role of entrepreneurs in the Dutch energy transition is unaddressed. Even though entrepreneurial innovation could potentially increase the impact of the transition significantly, no studies have been executed to examine how entrepreneurs are influenced within this transition. Undermentioned studies show that governmental influences are of great importance for entrepreneurs. Goodman, Meany and Pate (1992) and Storey (2000) provided policy goals and justifications for governmental support for entrepreneurs, such as employment and (technological) innovation. Smallbone, Welter, Voytovich and Egorov (2010) concluded that governmental influences play an important role in the development of entrepreneurship in transitional conditions. Within the context of entrepreneurship, economic, social and cultural factors are included (Hart, 2003). As all these contextual determinants of entrepreneurship are subject to governance and public policies, governmental actions have the power to significantly influence the supply and demand side of entrepreneurs (Hart, 2003). Minniti (2008) agrees by stating that entrepreneurial decisions are significantly influenced by the government, as policies and governmental interventions shape the institutional environment.
According to Michael (2009) and O’Connor (2013), the promotion of entrepreneurship by government policies is a developing tendency. Michael (2009) states that the justification for governmental support for entrepreneurship lies within the support and encouragement of innovation. Hereafter, he claims two dispositions to increase entrepreneurship and innovation: improving entrepreneurial returns and reducing entrepreneurial risk.
As shown above, governmental influences have significant impact on entrepreneurs. However, many policy types can be used to alter entrepreneurial conditions. Suddle and Wennekers (2006) segmented five types of government measures that influence entrepreneurs. Governmental influences impact entrepreneurial chances, the availability of entrepreneurs and the diverse conditions that facilitate the execution of entrepreneurship (Suddle & Wennekers, 2006). As different policy types address different aspects of entrepreneurship, hereby generating different effects, it is of great
8 importance to identify which types are used to influence entrepreneurs in the Dutch green energy sector. Policy types are divided into five groups, named G1-G5. G1 policies are directed to the quantity and accessibility of entrepreneurial opportunities. Such opportunities must be available for entrepreneurs to exploit. G2 policies are directed to the quantity of potential entrepreneurs by
influencing the demographic composition. Furthermore, G3 policies aim for the enhancement of skills and resources of entrepreneurs in the population. These policies are directed to the cognitive
environment of entrepreneurs. The normative environment is influenced by G4 policy types. Such measures are focussed on the creation of relevant norms, values and occupational preferences of individuals. Lastly, the regulatory environment is addressed by G5 policies. These policies are directed to the decision-making process of possible entrepreneurs, with risk-perception as main objective (Suddle & Wennekers, 2006).
3. Conceptual Framework
As mentioned above, the policy types influencing entrepreneurs are subdivided into five groups. The identifications of the five groups, presented in the first column of Table 1, are provided by Suddle and Wennekers (2006), complemented by Berendsen (2008). In the second row, specific government measures influencing entrepreneurs in the green energy sector are presented. The table is shown below.
This framework is used to map governmental influences into certain policy types. This
identification will provide information on which policy types are used to influence entrepreneurs in the green energy sector to execute the energy transition. The specific policy measures, in combination with the type identifications, will provide a clear framework to identify what aspects of the entrepreneurial environment are influenced the most by the Dutch government. Table 1 will be consulted to subdivide the mentioned policy types within the right policy types.
9 Table 1: Identification of the different policy types and measures, based on Suddle and Wennekers (2006) and Berendsen (2008).
Type: Possible Policy Measures:
G1: Policies directed to influence the quantity and
accessibility of entrepreneurial opportunities - Income policies - Privatisation policies - Competition policies
- Business licensing / Legislation Establishment
- Scope and composition of employment opportunities in the public sector
- Stimulation of technological developments (e.g. subsidisation of research and development activities)
- Stimulation of techno starters (more innovative businesses) G2: Policies directed to
increasing the group of potential entrepreneurs by
influencing the demographic composition
- Regional development policy - Immigration policy
- Policies directed to the covering of maternity leave - Stimulation of special interest groups (young starters) - Tax treatment for families with children
G3: Policies directed to influencing the availability
of resources and skills in the context of entrepreneurs in the population (‘cognitive
environment’)
- Capital market regulations - Attracting venture capital - Subsidies / Gifts
- Subsidised loans
- Security deposit regulations - Credit guarantees
- Export guarantees
- Offering professional advice - Promotion of business networks
- Assistance with business angel networks - The production of training, congresses, etc. - Support of knowledge transferring
- Entrepreneurship in education
- Promoting entrepreneurship in education G4: Policies directed to
influencing the relevant norms and values of individuals and their occupational preferences (‘normative environment’)
- Stimulation of opportunity recognition
- Promotion of entrepreneurial role models in the media
G5: Policies directed to the decision-making process of individuals, especially the risk perception with respect to entrepreneurs (‘regulatory environment’)
- Tax system: in general
- Tax system: independence deduction - Tax system: starters deduction - Tax system: fiscal retirement reserve - Tax system: investment deduction - Social security
- Replacement rate
- Flexibilization labour market - Employment protection - Bankruptcy legislations - Administrative burdens - Wage moderation - Retirement regulations
10 4. Methodology
To provide the answer for the above-mentioned research question, a desk research, supplemented with qualitative data provided by interviews, will be executed. The desk research consists of analyses of policy papers, published by the Dutch government. These analyses will contain the identification of policy measures that are implemented to influence entrepreneurs in the green energy sector. Furthermore, the qualitative data will be provided by two semi-structured interviews with entrepreneurs with relevant work experience. The interviews will be transcribed and the provided information will be used to increase the validity of the outcomes of this research.
As stated in the literature review, entrepreneurial activities are constituted by change (Drucker, 2007). This research will therefore analyse governmental agreements since the start of the energy transition in 2001, as newly formed agreements impose changes in the entrepreneurial environment. The performed analyses will firstly present a recapitulation of the main objectives of the agreements. When performing the policy analyses, Table 1 will be consulted to identify the mentioned policies imposing changes in the entrepreneurial climate. Within the summaries, the mentioned policies will be presented, supplemented with the policy types these measures belong to. The analyses will be completed with an overview of the mentioned policies. Mentioned policies not included in Table 1 will be noted and supplemented to the results. The policies will be mapped in a table, which will display the specifically mentioned polices per policy type. Within the table, a distinction will be visible between policies that are mentioned in the table of Suddle and Wennekers (2006) and
Berendsen (2008), and policies only specified in the agreements and interviews, but not in the original policy table. Specific policies that are mentioned in the agreements or interviews, but not in the table of Suddle and Wennekers (2006) and Berendsen (2008) are boldly displayed in the bottom of the boxes. Subsequent to the agreement analyses, the interviews will be identically examined. First, a recapitulation will be provided, whereafter the mentioned policies are presented per policy type. Hence, a comprehensive overview of all mentioned policies will be provided by means of a complete policy table. The results of this table will provide an overview of all policies used to influence entrepreneurs in the green energy sector. This table will contribute as the foundation of the conclusions of this research.
As the NMP4, which indicates the start of the energy transition, is a comprehensive agreement to promote sustainability, this policy paper will be analysed first. Since then, the Dutch government has made 7 significant appointments considering sustainable energy with over 40 stakeholders, including employers, labour unions and environmental organisations (Rijksoverheid, n.d.-a). As these agreements will influence the entrepreneurial environment by altering the current legislations, the analysis will be constituted out of the NMP4 and the governmental proclaimed 7 significant
agreements. These agreements will be examined for mentioned policy types influencing entrepreneurs in the green energy sector. The Energy Agreement of 2013, providing goals for the promotion of
11 sustainable energy until 2023, is considered the first major agreement, and will therefore be analysed after the NMP4. Hereafter, the Presentation Heat Vision of April 2015 is examined. This paper, provided by the Ministry of Economic Affairs, describes the transition towards sustainable heating for houses and buildings. In December 2015, an affiliation of the Energy Agreement of 2013 is provided, by means of the international climate agreement in Paris. Henceforth, the Energy Report of 2016 is analysed, which provisions the energy targets until 2050. Between April and June 2016, an Energy Dialogue was started. This initiative of the Dutch government stimulates scientists, entrepreneurs, businesses and civilians to generate ideas to enhance the energy transition. The outcomes of this dialogue are presented in the Energy Agenda, published in December 2016. Finally, the Agreement Energy-Intensive Industry, completed in March 2017, is analysed for policies influencing
entrepreneurs.
Hereafter, two interviews will be conducted to increase the validity of the outcomes of this research. Namely, the interviewees will provide practical information and specific experiences on entrepreneurs in the green energy sector. The interviewees have extensive knowledge and experience with entrepreneurs and governmental influences on entrepreneurs. Therefore, practical and essential information should be provided, which increases the legitimacy of this research. Subsequent to the agreement analyses, the results of the interviews will be presented. Equal to the agreement analyses, a recapitulation of the discussed matter is firstly provided. Hereafter, the analyses will be completed with an overview of the mentioned policies.
The first interview will be conducted with Pieter Kraaijeveld, shareholder and project- and process manager at the Energy Trading Platform Amsterdam (ETPA). This platform provides a marketplace where electricity can be bought and sold. Businesses that generate and consume energy can offer their surplus, or purchase to meet energy requirements. As the ETPA is specially designed to perform transactions with entrepreneurs, Kraaijeveld has extensive knowledge about entrepreneurial buyers and providers of energy.
Then, Jan van Betten, founder of Nudge, will be interviewed. The company Nudge aims for sustainable behavioural changes at organizations and businesses, as it has the ambition to change the mindset of individuals to promote sustainability. The ideals of Nudge are similar to those of the energy transition. The organization facilitates financing opportunities and provisions a business network for entrepreneurs. The vast amount of different sustainable projects gives Van Betten extensive experience with sustainable entrepreneurs in The Netherlands.
5. Results
5.1.1. Results Policy Analysis NMP4
The following information is retrieved from the policy paper ‘Een wereld en een wil: Werken aan duurzaamheid: Nationaal Milieubeleidsplan 4’, published by the Dutch Ministry of Housing,
12 Spatial Planning and the Environment in 2001.
The energy sector is addressed in chapter 5 of the NMP4, called: ‘Emissions, energy and mobility: Transition towards sustainable energy management’. The objective of this chapter is realising reduced CO2-levels and other toxic emissions like NOx, SO2 and Volatile Organic Compounds (VOC), both nationally and globally. The NMP4 identifies three options, by which sustainable energy management can be realised. The first option is directed to sustainable energy sources, conforming wind, solar and biomass. Second, efficiency improvements realising lower energy use per activity are optioned. Third, advanced and innovative energy technologies are mentioned. The National Institute for Health and Environment (RIVM) provided 6 broad solutions for environmental problems, alongside CO2-reduction calculations. As the primary focus of the RIVM is the technical achievability of the energy transition, societal processes of change are unaddressed, even though the NMP4 clearly indicates that such processes are decisive for the realization of sustainable energy management. G1 policy types are suggested in the form of the stimulation of technological development. Hereby, it is of great importance to match public financed research with Research and Development (R&D) expenses of companies to create system innovations. G3 and G5 types are addressed, as the NMP4 states that the government will guide technological inventions by using market instruments. Tax, levy and subsidy barriers will be detected and solved, and non-sustainable subsidies in the traffic, transport and energy sector will be exterminated. Regulating energy taxes and fuel excises are hereafter mentioned, exemplifying tax influences in the energy sector (G5).
Furthermore, the costs of negative environmental influences must be internalized (G3), whereby emitters are held financially responsible for their externalities.
Regarding the stimulation of renewable energy, specific subsidy programs are interchanged for generic regulations. Investment- and operating subsidies (G3) are the focal point of this change, through organizations like EIA, Vamil, and Groen Beleggen. Furthermore, renewable energy sources are given tax advantages in the form of rebates and purchase tax eliminations (G5). This guidance will make sure that businesses are stimulated to make optimal decisions.
Hereafter, policy measures regarding the housing sector are mentioned. First, collaborations between the government and market parties will start experiments to enhance climate neutral
buildings, which will increase support for this market. New housing developments will be concerned with higher quality requirements.
Furthermore, G3 measures are addressed. As the government is responsible for the creation of transition conditions, adequate institutions and instruments that support and facilitate the transition will be realized. The promotion of business networks is an example of such measures (G3). Hereafter, the normative environment is addressed, as a sense of urgency must be created (G4). As this sense is realized, sustainable ways of business will increasingly be seen as the norm by involved actors, which enlarges the chance these actors enter the investment phase. The NMP4 further elaborates on
13 initiatives in the field of social involvement. As most environmental problems occur on a distance and impose dilemmas on the long term, significant efforts are needed to keep citizens concerned with the energy transition. Themed campaigns aim for convincing citizens that climate changes will have personal consequences. Furthermore, educational means are constructed for schools and contests are set up for students. Hereafter, it is stated that it is of great importance that the government plays an exemplary role in their guidance of the transition.
Revising the NMP4, entrepreneurs are not specifically acknowledged in the NMP4. When the NMP4 states that many different actors must participate to realize a successful transition, universities, energy production businesses, large energy users and societal organizations are mentioned. However, entrepreneurs specifically are unaddressed. Still, many mentioned policies and policy types potentially influence entrepreneurial opportunities
5.1.2. Policy Table NMP4 Table 2: Policy Table NMP4.
Type: NMP4:
G1: - Scope and composition of employment opportunities in the public sector
- Stimulation of technological developments - Stimulation of techno starters
G2:
G3: - Subsidies/gifts - Subsidized loans
- Promotion of business networks
- Removing subsidy barriers - Internalization of external costs
G4: - Creating a sense of urgency
G5: - Tax system: in general - Removing tax barriers
5.2.1. Results Policy Analysis Energy Agreement
The following information is retrieved from the report ‘Energieakkoord voor duurzame groei’, published by the Dutch Social-Economic Board (SER) in 2013.
The Energy Agreement of 2013, provided by the SER, aims to enhance sustainability in the energy sector. The agreement is established by over 40 organisations and has the ambition to realize long-term goals and directions for the realization of further sustainability to enhance the energy transition. This policy paper contains ten pillars, used to realize increased sustainability in the energy
14 sector.
Pillar 1: Energy saving
The first pillar aims for energy savings. The SER recognizes and divides two interest groups, namely the built environment and the industry.
Within the built environment, committed parties aim to intensify investments that increase the saving of energy, and decentralized sustainable energy generation. This will increase employment opportunities in the construction, technology and installation sector (G1). To realize this, a supporting structure must be developed for regional facilitators, such as municipalities. These actors must facilitate connections between civilians, organisations and entrepreneurs.
Regarding the saving of energy by the consumer, entrepreneurial opportunities exist with the interchanging of old, lavish products by new, economical replacements. Placing smart meters, facilitating energy labelling and replacing old devices such as refrigerators and boilers are activities where entrepreneurs can engage. The government influences these opportunities by creating awareness and providing information through sustainability campaigns. Furthermore, an energy saving fund is set up, which enables consumers to lend money with favourable tariffs for making their homes more sustainable (G3). Also, possibilities to finance sustainability measures for personal estates via the mortgage will be set up and actively presented. This will indirectly affect entrepreneurs, as the demand for sustainable products will rise. Regarding rental properties, the SER sets the target of achieving an average energy label of B per 2020. A subsidy (G3) of 400 million euros is provided for renters to facilitate investments increasing energy sustainability, which also indirectly effects entrepreneurs in this sector. Besides individual investments, housing associations will invest in sustainable measures to increase the value of energy labels.
Realizing increased sustainability and energy savings in the housing sector, three main measures are mentioned. First, the government will foster sustainability projects and provide a framework for these projects to be executed again. Second, sustainable knowledge levels will be increased in collaboration with school boards. Lastly, public lighting will be rapidly replaced for sustainable lighting.
Hereafter, the second interest group, the industrial sector, is mentioned. First, energy savings in current industries are mentioned. These measures all regard existing business and industries. Therefore, no entrepreneurial opportunities and influences arise in this subsector.
Then, agricultural businesses are examined for energy efficiencies. Here, the risk perception (G5) of entrepreneurs is mentioned as point of improvement. Also, financing requirements are mentioned as bottlenecks for entrepreneurs starting new agribusinesses (G5).
Pillar 2: Sustainable Energy
15 employment opportunities (G1) and realizing innovation that impose cost reductions.
One form of generating sustainable energy is using wind. Regarding windmills on land, societal support must be strengthened by the government, provinces, environmental organisations and
businesses. Also, political support is needed to realize sufficient available locations for windmills. The creation of societal support can be facilitated in the form of shares, bonds or other forms of
co-ownership.
Furthermore, sea-based windmill locations can be expanded to increase sustainable energy percentages. The most important factor is innovation, as this can impose lower costs. Productivity efficiency improvements and technological advancements (G1) will realise cost decreases. To realize a larger volume of wind energy, subsidy structures (G3) are available based on wind velocity categories. Also, the government will realize speedy area allocations and procedure processes (G5). The needed permits will be prepared to reduce lead-times.
Hereafter, biomass is examined. An important aspect of the impact of biomass on the energy transition is the cascading of bio based materials. Cascading focusses on the optimal use of biomass, by maximizing the utility of all material components (Kamp & Mansveld, 2014). Optimal use of cascading will be promoted trough actions and pilots. Elaborations of researches on the optimal use of material components must be mapped and appended to environmental covenants.
The SER hereafter states that the SDE+ subsidy regulations (S3) are the most important governmental instrument for achieving the financial requirements for renewable energy projects. In addition, other financial obstacles are withheld by a geothermal guarantees and tax reductions (G5) for local generated energy.
Pillar 3: Decentral Energy Generation
Market actors and societal organizations thrive to realize 1 million households that generate a substantially amount of decentralized, renewable energy per 2020. Heat pumps, solar power and heat and geothermal systems are mentioned next to biogas. The SER states that some of these measures require financial stimulants, such as the SDE+ subsidy (G3). For others, simplified regulations (G5), experimental opportunities or sharpened climate norms must be realized. The three main obstacles for the implementation for decentral energy generation are organisational bottlenecks, adequate laws and regulations and fiscal measures (G5).
Hundreds of local energy initiatives are in the idea formation or planning phase. Regarding these initiatives, informational support is required, in the form of generating and exchanging knowledge (G3). Furthermore, quality and certification certificates will be set up for the sustainable energy market, helping customers with their decision-making process.
Municipalities will provide space for small-scale energy initiatives, such as windmill parks. Regarding such projects, the ‘Elverding’ approach is used. Hereby, stakeholders will be involved in the early stages to increase support and eliminate counterforces. Furthermore, physical environment
16 permits will be simplified (G5) for the introduction of sustainable energy systems and a central
licensing instance will be appointed.
Hereafter, adequate laws and regulations are handled. To realize the transition, consistent policies must be instituted, providing a framework that promotes long-term securities for investors. The gas- and electricity law will be modernized and a new legislative agenda called STROOM is set up. Transportation costs of electricity will be analysed and changed to promote sustainable energy generation. Net operators are insisted to identify suitable locations in the energy structure for the generation of sustainable energy. Furthermore, information for the purpose of realizing the transition must be provided. Hereafter, physical environment permits (G5) are again mentioned, as these must be simplified to ease sustainable energy projects.
Experiments that potentially could benefit the transition, but are not practically proven, will be included in experimental laws. Successfully proven experiments compose inputs for structural policy improvements. Market parties must exploit the available experimental opportunities.
Lastly, fiscal measures (G5) that stimulate the production of local energy are mentioned. Small-scale solar-energy initiatives, that not receive subsidies, will be fiscally stimulated by the introduction of a lowered tariff (G5). Furthermore, a tax rebate (G5) will be introduced for renewable energy that is generated in a cooperative relationship or owners’ associations.
Pillar 4: Preparation of the Energy Transport Network
The energy transition will have profound effects on the supply and demand side of energy, as well as the systems that connect these sides. These systems must be altered to make sure a substantial percentage of renewable energy can be distributed. The necessary energy infrastructure must be realized on time, as this is a precondition for a sustainable and reliable energy system. Smart-grids and demand-side management must be implemented to facilitate energy shifts. Also, electricity storage capacities must be enhanced and the application of hydrogen in gas structures must be examined. Here, entrepreneurial opportunities arise.
Further elaborations handle European cooperation for market development and infrastructure. These organizations are large-scale and internationally oriented, and therefore do not directly influence entrepreneurs in the Dutch energy sector.
Pillar 5: Emission Trading System
A well-functioning Emission Trading System (ETS) is called crucial for the long-term development of a sustainable power supply. As climate change is a global problem, emission
reductions must be realized at global, or at least European scale, and the organization of such a system requires significant organisational efforts between many actors. The current ETS focusses on large-scale industries (more than 20MW power input) in the electricity and industry sector. Therefore, entrepreneurs are not influenced by the current ETS.
17 Pillar 6: Coal Plants and Carbon Capture and Storage
Regarding coal plants, the approach is to decrease the capacity, eventually realizing the closure of all Dutch power plants. This increases possibilities for renewable energy generation. The importance of measures mentioned in pillar 2 and 3 will be enhanced, strengthening entrepreneurial opportunities.
Possibilities for the capturing and storing of emissions is an investable long-term solution. The government will take initiative to realize a plan of action. A demo project will be facilitated, when all important elements are mapped and analysed.
Pillar 7: Mobility and Transport
Concerned parties have divided this pillar into 12 main subjects, with a dichotomy for short- and long-term perspectives. The operation of these subjects will be executed by the government, supplemented with progressive businesses.
A sustainable fuel-mix is a subject that is intertwined with the energy sector. The goal is to create fuel types that are as efficient and effective as possible. Entrepreneurial opportunities arise in the development and implementation of innovative fuel types. No measures are mentioned that directly influence entrepreneurs.
Pillar 8: Labour Market Arrangements
Construction, installation and Cleantech markets in The Netherlands will acquire significant employment opportunities because of the energy transition. The further ambition of the Energy Agreement is that entrepreneurs and investors are stimulated to invest in energy savings in the current energy-intensive industries. Also, business activities must be created for Dutch companies by realizing the right conditions. No elaboration is provided on how these ambitions can or will be achieved. As transformational processes will significantly alter current labour opportunities. Therefore, a dynamic market is required to achieve success. Increased attention to technical education, constant coordination between education and labour market and sustainable staff use are conditions for realizing labour opportunities for sustainable growth (G1).
Pillar 9: Stimulation of Commercialization for Growth and Export
The SER sees The Netherlands excel in smart solutions for sustainability, made possible by an invitational investment climate of growth. This pillar includes six domains.
The first domain is finance. There is a need for financial resources to enter the
commercialization phase. The Ministry of Economic Affairs will facilitate by providing sufficient resources. Specific SDE+ subsidies (G3) will be made available for demo-projects. Furthermore, additional subsidies will be applied for innovation programs aimed for increased commercialization. Domain 2 handles national market developments. The business environment aims for booming
18 national markets in top sectors that have an exemplary function and pro-actively seek connections with developed businesses in the Dutch Cleantech industry.
Hereafter, domain 3 examines international market development. Relevant (top) sectors must aim for smart solutions for sustainability, whereby an optimal collaboration between the Dutch Trade Board, big businesses, relevant Small and Medium Enterprises (SME’s), Green Deals and knowledge institutes is key.
The fourth domain aims for the rearrangement of policies (G5). Improvements are needed to facilitate room for experiments, target requirements instead of mean requirements, removing structural bottlenecks and the promotion of knowledge sharing towards businesses.
Domain 5 has the ambition to realize the connection of SME’s. The professionalization and task widening of office windows is the main target.
The final domain examines human capital. Educational institutions, branch-related education centres, individual businesses and regionally organized organizations of employees and employers must collaborate to realize the retraining and additional training of professionals and job-seekers (G3).
Pillar 10: Financing of Sustainable Investments
Investment incentives only succeed when optimal financeable investments are created with a market conform risk-return profile (G5). Coherent financing programs, offered by demand sectors and governments, must constitute integral and optimal conditions for such financing opportunities. Market parties and governments will improve risk-return structures wherever possible. Furthermore, as energy projects require long-term costs and generate low operational costs, such projects must be financed in a long-term, consistent, coherent and widely supported manner. Regarding energy projects,
unnecessary, cost-increasing delays in the development and construction phase will be reformed (G5). Starting a project, subsidy instruments will be consulted first, whereafter alternative financing
possibilities are explored.
Financing organizations and market parties aim to remove market inefficiencies and lower transaction costs by realizing higher standardization. Furthermore, a financing transformation will be examined, for example by realizing a case-by-case approach or a specific investment bank that assesses and finances projects and hereafter collects the financing itself from capital markets. These measures and improvements will realize cheaper, quicker and more accessible financing opportunities for entrepreneurs (G3).
19 5.2.2. Policy Table Energy Agreement
Table 3: Policy Table Energy Agreement.
Type: Energy Agreement:
G1: - Stimulation of technological developments - Stimulation of techno starters
G2:
G3: - Subsidies/gifts
- Promotion of business networks - Support of knowledge transferring
- The production of training, congresses, etc.
- Financing opportunities
G4:
G5: - Tax system: in general - Administrative burdens
- Influencing risk and risk-perception - Withholding financial obstacles
5.3.1. Results Policy Analysis Presentation Heat Vision
The following information is retrieved from the letter ‘Kamerbrief Warmtevisie’, published by the minister of Economic Affairs H. Kamp in 2016.
This agreement was offered in the form of a letter to the Dutch parliament by the minister of Economic Affairs, H. Kamp, in April 2015. The ministry acknowledges that a sustainable and reduced energy heat supply is crucial for the realization of the energy transition. Decreased gas extraction and lowered gas provisions are mentioned to enlarge the urgency for increased sustainability. The letter is constructed to accelerate the appointments made by the Energy Agreement and is set up by Minister Kamp, in collaboration with multiple stakeholders. The letter contains three paragraphs. The first delineates the needed future developments. Hereafter, current developments and policy measures for heat savings and sustainable heating are examined. Paragraph three analyses the current market model, heat-infrastructure and experienced bottlenecks.
1. Changing heat supply
Within this vision, considered heat sources are: (green) gas, residual heat, heat pumps and geothermal-, water-, solar-, and biomass energy. Nowadays, 96,4% of the Dutch heat supply is provided by natural gas, as sustainable and residual heat sources respectively supply 3,6% and 5%. It is stated that the diversity of the Dutch heat supply must be increased.
20 As demands differ per region, sources will differ as well. Areas containing a large percentage of built environment and horticultural industries must increase residual heat installations. Sparsely populated areas must develop green gas, biomass or heat pump supplies. Well isolated, newly built houses should innovate by installing heat pumps.
2. A sustainable and decreased heat supply
To realize the needed developments regarding the Dutch heat supply, concrete steps must be taken to promote sustainability and a reduced energy demand must be realized. Paragraph two examines current developments and maps opportunities and challenges.
Realizing a reduced energy demand is coined the first step to a sustainable heat supply. Here, a substantial challenge is influencing existing houses and buildings. Construction measures will be implemented to improve isolation and heating system efficiencies. Furthermore, area measurements are needed. Such measures concern collective renewable heat supplies or residual heat utilization. The latter is promoted by the ministry through the stimulation of the Green Deals. However, two
bottlenecks regarding the use of residual heat are identified. First, the life security of residual heat businesses is mentioned as being problematic. Namely, for organisations that possess residual heat, this is not the main business. As such companies could migrate or disconnect the heat supply, residual heat businesses are of high insecurity and therefore impose high risks. A second bottleneck is the low financial yield that such projects impose. Costly infrastructure and a ‘no more than usual-principle’ are detected as most significant causes. G5 measures will be taken to tackle these bottlenecks to promote residual heat projects. No specific policies are mentioned.
Regarding newly built and renovated houses, H. Kamp states that its sensible to implement low temperature heating systems, as such systems are compatible with local and sustainable energy supplies. Financial regulations will be framed to match new energy efficiency performances. Hereafter, the importance of innovation is stressed, as this is crucial for the realisation of sustainability and efficiency improvements regarding the energy transition. Research institutes and businesses must therefore collaborate to generate innovations (G3). €28 million was made available in 2012 and 2013 to enhance this research.
Hereafter, the enhancement of sustainable energy sources is examined. First, the SDE+ subsidy regulations (G3) are mentioned, which will subduct the unprofitable top of such investments. Next, energy tax regulations (G5) are specified, as the tax ratios between different energy sources are important.
H. Kamp states that geothermal and biomass energy have the most significant potential. In collaboration with provinces and municipalities, non-financial barriers will be lifted to enhance these sustainable energy sources (G3). Spatial integration and an improved licensing system (G5) are focal points. To enhance the development of geothermal energy, knowledge and financing opportunities will be made available. Heat and power cogenerations will be fiscally supported, by realising input and
21 energy tax exemptions (G5).
3. Biggest Challenge: Market Model and Infrastructure
To realize a sustainable energy supply, sustainable sources must be made competitive in the market model. Regarding natural gas, the SDE+ subsidies (G3) try to realize this competitiveness. As sustainable, decentral energy sources are often closed systems, no energy market is available for such sources. Specific heat laws are drawn up to realize tariff regulations.
Furthermore, the financing of heat-infrastructure is blocked by a combination of factors. The most important factors are high supply and demand risks (G5) and initial investments. These barriers will be examined and abated.
4. Implementation Agenda
This section provides a recapitulation of the above-mentioned measures. H. Kamp furthermore provides a statement, wherein he claims to promote and facilitate the mentioned sustainability
improvements. Residual heat projects, renewable energy stimulants, market model and financing improvements and subsidy regulations (G3) are headlines of these statements.
5.3.2. Policy Types Presentation Heat Vision Table 4: Policy Table Presentation Heat Vision.
Type: Presentation Heat Vision:
G1: - Stimulation of technological developments
G2:
G3: - Subsidies/gifts
- Support of knowledge transferring
- Withholding non-financial obstacles G4:
G5: - Tax system: in general - Administrative burdens
- Tax system: investment deduction
- Influencing risk and risk-perception
5.4. Results Policy Analysis International Climate Agreement
In December 2015, the United Nations Climate Agreement was signed in Paris, which goes in effect in 2020 (Rijksoverheid, n.d.-b). The goal of this agreement is confining global warming: temperature rises must not exceed 2°, with 1,5° as ultimate endeavour.
22 To realize this challenge, agreements are made regarding CO2-emissions, energy savings and renewable energy. In 2020, emission reductions, energy savings and renewable energy percentages must all be 20%. In 2050, total emissions must be reduced with 80-95%, relative to the emission levels of 1990 (Rijksoverheid, n.d.-a).
The compliances made in Paris set out a quantifiable goal needed for the constraint of global warming. With the agreement, individual countries show their commitment to realising this goal. However, no specific measures are mentioned. Therefore, as no direct effects on entrepreneurs are imposed, no further analysis will be provided.
5.5.1. Results Policy Analysis Energy Report
The following information is retrieved from the policy paper ‘Energierapport – Transitie naar Duurzaam’, published by the Dutch Ministry of Economic Affairs in 2016.
The goals of the International Climate Agreement are elaborated in the Energy Report: Transition to Sustainability, published by the Ministry of Economic Affairs. This policy paper will act as a directory for the 2050 climate goals and focusses on the realisation of a safe, reliable and
affordable energy transition towards a CO2-destitute energy supply.
Fundamental Ideas Energy Transition
As the energy transition will have significant societal impact, clearly formulated standpoints are needed, which are provided in the first chapter.
First of all, the multidimensional aspect of the transition is mentioned. International,
European, regional, national and local actors must co-operate. As energy systems are internationally integrated and different interests are present, international agreements are crucial for the realisation of the transition. Still, a national and regional approach is needed to realize the 2° temperature goal. Hereafter, the ministry stresses the importance of keeping all options open for the realisation of a CO2-destitute energy supply. As the potential of each option is unsure, all opportunities must be acknowledged. Also, the importance of energy savings is emphasized.
Then, flexible markets and infrastructure are examined. An energy market in transition requires coherent and consistent policies. Flexible and well-functioning markets must be the outcome. For the realisation of this, the ministry has provided a framework for these markets. First, this
framework must be clear and consistent, so that market incentives are effective and efficient. Second, rules must be formulated as goals, which leaves room for a flexible completion and innovation. Lastly, the framework must be coherent and system-focussed, as an integral approach is needed.
Henceforth, the ministry states that innovation should be the pressing focus, as this is necessary and economically attractive. Diverse actors should engage with generating innovations, helped by increased financing opportunities for sustainable projects (G3). The government must
23 provide a reliable, affordable and safe framework that is fuelled by ambition and leaves room in-between policies to enhance innovation. The promotion of business networks (G3) is mentioned as an example to realise cross pollination regarding innovation.
As mentioned as following standpoint, the energy transition must be an integral part of the spatial environment. As space is scarce in The Netherlands, systems for the generation, transportation and storage of energy must be implemented where possible. As the energy transition could impose significant changes regarding the energy supply, the Dutch public space could drastically change. Hereafter, it is stated that risk-approaches must be carefully researched, without
overregulation. As noticed at the gas extraction in Groningen, safety is of significant importance. Two starting points are noted: Policies must be proportional and citizens must be better informed.
Lastly, the ministry states that all actors must occupy their own role. The government must make agreements to enhance the joint responsibility to the environment. Furthermore, it must provide adequate frameworks and incentives that are safe, reliable and affordable, in order to stimulate the energy transition. Where necessary, the government will share responsibilities and tasks. To stimulate the transition, societal organisations will be facilitated or brought together. An example of this are the earlier mentioned Green Deals. Also, the government will provide adequate knowledge transferring (G3). Furthermore, it must be able to address concerned parties. For end users, such as consumers, businesses and organisations, a fresh, sustainable perspective is required, which causes a habitual change. However, core responsibility of the government is that relevant prerequisites are outlined and that all different actors can contribute at most.
Spatial Heating
Regarding spatial heating, the goal is to achieve zero CO2-emissions for the realisation of spatial heating in 2050. All involved parties, such as home-owners, innovative companies and municipalities, are asked to participate to realise this goal. The government will fulfil the role of facilitator. Rules will be adjusted (G5) and experimental space will be made available to enhance sustainable projects. Furthermore, policies and market rules will be revised. By providing information, creating awareness and providing financial measures, the government will further enhance sustainable spatial heating. Five crucial aspects are mentioned for the government to trigger the transition`. First, coordination is noted, as a better structured market for renovations and energy savings is a necessity. Hereafter, the counteracting nature of split-incentives is mentioned. Administrators and users of buildings have different costs and benefits, which offsets sustainability measures. Furthermore, new co-operations are promoted, as sustainability measures could move collaborations away from the usual concerned parties. Lastly, the market model is mentioned, which is needed to change if the energy system imposes major developments.
24 Process Heat in Industries
This section focusses on established, large companies that participate on a level where entrepreneurs are not influenced. Only indirect influences are possible, in the form of new technology development or innovative businesses that use the considered process heat. As this section does not examine indirect effects that could influence entrepreneurs, no further analysis is required.
Transport
The basis for a sustainable transport sector are economical behaviour, smart organisations and technological improvements. From this basis, only technological improvements impose influences for entrepreneurs. Entrepreneurial opportunities arise in the development and implementation of
innovative fuel types. However, used policy types will indirectly effect entrepreneurs in these market segments. Therefore, no further analysis is provided of this section.
Electricity
To achieve a CO2-destitute society, renewable energy sources are crucial. As electricity will be increasingly used for spatial heating, industrial process and transport, its importance will expand. This phenomenon is called electrification. As the availability of sustainable energy sources will rise, the power supply will move from central to decentral. Flexibility regarding the generation and usage of electricity will be crucial. Also, as electrification is an ongoing process, more electricity will be needed compared to recent days. This imposes complications regarding the energy network. Different governmental instruments are used to promote sustainable energy. Electricity for personal use, for example, is exempted from taxes (G5). Further, a netting regulation is available for a possible electricity surplus. Also, tax reductions are available for neighbourhoods that collectively produce sustainable energy. However, most essential are solar-energy projects subject to SDE+ subsidy regulations (G3).
The Future Energy Supply
This section examines the possibilities and limitations of the different energy functions that together form the Dutch energy supply. Per function, available sources and technologies are analysed, together with the potential and future innovations. Also, pros, cons, costs and benefits are provided. Surprisingly, no future policy implications are described.
25 5.5.2. Policy Table Energy Report
Table 5: Policy Table Energy Report.
Type: Energy Report:
G1:
G2:
G3: - Subsidies/gifts
- Support of knowledge transferring - Promotion of business networks - Financing opportunities G4:
G5: - Administrative burdens - Tax system: in general
5.6. Results Policy Analysis Energy Dialogue
The following information is retrieved from the policy paper ‘Energierapport – Transitie naar Duurzaam’, published by the Dutch Ministry of Economic Affairs in 2016.
The last chapter of the Energy Report mentions the upcoming Energy Dialogue. This process, set up as a continuation of the report, aims for active participation from businesses, citizens,
governments and societal organisations with the energy transition. This dialogue will realise effective efforts for a sustainable energy supply, carried by a broad societal support.
To realize opinions, ideas and innovations about the energy transition, the website
www.mijnenergie2050.nl was set up. Here, all Dutch citizens could contribute by debating on what choices to make to realise a safe, reliable and affordable energy supply in the future. Three boundary conditions are noted to guide the Energy Dialogue. These conditions are safe energy from extraction to use, energy supply certainty and energy affordability.
In March 2016, the online discussion platform was archived. All opinions were sent to the Dutch house of representatives. Hereafter, they were collected by minister Kamp. Eventually, the contributions from the Dialogue formed the cornerstones of the Energy Agenda, which is published in 2016. As an analysis of the Energy Agenda is provided below, further documentation is superfluous.
5.7.1. Policy Analysis Energy Agenda
The following information is retrieved from the policy paper ‘Energieagenda: Naar een CO2
-arme energievoorziening’, published by the Ministry of Economic Affairs in 2016.
26 energy transition towards a CO2-destitute energy supply. Enormous efforts and investments are needed from businesses, citizens and government for this to be realized. This can only succeed if sufficient certainty is present by providing a clear vision and a long-term perspective, together with support from society and businesses. If these conditions are met, the energy transition will provide chances and opportunities for the Dutch society and economy. These chances are mapped by the Energy Agenda. This agenda handles four overriding themes: governance, regional and space, innovation and finance. The first functionality that is described is power and light. Complex problems and elaborate investments regarding the implementation of renewable energy in the current electricity system and public space are needed.
As renewable energy sources offer higher energy prices than conventional, fossil sources, the SDE+ subsidy pool (G3) will be instrumented to stimulate sustainable energy. Energy saving measures and CCS-opportunities will also be subject of the SDE+ regulations (G3).
Regarding sea-based wind energy, the current approach has been fruitful and will therefore be persisted. Active location arrangements, opportunity orchestration and the elimination of risks and competition (G5) are successful measures of this approach.
Local energy generation has been increasingly successful, due to lowered solar panel prices and return policies for electricity. However, locally generated energy is still more expensive than larger-scale projects. To create societal awareness and support, local energy generations will still be supported. The rise of small energy consumers brings forth a new market role: the role of aggregator. Such parties will unburden users or producers by trading their consumption, production or flexible capacity. Taxes regarding electricity storage will be revised (G5). In the current situation, taxes must be payed twice: by supplying the storage and the eventual user.
To stimulate innovation, chain partnerships, long-term R&D programs (G1) and public-private collaborations are essential. Still, reduced renewable energy prices are key for sustainable innovations. The second functionality is high temperature heat. Industries using such heat are energy-intensive, such as the refining, chemical or construction material industry. Measures for these industries impose lower CO2-emissions, CCS-systems and reusing residual currents. Innovative technologies are needed to realize or improve these sustainable measures. Here, entrepreneurial opportunities exist, inventing, facilitating or implementing such technologies. Within this
functionality, the focus is put on energy-intensive industries. Therefore, no entrepreneurial influences are mentioned.
Functionality three examines low temperature heat, which can be used for the heating of buildings and greenhouses. The cornerstones are reduced demand for heat by energy savings and a strong reduction in the need for natural gas via the implementation of sustainable energy sources. Significant commitments are needed for investments leading to sustainability and energy savings. Sector-specific policies and investment stimuli are crucial. Within the built environment, energy
27 savings will be realized via three ways: a minimal saving obligation, stimuli for crossing this
minimum and reducing bottlenecks at the implementation of techniques. Statutory provisions will be implemented to realize a phasing out of houses with low energy labels. Furthermore, pricing
incentives, subsidies, loans with low interest (G3), education and support for innovative approaches are mentioned measures. Which saving opportunities and sustainable measures are most suitable for a specific situation must be aligned between national, regional and local level.
Transport is the main objective of functionality four. Electrification or sustainable fuel sources must be used, instead of fossil fuels. Electric- and hydrogen-fuelled vehicles are innovations that impose positive influences for the economy and CO2-emissions. No specific measures are mentioned that are imposed to positively influence such innovations.
Hereafter, the Energy Agenda mentions the organization of the energy transition. First, the role of the government is specified as unique: it must be reliable and keep track of the direction and progress of the transition. Furthermore, the government must display vision and leadership. Also, it needs to give direction and provide a framework. A reflexive, collaborative and adaptive attitude is needed. Lastly, the government must leave room for other parties to have ownership.
A clear governmental vision is especially important on national level, as this provides entrepreneurs and investors with security. Legally securing goals, institutions or policies radiate political commitment and emphasize a sense of urgency (G4). However, at the basis of the transition stands a factual, informational basis that provides scientific clarity and proof.
The next chapter of the Energy Agenda examines how the required innovations are
established. First, mission-driven governmental innovation programs are mentioned. Such programs will create a long-term secure climate for energy-innovation. Fundamental and applied research, R&D programs (G1) and experimental and rollout phases are supplements of the innovation programs that will be constructed. Especially programs focussing on the realisation of new techniques or services are important for entrepreneurs. In this phase, costs are relatively high, which obstructs the
implementation of such innovations. Therefore, governmental support can positively influence the practical implementation of entrepreneurial innovations.
Current innovation policies are significantly aiming at technological innovations. However, societal developments show that social, economic and institutional advancements are needed as well. Therefore, an integral approach focussed on both technological and societal innovations will be implemented.
Part of this innovation is the creation of long-term preconditions that promote investments from businesses focussed on sustainability. The government must advocate a cost-effective transition with coherent measures and frameworks, including ETS-pricing and taxes (G5), exploitation and innovation subsidies (G3) and imposed standards and obligations. The right instrumental mix will create affordable risk-return ratios for investors and entrepreneurs. As the current ratios are unsupported by financiers and banks, insufficient sustainable projects are adequately funded. A
28 funding facility (ETTF) has been set up for the support of unfunded, risk-baring sustainable projects (G3).
Lastly, changing employment conditions will change the job availability per sector. Measures will be taken to enhance labour market opportunities (G1). Educational and developmental funds will be started that stimulate (re)training. Subsequently, educational vouchers are made available for self-employed people and employees that wish to follow an educational program in an upcoming, sustainable sector.
5.7.2. Policy Table Energy Agenda Table 6: Policy Table Energy Agenda.
Type: Energy Agenda:
G1: - Stimulation of technological developments - Stimulation of techno starters
G2:
G3: - Subsidies/gifts - Low interest loans - Financing opportunities
G4: - Creating a sense of urgency
G5: - Tax system: in general
- Influencing risk and risk-perception
5.8. Results Policy Analysis Agreement Energy-Intensive Industry
Businesses part of the Dutch energy-intensive industry have agreed to institute additional measures promoting energy savings. This agreement, constituted in March 2017, will lead to
additional savings of 9 petajoule in 2020. This is the equivalent of 135.000 households consuming gas and electricity (Rijksoverheid, n.d.-c). The agreement is an extension of the appointments regarding energy-intensive industries noted in the Energy Agreement of 2013. As this extension does not consider entrepreneurs, no further analysis is provided.
5.9.1. Results Interview Analysis Project and Process Manager ETPA
This interview was conducted with Pieter Kraaijeveld at May 30, 2017. As Kraaijeveld experienced a last-minute change regarding his availability, the interview was conducted by phone. Kraaijeveld is active in the Dutch energy sector since 2015. Currently, he is shareholder of the Energy Trading Platform Amsterdam (ETPA). Furthermore, he occupies the position of project and process manager, currently organizing a project concerning all grid operators of The Netherlands. The
