Balancing Power and the Unintended Governance Structure in the Dutch Electricity Industry

Eva Niesten (Utrecht University)
Albert Jolink (Rotterdam School of Management)

Abstract: Since 1996, the European Commission and the national governments in the EU have aimed for a market to balance the supply and demand for electricity in real time. We hypothesize why this politically favored market for balancing power did not materialize in the Netherlands. On the basis of a survey among the energy firms responsible for the supply of balancing power, we demonstrate that the balancing transaction is more efficiently governed by the existing hybrid structure.

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