Ecology, Economy and Security of Supply of the Dutch Electricity Supply System: A Scenario Based Future Analysis

The Dutch electricity sector has been transformed into a liberalized international energy market. Market players are free to choose from various electricity generation options when replacing or expanding production capacity. However, choices that are made now will influence emissions (ecology), integral costs (economy) and availability (security of supply) for the next 25 - 40 years. This thesis shows if and how, based on the current electricity supply system, an optimal balance of ecology, economy and security of supply can be achieved. First, the current electricity supply system is described to create a frame of reference. Then, future technological developments are described for electricity production options. Four potential scenarios are constructed featuring various uncertainties: the globalising versus the local economy; priority versus subordination for the environment; and the security/insecurity of the fuel supply. These four scenarios are worked out with a specially developed techno-economic simulation model; the results are analysed in terms of ecology, economy and security of supply. The findings indicate that it is impossible to arrive at an optimal balance for the defined scenarios. Scenarios with a low environmental impact lead to high integral costs and vice versa. However, by applying a smart combination of various modern generation technologies, CO2 capture and storage, the deployment of biomass and the re-use of residual heat it is possible to reach an optimal balance whereby the additional integral costs can be kept under control compared with the lowest-cost scenarios. To achieve this, clear growth and incentive guidelines need to be established for the various production options. This thesis will form a good starting point for that exercise