Energy conservation and electricity sector liberalisation in the Netherlands and the UK: case studies on the development of cogeneration of heat and power, wind energy and demand-side management as energy conservation options

In this article, the development of combined heat and power, wind energy and demand-side management in the UK and the Netherlands are compared. It is examined to what extent these developments are determined by liberalisation of the electricity sector in both countries. The analysis suggests that unbundling of generation and distribution, rather than privatisation or introduction of competition in generation or supply, gives a boost to the construction of new power plant. What kind of generation capacity is constructed - mainly electricity producing combined cycle gas turbines in the UK, almost exclusively cogeneration plant in the Netherlands - depends on fine-tuning of the additional regulation. Furthermore, it is argued that neither the development of wind energy, nor that of demand-side management in either country is very much dependent on electricity sector liberalisation. Some recommendations for policy makers in other countries who wish to reconcile energy conservation with liberalisation are given.