The transition towards a decarbonised electricity system presents significant challenges for the Dutch electricity market, particularly regarding the integration of renewable energy sources and the mitigation of grid congestion. Flexibility is increasingly recognised as a crucial tool for optimising grid utilisation, reducing reliance on infrastructure expansion, and enabling the integration of new energy users. However, despite its technical feasibility, the adoption of flexibility measures remains limited due to a combination of regulatory, market, and behavioural barriers.

This study examines the factors influencing the decision-making of large electricity consumers in the Netherlands regarding the adoption and utilisation of flexibility options. Using Transaction Cost Economics (TCE) as a theoretical framework, the research identifies key barriers, including high transaction costs, regulatory uncertainty, contractual complexity, and economic disincentives. A qualitative methodology was applied, incorporating a literature review, policy analysis, and semi-structured interviews with industry experts.

The findings reveal that flexibility adoption is constrained by two primary challenges: some stakeholders are willing but unable to provide flexibility due to external constraints such as grid congestion and infrastructure limitations, while others are able but unwilling due to financial concerns, operational risks, and misaligned incentives. High transaction costs—resulting from information asymmetry, contractual uncertainties, and market inefficiencies—significantly hinder participation in flexibility markets.

To address these barriers, this research proposes a series of policy and market interventions. These include expanding knowledge and awareness initiatives, improving regulatory frameworks to incentivise flexibility, strengthening the role of system operators, and reforming financial incentives to reduce transaction costs. By aligning policy objectives with market needs, the Dutch electricity system can move towards a more flexible, efficient, and resilient grid, supporting the energy transition while ensuring system stability and economic viability for its users

Greenhouse horticulture is a key sector in the Netherlands, significantly contributing to the economy and society but also heavily reliant on natural gas, leading to substantial CO2 emissions. The sector, in partnership with the government, aims to achieve climate neutrality by 2040 as part of the Energy Transition Covenant for Greenhouse Horticulture 2022-2030. To discourage natural gas use, particularly in combined heat and power (CHP) systems, policymakers have restructured energy taxation and implemented a flat CO2 levy. Additionally, increased network charges are anticipated due to infrastructure expansion, while electricity and gas prices are expected to decline over the next decade. The transition also depends on factors like Dutch sustainable energy system advancements, third-party heat and electricity supply, and consumer preference for climate-neutral products.

In this master's thesis, part of the TU Delft DEMOSES project, a unit commitment (UC) model was developed to analyse the evolving energy landscape of the Dutch horticultural sector and its impact on energy management practices, emissions, and expenses until 2030. The research addresses four sub-questions focusing on trends in energy utilisation, the effects of regulations and costs, the evolution of emissions and financial dynamics, and the impact of energy price developments on the sector. Using multi-integer linear programming, the UC model simulates the dynamics of electricity, heat, and CO2 within the greenhouse industry, capturing system intricacies and exploring various scenarios. Inputs include demand, generation asset specifications, and national energy prices.

Key findings indicate that by 2030, revised energy taxes will shift incentives away from self-generated electricity from CHP systems, resulting in higher costs and only modest emission reductions without renewable energy sources. With renewable availability, substantial emission reductions are possible but at significantly increased costs. The most cost-effective scenario combines geothermal and waste heat with CHP generation, balancing costs and emissions reductions. However, high network charges could undermine regulatory efforts to promote sustainable thermal generation, emphasising the need for effective capacity management.

Geothermal energy is predicted to become the primary sustainable thermal source in the horticultural sector by 2030, though its economic advantage over CHP systems remains limited under current fiscal policies. The research suggests horticulturists will transition from electricity suppliers to balanced electricity traders, integrating both renewable and conventional thermal sources. This transition enhances sustainability but increases net costs due to reduced revenue from less frequent CHP operation.

Recommendations highlight the necessity of policy intervention to manage network charges and incentivise sustainable energy adoption. Revising pricing mechanisms and incorporating subsidies can mitigate costs and promote electric technologies for thermal generation. Future research should explore diverse scenarios for geothermal and waste heat availability, refine models for optimal inclusion, and investigate various tax regimes to enhance economic viability. Horticulturists should invest in waste heat and geothermal energy while maintaining CHP systems for load-following needs and managing heat pump capacity within contracted capacities to mitigate costs.

In the European Union, heating and cooling account for 50% of the total energy consumption and half of the carbon emissions, as 75% of the energy is still supplied by fossil fuels. In the Netherlands, energy transition decision-makers are sailing in the dark in an attempt to realize the heat transition in high-density areas. How can market parties optimize the mix of heat supply technologies, while responding to policies and network requirements? To adequately manage renewable energy on a large scale, flexibility measures need to be in place across all components of the system, from generation to distribution, to supply and demand. This master thesis is part of the TU Delft research project "DEMOSES" and is done in collaboration with the energy company Eneco. The project aims to study to what extent the integration of heat storage and additional heat sources can enhance the flexibility and long-term sustainability of the South-Holland district heating network. This is done by developing and analyzing a district heating network model of South-Holland, and expanding the network with additional heat sources and heat storage. Additional heat sources lead to increased flexibility and sustainability, while additional heat storage primarily increases only the flexibility. Looking ahead to 2030, to realize the heat transition in South-Holland, many additional sources and storage should be added in the following years to realize a flexible, sustainable, and affordable district heating network. However, with the proposal of the Collective Heat System Act, the question is whether investments in additional heat sources and storage are attractive for energy companies when ownership of these assets in the following years cannot be guaranteed.