Today’s situation in the energy business is a complex one. Whereas the well-functioning of the Dutch power sector still strongly relies on a number of large generation companies, current market circumstances are dim: on the one side, enormous investments in renewable generation are expected, on the other side the expected profitability of incumbent parties is low as producers have great difficulty to recover their costs. From a long term system reliability and stability point of view, the power system is in danger, as investments in a right balance of both generation and flexible adequacy are not ensured.
The end of the marginal cost model in the Netherlands?
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