Abstract
The European Commission’s renewable energy directive introduced a market-based Guarantees of Origin (GO)-trade system that gives consumers the choice of buying “real” green energy. This has been successful, as the market share of Dutch households that buy green energy grew to 64% in 2015. However, societal organizations are dissatisfied with the green energy offered, categorizing it as “cheat” electricity. This article aims to solve this riddle of a successful product created under the GO-trade system but also heavily criticized. Research reveals a lively marketplace with buyers eager to buy green energy and energy producers offering a wide range of labels. Marketplace mechanisms are strongly influenced by political choices, and financial support for energy suppliers makes green energy a credible option. Societal groups, however, argue that the information provided is incomplete and misleading, that buying green energy does not impact positively on greenhouse gas reduction, and that better information and structural reform are required. The GO-trade system is strongly influenced by member states’ national energy politics. Societal organizations have helped to optimize the implementation of the GO-trade system in the Netherlands, but they are not expected to be able to support the creation of a level playing field in which an optimal GO-trade system will flourish.
Highlights
Directive 2009/28 introduced a Guarantees of Origin (GO)-trade system that set in motion an active trade in green energy
After more than a decade, green energy has become the most popular type of electricity bought by Dutch households
Societal organizations criticize the lack of transparency and the failure of the GO-trade system to contribute to CO2 reductions
Summary
The idea of the renewable energy directive was that consumer preferences would influence the switch to reduce CO2 emissions as scheduled [1]. The consumption of green energy has grown steadily to a share of 64% of all households and small companies in 2015 [2]. Consumers were apparently excited by the idea of buying green energy and contributing to the mitigation of negative climate effects. Dutch households’ enthusiasm was not, matched in any other European country. This is remarkable, considering the low share of renewable energy in overall Dutch consumption in comparison to that in the EU-27 countries [3]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
