Integrating Energy Policy and Climate Solutions

Abstract

Green hydrogen is emerging as a critical component in the global fight against climate change, offering a viable pathway to reduce greenhouse gas (GHG) emissions and facilitate the transition to a low carbon economy. As renewable energy sources (RES) like wind and solar become more prevalent, the challenge of their variable supply and the resulting green hydrogen production, demands robust energy storage solutions to ensure stability and flexibility in the energy supply. Underground hydrogen storage (UHS) in salt caverns has been technically proven as an efficient and effective method to address these challenges. However, despite the growing need for UHS, the development of such projects is lagging behind.
The study applied and extended the Institutional Network Analysis (INA) method to the case study of UHS in salt caverns in the Netherlands. The INA method is designed to identify institutional relations and analyse how formal and informal institutions interact within an institutional environment. In this research, the method was modified to focus exclusively on formal institutions, excluding informal institutions. Two extensions were made to deepen the analysis. First, a rule typology analysis was added to analyse the key characteristics of the formal rules within the institutional environment. Second, the approach was further refined by categorizing drivers behind institutional connections.
The application of the extended INA methodology uncovered several critical insights into the institutional environment governing UHS in salt caverns. First, the study identified a misalignment between the Dutch government’s policy intentions, as outlined in the Subsurface Spatial Planning Vision, and the actual practices dictated by the Environment and Planning Act. While the Act emphasizes participation and the opportunity for third parties to propose solutions, the Vision often rules out these possibilities by pre-determining the most fitting solution for a specific problem. Second, the analysis revealed an institutional void, particularly in the area of participatory governance. Although many formal institutions advocate for a participatory approach, the policy documents lack clear guidelines on how third parties should be included in decision-making processes and how the effectiveness of participation strategies should be assessed. Next, the study highlighted the central role of specific actors, such as the competent authority and project developers, who hold significant influence within the institutional network. Additionally, several objects related to permit applications and operational procedures were identified as potential bottlenecks due to their high embeddedness scores. Lastly, the analysis of the rule typology revealed that boundary, information, and position rules are the most prevalent within the institutional context. This suggests that the institutional environment is heavily focused on regulating access and exit within the context and ensuring the dissemination of information to relevant stakeholders.