Influence of Circular economy implementation in Alliander

D.B.H. Smits*
University of Twente, Faculty of Engineering Technology, Drienerlolaan 5, 7522 NB, Enschede, The
Netherlands
*corresponding author d.b.h.smits@student.utwente.nl

ABSTRACT: This paper examines the adoption of a circular economy by Alliander, a Dutch electricity and
gas distribution network operator, and its implications on the social-technical system and various stakeholders
within the energy sector. By incorporating renewable energy sources and enhancing the current grid,
Alliander aims to create a more sustainable and efficient energy ecosystem. The research follows a systematic
approach, including socio-technical system analysis and actor analysis, to gain insights into the challenges
and opportunities of circularity implementation. The findings highlight the importance of improving the
maintenance and distribution network to address power outages and limited resources in network materials.
Additionally, the study emphasizes the significance of circular procurement guidelines, adherence to
Sustainable Development Goals, and customer engagement in renewable energy initiatives. The role of
suppliers, government, and investors in supporting circularity and ensuring credibility in resource passports is
also discussed. Collaborative efforts among stakeholders are essential for successful implementation and the
achievement of a resilient and sustainable energy system. The findings of this research provide valuable
insights for Alliander and other energy operators in their pursuit of a circular economy.

Key words: circular economy, gas distribution, renewable energy, electricity, sustainable, stakeholders
1 INTRODUCTION resources in a sustainable way. Second one is we
should make the most of our resources by reusing
Liander, a Dutch electricity and gas distribution and recycling products, components, and materials
network operator, operates as a vital part of the to their fullest potential, using both technical and
energy infrastructure, ensuring the reliable biological methods. The third and final principle is
distribution of energy to households and businesses that we should ensure that our systems work well by
across several regions in the Netherlands. As a anticipating and preventing any negative effects at
subsidiary of Alliander, the largest energy network the source of the problem, so that we can avoid
company in the country, Liander's responsibilities problems and promote positive outcomes. (EMF,
include the construction, operation, and maintenance 2015)
of the electricity and gas grids in its service areas. By embracing the principles of a circular economy,
This encompasses connecting new customers to the Liander envisions significant transformations within
grid, maintaining the grid, and addressing any the social-technical system that underpins the energy
disruptions, such as power outages, to guarantee the infrastructure. These transformations are expected to
safe and dependable delivery of energy to the end- have far-reaching implications for various
user. stakeholders involved in the energy sector.
Consequently, a pressing question arises:
In the context of the ongoing transition to a
sustainable energy system, Liander is adapting to “How will the adoption of a circular economy
incorporate renewable energy sources such as solar influence the social-technical system, and how will it
and wind power while simultaneously enhancing its affect other actors within this system?”
current grid. To achieve this a circular economy is
considered. A circular economy is a very brought Understanding the impact of this shift is essential for
concept but it is based on three main principles. First comprehending the potential benefits, challenges,
one is that we should protect and improve our and opportunities that lie ahead as Liander strives to
natural create a more sustainable and efficient energy
resources by managing our limited resources ecosystem.
carefully and making sure we use renewable
2 METHODOLOGY
This research follows a systematic approach to
investigate the implementation of circularity within
Alliander. The methodology consists of three key
components: the socio-technical system analysis, the
actor analysis, and the integration of findings to
draw conclusions.
2.1 Socio-technical System Analysis
The socio-technical system analysis serves as the
foundation of this research. The socio-technical
system refers to the interconnectedness of the
electricity and gas grid with the overall
infrastructure. By mapping and examining this
system, a comprehensive understanding of potential
challenges and opportunities can be gained.
To conduct the socio-technical system analysis, the
research employs established methodologies and
frameworks, such as the one proposed by Geels.
(Geels, 2005)This approach allows for the
identification of various factors that influence the
circularity of Alliander, including technical, social,
economic, and environmental aspects. By
thoroughly analyzing the socio-technical system, the
research aims to identify key areas that require
attention and improvement for effective circularity
implementation.
2.2 Actor Analysis
The actor analysis is employed to consider the
perspectives and interests of all stakeholders
affected by the implementation of circularity within
Alliander. This analysis recognizes that successful
circularity initiatives involve the active participation
and collaboration of various actors, including
customers, suppliers, government entities, and
investors.
The actor analysis follows a systematic process,
involving data collection, identification of key
actors, and analysis techniques. By employing
methodologies supported by Societal embedding
classes (Middelveld, 2023) to gain insights into the
roles, responsibilities, and expectations of different
actors. This analysis is crucial for understanding the
dynamics and relationships among stakeholders and
for identifying potential barriers or enablers to
circularity implementation.
2.3 Integration of findings
The findings from the socio-technical system
analysis and the actor analysis are integrated to draw
meaningful conclusions regarding the research
question stated in the introduction. Through a
careful combination of insights gained from both
approaches, the research aims to provide a
comprehensive understanding of the challenges and
opportunities associated with circularity
implementation within Alliander.
To ensure a correct analysis, the research will
employ a comparative approach, examining the
alignment or divergence between the socio-technical
system analysis and the perspectives of various
actors. By cross-referencing the findings, the
research aims to identify common themes, critical
areas of focus, and potential strategies for enhancing
circularity within Alliander.
3 RESULTS
3.1 Socio-technical system
In this section the socio-technical system will be
elaborated on as discussed in section 2.1.
3.2 Maintenance and distribution network
The distribution network of Alliander is one of the
most important aspects, since Alliander is supplying
a large part of the Netherlands with gas and
electricity (Jurriëns, 2019). To overcome any power
outages or gas leakages the maintenance should be
considered as a very important aspect. Moreover,
most of the materials used in the network last for
approximately 30 to 40 years, this information was
retrieved from conversation with Sir C. den Hartog.
(Hartog, 2023) However they do consist of materials
which have limited resources such as copper. This
makes it even more important to do proper
maintenance and to improve the circularity of the
network. While Alliander is working on their impact
on the circular economy. A lot is happening in the
Netherlands, the demand for solar- and windfarms,
datacenters and charging stations is rising while the
current electricity grid is filling up more and more.
The problem is mainly that most of the solar farms
can be built within a year, however for Alliander to
improve the electricity grid accordingly takes
approximately 5 to 8 years which means that the
current grid is not yet ready for such impactful
developments. (Alliander, Transportcapaciteit, 2022)
3.3 Regulations and policies
Alliander has set some actual goals which are called
the Sustainable Development Goals (SDGs), these
SDGs can be seen as the internal regulations within
the company. Alliander specified these to the
following six SDG’s, SDG 9, Innovation and
Infrastructure, as well as SDG 13, Climate Change
mitigation, are added to the already selected SDG 7
Affordable & Clean Energy, SDG 8 Decent Work
and Economic Growth SDG 11 Sustainable Cities
and SDG 12 Responsible Production and
Consumption.
(Alliander, Alliander-Green-Finance-Framework,
2022)
3.4 Artefacts
In the Netherlands the National Circular Economy
Programme states the following regarding ambitions
and targets: ‘The ambition is that the Netherlands
have a 50% circular economy by 2030 and a 100%
circular economy by 2050.’ (Rijksoverheid, 2023)
Alliander uses these ambitions as there starting point
for circularity and made circular procurement
guidelines which include criteria for reducing waste,
using sustainable materials, and minimizing carbon
emissions.
3.5 Cultural and symbolic meaning
No sources were found regarding the circularity of
Alliander in the cultural and symbolic sense of the
Netherlands. However in general a lot of cultures
around the world have a strong believe that it is
important to live in harmony with nature and the
cycles of life. In this sense the step towards
circularity is a small step towards living in harmony
with nature, which seems in line with the cultural
believes.
3.6 Infrastructure
The electricity and gas network have a huge impact
on the infrastructure, since the gas pipes are under
high pressure and underground. For the electricity
network this will mostly be underground as well.
However, Therefore the gas and electricity network
needs to be intertwined with the infrastructure.
3.7 Production and supply
Regarding supply chain, Alliander is committed to
responsible sourcing and reducing their carbon
footprint by working with suppliers that meet their
sustainability standards. The company has set
specific targets to reduce the carbon footprint of
their supply chain, and they work closely with
suppliers to achieve these goals. (Alliander, Beleid
en voorwaarden, 2023)
3.8 Disposal
For Alliander the lifetime of most of the products
used within the distribution network will last for
approximately 30 to 40 years. (Hartog, 2023) But
after all these years most products will be replaced
by new ones, this will cause a lot of old materials
which are off course redeployed. Meaning that these
old materials or products are reused in a different
projects or stations.
3.9 User and user practices
Within the company Alliander, the users serve as
customers who utilize electricity and gas supplied
through the Alliander network. Alliander's circular
approach emphasizes optimizing resource utilization
and minimizing environmental impact. To enhance
customer awareness and involvement in the
circularity of the network, Alliander could promote
initiatives such as educating customers on the
benefits of renewable energy generation. One
practical consideration is the installation of solar
panels by customers at their homes or businesses,
enabling the production of green energy and
reducing reliance on Alliander's supply. However,
this shift towards customer-produced electricity
necessitates adaptation and improvement of the
electricity grid to handle these innovations
effectively and safely. Alliander must proactively
address these challenges to ecourage customer
engagement and enhance the circularity of the
network.
3.10 Actor analysis
In this section the actor analysis will be elaborated
on as discussed in section 2.2.
3.11 Customers
Customers of Alliander are all households,
companies and all other users of the electricity or
gas network of Alliander. Their interest in Alliander
is that the supply of gas and electricity is as cheap as
possible and the electricity and gas outage in a year
is minimized.
All customers within the area of the gas and
electricity grid might encounter negative effects,
such as power outage because of the increasing
demand of transportation capacity on the current
electricity grid. (Alliander, Transportcapaciteit,
2022) or having an electricity mast in the garden or
close by, which might obstruct the view.
3.12 Suppliers
Suppliers are all companies which supply goods to
the company Alliander. At the current situation all
suppliers need to have a resource passport which
should indicate the circularity of the resources used
for the supply of Alliander. (Alliander, The resource
passport, 2021) However, in the future the resource
passports need to be improved since the supplier is
currently scoring themselves based on the natural
resources they use. This might lead to a drastic
change regarding the suppliers. This change might
occur when suppliers scored themselves to high
which lead to misleading results and might even lead
to a shift in supplier.
3.13 Government
The government is not funding Alliander, since the
company is profitable. Moreover, Alliander is
relying on the investments of banks and the
government is not responsible. This information was
retrieved from conversation with Sir C. den Hartog.
(Hartog, 2023)
3.14 Investors
The investors of Alliander are banks which changed
their demands regarding resources. Because the
resource passports provided by the suppliers are also
made by the suppliers themselves. By the banks this
can be seen as non-validated, which means that the
credibility of these passports is taken into
consideration. Therefore, the banks are asking
Alliander for new ways to improve their credibility.
In order to improve this credibility, Alliander needs
to improve the validation of these passports or might
consider using different key performance indicators
for improving there credibility towards a circular
economy and more importantly towards their
investors. This information was retrieved from
conversation with Sir C. den Hartog. (Hartog, 2023)
4 DISCUSSION
This study aimed to explore the benefits of
implementing circular economy principles in the
electricity and gas distribution sector. The findings
have significant implications for the energy industry
and sustainability efforts. In this discussion, the
following sections will be discussed, validity,
interpret the results, discuss the limitations, highlight
the implications, and provide suggestions for future
research.
The study employed exact methods, including
qualitative and quantitative approaches, to ensure
validity. Data collection involved interviews,
surveys, and analysis of industry reports, enhancing
the credibility of the findings.
The results indicate that adopting circular economy
principles in the sector can yield positive outcomes.
Renewable energy sources, such as solar and wind
power, can enhance sustainability and efficiency.
Circular economy strategies, focusing on resource
reuse, recycling, and repurposing, can reduce waste,
minimize environmental impact, and conserve
natural resources. These findings align with the
global emphasis on sustainable development and the
transition to a low-carbon economy.
However, it is important to acknowledge limitations.
The sample size was small and geographically
specific, warranting caution in generalizing the
findings. Future research should aim for larger and
more diverse samples to obtain a comprehensive
understanding of circular economy strategies in the
energy sector.
The implications of this research are significant for
policymakers, energy companies, and consumers.
Policymakers can use these findings to inform
regulations and supporting circular practices. Energy
companies can integrate renewable energy sources
and circular economy strategies to enhance
sustainability and gain a competitive advantage.
Consumers can make informed choices, supporting
companies prioritizing circularity and sustainability.
In conclusion, this study highlights the benefits of In terms of the actor analysis, customers may face
implementing circular economy principles in the challenges such as power outages due to the
electricity and gas distribution sector. It supports the increasing demand for transportation capacity on the
notion that circularity contributes to sustainable and electricity grid. Suppliers will need to enhance the
efficient energy practices. Recognizing the study's credibility of their resource passports to meet the
limitations, future research should address them, demands of investors who seek greater assurance in
explore different contexts, and dive deeper into the sustainability practices. The government's role lies in
opportunities and challenges of circular economy providing support and ensuring the continuity of
strategies in the energy sector. Expanding our Alliander's operations, while investors require
knowledge in this field can promote sustainable increased credibility and validation of resource
development and contribute to an environmentally passports.
friendly and resilient energy system.
By embracing a circular economy, Alliander aims to
enhance the sustainability and efficiency of its
energy ecosystem. The implementation of circular
5 CONCLUSION procurement guidelines and adherence to
Sustainable Development Goals will guide
In conclusion, the adoption of a circular economy by Alliander's practices towards a more sustainable
Alliander will result in significant changes within future. Collaborative efforts among stakeholders,
the social-technical system and among various including customers, suppliers, the government, and
actors involved in the energy sector. The most investors, will be crucial for successfully
important changes within the social-technical system implementing circularity and achieving a resilient
include improvements in the maintenance and and sustainable energy system. Through these
distribution network to address power outages and collective actions, Alliander and its stakeholders can
limited resources in network materials. The contribute to a more environmentally conscious and
production and supply aspect will be influenced by resource-efficient future.
Alliander's commitment to responsible sourcing and
reducing the carbon footprint of their supply chain.
Moreover, user practices will change as customers REFERENCES
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