Innovation and institutional change: the transition to a sustainable ...

104 Chapter 4
organisation of the electricity system was turned upside down by the
Electricity Act in 1989, which separated production from distribution. In the
previous homogeneous and closed decision making arena of the electricity
sector a new atmosphere emerged. Whereas previously electricity companies
had closed their ranks vis a vis the outside world, from then on especially
distribution companies were seeking ways to compete with the production
companies.
4.10 Wind energy development in the Netherlands
Before the oil crisis the electricity sector and the government were clearly
focused on nuclear energy and gas turbine technology. In the light of low oil
prices and the promise of nuclear energy, also development of other
principles was not considered viable. Earlier, in the fifties when coal
shortage was expected, experiences with electricity generation through wind
had been carried out by the Foundation for the Generation of Electricity by
Windmills leading to the conclusion that the traditional Dutch windmills
were not suited for electricity generation. The foundation was dissolved in
1972 (Verbong, 1999). Some actors were focussed on small-scale
applications of renewable sources, in the light of growing concern over the
finiteness of resources (especially after the Club of Rome publication in
1972) and early signs of the oil crisis. Early pioneers in solar energy, wind
energy and biomass technology were dominantly focussed on applications in
developing countries where an electricity grid was either non-existent or less
developed. The oil crisis and the first White Paper on Energy marked the
start of a strategic policy for alternative options for electricity generation.
Based on recommendation from the newly set up LSEO (National Steering
committee for Energy Research), technology programs for wind and solar
energy (mainly thermal) were initiated to explore the potential technological
options. According to Verbong (1999:142) for wind energy:
“the LSEO recommended the evaluation and development of several
different types of wind turbines and the construction of prototypes. A
remarkable aspect of this recommendation is the criterion that was used to
distinguish between small-scale and large-scale production units. In the
LSEO’s view, even a small-scale unit consisted of at least 20 to 30 turbines.
This clearly reflected the dominant reference frame of the large-scale
electricity-generating companies”.
Early efforts in wind energy development
In the first program (NOW-1) eight Dutch companies and institutes were
involved in research under project management of RCN, later an