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

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Stability <strong>and</strong> transformation in <strong>the</strong> electricity system 107<br />

it lacked experience <strong>and</strong> commitment, <strong>and</strong> was not part of R&D networks<br />

involved in wind energy development;<br />

– Although ambitious policy goals were set (in 1985 a 1000 MW target for<br />

2000), <strong>and</strong> R&D was supported, measures were mainly of a <strong>to</strong>p-down<br />

nature, <strong>and</strong> not accompanied by implementation strategies <strong>and</strong> market<br />

incentives (subsidies were based on installation of capacity <strong>and</strong> not on<br />

yield, thus giving no incentive for performance);<br />

– Pay back tariffs for electricity delivered <strong>to</strong> <strong>the</strong> grid were low relative <strong>to</strong><br />

o<strong>the</strong>r countries (in 1994 55% of consumer electricity prices compared <strong>to</strong><br />

85% in Germany, 142% in Denmark <strong>and</strong> 189% in <strong>the</strong> UK) (Wolsink,<br />

1996);<br />

– Efforts were concentrated at developing technology <strong>and</strong> industry <strong>and</strong> not<br />

on developing local involvement, networks <strong>and</strong> <strong>institutional</strong> frameworks<br />

for <strong>the</strong> developing appropriate sites <strong>and</strong> implementing wind power at <strong>the</strong><br />

local level.<br />

The development of a wind farm in Sexbierum<br />

After <strong>the</strong> first wind program had resulted in <strong>the</strong> development of several pro<strong>to</strong>types of wind<br />

turbines <strong>the</strong> second wind program was focussed on first application in electricity<br />

generation. The focus was on large scale application of wind energy, <strong>and</strong> in <strong>the</strong> beginning<br />

of <strong>the</strong> eighties it was decided <strong>to</strong> develop a demonstration wind farm of 18 wind turbines<br />

with a <strong>to</strong>tal capacity of 5.4 MW. The experiences of this wind farm would serve as a basis<br />

for recommendations regarding <strong>the</strong> integration of wind capacity in <strong>the</strong> electricity system<br />

(SEP, 1983: 7). The importance of <strong>the</strong> exploration <strong>and</strong> design of <strong>the</strong> wind farm was<br />

particularly stressed by <strong>the</strong> Ministry of Economic Affairs, <strong>and</strong> <strong>the</strong> Ministry decided <strong>to</strong> give<br />

SEP <strong>the</strong> leading role 36 (Verbong, 1999: 150). At that time this was <strong>the</strong> largest application<br />

of wind turbines in <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s. SEP was involved under <strong>the</strong> condition that<br />

government would finance half of <strong>the</strong> construction costs. Although SEP expected that wind<br />

turbines would not give large technical problems, operation of <strong>the</strong> wind farm led <strong>to</strong><br />

unforeseen problems. The strong vibrations <strong>and</strong> <strong>the</strong> nature of wind as an unstable source<br />

hampered scaling up of <strong>the</strong> wind turbines (De Keijzer, 2000). Variability of wind <strong>and</strong> <strong>the</strong><br />

fact that wind turbines are switched off above certain wind velocity led <strong>to</strong> variable power<br />

supply with extra dem<strong>and</strong>s on <strong>the</strong> control of <strong>the</strong>rmal power capacity (SEP, 1983: 14). Also<br />

<strong>the</strong> wind turbines chosen were pro<strong>to</strong>types of newly designed turbine types <strong>and</strong> hardly<br />

tested, leading <strong>to</strong> technological problems <strong>and</strong> poor performance (Verbong, 1999: 154). In<br />

1986 construction of <strong>the</strong> wind park started, <strong>the</strong> park became operational in 1988. Initially,<br />

it was expected that wind power could replace around 20% of <strong>the</strong> conventional base load<br />

capacity, based on <strong>the</strong> experiences this was revised downwards <strong>to</strong> 16.5%. The negative<br />

experiences ended SEP’s involvement in wind energy.<br />

36 According <strong>to</strong> Verbong (1999: 150) <strong>the</strong> reason for this transfer was unclear. “SEP (…) had<br />

little experience with wind turbines <strong>and</strong> was certainly not in <strong>the</strong> wind advocates’ camp, <strong>to</strong><br />

put it mildly. In fact, SEP (…) was at that time <strong>the</strong> main nuclear energy supporter.<br />

Moreover, because of <strong>the</strong> au<strong>to</strong>nomous position of <strong>the</strong> electricity sec<strong>to</strong>r’s institutions <strong>and</strong><br />

subsequent ‘monopolistic’ behaviour, relations between <strong>the</strong> sec<strong>to</strong>r <strong>and</strong> o<strong>the</strong>r research<br />

institutions <strong>and</strong> with industry were at times strained”.

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