Innovation and institutional change: the transition to a sustainable ...
Innovation and institutional change: the transition to a sustainable ... Innovation and institutional change: the transition to a sustainable ...
Stability and transformation in the electricity system 123 4.14 Conclusions Table 4.8 provides an overall assessment of the various paths taken in the electricity system. The paths are discerned regarding the level of divergence from the fossil-based central station electricity regime. The table suggest that options that could be integrated with least difficulty have, not surprisingly, had reasonable success. The current expansion of co-combustion can also be explained by the low level of divergence with the fossil-based central station electricity regime. The initial uptake of coal gasification also follows this logic, but the lack of success has had to do with the erosion of the principle of being able to transfer long-term investment costs onto consumers. Thus, institutional change has reduced the potential for coal gasification, although it can be expected that, with increasing success in other countries, it will return as a serious option in the Netherlands in due time. The most interesting outcomes of the overview are the success of decentral cogeneration and green electricity. Despite high divergence these paths have been relatively successful. The next chapters will provide an in-depth analysis and explanation for this. Table 4.8 Overview of paths taken in the electricity system Path taken Relative Shift in Shift in mode Shift in mode Shift in Shift from success resources of production of provision use coal to gas The nuclear ++ Yes No No No route Hybridisation - Yes Yes No No of gas and steam turbines Coal ++ No Yes No No gasification Distant -/+ No Yes No No heating Decentral +/- No No Yes Yes cogeneration + No Yes Yes Yes Wind power -/+ Yes Yes Yes No Solar power -/+ Yes Yes Yes Yes Biomass cocombution Biomass + Yes No No No combustion Waste -/+ Yes Yes No No incineration + Yes No Yes No Biogas cogen Green -/+ Yes Yes Yes Yes electricity + Yes Yes Yes Yes
124 Chapter 4 Let us consider other factors that can explain rate of success or failure. An important outcome of all paths was the impact of the nature of institutional arrangements. Table 4.9 provides an overview of relative success of paths in time periods characterised by different institutional arrangements within the electricity sector, and significant change in the perception of its institutional logics as triggered by the oil crises. Some paths were frustrated under monopolistic conditions, while uptake was stimulated when competition was introduced. Here, the pattern is reasonably coherent. Before the oil crisis the nuclear route perfectly fitted institutional logics of the electricity regime and the broader societal substructures. Processes of re-institutionalisation had been underway for decades to facilitate integration of nuclear power into the electricity system, as the knowledge infrastructure was geared to nuclear knowledge generation, political support was high, and the economy was expecting continued low-cost electricity. Towards the end of the sixties, societal opposition was already starting to show, and this was accelerated due to the oil crises. But most importantly the dominant institutional logics came under scrutiny as economic growth as well as energy consumption growth stagnated. In combination with dependency on fossil fuels, and perceived finity, this triggered a search process for alternatives. The paths most close to the system enjoyed highest success, but this changed as competition was introduced in the course of the eighties. In combination with the environmental commitments by electricity distributors, a range of alternatives were moving forward. The process of liberalisation has facilitated the emergence of new entrants in the electricity sector that were committed to moving these alternatives further, and could adapt to the institutional logics of green electricity to expand. Table 4.9 Success of paths under different framework conditions Path taken Before Oil crises Transition period Liberalisation, oil crisis 1973-1989 1989-1998 after 1998 Shift from coal to gas ++ +/- + + The nuclear route + +/- - -/+ Hybrid gas and steam turbines + + + + Coal gasification - -/+ + - Distant heating - + + + Decentral cogen - + ++ +/- Wind power - - + + Solar power - -/+ + + Biomass - - +/- +/- Green electricity - - + +
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Stability <strong>and</strong> transformation in <strong>the</strong> electricity system 123<br />
4.14 Conclusions<br />
Table 4.8 provides an overall assessment of <strong>the</strong> various paths taken in <strong>the</strong><br />
electricity system. The paths are discerned regarding <strong>the</strong> level of divergence<br />
from <strong>the</strong> fossil-based central station electricity regime. The table suggest that<br />
options that could be integrated with least difficulty have, not surprisingly,<br />
had reasonable success. The current expansion of co-combustion can also be<br />
explained by <strong>the</strong> low level of divergence with <strong>the</strong> fossil-based central station<br />
electricity regime. The initial uptake of coal gasification also follows this<br />
logic, but <strong>the</strong> lack of success has had <strong>to</strong> do with <strong>the</strong> erosion of <strong>the</strong> principle<br />
of being able <strong>to</strong> transfer long-term investment costs on<strong>to</strong> consumers. Thus,<br />
<strong>institutional</strong> <strong>change</strong> has reduced <strong>the</strong> potential for coal gasification, although<br />
it can be expected that, with increasing success in o<strong>the</strong>r countries, it will<br />
return as a serious option in <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s in due time. The most<br />
interesting outcomes of <strong>the</strong> overview are <strong>the</strong> success of decentral<br />
cogeneration <strong>and</strong> green electricity. Despite high divergence <strong>the</strong>se paths have<br />
been relatively successful. The next chapters will provide an in-depth<br />
analysis <strong>and</strong> explanation for this.<br />
Table 4.8 Overview of paths taken in <strong>the</strong> electricity system<br />
Path taken Relative Shift in Shift in mode Shift in mode Shift in<br />
Shift from<br />
success resources of production of provision use<br />
coal <strong>to</strong> gas<br />
The nuclear<br />
++ Yes No<br />
No<br />
No<br />
route<br />
Hybridisation<br />
- Yes Yes<br />
No<br />
No<br />
of gas <strong>and</strong><br />
steam turbines<br />
Coal<br />
++ No Yes<br />
No<br />
No<br />
gasification<br />
Distant<br />
-/+ No Yes<br />
No<br />
No<br />
heating<br />
Decentral<br />
+/- No No<br />
Yes<br />
Yes<br />
cogeneration + No Yes<br />
Yes<br />
Yes<br />
Wind power -/+ Yes Yes Yes No<br />
Solar power -/+ Yes Yes Yes Yes<br />
Biomass cocombution<br />
Biomass<br />
+ Yes No No No<br />
combustion<br />
Waste<br />
-/+ Yes Yes<br />
No<br />
No<br />
incineration + Yes No<br />
Yes<br />
No<br />
Biogas cogen<br />
Green<br />
-/+ Yes Yes Yes Yes<br />
electricity + Yes Yes<br />
Yes<br />
Yes