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 ...

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Evolution of decentral cogeneration in the Netherlands 133 Table 5.1 Typology of linkages of production-consumption systems to wider societal subsystems and the nature of their institutionalisation in the early 1970s Subsystem – type of linkage to production-consumption system 1) Economic system Nature of institutionalisation for the electricity system - mode of coordination Set of rules regarding grid connection, parallel power production, back up power, hampers power delivery to the grid for actors outside the electricity sector - industrial organisation Monopolistic organisation of e-sector hampers emergence of alternative organisational forms for electricity generation and provision - mode of provision External electricity provision taken for granted in industry; tariff structures supportive for larger consumers, energy-intensive industry. - perception of nature of problems – solutions 2) Knowledge infrastructure Electricity costs and reliability are main issues for industry, generally accepted that this is the responsibility of the electricity sector and trust in their ability to secure long-term supply and solve related problems. Only dissent from VKW (association of self-producers) who argue that industrial self-production is in various cases more efficient - mode of coordination Support structures, information flows, and advisory committees strongly dominated by proponents of the system: no support for, and information flows about, alternative technologies and designs - mode of organisation Educational and research organisations linked to central station electricity system: alternative designs overlooked and rarely educated and investigated - perception of nature of problems – solutions 3) Policy system Main problem of securing long-term supply solved by changeover to nuclear power, alternatives are overlooked and rarely investigated - mode of coordination Acceptance of natural monopoly for electricity as public good; high autonomy for electricity sector in setting prices and contracts; major role policy on resource inputs - organisation of policy Energy departments reflect fossil resources, nuclear energy and focus on supply for economic growth - mode of communication Strong interaction with electricity sector regarding energy issues - relation to political, societal goals Congruence between goals of sector and government - perception of nature of problems - Enabling the ‘growth dynamic’ paradigm to continue

134 Chapter 5 solutions is main concern: focus on security of supply and nuclear power as solution - R&D policy and orientation Single focus on nuclear R&D; nuclear research institute plays core role; focus on securing energy supply to facilitate industrial growth 4) Society - mode of coordination Electricity is taken for granted, seen as public provided good, system is intertwined with daily life (‘electrification’) - mode of communication Electricity system presented as objective, technical reality; one way information flows to educate citizens on use; technical responses in reaction to subjective opinions (e.g. concerns regarding cooling water, nuclear safety) - perception of problems Rather low public scrutiny and involvement regarding the workings of the system; main focus on securing long-term and reliable supply 5.4 Foundations for change: understanding increased attention for cogeneration Corrosion of the growth paradigm of the existing system Although the upturn in decentral cogeneration started to show from the middle of the eighties, the stage was set by a range of earlier events and developments that impacted basic aspects of the electricity system. Table 5.1 provides an overview of major policy milestones and other developments that have impacted the course of cogeneration in the period 1972-1983. What these developments had in common was that they corroded the takenfor-grantedness of the existing sociotechnical configuration. The growth paradigm 6 was increasingly challenged as the effects of two oil crises unfolded, environmental concerns were voiced 7 , and national government aimed to increase control on the electricity system. Instead of focusing on 6 In a report on nuclear energy in 1972, it was expected that demand would increase around sevenfold up to 2000 and that half of this would be met by new nuclear capacity (TK, 1972: 2). In 1975, after the first oil crisis, the prognosis was adjusted to a fourfold increase (TK, 1975). In reality, capacity just more than doubled from 1970 to 2000 (EnergieNed, 2001). 7 The report of the Club of Rome in 1972 worked as a catalyst for increasing concerns over the environmental effects of industrial growth. Already in his 1970 annual speech for the Association of Directors of Electricity Companies, Chairman De Roy van Zuydewijn signalled an explosive increase in attention for environmental issues, and later that year he was confronted with extensive media attention when an oil storage tank collapsed and spilled oil in the river (Bläsing, 1992: 336-343).

134 Chapter 5<br />

solutions is main concern: focus on security of supply <strong>and</strong><br />

nuclear power as solution<br />

- R&D policy <strong>and</strong> orientation Single focus on nuclear R&D; nuclear research<br />

institute plays core role; focus on securing energy<br />

supply <strong>to</strong> facilitate industrial growth<br />

4) Society<br />

- mode of coordination Electricity is taken for granted, seen as public<br />

provided good, system is intertwined with daily life<br />

(‘electrification’)<br />

- mode of communication Electricity system presented as objective, technical<br />

reality; one way information flows <strong>to</strong> educate citizens<br />

on use; technical responses in reaction <strong>to</strong> subjective<br />

opinions (e.g. concerns regarding cooling water,<br />

nuclear safety)<br />

- perception of problems Ra<strong>the</strong>r low public scrutiny <strong>and</strong> involvement<br />

regarding <strong>the</strong> workings of <strong>the</strong> system; main focus on<br />

securing long-term <strong>and</strong> reliable supply<br />

5.4 Foundations for <strong>change</strong>: underst<strong>and</strong>ing increased<br />

attention for cogeneration<br />

Corrosion of <strong>the</strong> growth paradigm of <strong>the</strong> existing system<br />

Although <strong>the</strong> upturn in decentral cogeneration started <strong>to</strong> show from <strong>the</strong><br />

middle of <strong>the</strong> eighties, <strong>the</strong> stage was set by a range of earlier events <strong>and</strong><br />

developments that impacted basic aspects of <strong>the</strong> electricity system. Table 5.1<br />

provides an overview of major policy miles<strong>to</strong>nes <strong>and</strong> o<strong>the</strong>r developments<br />

that have impacted <strong>the</strong> course of cogeneration in <strong>the</strong> period 1972-1983.<br />

What <strong>the</strong>se developments had in common was that <strong>the</strong>y corroded <strong>the</strong> takenfor-grantedness<br />

of <strong>the</strong> existing sociotechnical configuration. The growth<br />

paradigm 6 was increasingly challenged as <strong>the</strong> effects of two oil crises<br />

unfolded, environmental concerns were voiced 7 , <strong>and</strong> national government<br />

aimed <strong>to</strong> increase control on <strong>the</strong> electricity system. Instead of focusing on<br />

6 In a report on nuclear energy in 1972, it was expected that dem<strong>and</strong> would increase around<br />

sevenfold up <strong>to</strong> 2000 <strong>and</strong> that half of this would be met by new nuclear capacity (TK,<br />

1972: 2). In 1975, after <strong>the</strong> first oil crisis, <strong>the</strong> prognosis was adjusted <strong>to</strong> a fourfold increase<br />

(TK, 1975). In reality, capacity just more than doubled from 1970 <strong>to</strong> 2000 (EnergieNed,<br />

2001).<br />

7 The report of <strong>the</strong> Club of Rome in 1972 worked as a catalyst for increasing concerns over<br />

<strong>the</strong> environmental effects of industrial growth. Already in his 1970 annual speech for <strong>the</strong><br />

Association of Direc<strong>to</strong>rs of Electricity Companies, Chairman De Roy van Zuydewijn<br />

signalled an explosive increase in attention for environmental issues, <strong>and</strong> later that year he<br />

was confronted with extensive media attention when an oil s<strong>to</strong>rage tank collapsed <strong>and</strong><br />

spilled oil in <strong>the</strong> river (Bläsing, 1992: 336-343).

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