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

148 Chapter 5
from 220 MWe in 1990 to just over 1500 MWe in 2000 26 (Boonekamp et al.,
2002: 35). The project office also gave information to companies regarding
optimal scales, technologies, and organisational forms regarding
cogeneration 27 (PW/K, 1990, 1995; Cogen, 1997, 1998). Also the existing
engineering consultancy infrastructure played an important role in the spread
of cogeneration units. In horticulture and health care the cogeneration
installations were smaller scale units, up to 1 MWe, based on gas engines.
Distribution companies also increasingly established joint-ventures with
industries, in order to be able to develop larger scale cogeneration units and
to circumvent the maximum allowed unit scale of 25 MWe under the 1989
Electricity Act 28 . Moreover with the fixed re-delivery prices for electricity
from cogeneration, units increasingly were dimensioned on local heat
demand, selling excess electricity to the grid. The attitude of industry
towards cogeneration was also positively influenced by the long term
agreements on energy efficiency that were signed from 1993 on by a range
of industrial branches and other sectors with the Ministry of Economic
Affairs, with for example horticulture as one of the first entering into a longterm
agreement. The voluntary agreements signed with industrial sectors on
energy efficiency improvement all stressed the potential of cogeneration to
achieve the agreed efficiency improvements. Energy distributors used the
supportive climate to further develop decentral cogeneration and used the
electricity of auto-producers as a cost-effective means in peak-management.
Distributors developed cogeneration activities in two directions. In smaller
projects up to 1500 kWe, distributors took the risk of investments and
bought electricity surpluses to deliver to the grid. In the larger projects,
predominantly with industry, risks and profits were shared by establishing
joint ventures, providing advantages for both parties (Arentsen, Hofman,
Marquart, 2000: 44).
office was divided into the consultancy Cogen projects and the Foundation COGEN
Nederland which represents interests of business members regarding cogeneration.
26 There was a total estimated number of 3500 gas engines in 2002 (Van Dijk, 2004: 77).
27 For example in 1990 a workshop was organised regarding various collaborative forms for
cogeneration, with a strong focus on joint-ventures (PW/K, 1990).
28 Such as the Elsta power plant in Terneuzen with 475 MWe capacity. This was a jointventure
between the chemical firm Dow, and energy distributors Delta and Essent.