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

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The <strong>institutional</strong>isation of green electricity 167<br />

part of a strategy <strong>to</strong> attract <strong>and</strong> retain cus<strong>to</strong>mers on <strong>the</strong> basis of an<br />

established br<strong>and</strong> 11 .<br />

An unusual partnership <strong>to</strong> support <strong>the</strong> launch of green electricity<br />

With market research indicating a potential for green electricity <strong>and</strong> <strong>the</strong> good<br />

fit of concept in <strong>the</strong> emerging ‘green’ <strong>and</strong> pro-active company profile, <strong>the</strong><br />

company decided <strong>to</strong> launch green electricity through a pilot project in one<br />

city. A fur<strong>the</strong>r outcome of <strong>the</strong> market research was <strong>the</strong> importance <strong>to</strong><br />

establish credibility of <strong>the</strong> concept as cus<strong>to</strong>mers indicated hesitancy <strong>to</strong> buy<br />

<strong>the</strong> green electricity as <strong>the</strong>y were not prepared <strong>to</strong> trust an energy company<br />

regarding <strong>the</strong> sources of <strong>the</strong> electricity <strong>and</strong> <strong>the</strong> destination of <strong>the</strong> revenues,<br />

which were <strong>to</strong> be re-invested in renewable energy projects. Establishing<br />

guarantees regarding <strong>the</strong> ‘greenness’ of <strong>the</strong> product was considered a crucial<br />

fac<strong>to</strong>r for success (Wiechers, 2005). Therefore, <strong>the</strong> Dutch branch of <strong>the</strong><br />

World Wide Fund for Nature (WWF) was approached <strong>to</strong> act as an external<br />

verifier of <strong>the</strong> product. Initial contacts were made at a high level between<br />

chairman Wiechers of PNEM <strong>and</strong> chairman Nijpels of <strong>the</strong> Dutch branch of<br />

<strong>the</strong> WWF followed by specific agreements at lower levels 12 . Participation of<br />

WWF was expected <strong>to</strong> increase legitimacy <strong>and</strong> trustworthiness of green<br />

electricity. For WWF collaboration with PNEM was part of its changing<br />

strategy from fund-raising for nature conservation with a neutral image<br />

<strong>to</strong>wards more actively seeking opportunities <strong>to</strong> co-operate with parties in<br />

civil society (Glasbergen <strong>and</strong> Groenenberg, 2001). The co-operation of<br />

WWF with <strong>the</strong> energy utility also reflected <strong>the</strong> shifting culture of<br />

environmental organisations from one of protest <strong>to</strong> practical solutions<br />

(Hartman, Hofman <strong>and</strong> Stafford, 1999). The partnership fitted <strong>the</strong>ir <strong>change</strong>d<br />

strategy <strong>to</strong>wards realising direct results, instead of working on agreements<br />

with government that are always subject <strong>to</strong> long-term implementation 13 .<br />

WWF supported green electricity <strong>to</strong> stimulate <strong>sustainable</strong> energy use, <strong>and</strong> <strong>to</strong><br />

counteract climate <strong>change</strong>, which was viewed as one of <strong>the</strong> largest threats for<br />

global nature <strong>and</strong> diversity conservation. (Quarles van Ufford, 2000; Schöne,<br />

2001). For PNEM <strong>the</strong> collaboration with WWF on green electricity gave <strong>the</strong><br />

product <strong>the</strong> <strong>sustainable</strong> <strong>and</strong> trustworthy profile necessary <strong>to</strong> attract <strong>and</strong><br />

commit cus<strong>to</strong>mers. The positive results of a pilot project for green electricity<br />

11 Porter (1979) identifies five competitive forces that shape strategy: bargaining power of<br />

buyers, bargaining power of suppliers, <strong>the</strong> threat of new entry, <strong>the</strong> threat of substitutes, <strong>and</strong><br />

<strong>the</strong> intensity of rivalry.<br />

12 Nijpels was <strong>the</strong> former Minister of Environmental Affairs (1986-1989) <strong>and</strong> at that moment<br />

mayor of Breda, a city in <strong>the</strong> province of North-Brabant close <strong>to</strong> <strong>the</strong> city where PNEM<br />

initiated a pilot project for green electricity. The chairman of PNEM, Wiechers, knew<br />

Nijpels personally.<br />

13 Interview with co-ordina<strong>to</strong>r of WWF quoted in Glasbergen <strong>and</strong> Groenenberg (2001: 1).

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