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

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202 Chapter 7<br />

improvement of cable <strong>and</strong> conduction technologies, led <strong>to</strong> reduction of<br />

transport losses <strong>and</strong> made transport at longer distances possible. Solar<br />

hydrogen systems were developed in Sou<strong>the</strong>rn regions (Europe <strong>and</strong> Africa)<br />

as <strong>the</strong>y served local hydrogen need <strong>and</strong> produced power for <strong>the</strong> international<br />

grid. In 2050, <strong>the</strong>n, electricity dem<strong>and</strong> in <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s was met half by<br />

national power production with several highly efficient combined cycles<br />

based on inputs of gas, biomass <strong>and</strong> coal (with CO2 removal) <strong>and</strong> offshore<br />

wind-hydrogen systems, leading <strong>to</strong> a halving of CO2 emissions compared <strong>to</strong><br />

<strong>the</strong> 1990 level. The o<strong>the</strong>r half was met by import of electricity based on<br />

combined cycles, offshore wind farms, solar hydrogen systems <strong>and</strong><br />

hydropower.<br />

7.5.3 Scenario 2: Towards Distributed Generation<br />

2000-2010: Diverging ac<strong>to</strong>r strategies in <strong>the</strong> electricity regime<br />

Changing user preferences facilitated by liberalisation induced increasing<br />

divergence in strategies of mainly international operating electricity<br />

producers <strong>and</strong> more national focussed energy distribution companies.<br />

Producers supplied cheap base load electricity by full utilisation of <strong>the</strong>ir<br />

large-scale power plants based on coal, oil, gas or nuclear energy.<br />

Distribu<strong>to</strong>rs were more focussed on cus<strong>to</strong>mers with smaller electricity<br />

dem<strong>and</strong>, such as households <strong>and</strong> small firms. They were attracting cus<strong>to</strong>mers<br />

mainly by highlighting <strong>the</strong> specificity of <strong>the</strong>ir product <strong>and</strong> service.<br />

Distribu<strong>to</strong>rs aimed <strong>to</strong> fur<strong>the</strong>r exp<strong>and</strong> market niches such as industrial<br />

combined heat <strong>and</strong> power production, in collaboration with industrial ac<strong>to</strong>rs,<br />

<strong>and</strong> <strong>the</strong>y fur<strong>the</strong>r explored technological niches such as micropower in<br />

coalition with gas utilities <strong>and</strong> electric equipment producers. Gas utilities<br />

were involved <strong>to</strong> exp<strong>and</strong> <strong>the</strong> market of gas relative <strong>to</strong> central produced<br />

electricity. Several industries were involved because <strong>the</strong>y needed electricity<br />

in combination with high quality heat that could be provided by<br />

microturbines. Projects with micropower for several households were<br />

supported by coalitions involved in <strong>the</strong> development of energy-efficient<br />

housing districts. The Dutch world-wide fund for nature (WWF) had<br />

developed a set of design criteria that were used in several housing projects<br />

by project developers, construction companies <strong>and</strong> municipalities. They<br />

explored <strong>the</strong> potential of fur<strong>the</strong>r improving energy efficiency in houses by<br />

installing <strong>the</strong>se micropower systems. Potential buyers were not scared away<br />

by <strong>the</strong> relatively small additional costs also because of <strong>the</strong> continuing<br />

housing scarcity, while some leading edge buyers were specifically attracted<br />

by <strong>the</strong> green profile of <strong>the</strong> houses.<br />

The projects induced fur<strong>the</strong>r experiments with local generation systems<br />

because several problems were encountered. Distribu<strong>to</strong>rs had <strong>to</strong> solve

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