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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212 Chapter 8<br />
with <strong>the</strong> application of <strong>the</strong> gas turbine within <strong>the</strong> power sec<strong>to</strong>r grew, initial<br />
experimental hybridisation of gas <strong>and</strong> steam turbines made clear that such a<br />
set-up could significantly increase efficiency. A third step involved<br />
exp<strong>and</strong>ing <strong>the</strong> role of <strong>the</strong> gas turbine at <strong>the</strong> expense of <strong>the</strong> steam turbine.<br />
Fur<strong>the</strong>r learning by using led <strong>to</strong> a shift in <strong>the</strong> position of <strong>the</strong> gas turbine from<br />
a supplementary component <strong>to</strong> <strong>the</strong> principal element of <strong>the</strong> set-up <strong>and</strong><br />
combined cycle gas turbines gained dominancy in power stations during <strong>the</strong><br />
1990s. Domestic energy policies had relatively little <strong>to</strong> do with <strong>the</strong>se<br />
developments, although gas infrastructure <strong>and</strong> <strong>the</strong> focus on energy saving<br />
certainly facilitated <strong>the</strong> process. Experiences abroad, investments of power<br />
equipment manufacturers such as General Electric <strong>and</strong> Westinghouse in<br />
turbine development were crucial. These companies also had aircraft engine<br />
divisions <strong>and</strong> were at <strong>the</strong> forefront of gas turbine technology since <strong>the</strong><br />
Second World War (Watson, 2004: 1072). The emergence of <strong>the</strong> gas turbine<br />
<strong>and</strong> <strong>the</strong> hybridisation with steam turbines in <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s, was mostly a<br />
case of integrating <strong>the</strong>m in<strong>to</strong> its specific setting <strong>and</strong> involved technical,<br />
organisational <strong>and</strong> operational improvements without changing <strong>the</strong> overall<br />
structure of <strong>the</strong> system.<br />
Success of <strong>the</strong> gas turbine for power generation not only led <strong>to</strong> increasing<br />
application within <strong>the</strong> electricity system but also triggered use outside <strong>the</strong><br />
traditional electricity sec<strong>to</strong>r. Gas turbine technology thus also played a<br />
crucial role in <strong>the</strong> hollowing out of <strong>the</strong> central station electricity model. It<br />
was also able <strong>to</strong> deliver high efficiencies at smaller capacities, <strong>and</strong> industries<br />
increasingly used gas turbines from <strong>the</strong> seventies on <strong>to</strong> shave peak dem<strong>and</strong><br />
<strong>and</strong> serve base loads, as well as <strong>to</strong> produce combined heat <strong>and</strong> power. When<br />
<strong>institutional</strong> <strong>change</strong> opened up <strong>the</strong> previously closed ac<strong>to</strong>r network of <strong>the</strong><br />
electricity sec<strong>to</strong>r, <strong>the</strong> strategies of distribu<strong>to</strong>rs started <strong>to</strong> converge with those<br />
of industrial ac<strong>to</strong>rs <strong>and</strong> decentral cogeneration increased. In combination<br />
with target group policy <strong>and</strong> environmental action plans agreed this led <strong>the</strong><br />
distribution companies <strong>to</strong> take on <strong>the</strong> role of ‘agents of <strong>change</strong>’ after 1989.<br />
Initially, competition with <strong>the</strong> central producers occurred through <strong>the</strong><br />
development of decentral cogeneration in collaboration with industry <strong>and</strong><br />
o<strong>the</strong>r sec<strong>to</strong>rs. Later green electricity was developed as a potential market<br />
segment. Both developments were also induced by <strong>the</strong>ir commitment <strong>to</strong><br />
increase efficiency <strong>and</strong> reduce CO2-emissions. In overview <strong>the</strong>n, <strong>institutional</strong><br />
<strong>change</strong>s have been crucial for <strong>the</strong> way <strong>the</strong> ra<strong>the</strong>r international pattern of gas<br />
turbine development shaped specific paths of Dutch electricity production<br />
<strong>and</strong> consumption.<br />
The role of <strong>institutional</strong> aspects has played a significant role in all paths<br />
taken in <strong>the</strong> electricity system that were analysed. Table 8.2 provides an<br />
overview. A first conclusion is that <strong>the</strong> central station electricity system <strong>and</strong><br />
its <strong>institutional</strong> logics have proved ineffective in shaping alternative paths