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 ...
Conclusions 227 exploration of long-term developments in the energy system (EZ, 2000) and on consultation with a number of stakeholders also a number of promising and robust transition routes were selected: new gas, chain efficiency, green resources, and sustainable Rijnmond. Project teams were formed for these themes and in 2002 and 2003 these project groups developed general visions and a set of more specific paths through a process of workshops and interviews (EZ project group, 2002ab, 2003ab). Based on these reports discussion took place and further ideas were developed, leading to five main routes in 2004, see Table 8.3. The recent energy report of 2005 also proposed a sixth route: clean fossil (EZ, 2005). Table 8.3 Main routes and paths in the energy transition (AER/VROM, 2004: 232) Main routes Recognised transition paths in 2004 Efficient and green gas Energy saving buildings Micro and mini cogeneration Clean natural gas Green gas Energy saving horticulture Chain efficiency Renewal of production systems Sustainable agricultural chain Sustainable paper chain Green resources Biomass production Biomass conversion Biosyngas Bioplastics Alternative motor fuels Natural gas Biofuels Sustainable electricity Biomass Wind Based on an assessment of the process and routes in the energy transition in the perspective of our analysis of paths taken in the energy system we make the following observations and suggestions. Observation 1: Incumbents dominate the process First, there is a relative narrow range of actors involved as reported in the initial visions and in the stakeholder consultation. There is a bias to a business approach to the energy transition, with strong representation of multinationals and energy companies, but under representation of actors such as the construction firms, housing companies, and consumer groups. This may provide some part of the explanation for the rather narrow and technological orientation of most of the proposed routes, because homogeneous networks are much more unlikely to produce ‘out of the box’
228 Chapter 8 ideas. Moreover, the strong focus on incumbent companies should be assessed critically as many have pointed out how difficult it is for incumbents to deliver more radical innovations (Henderson and Clark, 1990; Utterback, 1994; Christensen, 1997). Especially new start-ups, small firms, and outsiders are found to play a pivotal role in studies of radical innovation and systems change (Van de Poel, 1998, 2000; Geels, 2002). Incumbents are sometimes able to provide new products and markets, but evidence shows that it is often small, creative, new entities and networks developing new practices that provide the seeds for new sociotechnical systems. These insights have led to a whole body of research focussing on specific management approaches to radical innovation because established management approaches for regular innovations (‘evaluation routines’) may even be detrimental to radical innovations (Christensen, 1997; McDermott and O’Connor, 2002; Jolivet et al, 2002). Suggestion 1: Broaden networks and perspectives The cases of green electricity and decentral cogeneration illustrated that alternative organisational forms, new networks, and alternative institutional arrangements can be crucial in advancing alternative practices. The inclusion of incumbent energy companies in those change processes could take place as their frames of reference and perceptions of the nature of problems and solutions shifted. We do therefore not suggest that the involved actors and proposed paths do not hold promise, but we argue for the value of involving other actors and networks exhibiting less lock-in to existing energy paths and its institutional logics. To also adopt a constructive stance therefore two suggestions are made. One proposal is to develop a transition route around actors and networks with initial exclusion of incumbents. A possibility is to focus on ways to integrated developments in information and communication technologies (ICT) with alternative energy systems. ICT plays a role in alternative metering and control systems for energy users, and on the other hand the expansion of ICT companies, networks and use also demands new forms (quality) of energy provision. Another proposal is the development of a transition route from the user perspective. In the relative successful cases of green electricity and decentral cogeneration the role of users and a strong demand orientation played an important role. The relevance lies also in the nature of the dynamics involved in such a user oriented approach which can initiate a rather rapid take-off once an effective new practice, broad patterns of mobilisation, and catching institutional logics have materialised.
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Conclusions 227<br />
exploration of long-term developments in <strong>the</strong> energy system (EZ, 2000) <strong>and</strong><br />
on consultation with a number of stakeholders also a number of promising<br />
<strong>and</strong> robust <strong>transition</strong> routes were selected: new gas, chain efficiency, green<br />
resources, <strong>and</strong> <strong>sustainable</strong> Rijnmond. Project teams were formed for <strong>the</strong>se<br />
<strong>the</strong>mes <strong>and</strong> in 2002 <strong>and</strong> 2003 <strong>the</strong>se project groups developed general visions<br />
<strong>and</strong> a set of more specific paths through a process of workshops <strong>and</strong><br />
interviews (EZ project group, 2002ab, 2003ab). Based on <strong>the</strong>se reports<br />
discussion <strong>to</strong>ok place <strong>and</strong> fur<strong>the</strong>r ideas were developed, leading <strong>to</strong> five main<br />
routes in 2004, see Table 8.3. The recent energy report of 2005 also<br />
proposed a sixth route: clean fossil (EZ, 2005).<br />
Table 8.3 Main routes <strong>and</strong> paths in <strong>the</strong> energy <strong>transition</strong> (AER/VROM,<br />
2004: 232)<br />
Main routes Recognised <strong>transition</strong> paths in 2004<br />
Efficient <strong>and</strong> green gas Energy saving buildings<br />
Micro <strong>and</strong> mini cogeneration<br />
Clean natural gas<br />
Green gas<br />
Energy saving horticulture<br />
Chain efficiency<br />
Renewal of production systems<br />
Sustainable agricultural chain<br />
Sustainable paper chain<br />
Green resources<br />
Biomass production<br />
Biomass conversion<br />
Biosyngas<br />
Bioplastics<br />
Alternative mo<strong>to</strong>r fuels Natural gas<br />
Biofuels<br />
Sustainable electricity Biomass<br />
Wind<br />
Based on an assessment of <strong>the</strong> process <strong>and</strong> routes in <strong>the</strong> energy <strong>transition</strong> in<br />
<strong>the</strong> perspective of our analysis of paths taken in <strong>the</strong> energy system we make<br />
<strong>the</strong> following observations <strong>and</strong> suggestions.<br />
Observation 1: Incumbents dominate <strong>the</strong> process<br />
First, <strong>the</strong>re is a relative narrow range of ac<strong>to</strong>rs involved as reported in <strong>the</strong><br />
initial visions <strong>and</strong> in <strong>the</strong> stakeholder consultation. There is a bias <strong>to</strong> a<br />
business approach <strong>to</strong> <strong>the</strong> energy <strong>transition</strong>, with strong representation of<br />
multinationals <strong>and</strong> energy companies, but under representation of ac<strong>to</strong>rs<br />
such as <strong>the</strong> construction firms, housing companies, <strong>and</strong> consumer groups.<br />
This may provide some part of <strong>the</strong> explanation for <strong>the</strong> ra<strong>the</strong>r narrow <strong>and</strong><br />
technological orientation of most of <strong>the</strong> proposed routes, because<br />
homogeneous networks are much more unlikely <strong>to</strong> produce ‘out of <strong>the</strong> box’