Sustainability Innovations in the Electricity Sector PDF
Preview Sustainability Innovations in the Electricity Sector
Sustainability and Innovation Coordinating Editor: JensHorbach Series Editors: Eberhard Feess JensHemmelskamp Joseph Huber Rene´ Kemp MarcoLehmann-Waffenschmidt ArthurP.J.Mol Fred Steward Forfurther volumes: http://www.springer.com/series/6891 . Dorothea Jansen Katrin Ostertag Rainer Walz l l Editors Sustainability Innovations in the Electricity Sector Editors Dr.KatrinOstertag Prof.Dr.DorotheaJansen PDDr.RainerWalz GermanUniversityof FraunhoferInstituteforSystems AdministrativeSciences andInnovationResearch ChairofSociologyofOrganisation CompetenceCenterSustainability Freiherr-vom-Stein-Straße2 andInfrastructureSystems 67346Speyer BreslauerStr.48 Germany 76139Karlsruhe [email protected] Germany [email protected] [email protected] ISSN1860-1030 ISBN978-3-7908-2729-3 e-ISBN978-3-7908-2730-9 DOI10.1007/978-3-7908-2730-9 SpringerHeidelbergDordrechtLondonNewYork LibraryofCongressControlNumber:2011937373 # Springer-VerlagBerlinHeidelberg2012 Thisworkissubjecttocopyright.Allrightsarereserved,whetherthewholeorpartofthematerialis concerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation,broadcasting, reproductiononmicrofilmorinanyotherway,andstorageindatabanks.Duplicationofthispublication orpartsthereofispermittedonlyundertheprovisionsoftheGermanCopyrightLawofSeptember9, 1965,initscurrentversion,andpermissionforusemustalwaysbeobtainedfromSpringer.Violations areliabletoprosecutionundertheGermanCopyrightLaw. Theuseofgeneraldescriptivenames,registerednames,trademarks,etc.inthispublicationdoesnotimply, evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevantprotective lawsandregulationsandthereforefreeforgeneraluse. Printedonacid-freepaper Physica-VerlagisabrandofSpringer-VerlagBerlinHeidelberg Springer-VerlagisapartofSpringerScienceþBusinessMedia(www.springer.com) Preface Theprospectofmodernsocietiesdependsontheirabilitytodealwiththechallenge of climate change in the next decades. Technological innovations may help to reduce the output of greenhouse gases. But barriers in the innovation process seem to be a core problem. Thus, a better understanding of the functioning of institutions and mechanisms governing the social and economic structure of the energy sector, its innovation behaviour and the structure and behaviour of energy consumersareatneed. InGermany,energyandclimatepolicies arecharacterizedbypartlycontradic- tory trends and ambitions. Driven by the integration of the Common Market we witnessed a change away from public monopolies characterized by high supply- securitystandards,highpricescoupledwithdisincentivesforenergyefficiency(e.g. degressivepricepolicy),andinvestmentsintolargetechnologies.Theregimenow evolvesinanewdirectiontowardsprivatization,legallyfreemarketentry,falling pricesfollowedbylowerinterestinenergyefficiency,andgrowinginterestinsmall scaleflexibletechnologies.Thesedevelopmentsalsocausechangesonthelevelof actors. In particular, experts and local politicians mostly expected that municipal utilities would not be able to survive under the new regulation regime. Today, by contrast,wecanidentifyatleastsomeoftheseenterprisesamongthemostimpor- tant actors in the energy market. Local utilities are also assigned a key role with regard to energy efficiency innovations, due to their closeness to the final energy consumer,andtheirimportantroleinthesupplyofcombinedheatandpower.Thus, they appear to be important actors for pursuing the second political ambition, i.e. climateprotection,whichismarkedbyaseriesoflaws,suchasthelawonrenew- ableenergies(feed-inregulation)oroncombinedheatandpowerandtheintroduc- tionoftheEUEmissionTradingSchemeforgreenhousegases. Liberalization puts actors of the energy sector under much stronger market pressure.Severalblack-outsinenergysupplyintheUSandinEuropemakeclear that investment into the grid as well as into new technologies may become a pro- blem under cut-throat competition. Whether utilities, energy suppliers and custo- mers will take this road to the bottom or will be able to harness new and more v vi Preface climate-friendly technologies (and services) is a central question for a sustainable economy. Againstthisbackground,thisbookfocussesonthemechanismsofdiffusionof sustainability innovations in the electricity sector, namely renewable energies, combined heat and power (CHP) as well as energy service contracting. The con- tributionsidentifynationalandsectorspecificsofinnovationpatternsandmechan- isms. Their general approach is centred on institutions, actors or functions within suchasystem.Marketstructureandpublicsectortraditionsarediscussedaswellas actorsandtheirinterests,strategiesandresources.Hence,thisbookrepresentsthe continuation of earlier works published in the series “Sustainability and Innova- tion” by Praetorius et al. (2009).1 It enriches the analyses presented there by its particularfocus onthe roleofregulation, onmunicipal utilitiesasaspecificactor group and by integrating an international perspective. Of particular interest is the question of whether the joint effect of EU driven market liberalization and of climate policies will succeed in establishing market forces that will drive actors towardsmoreclimateprotectionorientedenergyproduction.Aspecialfocusison the role of local utilities in the electricity sector as opposed to large transmission netoperatorsorregional netoperators.Thecountries coveredinthecontributions include Germany (Chaps. 1–7 and 10), Denmark (Chap. 6), the UK (Chaps. 7 and 8), Switzerland (Chap. 9), and the Netherlands (Chap. 10). In some of these countries(esp.GermanyandSwitzerland)localutilitiesareimportantactorsinthe innovation system, while other innovation systems, e.g. the UK, function without suchanactorgroup. ThefirsttwochaptersofthebookanalysethestrategiesofGermanlocalutilities in the three selected innovation domains (renewable energy, CHP, energy service contracting).Arangeofdeterminantsareidentified,whichinfluencetheirstrategic choicesandtheirsuccessintheseinnovationdomains.Jansen–fromtheperspec- tive of actor-centred institutionalism – focuses on electricity generation from renewablesourcesandCHP.Thechangeofanenergysystemtowardssustainable technologiesisconceptualizedasdependingon(1)achangeofactorswithrespect tointerests,valuesandresourcesdependingonorganizationalandtechnicalstruc- tureandknowledgeatthemicrolevel,on(2)achangeofcollaborativebehaviour andownershipstructureatthemesoleveloftheenergysector,andon(3)achange of institutions such as professional norms and regulation at the macro level. Barnekow and Jansen (Chap. 2) analyse energy service contracting activities of Germanlocalutilitieswithaspecialemphasisontwoselectedcustomergroups,i.e. hospitals and butcheries. Both are known for their CHP potential. The analysisof localutilitiesandenergyservicecontractingisthenbroadenedtoacomparisonof different suppliers of this service in the contribution by Ostertag and Hu¨lsmann. Comparative advantages of local utilities relative to important competitors in this 1Praetorius B, Bauknecht D, Cames M, Fischer C, Pehnt M, Schumacher K, Voß J-P (2009) Innovation for sustainable electricity systems – Exploring the dynamics of energy transitions, sustainabilityandinnovation.Springer,Heidelberg. Preface vii marketsegment(e.g.specialisedcontractors)areidentifiedonthebasisofhypoth- eses derived from transaction cost economics using an econometric approach. Governance structures as determinants for strategic choices are also at the center of Chap. 4 (Jansen and Heidler), which looks at the drivers for and effects of shareholding structures among local utilities and transmission net or regional net operators and their influence for strategic choices in general, and for activities in ourthreeselectedinnovationdomains,inparticular. A core element of EU climate policy is the EU Emission Trading Scheme EU ETS. Chapters 5 and 6 analyse its impacts on municipal utilities regarding their activities in renewable electricity generation and CHP (Ostertag et al.) or their activitiesregardingtheirCO performancemorebroadly(KnollandEngels).While 2 Chap. 5 looks at German local utilities and the first phase of the EU ETS (2005– 2007),theanalysesofChap.6coverthebeginningofthesecondphasefrom2008 onwardsandincludealsootherindustriesoutsidetheenergysectorandactorsfrom Denmark. The perspective of international comparative analysis is also adopted by Praetorius et al. in Chap. 8. They compare the UK and Germany with respect to “microgeneration” which includes small scale renewable energy plants and CHP plants. The innovation systems in both countries differ strongly with respect to actor structures and also regulation contexts. MacKerron (Chap. 9) gives some reasonsforthisbyexplainingthestructuresoftheUKenergysysteminahistorical perspective looking at the developments since World War II. The last two con- tributions take a more narrow technological focus again and analyse biomass technology in Switzerland (Wirth and Markard, Chap. 9) and in the Netherlands and Germany (Negro and Hekkert, Chap. 10). They both use the “technological innovationsystem”approach,whichisalsoprominentinPraetoriusetal.(Chap.8). This book is one of the outcomes of the research project “Diffusion of energy efficiency and climate change mitigation innovation in the public and private sector”carriedoutjointlybytheGermanResearchInstituteforPublicAdministra- tioninSpeyer(Germany)andtheFraunhoferInstituteforSystemsandInnovation ResearchinKarlsruhe(Germany).Wegratefullyacknowledgethefinancialsupport oftheVWFoundationforthisproject. Speyer DorotheaJansen Karlsruhe KatrinOstertag RainerWalz . Contents LocalUtilitiesintheGermanElectricityMarketandTheir RoleintheDiffusionofInnovationsinEnergyEfficiency andClimateChangeMitigation ............................................... 1 DorotheaJansen MunicipalUtilitiesandthePromotionofLocalEnergy EfficiencyProjects ............................................................. 27 SvenBarnekowandDorotheaJansen GovernanceVarietyintheEnergyServiceContractingMarket ......... 41 KatrinOstertagandFriederikeHu¨lsmann ShareholdingandCooperationAmongLocalUtilities: DrivingFactorsandEffects .................................................. 57 DorotheaJansenandRichardHeidler LocalUtilitiesUndertheEUEmissionTradingScheme: InnovationImpactsonElectricityGenerationPortfolios .................. 83 KatrinOstertag,NeleGlienke,KarolineRogge,DorotheaJansen, UlrikeStoll,andSvenBarnekow ExploringtheLinkagesBetweenCarbonMarketsandSustainable InnovationsintheEnergySector:LessonsfromtheEUEmissions TradingScheme ............................................................... 97 LisaKnollandAnitaEngels MicrogenerationintheUKandGermanyfrom aTechnologicalInnovationSystemsPerspective .......................... 117 BarbaraPraetorius,MariMartiskainen,RaphaelSauter, andJimWatson ix x Contents InnovationandDiffusionofRenewablesandCHPintheUK: RegulationandLiberalisation ............................................... 141 GordonMacKerron TheContextofInnovation:HowEstablishedActorsAffect theProspectsofBio-SNGTechnologyinSwitzerland .................... 151 SteffenWirthandJochenMarkard IdentifyingTypical(Dys-)FunctionalInteractionPatterns intheDutchBiomassInnovationSystem .................................. 175 SimonaO.NegroandMarkoP.Hekkert
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