Jochen Markard

Actor-oriented analysis of innovation systems: exploring micro–meso level linkages in the case of stationary fuel cells

Abstract The innovation systems approach has been successfully established as a conceptual basis for an encompassing analysis of actors, networks and institutions that influence innovation processes. Here we present an approach that concentrates on the actors in a selected technological innovation system. The intention is to specify current or potential contributions of actors, or actor groups, to innovation system performance and dynamics. This will be achieved by explicitly relating actor level characteristics such as innovation strategies and resource endowments to system level characteristics like actor configurations, system functions and performance. We illustrate the approach with a case study on stationary fuel cells in Germany.

What happens after a hype? How changing expectations affected innovation activities in the case of stationary fuel cells

Innovation processes are influenced by the dynamics of expectations. This paper addresses the question of what happens after a hype. It takes a closer look at the case of stationary fuel cells, for which a hype could be identified in 2001 followed by a clear downscaling of expectations and disappointment. Innovation activities, however, remained largely unaffected by the disappointment. We offer two explanations. First, only generalised expectations were adjusted after the hype, while overarching expectations (frames) remained stable and continued to legitimate the technology. Second, emerging institutional structures lead to increasing positive externalities thus stabilising ongoing innovation activities. These institutionalisation processes, again, were supported by a transformation of promises into requirements during the hype and the fact that the frames continued to legitimise the technology afterwards. We conclude with the proposition to differentiate disappointments according to which type of expectations changes after the hype.

Diffusion of green power products in Switzerland

Abstract As in many other European countries, green electricity is an emerging product in Switzerland as well. Although the market is yet to be liberalised, more than 100 of the 1200 Swiss electric utilities offer some sort of green electricity product to their customers. Successful companies like the municipal utilities of the cities of Zurich and Berne have reached customer response rates of up to 4%, while still maintaining cost-based pricing, i.e. charging their customers price premiums of 400–700% per kWh. While most of the products still rely on mainly photovoltaics, some utilities have started to introduce mixed green electricity products also including wind power. With a share of 60% in the Swiss generation mix, hydropowers role in the green electricity mix was also an issue to emerge causing controversial debate. While being renewable, hydropower is not considered environmentally benign by all the stakeholders, and unlike new renewables (solar, wind, biomass), there is little room for new hydropower generation facilities in Switzerland. The green electricity labelling scheme “Naturemade” tackles that issue. The labelling organisation has evolved from a process with broad stakeholder involvement, which included environmental NGOs, scientific institutions, green electricity providers, renewable energy advocates, government bodies and consumer organisations. The analysis in this paper is based on a diffusion theory framework. It identifies and characterises different phases of (past and future) market development, and stresses the importance of eco-labelling as a tool to facilitate the transition from niche to mass market. Finally, we also discuss conclusions that can be drawn from the Swiss case towards market development and labelling on a European level.

Renewable energy alternatives for developed countries

This paper examines renewable energy alternatives in developed countries: environmental mechanisms; future energy alternatives; green electricity marketing and its potential; pricing; and limitations on the eve of open access. It discusses objectives in electricity restructuring; the role of resources planning in forming long range energy environmental policies; feasibility of electricity trading mechanisms; green marketing in the United States and Australia; green energy offers in Canada; and the results of green pricing programs in Europe and the United States. The role of existing and planned mechanisms to achieve environmental benefits in restructured electricity markets are reviewed. Technological and institutional challenges of achieving real, long-term reductions in carbon dioxide and other emissions from the electric sector are discussed. Factors associated with infrastructure turnover together with technology development and deployment are addressed, where attention is given to policies which promote highly integrated and coordinated reductions in emissions. The paper then focuses on the green pool and trends in power marketing where status of competitive markets, green pricing programs for franchise customers, green power products for contestable customers, credibility of green power marketing, and public policy for renewable energy technologies in competitive markets are discussed. It then reviews green energy in Ontario on the eve of open access, and shows there is a market for green energy if customers have a choice.

Closing the Capability Gap: Strategic Planning for the Infrastructure Sector:

In order to cope with arising challenges in infrastructure sectors, utility organizations must develop new strategic, organizational, and technological capabilities. Public utility service providers have often been seen as lacking the capacity to identify and/or implement the needed transformation processes. Instead, privatization has been proposed as a panacea to remedy this deficit. However, privatization projects are often not realized because they encounter strong political opposition. This article presents the results of strategic planning projects in three public wastewater organizations in Switzerland. This study suggests that if appropriate processes are implemented, public utility organizations are able to overcome their limitations in identifying the relevant capability deficits and select adequate strategies to compensate for the deficits. While these strategies may deviate substantially across utilities due to differences in the goals pursued, the widespread adoption of strategic planning methods by public utilities represents a viable alternative to privatization.

Green Hydropower: The contribution of aquatic science research to the promotion of sustainable electricity

Abstract. Hydropower use is responsible for a wide range of environmental disturbances to river systems. Over the past decades, aquatic science research has been successful in identifying a considerable number of relationships that exist between plant operation and ecosystem quality. This increase in scientific knowledge was, however, not matched by a corresponding reduction in environmental impacts stemming from hydropower. In the present paper, we show how aquatic science projects may be defined and implemented to better link scientific knowledge with the resolution of environmental problems.¶We base our analysis on a major aquatic science research project in which an eco-label for “sustainable hydropower” (Green Hydropower) was developed for Switzerland. We first assess the state of aquatic science research on alpine river systems. The Swiss history of hydropower shows that the limited adoption of this knowledge was due to a severe coordination and action problem. The Green Hydropower project aimed at establishing an environmental product label for hydropower plant operation, which should help overcome these problems. It had to deal with two major challenges: the integration of widely differing knowledge stocks and the management of a network of diverse stakeholders operating in a conflict-laden political environment. By carefully dealing with these two problem areas, the project was finally able to define a scientifically-based and broadly-accepted standard for Green Hydropower operation. We conclude by discussing lessons for the improvement of problem-oriented aquatic science research, in general.

Green Electricity from Alpine Hydropower Plants

Abstract Hydropower is a renewable source of energy of which ecological benefits include very low average greenhouse gas emissions. As a result of dams, however, more than 20% of all freshwater fish species are now considered threatened or endangered. Such negative ecological impacts are a focus of broad public concern in Alpine regions where hydropower production is most intense. The liberalization of electricity markets now provides an economic rationale for selling hydropower as green energy. This offers an opportunity to improve the ecological performance of hydropower plants. The lessons learned from this large-scale economic and ecological experiment in the industrialized world might be important in other mountain regions where hydropower production is being developed or needs ecological upgrading. As a step in this direction, the present paper gives an overview of recent developments in Europe concerned with the ecolabeling of hydropower. Different initiatives for green hydropower in liberalized electricity markets are discussed, followed by analysis of the shortcomings of simplistic ecolabels. Finally, a new method for ecological assessment of green hydropower plants is outlined. This is currently being implemented in Switzerland along with ecolabeling.

The Impacts of Market Liberalization on Innovation Processes in the Electricity Sector

Market liberalization has triggered fundamental changes in the electricity sector with far-reaching economic, technical, organizational and ecological consequences. The paper examines how electricity market liberalization has influenced innovation processes at the level of electric utilities and in the electricity sector as a whole. The results are based on an empirical survey including two case studies, green power and fuel cells, in which utility innovation strategies were analysed. From the similarities in both cases and the aggregated effects of innovation strategies, we identify several indications for a general change of innovation processes in the sector: The innovation activity has increased, there is a greater variety of innovation projects, product innovations and organizational innovations have gained importance, innovation networks have become smaller and more specific, and the professionalism of innovation management is improving.

Disclosure of electricity products—lessons from consumer research as guidance for energy policy

Abstract In this article we compare recent findings from focus group research on electricity information disclosure in Switzerland with consumer research in the US. On the basis of the results, we provide an overview of disclosure schemes in the US and in Europe. Our aim is to summarize the key issues of electricity disclosure from a residential customers point of view and to underline the potential of consumer research for energy policy making. The results are as follows: Consumer preferences for electricity disclosure are very similar in Switzerland and the US. There is a basic demand for trustworthy information and market transparency. Consumers want to compare electricity products with regard to price, generation sources, and environmental and contractual attributes. Thus, the disclosure of critical information is important to improve competition by increasing consumer confidence in their ability to choose among electricity offerings. Even more, electricity disclosure is a key element of consumer protection in general, and is a useful educational tool in regulated electricity markets.

Analysing Energy Transitions: Combining Insights from Transition Studies and International Political Economy

Energy transitions are understood as structural long-term transformations of the way energy needs are met. The ongoing energy transition poses significant challenges for analysis and theory building. It is characterized by a high degree of uncertainty and complexity, a key role for public policy, strong vested interests and lock-in, simultaneous changes of technologies, organizations and institutional structures, and a variety of possible transition pathways. This chapter discusses how insights from two so far disconnected strands of literature, transition studies and international political economy, can be mobilized for addressing these challenges when studying energy transitions. The chapter also briefly introduces the other chapters in this section.