Elsevier

Technovation

Volume 25, Issue 7, July 2005, Pages 753-761
Technovation

The sustainable diffusion of renewable energy technologies as an example of an innovation-focused policy

https://doi.org/10.1016/j.technovation.2003.12.003Get rights and content

Abstract

Renewable energy technologies constitute a techno-economic system that is radically different from conventional systems, in terms of density, structure, regulatory and management practices. Consequently, their incorporation into the production and management of energy has to be approached as an innovative and sustainable diffusion process of an alternative technology with system-wide consequences for the whole energy system. Here, an alternative approach is proposed, which integrates the supply- and demand-side perspectives, arguing that a successful policy for the speedy deployment of renewables should focus on the systemic innovation processes that characterize the development and sustainable diffusion of renewables. It is suggested that a strategy that focuses on selected niches should aim at the integration of the innovation dimension into a policy for renewables. Such a perspective may contribute to the growth of successful applications as well as to the development of the corresponding industry of equipment production and services, leading to the deployment of a new technological regime.

Introduction

Despite the accepted wisdom on the advantages of renewable energy technologies (RETs) and their exhibited performance, their diffusion is not yet adequate. Until today, the applied policies for the diffusion of RETs have mainly focused on two critical poles: technology development and investment in production facilities. The results of this particular policy only partially meet policy objectives, with respect to renewables penetration and environmental impact. The dominant approach focuses on the substitution of individual technologies and ignores the interaction of technology diffusion, system restructuring and technology development.

The discourse on energy policy has been based on the assumption (implicit or explicit) that the focus should be on the energy or on the electricity system as a whole. Policy initiatives with respect to deregulation and environmental impact have also viewed the system “as a whole”, from generation to transmission and finally to consumption. In this context, the sustainable development and diffusion of RETs have been a welcome prospect. A prospect, however, that has eluded us for a long time, and is still refuting most political commitments. For example, while the demand for solar thermal installations in Europe is growing continuously, especially in Central Europe, the growth rate is still not sufficient to reach the target of 100 million m2 of installed collectors by 2010, as set in the European Commission’s White Paper (European Commission, 1997). It is our argument that the approach adopted has underestimated the systemic character of the energy system and the effects and prerequisites of a potential wide diffusion of RETs.

Section snippets

Renewable energy technologies as a new techno-economic system

Hughes (1987) outlines the typical elements of a technological system: natural resources, physical artifacts, organizational arrangements and legislative (regulatory) artifacts. The characterization of the set of elements as a system arises from the interaction amongst them (Fig. 1): the behavior of a system emerges from the interaction of its elements. In this respect, the system is a holon (holon means a whole entity in Greek), where each element evolves in tandem with the rest of the

The strategic niche management approach

Continued failure on the part of RETs to deliver the promised benefits will result in policy compromises that will result in the abandonment of the objectives. An alternative route would be to seek novel ways to describe the energy problem, in terms of function, benefit, objectives and performance. The aim is to shift the focus of performance to new territory, where conventional technologies would not be in an advantageous position and the barriers to learning in new directions would be

Policy directions

Strategy and policy tend to focus on the performance of individual RETs. Project-based measures fail to take into consideration two dynamic elements:

  • the need for technological choice and regulation to exploit the role and the experience of users; and

  • the multiple economic impact of the mass diffusion of RETs, initially in the construction and service sectors of the economy.

It is our contention that RETs should be deployed as solutions to concrete systemic problems, rather than as a form of

Conclusion: strategy for use-oriented innovation

The cornerstone of a successful renewable-oriented policy should be the conceptualization of renewables as a radically different technological system from that of conventional sources (fuels and nuclear). The broad deployment of renewables would constitute a technological regime shift. RETs differ not only in terms of source and technical characteristics, but also in their structural, organizational, economic and social elements. The low spatial density of their flows favors decentralized

Theocharis Tsoutsos has a Diploma in Chemical Engineering (National Technical University of Athens, 1984), Ph.D. (1990, National Technical University of Athens), and a B.A. in Economics (University of Athens, 1990). He was Marketing and Communication Manager at the Centre for Renewable Energy Sources (1997–2001), and is Development–Marketing Manager there since 2002. He is invited Professor at the Technical University of Crete (1999 to today) and at the University of Thessaly (2001–2002) and

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    Theocharis Tsoutsos has a Diploma in Chemical Engineering (National Technical University of Athens, 1984), Ph.D. (1990, National Technical University of Athens), and a B.A. in Economics (University of Athens, 1990). He was Marketing and Communication Manager at the Centre for Renewable Energy Sources (1997–2001), and is Development–Marketing Manager there since 2002. He is invited Professor at the Technical University of Crete (1999 to today) and at the University of Thessaly (2001–2002) and Tutor at the Greek Open University (2000–today). He has published more than 20 papers in international refereed journals, and more than 80 papers in international technical/scientific conferences.

    Yeoryios Stamboulis has a Diploma in Production and Management Engineering (Technical University of Crete, 1989), M.Sc. in Management of Technology (SPRU, University of Sussex, 1990), and a D.Phil. in Science and Technology Policy (SPRU, University of Sussex, 1995). He is Adjunct Lecturer at the Department of Mechanical and Industrial Engineering at the University of Thessaly in Volos, Greece. Research interests include innovation, technology and change management and strategy, business strategy and innovation and entrepreneurial policy.

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