Empowering wind power; On social and institutional conditions affecting the performance of entrepreneurs in the wind power supply market in the Netherlands

This dissertation focuses on wind energy for electricity generation, analysing the evolution of the wind power supply market in the Netherlands. We analysed different kind of wind power entrepreneurs (energy distributors, small private investors, wind cooperatives and new independent wind power producers), their capacity to implement wind energy and the social and institutional conditions that affected their investments over the period 1989-2004. Central in the analyses are the institutional regulatory dimension and the social context as explanatory variables for the emergence and performance of these wind power entrepreneurs. Special attention is given to the liberalisation of the electricity market. The primary social actors for the implementation of wind energy projects in a liberalised market are entrepreneurs willing to invest. Understanding conditions that trigger entrepreneurs to invest in these projects, and understanding conditions that determine the chance of success for entrepreneurs to implement and exploit their projects, is vital for setting up effective policies to stimulate wind electricity generation. The analytical perspective that we used to study investment behaviour of wind power entrepreneurs and their capacity to implement wind energy can be referred to as the ‘new institutional perspective’. Based on this new institutional perspective the concept of implementation capacity has been developed. Implementation capacity indicates the feasibility for wind power entrepreneurs to adopt wind turbines, and enables to explain, comparatively, changing possibilities in time for different types of entrepreneurs. The development of the wind power supply market is divided into three successive market periods: Monopoly powers (1989-1995), Interbellum (1996-1997) and Free market (1998-2002). We conducted case studies on the implementation capacity of the four entrepreneurial groups in each of the three market periods. The case studies led to conclusions about the way in which social and institutional conditions affected the implementation capacity of different types of entrepreneurs in each of these periods. From the analysis it was concluded that no overall implementation capacity exists, and implementation capacities differ for entrepreneurial groups with different entrepreneurial features. The dynamic configuration of institutional and social conditions on different levels of government facilitates some and hinders other types of wind power entrepreneurs, and as a result determines the development and composition of the market. Various parties are dependent on each other in the production of wind energy. At the start of the 1990s the energy distribution companies dominated the market. Later agrarians led the pack and new independent wind power project developers emerged on the scene. According to Agterbosch, in the 1990s government policy focused far too long on large-scale applications by energy companies and ignored the limited motivation of this business group to invest in decentralised and fluctuating assets. The national wind policy also failed to take into account the societal and procedural problems of this business group at the subnational level. The fact that other entrepreneurial groups such as agrarians encountered far fewer problems in realising their projects, did not receive attention at a national level

Socio-political embedding of onshore wind power in the Netherlands and North Rhine-Westphalia

This paper compares the historical socio-political innovation journeys of onshore wind power in North Rhine-Westphalia and the Netherlands, concentrating on the implementation (realisation) of wind energy projects and the market of project development. Attention is drawn to the level of implementation (where struggles between multiple interests and meanings become manifest) and to the ability of entrepreneurs to succesfully plan and develop projects. A historical new-institutionalist approach is adopted, in which actors, networks and their institutional environment are understood as mutually constitutive. We investigate how socio-political embedding has come about - the process through, which a new technology becomes embedded in existing and changing rules and routines of society. A conclusion is that socio-political embedding is crucial to the implementation achievements and market developments. The legitimacy of wind projects is not self-evident. Addressing socio-political embedding contributes to a better understanding of the development of this legitimacy. Not only researchers but also policy makers should address legitimacy as a central issue, not just an afterthought to the development and diffusion of new technologies. A policy and planning strategy that involves the institutionalisation of early participation of relevant stakeholders can enhance the legitimacy of both the process and outcome and contribute to social-political innovation needed to accomplish sustainable innovation journeys

The relative importance of social and institutional conditions in the planning of wind power projects.

Governments around the world try to stimulate the development and use of renewable energy technologies, like wind energy. While wind turbines are increasingly being implemented, however. it lack of social acceptance tit the local level remains an important challenge for developers of wind power plant.,;. This article aims to explore the relative importance of social and institutional conditions and their interdependencies in the operational process of planning wind power schemes. The article not only focuses on how negative local social conditions can frustrate public policy (cf. NIMBY syndrome), but also on how positive local social conditions can compensate for a negative public policy framework. We analyzed the cases of implementing wind power of two actors (the regional energy distributor and small private investors) in the municipality of Zeewolde, the Netherlands. Both cases illustrate that the formal institutional framework (formal rules, procedures and instruments) is neutral in a certain sense. Social conditions - management styles, interests and informal contacts - put meaning in this framework. The way stakeholders deal with the prevailing institutional structure clarifies social acceptance and therewith implementation

Implementation of Wind Energy in the Netherlands: The Importance of the Social-Institutional Setting

This paper analyses the differences in performance of the different types of wind power entrepreneurs now active on the wind power supply market in the Netherlands. The development of the market is divided into three successive market periods: Monopoly powers (1989–1995), Interbellum (1996–1997) and Free market (1998–2002). For each of these periods, the interdependency between various systemic conditions—technical, economic, institutional and social conditions—is analysed, with the focus on the relative importance of the institutional and social settings for market development. This interdependency is analysed using the implementation capacity concept. Implementation capacity is defined as the total of those systemic conditions and mutual interdependencies that influence the behaviour of wind power entrepreneurs. It indicates the feasibility for wind power entrepreneurs to adopt wind turbines. From the analysis it was concluded that no overall implementation capacity exists, and implementation capacities differ for entrepreneurial groups with different entrepreneurial features. With respect to the relative importance of institutional and social conditions, it became clear, that it is mainly these conditions that differentiate between the various entrepreneurial groups. The dynamic configuration of institutional and social conditions facilitates some and hinders other types of wind power entrepreneurs, and as a result determines the development and composition of the market. Finally, the analysis explains the changing roles of entrepreneurial groups throughout the 1990s