The stuttering energy transition in Germany: Wind energy policy and feed-in tariff lock-in

Abstract

This article aims to examine whether the formulation of specific low carbon policy such as the feed-in tariff for wind energy in Germany can partly be a barrier to a comprehensive energy transition (Energiewende). Despite their short and medium-term success, these policies could create a long-term lock-in if they are formulated in a way that leads to a stagnation of systems innovation. The research finds that while the share of wind energy has increased rapidly over time, the feed-in-tariff and other low carbon policies and incentives have not been sufficient to achieve a socio-technical regime transition in Germany yet. We suggest that the German feed-in-tariff has incorporated wind energy (a nicheinnovation) and wind energy actors (pathway newcomers) into a slightly modified sociotechnical regime that is rather similar to the earlier 'fossil fuel dominant' socio-technical regime.

Firm-level technology transfer and technology cooperation for wind energy between Europe, China and India: From North–South to South–North cooperation?

“…Germany's wind energy market has been growing continuously since the mid-1990s (BWE, 2012;IEA, 2013). The market shares of wind firms in Germany are as follows: about 60% Enercon, 20% Vestas, 10% REpower, 4% Nordex, 2% Bard, remaining 4%: others, including e.n.o., Vensys, Siemens and AREVA Nordensvard and Urban, 2015).…”

Seed for change : the making and implementation of seed policies in Ethiopia

“…Therefore, institutions also change, but at a given time they keep their restrictive nature, as the rules of the game and norms are fixed for some time, preventing actors from seeing beyond the frame. Institutional lock-in becomes an issue when an institution becomes inflexible and continues to restrict the consideration of other alternatives (Nordensvärd and Urban 2015). By limiting the consideration of other options, institutional lock-in leads to the use of sub-optimal policies even though alternative policies may be available (Cantarelli et al 2010;Geels 2011;North 1990).…”

Levelling the Playing Field: On the Missing Role of Network Externality in Designing Renewable Energy Technology Deployment Policies

“…Watanabe (2009, 2010) discussed an innovation management approach for renewable energy deployment from the perspective of network externality and lock-in. Nordensvärd and Urban (2015) examined the specific low carbon policy such as feed-in tariff for wind energy in Germany can partly be a barrier to a comprehensive energy transition.…”

“…Take a concrete example, even if China has launched initiatives to deploy the promising RET on a large scale, this largest energy consuming country that specialized in energy-intensive manufacturing still has a large stock of old and inefficient vintages of FET-based power plants that have expanded their installed base with an expected lifetime of several decades. As a result, not only does this lead to skyrocketing fossil energy uses in the short run, this FET-based installed network also comes with a formidable long-term carbon lock-in inertia in energy system that merits additional policy regulation beyond traditional price-based instruments like carbon pricing (Unruh and Carrillo-Hermosilla, 2006;Kalkuhl, 2012;Karlsson, 2012;Nordensvärd and Urban, 2015). Therefore, to create a level playing field that facilitates RET deployment, the conventional policy regimes based on the removal of cost gaps may not suffice.…”

“…Meanwhile, in the field of energy economics and policies, there is a growing body of literature having discussed the issue of energy technology innovation from the perspective of lock-in and network externality, with some policy prescriptions on addressing network externality for RET deployment (e.g., Unruh, 2000Unruh, , 2002van der Vleuten and Raven, 2006;del Rio and Unruh, 2007;Watanabe, 2009, 2010;Vergragt et al, 2011;Karlsson, 2012;Nordensvärd and Urban, 2015). 8 However, a frustrating aspect is that all these policy studies lack a rigorous exposition of the economics of network externality mechanism that shapes energy technological innovation and adoption.…”