The rise of smart grids from a governance perspective: A research on the means of governance and upscaling after smart grid pilot programs end.

Abstract

During the last decades, in the field of spatial planning, both sustainability and digitalisation have been growing in importance. Sustainability is a goal, and with smart applications, we try to speed up the process towards sustainability. A good example of this development is the smart grid. With making our energy network intelligent it is possible to make a more efficient and effective use of the energy. A variety of intelligent energy technologies can be employed. Sustainability is a goal, but also incentives are created for consumers and other stakeholders. Because of this potential, the last two decades, investments in testing smart grid possibilities have increased. As a result of these investments from governments together with semi-public and private parties in the Netherlands, a vast diversity of smart grid pilots has started and ended. Different technologies have been tested, business cases have been developed, and research has been done on the behaviour of consumers. However, the smart grid is still not implemented on the larger scale. Moreover, because of the liberalisation of the energy network in the nineties, the process of upscaling of smart grids is not only a matter for governmental organisations but as well for other stakeholders. Upscaling of smart grids is not only about the technological development, but also governance processes are highly relevant. Because there exists a gap in the academic literature about the link between governance, smart grids and upscaling considering the Dutch context; this research will identify the key factors of success and failure at the upscaling of smart grid implementation in the Netherlands considering a governance perspective: Which key factors of success and failure, considering a governance perspective, could be defined at the upscaling process from smart grid pilots towards large scale smart grid implementation in the Netherlands? This research provides three frameworks which define the scope in this investigation. These frameworks conduct defining the smart grid, the means of governance and the types of upscaling. The data derives from interviews and a policy analysis. In the first phase, explanatory interviews were conducted to find out which subjects within the smart grid, governance and upscaling are essential for the success or failure. Then a policy analysis has been done to see what the context is at the moment; the starting point and after that semi-structured expert interviews were conducted to answer the sub questions and the research question. Many factors are important for the scaling-up of smart grids in the Netherlands. However, within these factors connections can be exposed which develop a couple of key factors. Firstly, there should be a balance between the stimulation of innovation by companies and the patience at the acceptance of innovations by the society. Secondly, the balance between flexibility and strictness at strategy development is necessary; to get to acceptance of innovation, bottom-up processes are critical. However, to remain trust, clear responsibilities among stakeholders and a shared vision guidelines are also important to develop. As well, there exist differences between types of upscaling and subgroups of smart grid technologies. The development is not parallel, and this makes it more complex to get to an integrated smart grid and national/international policy which is important according to several experts. Almost every interviewed expert states that we are now at the last step towards the initiation of commercial niches. However, this final step could mean a minor step but also a giant leap.