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The governance of infrastructure transitions The governance of infrastructure transitions Presentation Transcript

  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchThe governance of infrastructuretransitionsJim WatsonResearch DirectorUK Energy Research CentreLand of the MUSCOs expert workshop, 9th May 2013
  • Sussex Energy GroupSPRU - Science and Technology Policy Research•  Why infrastructure transitions?•  Lock-in and the challenges of change•  The governance of infrastructure transitions
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchWhy infrastructure transitions?“The stakes are high. Failure to develop and implement avision for our infrastructure will mean the UK fallsbehinds its competitors, loses out both economicallyand socially, and could miss its carbon reductiontargets”Mark Wolpert, Govt Chief ScientistCST report: National Infrastructure for the 21sr century (2009)
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchThe ‘Industrial Revolution’ (machines, factories and canals)1771Age of Steam, Coal, Iron and Railways1829Age of Steel and Heavy Engineering (electrical, chemical, civil, naval)1875Age of the Automobile, Oil, Petrochemicals and Mass Production1908Age of Information Technology and Telecommunications1971Age of Biotech, Bioelectronics, Nanotech and new materials?20??Why infrastructure transitions?5 technological revolutions (Perez, 2010)
  • INSTALLATION PERIOD DEPLOYMENT PERIOD TURNINGPOINT Bubbles offirst globalisation Belle Époque (Europe)“Progressive Era” (USA) 1890–95 Railway mania The VictorianBoom 1848–50 Canal mania The GreatBritish leap 1793–97 Internet maniaand financial casino Global Sustainable ”Golden Age”? 2007/08 -??? The roaring twenties Post-warGolden age Europe1929–33USA 1929–43 1771Britain 1829Britain 1875 Britain / USAGermany 1908 USA 1971 USA 1st2nd3rd4th5thGREATSURGE Bubble prosperity Maturity “Golden Age” prosperity Collapse &Recessions Technological revolutions,recessions and golden agesSource: Perez, 2010
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchAge of Steam, Coal,Iron and Railways 1850s-1860sUrban, industry-basedVICTORIAN LIVING in BritainDEPLOYMENT PERIOD LIFESTYLE Each style became “the good life” redefining people’s desiresand guiding innovation trajectoriesAge of Steel andHeavy Engineering 1890s-1910sUrban, cosmopolitan lifestyle ofTHE BELLE EPOQUE in EuropeAge of the Automobile,oil and Mass Production 1950s-1960sSuburban, energy-intensiveAMERICAN WAY OF LIFE2010s-20??sWill the developed and emergingcountries develop a varietyof ICT-intensive and “glocal”SUSTAINABLE LIFESTYLES?Age of global ICTTechnological revolutions andchanges in lifestylesSource: Perez, 2010
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchWhy infrastructure transitions?Lock-in and inertia“Large scale technology, such as electric light andpower systems, incorporate not only technical andphysical things such as generators, transformers andhigh-voltage transmission lines, but also utilitycompanies, electrical manufacturers and reinforcinginstitutions such as regulatory agencies and laws …”Thomas Hughes (1989) American Genesis
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchWhy infrastructure transitions?Features of lock-in and inertia•  Norms and routines of engineers, developers, supply chains•  Business models and market arrangements•  Economies of scale and positive network externalities•  Network infrastructure (e.g. grids, roads, pipeline networks)•  Institutions for coordinating and reproducing systems•  Consumer habits and social practices•  Political power and access to decision-makingCollectively, these related processes will make the desiredshift to more sustainable infrastructures more difficult
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchThe Infrastructure TransitionsResearch Consortium
  • Sussex Energy GroupSPRU - Science and Technology Policy Research•  Review of historical infrastructure transitions in the UK todraw lessons, and identify key trends and commonfeatures•  Analysis of how current governance arrangements impacton infrastructure provision•  Examination of governance implications of threetransition strategies (capacity intensive, capacityconstrained and decentralised)ITRC Fast Track Analysis (2012)Governance analysis
  • Sussex Energy GroupSPRU - Science and Technology Policy Research•  Significant differences between ITRC sectors, especiallywith respect to scale of governance•  Complexity of governance increased due to liberalisation•  But liberalisation has benefits (e.g. greater transparency)•  Economic regulation of networks has improved efficiency,but has not fostered innovation until recently•  Governance usually has multiple objectives: trade-offsbetween these objectives are inevitable•  UK governance does not focus enough oninterdependencies. Not enough evidence on positive /negative impactsITRC Fast Track Analysis (2012)Governance conclusions
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchAnalysing interdependenciesTwo ITRC case studiesWater-electricityinterdependencies:Renewable energy in thewater sectorElectricity-transport-ICTinterdependencies:Smart grid demonstrations
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchAnalysing interdependenciesTypes of interaction (Raven & Verbong)
  • Sussex Energy GroupSPRU - Science and Technology Policy Research•  Nature of interdependencies has changed over time•  Functional symbiosis before privatisation•  During privatisation period, links became stronger:• Stronger symbiosis due to regulations on water quality• Some spill overs in economic regulation (e.g. RPI-X)• Integration via mergers, though these became less attractive• Common environmental regulator (Environment Agency)•  Post privatisation, competition started in a small way:renewable electricity generation by water companies•  But policy for two sectors not always co-ordinated, andled to conflicting signals for water companiesSome findings so farWater-electricity case
  • Sussex Energy GroupSPRU - Science and Technology Policy ResearchThankshttp://www.ukerc.ac.ukhttps://twitter.com/watsonjim2