Market Introduction of SustainableEnergy Innovations as Processesof Social Learning

Harald RohracherInter-University Research Centre for Technology,Work and Culture, Graz

Michael OrnetzederCentre for Social Innovation, Vienna

STRATEGIES FOR SUSTAINABLE ENERGY TECHNOLOGYWORKSHOP TRONDHEIM 2003

What is the problem?

How to manage the transformation of the existing energy system?

Market introduction of sustainable innovations is a process of social learning, but often these learning processes are inefficient and full of frictions

Learning processes need organisational frameworks to be successful

How to organise and support such learning processes?

What is market introduction?

Dissemination of an innovation to (end-)users for the first time on a broader basis

Two models of innovation Linear model (innovation - diffusion) Evolutionary or circular model (Innofusion)

Market introduction is always a starting point for social learning processes How to organise such learning processes to be

More efficient Transparent Reflexive

What is social learning?

Social learning can be characterised as a combinedact of discovery and analysis, of understanding and giving meaning, and of tinkering and the develop-ment of routines. In order to make an artefact work,it has to be placed, spatially, temporally, andconceptually. It has to be fitted into the existing,heterogeneous networks of machines, systems,routines, and culture. (Sørensen 1996)

Some basic concepts of social learning

Learning-by -doing (Arrow 1962) -using (Rosenberg 1982) -testing and modifying

Appropriation, domestication,and possibly re-invention on the user-side

Learning-by -interacting (Andersen and Lundvall 1988) -regulating (Sørensen 1996)

Substance of social learning processes

First order learning Effectiveness of a technology User friendliness Cost reduction Intended and unintended consequences

Second order learning Assumptions and scripts User needs and experiences Alternative options Changes on the organisational or system level

Market introduction of solar systems by self-building groups

Total installed solar collectors per inhabitant in Europe

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Source: SOLTHERM EUROPE - European Market Report 2003

A short history of the Austrianself-building groups

1983: the first self-building group was established 1986: more than 50% of all solar systems were installed by self-builders 1988: foundation of the Association for Renewable Energy (AEE) 1997: more than 40.000 solar systems had been installed with this strategy Positive effects for commercial producers

reliable self-built collector, improved reputation better visability of solar collectors users of self-built collectors were satisfied promotors information about solar technology was spread by self-building groups

Organisational framework

Intermediary organisation(Association for Renewable Energy)

Autonomus self-building groups(Prospective and actual users)

Research institutes

Funding agencies Policy makers

SuppliersManufacturers Producers/Designers

Regulators

AEE

Results of social learning in the solar case

First order learning Understanding of technology Adapted technology:

special type of self-built collector new roof-integrated type of collector

Second order learning Self-building and assembling method for groups New appliances:

Solar combisystem for space-heating Accessory device for washing machines

Institutionalisation of the movement Know-how transfer: lectures, seminars, conferences Broadening the activities to other renewables

Transformation of energy systems

Liberalisation of energy markets New technologies: Information technologies,

decentralised production; new services Example: micro CHP

cogeneration of heat and electricity even at household level – ‘emerging technology’ with high potential

fuel cells, Stirling engines e.g. in combination with biomass boilers: ‘radical’ decentralisation

integration into virtual utility based on IT solutions Other examples: Smart metering; green electricity Resulting in

new role of customers (user-producers) and other groups new governance structures; regulatory challenges changes at system level; new socio-technical configurations

Energy technologies as part of a socio-technical system in transition

Predevelopment

Stabilization

time

Societal development

Acceleration

Take-off

Macro-level

(landscape, trends)

Meso-level (regimes, institutions)

Micro-level (Niches,

individuals)

From: Rotmans et al, 2000 From: Geels and Kemp, 2001

Core concepts: niches, regimes and landscapes

Organisational frameworks for social learning: Strategies and tools

Social learning needs a specific organisational environment to work properly

Example: The role of intermediary organisations Organise user-producer networks Develop and propose rules Provide users with technology and information Stimulate communication between users Link user's experiences to producers and research units

Increasing societal complexity and uncertainty requires new ways of thinking as well as new types of governance Shared problem perception and visions Participatory approach New strategies and tools

Strategy 1: Socio-technical experiments; Strategic niche management

Creation / modulation of protected spaces and experimental settings for desirable technologies needs good understanding of barriers to market introduction

of technologies Makes required changes at a technological and

institutional level visible, which would be needed to make technology economically successful

Gaining experiences with the usage of these technologies learning about design, user requirements, cultural and

political acceptance, etc. (second order learning) Example: Car-sharing, CH; Lightweight vehicles

Strategy 2: User involvement / Self-building groups

User involvement covers broad range of activities “Tool” 1: Lead user method (von Hippel) “Tool” 2: Supporting self-building activities / diversity of

innovations Favourable conditions for self-building groups

Technical characteristics– Not too complex– No need for specialised tools and skills– Potential for self-building

Lifecycle of the products– Early stages of development and dissemination

Specific motivation of users– Demand and interested in DIY– Cost reduction and linked to a “mission”

Specific socio-cultural milieu– Tradition of co-operation

Examples: Biomass boilers, Smart home technologies

Strategy 3: Interactive scenario building

Creating ‘best-case images of the future’; back-casting process to define pathways how to get there

Example: Consumer Constructive Technology Assessment integrating various actor groups into design process

joint vision building

3 consecutive workshops with ‘smart home’ producers and suppliers; architects; energy experts; consumer associations: guiding visions; product specifications

platform for learning and interaction within project

Design and implementation of (policy) actions should be monitored and adjusted continuously with respect to visions and goals

Illustration: The case of micro CHP

As described earlier: radical decentralisation of electricity generation could ultimately result in a transformation of the electricity system

How could the introduction of these technologies be supported by organising learning processes? Socio-technical mapping: what are the interests and

visions of different relevant actor groups? Joint vision building: how could a possible future with

micro CHP look like and how could we get there? Bounded socio-technical experiments: applying

technology in certain niches (e.g. model communities) and learning about practices of using micro CHP (e.g. matching heat and electricity demand); required regulatory changes

Self-building groups? Sensitivity to user initiatives during stage of early diffusion

Summing up

Introducing new energy technologies / innovations always requires learning processes and often involves innovations at system level

Improving such learning processes needs conscious organisational efforts

Additional perspectives for energy policy New culture of experiments and pilot projects

User involvement at different stages

Strengthening socio-technical systems

Providing spaces for learning and interaction

Keeping options open (avoiding early lock-in)