ESEIA CONFERENCE 2016 Governance of Heat Grids. Towards a Governance - - PowerPoint PPT Presentation

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ESEIA CONFERENCE 2016 Governance of Heat Grids. Towards a Governance - - PowerPoint PPT Presentation

ESEIA CONFERENCE 2016 Governance of Heat Grids. Towards a Governance Typology for Smart Heat Infrastructures Sanders, Heldeweg & Brunnekreef WORK IN PROGRESS! 1 1. ENERGY GOVERNANCE Towards a Competitive Low-Carbon European Economy in


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ESEIA CONFERENCE 2016

Governance of Heat Grids. Towards a Governance Typology for Smart Heat Infrastructures Sanders, Heldeweg & Brunnekreef WORK IN PROGRESS!

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  • 1. ENERGY GOVERNANCE

Towards a Competitive Low-Carbon European Economy in 2050 (EC, 2011: 20) The Netherlands is one of the most Fossil Fuel-based and CO2 intensive Economies of the world (IEA, 2014) Renewable Energy is seen as important element in improving Dutch performance: Energy Transition Energy from Residual Heat is seen as a potential Market next to that of Gas and Electricity

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  • 2. HEAT ENERGY MARKET

Local or Regional Grids or Infrastructures as Markets New Technologies Input è Throughput è Output Supplier(s?) è Grid Manager(s?) è User(s?) Markets!

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  • 3. ENERGY (MARKETS) GOVERNANCE

New Technology in Renewable Energy Calls for fitting Governance

(Sanders & Hoppe, 2015; Lodge & Wegrich, 2014)

‘Call’ also applicable to Development of Heat Grids / Infrastructures

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  • 3. ENERGY (MARKETS) GOVERNANCE

A Well-Considered Governance Approach is needed to Prevent / Remedy Barriers that may lead to Decision Deadlocks & Non-realisation of Heat Grids. What Governance of Decision-making fosters (proper Orchestration for) Establishing Heat Grids / Infrastructures?

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  • 3. ENERGY (MARKETS) GOVERNANCE

A Well-Considered Governance Approach is needed Versus Decision Deadlocks & Non-realisation of Grids. Regional projects in the Netherlands Grids & Connecting Grids (Infrastructures) Arnhem-Nijmegen – open (growth) model Provincial ambition: in 2030 pipeline for 90,000 user connections Hengelo-Enschede – open (growth) model Provincial ambition: 17,500 homes & 800 businesses … and more Amsterdam/Metropolitan ….. The Hague Region

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  • 4. TOWARDS A GOVERNANCE

TYPOLOGY FOR HEAT GRIDS

Assumption: Heat Market is largely unregulated – no Ex Ante Structured Relation between relevant Stakeholders

  • Est. Grid as Collective Action: (Non-Hierarchic) Orchestration

Bottom-Up Governance Typology (& Orchestration of Collective Action) following 2 Characteristics of Grids / Infrastructures:

  • Regulatory nature of the grid regime
  • esp. public ó private interest-driven
  • Technical complexity of grid functionality
  • esp. low/closed ó high/open
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  • 4. TOWARDS A GOVERNANCE

TYPOLOGY FOR HEAT GRIDS

Bottom-up Governance Typology following 2 Characteristics of Grids / Infrastructures

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  • 4. TOWARDS A GOVERNANCE

TYPOLOGY FOR HEAT GRIDS

Reasoning from Operational Ambition to Collective Choice Governance: Consider Levels of Analysis & Design

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  • 5. OPERATIONAL LEVEL

PROJECTED GRID TYPE

‘Bottom-Up’ Orchestration Optimality: Reason from Ideal Type Picture of Operational Grid Ambition Acknowledge hybridity…... Reason from 4 Types of Orchestration

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  • 5. COLLECTIVE CHOICE LEVEL

DECISION MAKING

Following an Operational Level Ideal Type Grid

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  • 5. COLLECTIVE CHOICE LEVEL

DECISION MAKING

As before slide; including Hybrid Governance Space

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  • 6. CONSTITUTIONAL LEVEL

INSTITUTIONAL ENVIRONMENTS

Considering ‘Top-Down’ Prescriptive Influences: Institutional Environments as Legal Institutions Descriptive and Prescriptive Pattern of Behavior Institutional Environments Ph - Public Hierarchy ê

  • H1. Regulated Market

é Cm - Competitive market

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  • 6. CONSTITUTIONAL LEVEL

INSTITUTIONAL ENVIRONMENTS

  • 1. Dutch Heat Act projects a Regulated Heat Market

Contracting constraints (tariffs, shuttng-off, complaints) Permits for larger grids/infrastructures (≥10 u. & ≥10K GJ/an)

  • 2. Dutch Heat Vision (è Δ Heat Act; Δ Orchestration Reg.Market)

Emancipate Heat Market ó Gas (& Electricity)

  • terminate legally obligatory gas connection
  • favor open/complex over closed/simple grids

user choice between heat suppliers

  • favor public ‘over’ private lead

local heat planning + oblig. heat connection; national subsidies.. Possibly private obligation to allow 3rd party suppliers access)

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  • 8. CONCLUSION

‘Bottom-Up’ (Operational è Coll. Choice) > from ‘desired ideal type grid’ < ‘Top-Down’ (Constitutional è Coll. Choice) > from ‘prescribed Inst. Environment’ <

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FIN