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ESEIA CONFERENCE 2016
Governance of Heat Grids. Towards a
Governance Typology for Smart Heat
Infrastructures
Sanders, Heldeweg & Brunnekreef
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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?)
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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
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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
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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
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5. COLLECTIVE CHOICE LEVEL
DECISION MAKING
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5. COLLECTIVE CHOICE LEVEL
DECISION MAKING
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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..
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8. CONCLUSION
‘Bottom-Up’ (Operational è Coll. Choice)
> from ‘desired ideal type grid’ <
‘Top-Down’ (Constitutional è Coll. Choice)
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