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Sovacool-Dissertation-V10-Final.Pdf THE POWER PRODUCTION PARADOX: REVEALING THE SOCIO-TECHNICAL IMPEDIMENTS TO DISTRIBUTED GENERATION TECHNOLOGIES by Benjamin K. Sovacool Dissertation submitted to the Faculty of the Virginia Polytechnic Institute and State University in partial fulfillment of the requirements for the degree of Doctor of Philosophy In Science and Technology Studies Daniel Breslau, Ph.D. (Chair) Richard Hirsh, Ph.D. (Chair) Eileen Crist, Ph.D. Saul Halfon, Ph.D. Timothy Luke, Ph.D. April 17, 2006 Blacksburg, VA Keywords: Energy Policy, Renewable Energy, Distributed Generation, Technological Systems, History of Technology, Sociology of Technology Copyright 2006, Benjamin K. Sovacool THE POWER PRODUCTION PARADOX: REVEALING THE SOCIO-TECHNICAL IMPEDIMENTS TO DISTRIBUTED GENERATION TECHNOLOGIES By Benjamin K. Sovacool Daniel Breslau (Chair) Richard Hirsh (Chair) Science and Technology Studies ABSTRACT Dramatic improvements in renewable energy and small-scale distributed generation (DG) technologies have been made in the last twenty years. Nevertheless, they remain underutilized in the American electric utility system. Despite the immense environmental, technical, and financial promise of renewable energy systems and DG technologies, such generators still constitute a very small percentage of electricity generation capacity in the United States. This relative neglect occurs despite remarkable gains in their technical performance and reductions in their cost of producing power—the result (in part) of dramatic government support for several decades. Moreover, the technologies often demonstrate great environmental benefits that appeal to policymakers and consumers. At the same time, they offer ways to enhance strained distribution and transmission networks. This project attempts to answer the paradoxical question: why do new energy technologies that offer such impressive benefits also find the least use? The dissertation emphasizes how the history and culture of the community of electricity producers and users helps explain why the new technologies have seen little use. Going beyond technical explanations of alleged low capacity factors and high capital costs, it focuses on the social nature of decision making among participants in the electric utility system. The approach not only helps us understand the glossing over of renewable energy and distributed generation technologies, but also suggests ways of overcoming the barriers faced by their advocates. IMPORTANT RESEARCH NOTE The views expressed in the research interviews conducted for this project do not represent the official policy of any particular company, institution, or agency. Individuals are speaking entirely—and only—on their own behalf. ACKNOWLEDGEMENTS The author is grateful to the U.S. National Science Foundation for Doctoral Dissertation Improvement Grant SES-0522653 to help fund elements of the work reported here. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of the National Science Foundation. The author is also appreciative to the Oak Ridge National Laboratory, Virginia Center for Coal and Energy Research, Society for the Social Studies of Science, the National Science Foundation’s Electric Power Networks Efficiency and Security Program, Virginia Tech Department of Science and Technology Studies, Virginia Tech Department of Philosophy, Virginia Tech Department of History, Virginia Tech School of Public and International Affairs, and the Virginia Tech Graduate Student Assembly for travel support to conduct research interviews for this project. Portions of this dissertation originally appeared in R. F. Hirsh and B. K. Sovacool “Technological Systems and Momentum Change: American Electric Utilities, Restructuring, and Distributed Generation,” an article forthcoming in the Journal of Technology Studies; B.K. Sovacool and M.A. Brown (Eds.) 12 Energy Myths (Forthcoming, Springer Publishing); and Virginia Center for Coal and Energy Research’s (VCCER) A Study of Increased Use of Renewable Energy Resources in Virginia, report submitted to the Virginia Commission on Electrical Utility Restructuring, November 11, 2005. The material is reprinted here with permission of the authors. - iii - TABLE OF CONTENTS Title Page ................................................................................................................................ i Abstract .................................................................................................................................. ii Important Research Note .......................................................................................................iii Acknowledgements................................................................................................................iii Table of Contents .................................................................................................................. iv List of Figures and Tables...................................................................................................... vi Chapter 1: Introduction ...................................................................................................... 1 1.1 Introduction....................................................................................................................... 1 1.2 Defining Technologies and Asking Questions ................................................................. 2 1.3 Review of the Literature ................................................................................................ 10 1.4 Research Methods: Textual Analysis, Interviews, and Field Observation .................... 12 1.5 Theoretical Methods: the Technological Systems Approach ......................................... 13 1.6 The Importance of the Socio-Technical Impediments to Energy Systems..................... 14 1.7 Preview of Chapters........................................................................................................ 19 Chapter 2: Viewing Energy Technologies as a Technological System........................... 23 2.1 Introduction..................................................................................................................... 23 2.2 Genesis of the Systems Approach .................................................................................. 24 2.3 Specific Concepts of the Systems Approach Applied in this Study ............................... 25 2.4 Contrasting the Systems Approach with Structural Models, Technological Determinism, Social Construction of Technology, and Actor-Network Theory............ 31 2.5 Empirical Use of the Systems Approach ........................................................................ 36 2.6 Applying the Systems Approach to DG Technologies................................................... 38 2.7 Limitations of the Systems Approach............................................................................. 42 2.8 Conclusion ...................................................................................................................... 44 Chapter 3: The Promise of DG Technologies .................................................................. 46 3.1 Introduction..................................................................................................................... 46 3.2 A Primer on the Existing Electric Utility System........................................................... 47 3.3 The Demand Challenge: Meeting Growth Projections .................................................. 49 3.4 The Fuel Supply Problem: Finding Clean but Abundant Sources of Energy................. 52 3.5 The Infrastructure Problem: The Fragile Transmission Grid ......................................... 63 3.6 The Environment Problem: Air Pollution and Global Warming.................................... 69 3.7 Conclusion ...................................................................................................................... 73 Chapter 4: Business and Utility Impediments ................................................................. 76 4.1 Introduction..................................................................................................................... 76 4.2 Perceived Higher Capital Costs and Returns on Investment ......................................... 76 4.3 Business Attitudes and Practices .................................................................................... 82 4.4 Difficulty in Dispatching Distributed Units.................................................................... 86 4.5 Difficulty in Setting Universal Standards for Design and Interconnection .................... 97 4.6 Conclusion .................................................................................................................... 102 Chapter 5: Political and Regulatory Impediments ....................................................... 104 5.1 Introduction................................................................................................................... 104 5.2 Flawed Expectations and Projections ........................................................................... 105 5.3 Variable and Inconsistent Incentives for Renewable Energy Technologies................. 110 5.4 Lingering Utility Monopoly Rules and a History of Control ....................................... 114 5.5 Conclusion ..................................................................................................................
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