Commercialization of Renewable Energy Technologies
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Shah Rukh Shakeel Commercialization of Renewable Energy Technologies A study of Socio-economic, Technical and Regulatory factors in Finland and Pakistan aaa ACTA WASAENSIA 430 ACADEMIC DISSERTATION To be presented, with the permission of the Board of the School of Technology and Innovations of the University of Vaasa, for public examination in Auditorium Kurtén (C203) on the 30th of October, 2019, at noon. Reviewers Associate Professor Peter Tauš Faculty of Mining, Ecology, Process Control and Geotechnology, Technical University in Košice Letná 9, 042 00 KOŠICE SLOVAKIA Professor Goh Hui Hwang Department of Electrical Power Engineering, School of Electrical and Electronic Engineering, GuangXi University Daxue E Rd, Xixiangtang Qu, Nanning Shi, Guangxi 530000 ZHUANGZUZIZHIQU P.R. CHINA III Julkaisija Julkaisupäivämäärä Vaasan yliopisto Lokakuu 2019 Tekijä(t) Julkaisun tyyppi Shah Rukh Shakeel Artikkeliväitöskirja Orcid ID Julkaisusarjan nimi, osan numero Acta Wasaensia, 430 Yhteystiedot ISBN Vaasan yliopisto 978-952-476-880-1 (painettu) Tekniikan ja innovaatiojohtamisen 978-952-476-881-8 (verkkojulkaisu) yksikkö URN:ISBN:978-952-476-881-8 Tuotantotalous ISSN PL 700 0355-2667 (Acta Wasaensia 430, painettu) FI-65101 VAASA 2323-9123 (Acta Wasaensia 430, verkkoaineisto) Sivumäärä Kieli 184 englanti Julkaisun nimike Uusiutuvien energiateknologioiden kaupallistaminen: Tutkimus sosioekonomisista, teknisistä ja sääntelytekijöistä Suomessa ja Pakistanissa Tiivistelmä Kaupallistamisella on tärkeä rooli uuden tekniikan liiketoiminnan käynnistymisessä. Idean onnistunut kehittäminen tuotteeksi tai palveluksi voi olla vaativa ja monitahoinen prosessi. Kaupallistaminen liittyy tiede- ja teknologiaosaamisen tuomiseen laboratoriosta aina markkinoille hyväksymiseen ja käyttöön saakka. Se varmistaa, että tekniikat eivät vain täytä suorituskyky- ja luotettavuusvaatimuksia, vaan myös vastaavat markkinoiden tarpeisiin. Uusiutuvien energialähteiden tekniikoiden (RET) kaupallistaminen tulee tärkeäksi, koska RET:ien on ylitettävä lukuisia esteitä, jotta niitä voitaisiin soveltaa laajasti. Menestys riippuu usein useista eri tasojen toimijoista, mukaan lukien valtiovalta, paikalliset toimijat, sijoittajat, yrittäjät, yhteiskunta ja muut prosessissa mukana olevat sidosryhmät. Kirjallisuus on täynnä todisteita, jotka osoittavat uusiutuvien energialähteiden energiantuotannon valtavan potentiaalin. Niiden tosiasiallinen vaikutus maailman primaarienergian hankintoihin on kuitenkin edelleen rajallinen. On laajaa yksimielisyyttä siitä, että joidenkin uusiutuvien energialähteiden tekniikoiden alhainen levinneisyys ei johdu enää niiden teknisistä mahdollisuuksista, vaan niiden kaupallisuudesta. Tämän työn tavoitteena on tutkia, miten uusiutuvan energian tekniikoita voidaan tehokkaasti kaupallistaa. Tässä väitöskirjassa tutkitaan Suomen ja Pakistanin tapaustutkimusten avulla tekijöitä, jotka vaikuttavat kaupallistamiseen ja ovat esteitä laajaan leviämiseen. Tässä työssä tutkitaan erityisesti sosioekonomisten asioiden, energiapolitiikan, yliopistojen ja teollisuuden yhteistyön ja riskipääoman merkitystä RET-markkinoiden perustamiseen. Sovellettaessa kvalitatiivisen ja kvantitatiivisen menettelemän yhdistelmää, tämän tutkielman tulokset korostavat tukevan energiapolitiikan merkitystä, johdonmukaisen lähestymistavan kehittämisen tarvetta, sidosryhmien välisen yhteistyön vahvistamista ja ympäristötietoisuuden lisäämistä. Tulosten perusteella tämä väitöskirja tarjoaa kehykset ja mekanismit, joita tarvitaan esteiden poistamiseen kaupallistamisprosessin tieltä. Asiasanat Kaupallistaminen; uusiutuvan energiateknologiat; energiapolitiikka; tiekartta; yliopistojen ja teollisuuden yhteistyö; riskipääoma; käyttäytymisen teoria V Publisher Date of publication Vaasan yliopisto October 2019 Author(s) Type of publication Shah Rukh Shakeel Doctoral thesis by publication Orcid ID Name and number of series Acta Wasaensia, 430 Contact information ISBN University of Vaasa 978-952-476-880-1 (print) School of Technology and Innovations 978-952-476-881-8 (online) Department of Production URN:ISBN:978-952-476-881-8 P.O. Box 700 ISSN FI-65101 Vaasa 0355-2667 (Acta Wasaensia 430, print) Finland 2323-9123 (Acta Wasaensia 430, online) Number of pages Language 184 English Title of publication Commercialization of Renewable Energy Technologies: A study of Socio-economic, Technical and Regulatory factors in Finland and Pakistan Abstract Commercialization plays an important role in technologies’ success and failure. The successful transformation of an idea into a product or service is a complex and multifarious process. Commercialization deals with bringing science and technology competencies from the laboratory to market acceptance and use. It ensures that technologies not only meet performance and reliability requirements, but also addresses market needs. Commercialization of renewable energy technologies (RETs) becomes important as there are a number of additional barriers that RETs must surpass to become widely adopted. Success often depends on a number of actors operating at various levels, including government, local bodies, investors, entrepreneurs, society and other stakeholders involved in the process. The literature is replete with evidence indicating the enormous potential of energy generation from renewables. However, their actual contribution to the world’s primary energy supplies remains limited. There is widespread consensus that the low penetration of some renewable energy technologies is no longer because of their technical potential but their commercialization. The objective of this study is to explore how renewable energy technologies can be effectively commercialized. This doctoral dissertation examines cases from Finland and Pakistan to study factors influencing commercialization and causing hindrances to widespread diffusion. This study particularly explores the effect of socio-economic landscape, effect of energy policies, university–industry collaboration, the role of venture capital and factors influencing adoption and establishment of RETs’ market. By employing a mixed methods approach, the findings of this dissertation highlight the role of supportive energy policies, the need to develop a coherent approach, strengthening collaboration between stakeholders, and increase the level of environmental awareness. Based on the findings, this dissertation presents frameworks and mechanisms necessary to address some of these barriers to foster the process of commercialization. Keywords Commercialization; renewable energy technologies; energy policy; roadmap; university–industry collaboration; venture capital; theory of planned behaviour To my late grandfather Muhammad Hayat Taveer Sipra — a literatus person and a great poet. He passed away when I was very young, and my wish to spend time with him remained unfulfilled. His desire that I should study to the highest level still resonates in my mind. Completing this doctoral degree gives me enormous pleasure as I have fulfilled his wish. To him, I dedicate this work and pray that his soul rests in eternal peace. VII PREFACE “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle”. The Art of War by Sun Tzu While reading The Art of War by Sun Tzu, the above-mentioned quote struck me. The book is based on an ancient Chinese military treatise, written roughly twenty- five hundred years ago, with an aim to help militaries with developing strategies to win combats. Yet, its relevance for businesses operating in today’s world is astounding. It is crucial for businesses to understand their own strengths and weaknesses, as well as the ones they are competing against, to survive in a competitive environment. Businesses face a war-like situation and those who do not develop a fair understanding of themselves and their competitors are bound to suffer. This dissertation is an attempt to understand how renewable energy technologies can survive competition and gain their fair share of the market by competing with conventional energy technologies. IX ACKNOWLEDGEMENTS This long and winding journey is finally coming to an end! It gives me great pleasure to think that this will be the last text I need to write to get my dissertation published. The process of completing this doctoral degree has been a roller coaster ride. There have been surreal moments of joy, a sense of achievement, and days filled with enthusiasm, motivation and optimism. At the same time, I must concede that I have had my fair share of gloom, moments of despair, and uncertain times when I had to gather all my energy, maintain composure, and strive to complete the job at hand. Getting to this final stage required a significant amount of motivation, hard work, persistence, and dedication. It has been a wonderful learning experience, which has had a positive influence on my personality. I am able to get this far only because I “stood on the shoulders of giants”. An enormous support from a number of people has been instrumental in the successful completion of this degree. My heartfelt appreciation goes to everyone who has supported me during this process. My most sincere gratitude goes to my supervisor, Professor Josu Takala, for his constant support and guidance. I cannot thank him enough for making the period of my doctoral study a pleasant life experience. A supervisor