Development of Marine Renewable Energy (Technological Innovation System Approach)
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Development of Marine Renewable Energy (Technological Innovation System Approach) A thesis submitted to the University of Manchester for the degree of Master of Philosophy (M.Phil) in the Faculty of Engineering and Physical Sciences 2015 Mariam Haghayegh Khorasani School of Mechanical, Aerospace and Civil Engineering Development of Marine Renewable Energy (Technological Innovation System Approach) Abstract The unsustainability of fossil fuels and concerns for the environment have led to a considerable increase in demand and support for renewable energy technologies over the last two decades. The UK, with a natural abundance of wave and tidal resources, is at the forefront of marine technology development but, compared to more conventional fuels, the marine energy sector still remains in its infancy. This work uses a Technological Innovation Systems (TIS) approach to assess and evaluate how technological and institution changes affected the evolution of the UK’s marine energy sector between 2000 to present and provides recommendations on how best to accelerate the development of marine energy technology. The TIS approach facilitates the analysis of a system which aims to grow and develop a specific emerging technology by establishing the extent to which events or activities, which occurred within the UK’s marine energy sector, contribute to the fulfilment of seven ‘system functions’. The events are defined, classified and mapped by applying a historical event analysis to marine energy in the UK between 2000 and 2015. The interactions and interdependence between the system functions provided insights into which functional requirements needed to be fulfilled in order for the marine energy system to be successful. The analysis showed that as marine energy technology developed, complex functional interactions formed between the different phases of technological development. Knowledge development and knowledge diffusion (through key events, such as the opening of the European Marine Energy Centre in 2003) were identified as the system functions responsible for pushing marine technology from the research phase (2000-2005) to the demonstration phase (2005-2010). Consistent and significant entrepreneurial activities throughout the demonstration phase, together with mounting lobby activities and increased market attraction (through the introduction of bands to the Renewable Obligations scheme by the Government in 2009) drove marine technology through to the pre-commercial phase (2010-2015). Here, significant positive activity across all system functions in the sector was initially seen but negative fulfilment of the market formation function (through the Electricity Market Reforms, announced by Government in 2011) and the departure of several key actors (withdrawal of Siemens and the collapse of Pelamis Wave Power) led to increased risk and uncertainty amongst investors and a reduction in entrepreneurial activities. Whilst marine technology in the UK has made significant ground towards commercialization over the last decade, the results from this study demonstrate that better fulfilment of the guidance of the search and market formation functions is required to help support and stimulate the formation of marine energy markets and reduce risk and uncertainty for investors. This, in the form of clear, long term, consistent and timely policy guidance from the Government, together with more streamlined and efficient funding mechanisms will help drive the sector towards commercialization. Mariam Haghayegh Khorasani Master of Philosophy (M.Phil) September, 2015 2 Table of Contents Table of Contents .................................................................................................................... 3 List of Figures .......................................................................................................................... 5 List of Tables ............................................................................................................................ 6 Declaration ............................................................................................................................... 7 Copyright Statement ............................................................................................................. 8 Acronyms .................................................................................................................................. 9 1 Introduction .................................................................................................................. 10 1.1 Marine Energy ....................................................................................................................... 10 1.2 Innovations Systems ........................................................................................................... 11 1.3 Aim and Objectives .............................................................................................................. 13 1.4 Research Methodology ....................................................................................................... 14 1.5 Scope and Limitation........................................................................................................... 15 1.6 Thesis Outline ........................................................................................................................ 17 2 Literature Review ....................................................................................................... 18 2.1 Transformative Innovation .............................................................................................. 18 2.2 Innovation Systems ............................................................................................................. 19 2.3 Technological Innovation Systems ................................................................................ 21 2.3.1 Strategy .................................................................................................................................. 22 2.3.2 Structure of a TIS ............................................................................................................... 23 2.3.3 Functional Patterns of a TIS ......................................................................................... 27 2.3.4 Interactions and Momentum of System Functions .............................................. 39 2.4 Summary .................................................................................................................................. 39 3 Methodology ................................................................................................................. 41 3.1 Introduction ............................................................................................................................ 41 3.2 Justification ............................................................................................................................. 41 3.3 Historical Event Analysis ................................................................................................... 44 3.4 Process Analysis .................................................................................................................... 45 3.4.1 Search ..................................................................................................................................... 45 3.4.2 Classification ........................................................................................................................ 46 3.4.3 Allocation .............................................................................................................................. 46 3.4.4 Summary and graphical representation ................................................................. 47 3.4.5 Historical Narrative.......................................................................................................... 48 3.4.6 Identification of patterns, virtuous and vicious cycles ...................................... 48 3.5 Concluding remarks ............................................................................................................ 48 4 Analysis ........................................................................................................................... 50 4.1 Historical Review of Marine energy in the UK between 2000-2015 ................ 51 4.2 Innovation System Functions .......................................................................................... 60 4.3 Allocation and classification ............................................................................................. 61 4.3.1 Function 1: Entrepreneurial Activities ..................................................................... 62 4.3.2 Function 2 and 3: Knowledge Development and Diffusion .............................. 65 4.3.3 Function 4: Guidance of the Search ........................................................................... 67 4.3.4 Function 5: Market Formation .................................................................................... 69 4.3.5 Function 6: Resource Mobilisation ............................................................................. 70 4.3.6 Function 7: Advocacy Coalition ................................................................................... 72 4.4 Graphical analysis ................................................................................................................ 73 4.4.1 Phase 1: R&D.......................................................................................................................