Imke Lammers Imke Rules for Watt? INVITATION You are cordially invited Designing Appropriate Governance to the public defence of Arrangements for the Introduction of Smart Grids my PhD dissertation entitled: RULES FOR WATT? Designing Appropriate Governance Arrangements for the Introduction of Smart Grids Rules for Watt? for Watt? Rules On Friday, 23rd of November, 2018 at 12:30 in Prof. dr. G. Berkhoff room, Waaier Building, University of Twente. Paranymphs: Leila Niamir Karen S. Góngora Pantí Imke Lammers Imke Lammers [email protected] Rules for Watt? Designing Appropriate Governance Arrangements for the Introduction of Smart Grids Imke Lammers 525645-L-sub01-bw-Lammers Processed on: 31-10-2018 PDF page: 1 Members of the graduation committee: Chair and Secretary: Prof. dr. T.A.J. Toonen University of Twente Supervisors: Prof. mr. dr. M.A. Heldeweg University of Twente Dr. M.J. Arentsen University of Twente Co-supervisor: Dr. T. Hoppe Delft University of Technology Members: Prof. dr. J.Th.A. Bressers University of Twente Prof. dr. J.L. Hurink University of Twente Prof. mr. dr. H.H.B. Vedder University of Groningen Prof. dr. M.L.P. Groenleer Tilburg University This work is part of the research programme ‘Uncertainty Reduction in Smart Energy Systems’ (URSES) with project number 408-13-005, which is (partly) financed by the Netherlands Organisation for Scientific Research (NWO). Department of Governance and Technology for Sustainability (CSTM), Faculty of Behavioural, Management and Social Sciences, University of Twente. Printed by: Ipskamp Printing Cover photo credits: istockphoto.com ISBN: 978-90-365-4644-7 DOI: 10.3990/1.9789036546447 Copyright © Imke Lammers, 2018, Enschede, The Netherlands. All rights reserved. No parts of this thesis may be reproduced, stored in a retrieval system or transmitted in any form or by any means without permission of the author. 525645-L-sub01-bw-Lammers Processed on: 31-10-2018 PDF page: 2 RULES FOR WATT? DESIGNING APPROPRIATE GOVERNANCE ARRANGEMENTS FOR THE INTRODUCTION OF SMART GRIDS DISSERTATION to obtain the degree of doctor at the University of Twente, on the authority of the rector magnificus Prof. dr. T.T.M. Palstra on account of the decision of the graduation committee, to be publicly defended on Friday, the 23rd of November 2018 at 12.45 hours by Imke Lammers born on the 19th of August 1988, in Nordenham, Germany. 525645-L-sub01-bw-Lammers Processed on: 31-10-2018 PDF page: 3 This dissertation has been approved by: Supervisors: Prof. mr. dr. M.A. Heldeweg Dr. M.J. Arentsen Co-supervisor: Dr. T. Hoppe 525645-L-sub01-bw-Lammers Processed on: 31-10-2018 PDF page: 4 Contents List of Figures ................................................................................................. vii List of Tables ..................................................................................................... ix 1. INTRODUCTION .............................................................................................. 1 1.1. The Need for Smart Grids ..................................................................... 3 1.1.1. The energy transition ................................................................................... 3 1.1.2. The challenged distribution grid .................................................................. 4 1.1.3. Smart grids as solution for the challenged distribution grid ........................ 6 1.2. Research Background and Research Problem ....................................... 9 1.2.1. An increasing multi-actor setting in the electricity sector ............................ 9 1.2.2. Consequences of the multi-actor setting for energy planning .................... 12 1.3. Research Objectives and Questions .................................................... 13 1.4. Theoretical Underpinnings .................................................................. 14 1.4.1. Defining institutions ................................................................................... 15 1.4.2. Analysis and design of institutions ............................................................. 16 1.5. Thesis Outline ..................................................................................... 17 2. INSTITUTIONAL SETTINGS OF LOCAL RENEWABLE ENERGY PLANNING: A SYSTEMATIC LITERATURE REVIEW ............................................................... 21 2.1. Introduction ......................................................................................... 23 2.2. The IAD Framework and the Action Situation ................................... 25 2.3. Research Design and Methods ............................................................ 28 2.3.1. Case selection and conceptualization ......................................................... 28 2.3.2. Literature search and selection criteria ..................................................... 28 2.3.3. Data preparation and analysis ................................................................... 32 2.4. Results ................................................................................................. 32 2.4.1. Introducing the selected articles and cases ................................................ 32 2.4.2. Results of the qualitative analysis .............................................................. 35 2.5. Discussion and Conclusion ................................................................. 40 2.5.1. Link to part A of the dissertation ................................................................ 42 ¾ PART A…………………………………………………………………...45 3. POLYCENTRICITY IN LOCAL ENERGY PLANNING: THE CASE OF SMART GRIDS ............................................................................................................... 47 i 525645-L-sub01-bw-Lammers Processed on: 31-10-2018 PDF page: 5 3.1. Introduction ......................................................................................... 49 3.2. Polycentricity ...................................................................................... 50 3.3. Two Case Studies ................................................................................ 52 3.3.1. IPIN project JEM Zwolle ........................................................................... 53 3.3.2. Green Deal project Bothoven-Noord ......................................................... 54 3.3.3. Data collection and analysis ...................................................................... 54 3.4. Results ................................................................................................. 55 3.4.1. Polycentric characteristics of both cases ................................................... 55 3.4.2. The positioning of both cases on the four criteria of polycentricity ........... 56 3.5. Conclusion .......................................................................................... 58 4. DECISION-MAKING ON THE INTRODUCTION OF SMART ENERGY INFRASTRUCTURES: THE INFLUENCE OF INSTITUTIONAL CONDITIONS ....... 61 4.1. Introduction ......................................................................................... 63 4.2. ‘Rules of the Game’ for Smart Energy Infrastructure Governance ..... 65 4.3. Institutional Conditions for Local Planning on Smart Energy Infrastructures ..................................................................................... 66 4.4. Research Design and Methods ............................................................ 69 4.4.1. Case selection ............................................................................................. 70 4.4.2. Data collection and analysis ...................................................................... 72 4.5. Case Analysis ...................................................................................... 74 4.5.1. Intelligent Net Duurzaam Lochem .............................................................. 74 4.5.2. Smart Grid MeppelEnergie ........................................................................ 76 4.5.3. Bothoven-Noord: op weg naar een energieneutrale wijk ........................... 78 4.5.4. Hart van Zuid ............................................................................................. 80 4.6. Case Comparison: Enabling and Disabling Institutional Conditions .. 81 4.6.1. Boundary rules ........................................................................................... 84 4.6.2. Position rules ............................................................................................. 84 4.6.3. Choice rules ............................................................................................... 85 4.6.4. Information rules ........................................................................................ 86 4.6.5. Aggregation rules ....................................................................................... 87 4.6.6. Payoff rules ................................................................................................ 87 4.6.7. Scope rules ................................................................................................. 88 4.7. Discussion ........................................................................................... 88 4.8. Conclusion .......................................................................................... 89 ii 525645-L-sub01-bw-Lammers Processed on: 31-10-2018 PDF page: 6 5. EXPERIMENTING WITH LAW AND GOVERNANCE FOR DECENTRALIZED ELECTRICITY SYSTEMS: ADJUSTING REGULATION TO REALITY? ................ 93 5.1. Introduction ........................................................................................