Table of Contents

Preface and acknowledgements …………………………………………………………………………….. iii
Part 1 Introduction to the research ……………………………………………………………………… 1
1 Introduction ……………………………………………………………………………………………… 3
1.1 Electricity system …………………………………………………………. …………. ….. …………. … 5
1.2 Need for modernization ………………………………………………………. ………….. …………. 6
1.3 Types of modernization …………………………………………………………………………. … … 9
1.4 Research focus .. ………………………………………………. …………………………… …………. 10
1.5 Research objective and framework ……………………………………………………………… 12
1.6 Scientific contribution …………………….. …………………………. …………………………… .. 13
1.7 Practical contribution ……………… .. ………………………………………………………………. 13
1.8 Structure ofthe dissertation ………………………………………………………….. …………… 14
2 Literature review/theoretical exploration …………………………………………………. 17
2.1 Electricity networks as socio-technical systems ……………………………………………. 17
2.2 Modernization ………………………………. ……………………………… .. ……….. .. ….. .. ……… 19
2.3 Institutions ……………………………………………. ………………………………………………… 20
2.3.1 Layered approach …………………………………………………………………………….. 21
2.3.2 Logic ofthe system …………………………………………………….. .. …………………. 24
2.4 Alignment perspective ………………………….. … ………………….. ………………………… … 24
2.4.1 Large technical systems ……………………………………………………………………. 25
2.4.2 Transition theory ……………………………………………………………………………… 26
2.4.3 Co-evolution of institutions and technology ………………. …. .. ……………….. … 27
2.4.4 Coherence between institutions and technology …………………………………… 29
2.4.5 Framework 1 for empirical research …………………………………………………… 34
2.5 Innovation system perspective …………. ………………………………………………………… 36
2.5.1 Key concepts of technical change ………………………………………………………. 36
2.5.2 Innovation in network organizations and innovation systems ……………… … 38
2.5.3 Framework 2 for empirical research …………………………………………………… 41
2.6 Sumrnary and conclusion ……………………………………………. …………………………….. 41
v
Part 2 Alignment perspective …………………………………………………………………………….. 45
3 Methodology …………………………………………………………………………………………… 47
3.1 Research question … .. … …………… ….. .. ………………. …….. .. ………… ……………. ……….. 47
3.2 Research approach ……………………………….. ………………………………………. …………. 49
3.3 Data collection and analysis ofthe empirics ……. …. …. …… ………. ………. …… …. …. .. . 50
3.4 Determination of periods in electricity development… .. ……… …… ……………………. 50
3.5 Structure per chapter on each period ………………………. ……….. … …………………….. . 51
4 Shift to alternating current ……………………………………………………………………… 53
4.1 Socio-technical context ………………………. ……. … ……………………………………. …… … 53
4.1 .1 Technology ….. ……………………….. ……. …… .. ………. ……………… ………………… . 53
4.1.2 Institutions ………………………………………………………………………………………. 54
4.2 Misaligment in shifting to AC technology .. ……. …………………….. … ………………….. 57
4.2.1 Balancing demand and supply …………………………………… ………… …….. …….. 57
4.2.2 Electricity networks expanding … .. .. …………….. …. …………………………………. 58
4.3 Conclusions … ………………….. ……………. …………….. … … .. …….. .. …….. …………. ………. 59
5 Electrification …………………………………………………………………………………………. 63
5.1 Socio-technical context. ………………. .. …………………….. ………….. …………… ……….. .. 63
5.1 .1 Technology ………….. …… ……….. …….. .. ………… ………… .. ……… …………. … ……. 63
5.1.2 Institutions …………………………… .. …. ………. ………….. ….. …………………… ……. . 64
5.2 Alignment in the electrifïcation ………………………….. ……. …………………………. ……. 66
5.2.1 Electricity from luxury product to public service ………………… ……. ………… 67
5.2.2 Local property rights hinder expansion .. …………… ….. ….. ……………. …………. 67
5.2.3 Stimulation of electricity use …………. .. .. ……………….. ….. … …………. ………… .. 68
5.2.4 Tariffs hinder modernization efforts ………………. ……………….. ……… ……. .. … 69
5.2.5 Modernization relates to interoperability issues ………… ………….. .. …… ……… 69
5.3 Conclusions …… ………. .. …………….. …….. .. … ………. …………. … ………… …………………. 70
6 Interconnection and reinforcement ………………………………………………………….. 73
6.1 Socio-technical context ………… .. ………… … ……. ……………. ………….. …….. ……………. 73
6.1.1 Technology ……………….. … ………………………………………. ………. ……………….. 73
6.1.2 Institutions ….. ………….. …….. …….. ……… …… …………………………… …… … …… .. 75
6.2 Alignment in interconnecting and reinforcing the system …………………….. ……….. 78
6.2.1 Generation capacity inadequate …………. ……………………….. .. … ……………… .. 79
6.2.2 Modemization increases critical functions’ importance ………………………… 80
6.3 Conclusions ………………………………………….. ……………………………. ….. .. .. …….. ……. 82
VI
7 Shift to a hybrid system …………………………………………………………………………… 87
7.1 Socio-technical context ……………………………………………………………………………… 87
7.1.1 Technology ……………………………………………………………………………………… 87
7.1.2 Institutions ………………………………………………………………………………………. 89
7.2 Alignment in a hybrid system …………………………………………………………………….. 92
7.2.1 Distributed generation and power quality ……………………………………………. 92
7.2.2 Interconnection leading to misaligliment.. …………………………………………… 95
7.2.3 Critica 1 nmctions safeguarded ……………………………………………………………. 98
7.3 Conc1usions ……………. ……………………….. ……………………………………………………. 100
Part 3 Innovation System perspective ………………………………………………………………. 105
8 Methodology …………………………………………………………………………………………. 107
8.1 Research question …………………………………………………………………………………… 107
8.2 Research approach ………………………………………………………………………………….. 108
8.3 Data collection ……………………………………………………………………………………….. 109
8.3.1 Interviews ……………………………………………………………………………………… 109
8.3.2 Survey …………………………………………………………………………………………… 111
8.4 Determination of periods in electricity development… …………………………………. 112
8.5 Structure per chapter on specific period …………………………………………………….. 113
9 Prior to Iiberalization ……………………………………………………………………………. 115
9.1 Informal institutional variables impacting on innovation ……………………………… 115
9.1.1 Interview results …………………………………………………………………………….. 115
9.1.2 Survey results ………………………………………………………………………………… 118
9.2 Formal institutional variables impacting on innovation ……………………………….. 119
9.2.1 Interview results …………………………………………………………………………….. 119
9.2.2 Survey results ………………………………………………….. ……………………………. 120
9.3 Institutional arrangement variables impacting on innovation ………………………… 121
9.3.1 Interview results …………………………………………………………………………….. 121
9.3.2 Survey results ………………………………………………………………………………… 123
9.4 Variables impacting on innovation with regm’d to actors and games ……………… 124
9.4.1 Interview results …………………………………………………………………………….. 124
9.4.2 Survey results .. : ……………………………………………………………………………… 125
9.4.3 Logic ……………… ……………… ………. … …… ……………………….. ……….. ……. ….. 127
9.5 Conc1usions …….. ……… … …… …………….. …………………………………………. …………. . 127
10 Since liberalization and comparison ………………………………………………………. 133
10.1 Informal institutional variables impacting on innovation ……………………………… 133
10.1.1 Interview resuls …………………………………………………………………………. 133
vii
10.1.2 Survey results …………… .. ……………………………… ……… …………………….. 136
10.2 Formal institutional variables impacting on innovation ……………………………….. 139
10.2.1 Interview results ………………………………………………………………………… 139
10.2.2 Survey results ……………………………………………………………………………. i43
10.3 Institutional arrangement variables impacting on innovation ………………………… 145
10.3.1 Interview results ………………………………………………………………………… 145
10.3.2 Survey results ………………………………………………………………………. .. …. 146
10.4 Variables impacting on innovation with regard actors and games …………………. 148
10.4.1 Interview results ………………………………………………………………………… 148
10.4.2 Survey results ……………………………………………………………………………. 150
10.4.3 Logic ………………….. ……… ……………………………… ……………………………. 152
1 0.5 Conclusions ………….. …… ………………………………. …. ………… .. …………………………. 152
Part 4 Synthesis ………………………………………………………………………………………………. 159
11 Conclusions …………………………………………………………………………………………… 161
11.1 Alignmentperspective …………………………………………………………………………….. 161
il.1.1 Alignment as a driver to modernization ………………………… ……………… 162
11.1.2
11.1.3
11.1.4
11.1.5
Misalignment as a driver to modernization ……………………………………. 162
Modernization as a driver to alignment and misalignment ………………. 164
Regularities …………………………. ……………………………………………………. 166
Logic ………………………………………………………………………………………… 166
11.2 Innovation system perspective ………………………………………………………………….. 168
11.2.1 General conclusions ……………………………………………………………………. 168
11.2.2 Logic ………………………………………………………………………………………… 170
12 Discussion …………………………………………………………………………………………….. 173
12.i Scientific implications …………………………………………………………………………….. 173
12.1.1 Alignment perspective …………………………………… …………………………… 173
12.1.2
12.1.3
Innovation system perspective ………………………. …………………… ………. 174
Comparing perspectives ……………………………………………………………… 175
12.2 Practical implications ………………………………………………………………………………. 176
12.2.1 Alignmentperspective ………………………………………………………………… 176
12.2.2 Innovation system perspective …………………………………………………….. 178
12.3 Suggestions for future research …………………………………………………………………. 180
12.3.1 Alignment perspective ………………………………………………………………… 180
12.3.2 Innovation system perspective …………………………………………………….. 182
References …………………………………………………………………………………………………………. 185
VIII
Appendices ………………………………………………………………………………………………………… 197
A Ancillary services ………………………………………………………………………………….. 199
B Electricity use and insta lied capacity ……………………………………………………… 202
C Questionnaire ……………………………………………………………………………………….. 203
D Codes of survey variables and data matrix …………………………………………….. 209
Summary …………………………………………………………………………………………………………… 217
Samenvatting …………………………………………………………………………………………………….. 221
Curriculum vitae ……………………………………………………………………………………………….. 225

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