1. Market Introduction of Sustainable Energy Innovations as Processes of Social Learning Harald Rohracher Inter-University Research Centre for Technology, Work and Culture, Graz Michael Ornetzeder Centre for Social Innovation, Vienna STRATEGIES FOR SUSTAINABLE ENERGY TECHNOLOGY WORKSHOP TRONDHEIM 2003

2. What is the problem?  How to manage the transformation of the existing energy system?  Market introduction of sustainable innovations is a process of social learning, but often these learning processes are inefficient and full of frictions  Learning processes need organisational frameworks to be successful  How to organise and support such learning processes?

3. What is market introduction?  Dissemination of an innovation to (end-)users for the first time on a broader basis  Two models of innovation  Linear model (innovation - diffusion)  Evolutionary or circular model (Innofusion)  Market introduction is always a starting point for social learning processes  How to organise such learning processes to be  More efficient  Transparent  Reflexive

4. What is social learning? Social learning can be characterised as a combined act of discovery and analysis, of understanding and giving meaning, and of tinkering and the develop- ment of routines. In order to make an artefact work, it has to be placed, spatially, temporally, and conceptually. It has to be fitted into the existing, heterogeneous networks of machines, systems, routines, and culture. (Sørensen 1996)

5. Some basic concepts of social learning  Learning-by  -doing (Arrow 1962)  -using (Rosenberg 1982)  -testing and modifying  Appropriation, domestication, and possibly re-invention on the user-side  Learning-by  -interacting (Andersen and Lundvall 1988)  -regulating (Sørensen 1996)

6. Substance of social learning processes  First order learning  Effectiveness of a technology  User friendliness  Cost reduction  Intended and unintended consequences  Second order learning  Assumptions and scripts  User needs and experiences  Alternative options  Changes on the organisational or system level

7. Market introduction of solar systems by self-building groups

8. Total installed solar collectors per inhabitant in Europe Source: SOLTHERM EUROPE - European Market Report 2003

9. A short history of the Austrian self-building groups  1983: the first self-building group was established  1986: more than 50% of all solar systems were installed by self-builders  1988: foundation of the Association for Renewable Energy (AEE)  1997: more than 40.000 solar systems had been installed with this strategy  Positive effects for commercial producers  reliable self-built collector, improved reputation  better visability of solar collectors  users of self-built collectors were satisfied promotors  information about solar technology was spread by self- building groups

10. Organisational framework Intermediary organisation (Association for Renewable Energy ) Autonomus self-building groups (Prospective and actual users) Research institutes Funding agenciesPolicy makers SuppliersManufacturers Producers/Designers Regulators AEE

11. Results of social learning in the solar case  First order learning  Understanding of technology  Adapted technology:  special type of self-built collector  new roof-integrated type of collector  Second order learning  Self-building and assembling method for groups  New appliances:  Solar combisystem for space-heating  Accessory device for washing machines  Institutionalisation of the movement  Know-how transfer: lectures, seminars, conferences  Broadening the activities to other renewables

12. Transformation of energy systems  Liberalisation of energy markets  New technologies: Information technologies, decentralised production; new services  Example: micro CHP  cogeneration of heat and electricity even at household level – ‘emerging technology’ with high potential  fuel cells, Stirling engines e.g. in combination with biomass boilers: ‘radical’ decentralisation  integration into virtual utility based on IT solutions  Other examples: Smart metering; green electricity  Resulting in  new role of customers (user-producers) and other groups  new governance structures; regulatory challenges  changes at system level; new socio-technical configurations

13. Energy technologies as part of a socio-technical system in transition Predevelopment Stabilization time Societal development Acceleration Take-off Macro-level (landscape, trends) Meso-level (regimes, institutions) Micro-level (Niches, individuals) From: Rotmans et al, 2000From: Geels and Kemp, 2001 Core concepts: niches, regimes and landscapes

14. Organisational frameworks for social learning: Strategies and tools  Social learning needs a specific organisational environment to work properly  Example: The role of intermediary organisations  Organise user-producer networks  Develop and propose rules  Provide users with technology and information  Stimulate communication between users  Link user's experiences to producers and research units  Increasing societal complexity and uncertainty requires new ways of thinking as well as new types of governance  Shared problem perception and visions  Participatory approach  New strategies and tools

15. Strategy 1: Socio-technical experiments; Strategic niche management  Creation / modulation of protected spaces and experimental settings for desirable technologies  needs good understanding of barriers to market introduction of technologies  Makes required changes at a technological and institutional level visible, which would be needed to make technology economically successful  Gaining experiences with the usage of these technologies  learning about design, user requirements, cultural and political acceptance, etc. (second order learning)  Example: Car-sharing, CH; Lightweight vehicles

16. Strategy 2: User involvement / Self-building groups  User involvement covers broad range of activities  “Tool” 1: Lead user method (von Hippel)  “Tool” 2: Supporting self-building activities / diversity of innovations  Favourable conditions for self-building groups  Technical characteristics –Not too complex –No need for specialised tools and skills –Potential for self-building  Lifecycle of the products –Early stages of development and dissemination  Specific motivation of users –Demand and interested in DIY –Cost reduction and linked to a “mission”  Specific socio-cultural milieu –Tradition of co-operation  Examples: Biomass boilers, Smart home technologies

17. Strategy 3: Interactive scenario building  Creating ‘best-case images of the future’; back- casting process to define pathways how to get there  Example: Consumer Constructive Technology Assessment  integrating various actor groups into design process  joint vision building  3 consecutive workshops with ‘smart home’ producers and suppliers; architects; energy experts; consumer associations: guiding visions; product specifications  platform for learning and interaction within project  Design and implementation of (policy) actions should be monitored and adjusted continuously with respect to visions and goals

18. Illustration: The case of micro CHP  As described earlier: radical decentralisation of electricity generation could ultimately result in a transformation of the electricity system  How could the introduction of these technologies be supported by organising learning processes?  Socio-technical mapping: what are the interests and visions of different relevant actor groups?  Joint vision building: how could a possible future with micro CHP look like and how could we get there?  Bounded socio-technical experiments: applying technology in certain niches (e.g. model communities) and learning about practices of using micro CHP (e.g. matching heat and electricity demand); required regulatory changes  Self-building groups? Sensitivity to user initiatives during stage of early diffusion

19. Summing up  Introducing new energy technologies / innovations always requires learning processes and often involves innovations at system level  Improving such learning processes needs conscious organisational efforts  Additional perspectives for energy policy  New culture of experiments and pilot projects  User involvement at different stages  Strengthening socio-technical systems  Providing spaces for learning and interaction  Keeping options open (avoiding early lock-in)