IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v37y2009i9p3535-3544.html
   My bibliography  Save this article

An innovation management approach for renewable energy deployment--the case of solar photovoltaic (PV) technology

Author

Listed:
  • Shum, Kwok L.
  • Watanabe, Chihiro

Abstract

In the discussion of renewable energy deployment, one key concern is the various types of barriers that renewable energy needs to overcome before it can make its way into the mainstream. These barriers increasingly shift from the technical to the economic and institutional. The most general types of barriers are due to technological 'lock-out' or to carbon 'lock-in' [Unruh, G., 2000. Understanding carbon lock-in. Energy Policy 28(12), 817-830 (Elsevier)]. These barriers necessitate the development of a strategic approach to deploy or introduce renewable energy technology. Existing energy policy has mostly relied upon financial subsidies, market-based instruments such as renewable portfolio standards, and production tax credits to stimulate the installation and use of equipment to generate electricity from renewable sources. These strategies target mostly system-level decisions of end users. The purpose of this paper is to present an innovation perspective on the renewable energy deployment process by introducing the innovation value-added chain (IVC) framework. The analytical objective of IVC is to evaluate the impact of a new innovation on the various stakeholders and players in the development and deployment processes. A deployment or innovation strategy that causes minimal disruption, enhances existing competencies, or expedites new learning by the players has a higher chance to succeed. We draw upon two sets of system integration costs data for grid-connected distributed photovoltaic (PV) systems in Japan and the United States and demonstrate conspicuously different dynamic learning behaviors. These two deployment models can be understood in terms of how the IVCs are organized and how PV system integration projects are performed in the field. In addition, IVC-based findings can inform the targeted application of conventional financial subsidies for learning investment not only at the PV system level, but also at the (localized) system integration level. This would involve other stakeholders, thus suggesting new energy policy space. We highlight some future research directions using the IVC framework.

Suggested Citation

  • Shum, Kwok L. & Watanabe, Chihiro, 2009. "An innovation management approach for renewable energy deployment--the case of solar photovoltaic (PV) technology," Energy Policy, Elsevier, vol. 37(9), pages 3535-3544, September.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:9:p:3535-3544
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(09)00233-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Karsten Neuhoff, 2005. "Large-Scale Deployment of Renewables for Electricity Generation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(1), pages 88-110, Spring.
    2. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    3. Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
    4. Clark, Kim B., 1985. "The interaction of design hierarchies and market concepts in technological evolution," Research Policy, Elsevier, vol. 14(5), pages 235-251, October.
    5. Afuah, Allan N. & Bahram, Nik, 1995. "The hypercube of innovation," Research Policy, Elsevier, vol. 24(1), pages 51-76, January.
    6. Shum, Kwok L. & Watanabe, Chihiro, 2007. "Photovoltaic deployment strategy in Japan and the USA--an institutional appraisal," Energy Policy, Elsevier, vol. 35(2), pages 1186-1195, February.
    7. Geroski, Paul, 2003. "The Evolution of New Markets," OUP Catalogue, Oxford University Press, number 9780199248896.
    8. Shum, Kwok L. & Watanabe, Chihiro, 2008. "Towards a local learning (innovation) model of solar photovoltaic deployment," Energy Policy, Elsevier, vol. 36(2), pages 508-521, February.
    9. Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Neij, Lena & Heiskanen, Eva & Strupeit, Lars, 2017. "The deployment of new energy technologies and the need for local learning," Energy Policy, Elsevier, vol. 101(C), pages 274-283.
    2. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    3. Annunziata, Eleonora & Frey, Marco & Rizzi, Francesco, 2013. "Towards nearly zero-energy buildings: The state-of-art of national regulations in Europe," Energy, Elsevier, vol. 57(C), pages 125-133.
    4. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    5. Tang, Yong & Sun, Honghang & Yao, Qiang & Wang, Yibo, 2014. "The selection of key technologies by the silicon photovoltaic industry based on the Delphi method and AHP (analytic hierarchy process): Case study of China," Energy, Elsevier, vol. 75(C), pages 474-482.
    6. Jin, Wei & Zhang, ZhongXiang, 2015. "Levelling the playing field: On the missing role of network externality in designing renewable energy technology deployment policies," Working Papers 249514, Australian National University, Centre for Climate Economics & Policy.
    7. Bossink, Bart, 2020. "Learning strategies in sustainable energy demonstration projects: What organizations learn from sustainable energy demonstrations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    8. Tsagarakis, Konstantinos P., 2020. "Shallow geothermal energy under the microscope: Social, economic, and institutional aspects," Renewable Energy, Elsevier, vol. 147(P2), pages 2801-2808.
    9. Cheng, Yung-Lung & Wee, Hui-Ming & Chen, Ping-Shun & Kuo, Yu-Yu & Chen, Guang-Jin, 2014. "Innovative reservoir sediments reuse and design for sustainability of the hydroelectric power plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 212-219.
    10. Linnerud, Kristin & Holden, Erling, 2015. "Investment barriers under a renewable-electricity support scheme: Differences across investor types," Energy, Elsevier, vol. 87(C), pages 699-709.
    11. Chowdhury, Sanjeeda & Sumita, Ushio & Islam, Ashraful & Bedja, Idriss, 2014. "Importance of policy for energy system transformation: Diffusion of PV technology in Japan and Germany," Energy Policy, Elsevier, vol. 68(C), pages 285-293.
    12. Lee, Amy H.I. & Chen, Hsing Hung & Kang, He-Yau, 2011. "A model to analyze strategic products for photovoltaic silicon thin-film solar cell power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1271-1283, February.
    13. Kostevšek, Anja & Cizelj, Leon & Petek, Janez & Pivec, Aleksandra, 2013. "A novel concept for a renewable network within municipal energy systems," Renewable Energy, Elsevier, vol. 60(C), pages 79-87.
    14. Jagoda, Kalinga & Lonseth, Robert & Lonseth, Adam & Jackman, Tom, 2011. "Development and commercialization of renewable energy technologies in Canada: An innovation system perspective," Renewable Energy, Elsevier, vol. 36(4), pages 1266-1271.
    15. Mathews, John A. & Baroni, Paolo, 2013. "The industrial logistic surface: Displaying the impact of energy policy on uptake of new technologies," Energy, Elsevier, vol. 57(C), pages 733-740.
    16. de Freitas, Luciano Charlita & Kaneko, Shinji, 2012. "Is there a causal relation between ethanol innovation and the market characteristics of fuels in Brazil?," Ecological Economics, Elsevier, vol. 74(C), pages 161-168.
    17. Shum, Kwok L., 2017. "Renewable energy deployment policy: A transition management perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1380-1388.
    18. Kang, Moon Jung & Hwang, Jongwoon, 2016. "Structural dynamics of innovation networks funded by the European Union in the context of systemic innovation of the renewable energy sector," Energy Policy, Elsevier, vol. 96(C), pages 471-490.
    19. Huo, Mo-lin & Zhang, Dan-wei, 2012. "Lessons from photovoltaic policies in China for future development," Energy Policy, Elsevier, vol. 51(C), pages 38-45.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, July.
    2. Shum, Kwok L. & Watanabe, Chihiro, 2010. "Network externality perspective of feed-in-tariffs (FIT) instruments--Some observations and suggestions," Energy Policy, Elsevier, vol. 38(7), pages 3266-3269, July.
    3. Pistorius, C. W. I. & Utterback, J. M., 1997. "Multi-mode interaction among technologies," Research Policy, Elsevier, vol. 26(1), pages 67-84, March.
    4. Markard, Jochen & Hoffmann, Volker H., 2016. "Analysis of complementarities: Framework and examples from the energy transition," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 63-75.
    5. Frenken, Koen, 2006. "A fitness landscape approach to technological complexity, modularity, and vertical disintegration," Structural Change and Economic Dynamics, Elsevier, vol. 17(3), pages 288-305, September.
    6. Foxon, Timothy J. & Pearson, Peter J.G. & Arapostathis, Stathis & Carlsson-Hyslop, Anna & Thornton, Judith, 2013. "Branching points for transition pathways: assessing responses of actors to challenges on pathways to a low carbon future," Energy Policy, Elsevier, vol. 52(C), pages 146-158.
    7. Schmidt, Susanne K. & Werle, Raymund, 1992. "Koordination und Evolution: Technische Standards im Prozeß der Entwicklung technischer Systeme," MPIfG Discussion Paper 92/8, Max Planck Institute for the Study of Societies.
    8. Jacobsson, Staffan, 2008. "The emergence and troubled growth of a 'biopower' innovation system in Sweden," Energy Policy, Elsevier, vol. 36(4), pages 1491-1508, April.
    9. Ron Adner & Daniel Levinthal, 2001. "Demand Heterogeneity and Technology Evolution: Implications for Product and Process Innovation," Management Science, INFORMS, vol. 47(5), pages 611-628, May.
    10. Jeremy Webb & Max Briggs & Clevo Wilson, 2018. "Breaking automotive modal lock-in: a choice modelling study of Jakarta commuters," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 47-68, January.
    11. Albert Faber & Koen Frenken, 2008. "Models in evolutionary economics and environmental policy: Towards an evolutionary environmental economics," Innovation Studies Utrecht (ISU) working paper series 08-15, Utrecht University, Department of Innovation Studies, revised Apr 2008.
    12. Haase, Rachel & Bielicki, Jeffrey & Kuzma, Jennifer, 2013. "Innovation in emerging energy technologies: A case study analysis to inform the path forward for algal biofuels," Energy Policy, Elsevier, vol. 61(C), pages 1595-1607.
    13. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    14. Pinkse, Jonatan & van den Buuse, Daniel, 2012. "The development and commercialization of solar PV technology in the oil industry," Energy Policy, Elsevier, vol. 40(C), pages 11-20.
    15. Rebekah Brown & Richard Ashley & Megan Farrelly, 2011. "Political and Professional Agency Entrapment: An Agenda for Urban Water Research," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(15), pages 4037-4050, December.
    16. Taminiau, Yvette, 2006. "Beyond known uncertainties: Interventions at the fuel-engine interface," Research Policy, Elsevier, vol. 35(2), pages 247-265, March.
    17. Kalkuhl, Matthias & Edenhofer, Ottmar & Lessmann, Kai, 2012. "Learning or lock-in: Optimal technology policies to support mitigation," Resource and Energy Economics, Elsevier, vol. 34(1), pages 1-23.
    18. Konnola, Totti & Unruh, Gregory C. & Carrillo-Hermosilla, Javier, 2006. "Prospective voluntary agreements for escaping techno-institutional lock-in," Ecological Economics, Elsevier, vol. 57(2), pages 239-252, May.
    19. Francesco Lamperti & Giovanni Dosi & Mauro Napoletano & Andrea Roventini & Alessandro Sapio, 2018. "And then he wasn't a she : Climate change and green transitions in an agent-based integrated assessment model," Working Papers hal-03443464, HAL.
    20. Lamperti, F. & Dosi, G. & Napoletano, M. & Roventini, A. & Sapio, A., 2020. "Climate change and green transitions in an agent-based integrated assessment model," Technological Forecasting and Social Change, Elsevier, vol. 153(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:9:p:3535-3544. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.