A GAP IN THE MAP?

Mapping the Dutch energy saving policy instrument landscape for setting up a strategic niche management experiment to test direct current in the office environment.

Erik van Diest BSc. - 0834501 Master Thesis Project Innovation Management

Introduction

Although the entire electricity system is based on Alternating Current, over the past few years many more machines are either generating

(PV panels)

or using

(computers)

converting an office to run on DC. from all parts of the electricity system.

Direct Current

(DC), leading to many losses. High time to look into the possibilities for DC on it’s own will not survive in the existing market. Luckily, according to Strategic Niche Management, policy instruments can provide protection. To find the instruments applicable to DC a policy map is created. In this map these instruments are found.

The scope of the policy instrument map ranges from Provincial via National to European instruments with a focus on energy saving and sustainable energy generation. The instruments can come

Method

Business case

» » »

Policy instrument map

» »

Combining the business case and policy map

» Inspection at location to determine machines to refit Calculation of expected improvements using Catalog of DC appliances (Garbesi, Vossos & Shen, 2011) Cost/benefit analysis using information of suppliers Online search for instruments at the websites of the RvO*, Ministry of ELI*, Dutch Government, European Commission, Subsidievinder.nl and a complementary Google search Determination of applicability type of instrument, applicability of to DC in general an applicability to experiment Combination of business case and policy instrument map to find the available protection from the policy instruments.

Results

Business case

After considering the options for remodelling the entire office it is chosen to only renovate the office area due to the relatively high improvement, low costs and little impact on the users.

This scnenario led to the following results: E

14% €57k

(€77k incl. PV)

investment electricity saving

14 year

payback period

Value proposition

Simple & Smart

A DC system is simpler, with less & smaller converters and cables; smarter, with one USB cable for all types of data and energy transport; more energy efficient, with 14% less energy use in the office area; and improving

higher PV-output

sustainable energy generation, with 6-8% higher output.

Policy map

» In the policy map in total 84 different policy instruments are found. These have been divided into

Generic

(general focus on energy or innovation) and

Niche

(specific boundary conditions). Also

sub

-instruments are found, which are defined as instruments that are a specific sub-version of one, large encompassing instrument.

* RvO = Rijksdienst voor Ondernemend Nederland | ELI = Economic Affairs, Agriculture and Innovation

» The instruments are also further divided into these six types: 

Statutory Obligations Investment Subsidies

TAX

Fiscal Incentives Public Procurement & Capital Expenditure



Subsidy Tenders



Low Interest Loans

Geography and instruments

        TAX 5 5 10 13 11 6 23 4 7 10 Generic

Applicability of instruments to DC (fit)

Never fit DC 6 Generic-sub Fits DC after

and-transform

24

stretch-

8 Niche process Niche-sub Currently fit DC 11 6 19 European Union Dutch Government

Applicable to this specific experiment

Building code

TAX Provinces

RDA, WBSO & EIA



Kansen voor West II



Energiefonds Utrecht



SDE+

(when using PV panels)

Impact of the policy instruments on the business case

The policy instruments bring a small amount of protection to the innovation, as can be seen in the improvements in the business case: » » »

13 year

payback period NPV

(6y)

: NPV

(10y)

:

-€31.000

-€19.000

» » »

Incl.

NPV NPV

10 year

(6y): (10y)

Further protection in the form of nurturing, shielding and empowering should be provided by the stakeholders in the experiment. These stakeholders include the system user, the system designer and the system builder, but also external parties such as suppliers. Their protection can come in the form of financial aid, but also in knowledge and kind.

: payback period

-€38.000

-€17.000

Conclusion

For the demonstration phase manhy instruments and no gaps are found in the map. However, to reach the unsheltered market it is important that also the stakeholders provide some form of protection.

For the next phases some gaps are found in the map, which can be filled in by stretching and transforming some existing instruments.

References:

» Garbesi, K., Vossos, V., & Shen, H. (2011). Catalog of DC Appliances and Power Systems. Berkeley, CA, USA: Ernest Orlando Lawrence Berkeley National Laboratory.