Resilience and agency in mature sustainability transitions. Theoretical conceptualisation and empirical analysis of actor- & system-level dynamics in sociotechnical energy systems

In Switzerland, Germany and Austria, as in many European countries, the transition of the energy sector towards more sustainability is a long-term transition process, unfolding since decades. It however only reached the regime level in recent years and therewith the established technologies and governance structures of the energy systems. This fundamental transition process causes complex, interrelated and non-linear dynamics and changes on multiple scales in the technical and social sphere of the energy systems. The energy transition, thus, became a mature sustainability transition, which is a new challenge for research and decision-making in practice.

This dissertation contributes to an improved conceptual and empirical understanding of actor- and system-level structures and dynamics in mature sustainability transitions.

To tackle this research aim, the dissertation employed an iterative theory building process, which develops theoretical considerations based on preexisting theories and frameworks as well as empirical evidence. The empirical analyses were thereby conducted using a mixed methods approach, which allowed for rich empirical evidence and triangulation. The research was implemented in four modules, whereby each module tackled one research question. Main data sources were scholarly literature, regional structural data and documents as well as transcripts from several rounds of semi-structured expert interviews and expert workshops. The empirical data stemmed from three cases: energy regions in Austria and Germany, a network of change agents in Germany and urban utility companies in Germany and Switzerland. The main analytical methods, employed in this dissertation were qualitative literature analysis, document analysis and structuring qualitative content analysis.

For the analysis of system structure for functionality and transition dynamics, this dissertation presents an indicator set to analyse and measure resilience of sociotechnical energy systems in transition, based on the key system characteristics of diversity and connectivity. The empirical application provided rich insights on the sociotechnical system structure and its changes over time and discusses appropriate methods for the empirical analysis. For the analysis of transition dynamics, this dissertation provides a reconceptualised framework for the systematic analysis of actor- and system-level determinants of agency as well as the feedback of agency on the system. Especially focusing on the role of incumbents in mature sustainability transitions, the dissertation moreover provides findings from the empirical exploration of urban utility companies and derived analytical perspectives for public incumbent actors in network industries in transition. The dissertation finally discusses the integrability of conceptual findings to transition studies and presents an integrated framework to analyse structures and dynamics in mature sustainability transitions.

The thesis provided key theoretical and empirical insights on actor- and system-level aspects of mature sustainability transitions in sociotechnical energy systems. It contributed to a further discussion on dynamic resilience concepts for sociotechnical energy systems, a more systematic analysis of agency in sustainability transitions and a more nuanced picture of incumbents' agency in sociotechnical energy systems in mature sustainability transitions.

Torn between international competition and municipal claims: Analysing key influence factors on municipal utilities’ business strategies in the German and Swiss energy transition

Susan Marie Mühlemeier

After the nuclear accident in Fukushima, amongst others Germany and Switzerland decided to accelerate the sustainability transition of their energy systems not only by expanding the share of renewables actively but also by quitting nuclear power. Regarding this political level of ambition, energy companies´ strategies play a decisive role in terms of the implementation, progress and success of the energy supply system’s transition. So far scholars in sustainability transition research working on the role of energy companies for the transition process, mainly focused on two actor types: firstly, big energy utilities, the incumbents which often hinder the transition and secondly, the new entrants, small innovative businesses challenging the incumbents with new technologies or business models. However, hardly any scholarly work studies another important actor group, which lies in between: the municipal utilities (“Stadtwerke”). In Germany and Switzerland, big municipal utilities are part of the ten most powerful energy providers and in Germany they are even seen as the fifth big power besides the “big four”. Hence, the municipal utilities form an important and powerful actor group in terms of the energy transitions’ progress, which need to be studied more in detail. For a better comprehension of this particular actor group, i) we reveal the key influence factors on their business strategies on an economic and socio-political level, ii) analyse how these factors influence different business strategies in particular – on the general firm level and especially in the business area of renewables - and iii) we compare the different socio-political and economic settings in Germany and Switzerland to derive differences and communalities for municipal utilities on a more aggregate level. We employ the triple embeddedness framework (TEF) by Frank Geels, which considers the interaction of firms with their economic and socio-political environment and facilitates an in-depth case study analysis. For empirical evidence, we conduct an explorative case study analysis with four big municipal utilities in Germany and Switzerland in the cities of Munich, Hannover, Geneva and Zurich. This allows not only for an in-depth analysis of the single municipal utilities, its business strategies and local environment but also for an inter-national comparison of different political settings, which are highly important for the municipal utilities. Methodologically, we firstly employ a document analysis on the utilities structural characteristics and business strategies – on the general firm level but also on the specific business area of renewables. Secondly, we conduct explorative expert interviews with researchers and members of associations in the field as well as the CEOs of the four selected utilities to further reveal the specifics of municipal utilities, obtain an improved knowledge on their business strategies and an overview on important influence factors. Thirdly, we conduct semi-structured expert interviews with different members of the four utilities’ strategic management board, the municipal supervisory board and the renewables department in order to validate and discuss the revealed results and analyse the causal interrelations between the influence factors and the utilities’ strategies. These empirical results will be mirrored with findings from scholarly and practical literature. Preliminarily, our studies show that the four chosen cases are the biggest and oldest municipal utilities in each country, established in the end of the 19th century and they are still mainly in the possession of the cities (min. 75%). The legal form of the utilities varies from being a dependent division of the municipal administration, an independent public enterprise, a private company with limited liability or a corporation. Therewith, the influence from the municipal supervisory board and the room for manoeuvre of the firm varies enormously. This is one of the most important influence factors on the municipal utilities’ business strategy and a special feature compared to other actor groups in energy supply. On the other hand, the market liberalisation – which took place in 1998 in Germany and 2009 in Switzerland as partial liberalisation – depict another key influencing factor, since the municipal utilities are forced to compete on the (inter)national market on top of their obligations as a public service provider for their local urban system. Dependent on their binding to the municipality, respectively their form of organisation, the municipal utilities reacted differently to the liberalisation: some invested intensively in renewables all over Europe others strengthened their local energy production, some established strategic allies with other municipal utilities or absorbed other companies. These preliminary results already show, that municipal utilities are complex actors with very specific characteristics embedded in multi-scalar environments full of suspense. With our study, we contribute to a better understanding of this actor type, the important context factors and the utilities’ strategic answers in the context of the energy transition. By revealing the specifics in an international comparison, we enrich not only to the scholarly discussion on key actors in the sustainability transition of urban energy supply systems but also provides decision-makers in policy and economy valuable insights for the future design of sustainable and resilient energy governance systems.

2017

The energy transition – an integrative analysis

Claudia Rebeca Binder Signer

The ongoing energy transition is seen as a key component for the transition towards a more sustainable society. An important component in the move towards a sustainable energy system is the transition from a mainly centralized, fossil-fuel system to a more localized, renewable one. This transition, however, requires not only the development of new energy technologies but also radical, systemic shifts in deeply held values and beliefs, in patterns of social behavior, and in governance regimes. Thereby the ecological, technical and social systems have to be conceptualized as Social-Ecological-Technical Systems (SETS) and new integrative, interdisciplinary research approaches are needed which consider the interaction between these subsystems. We present results of an integrative analysis of transitions which occurred in two Austrian energy regions during the last 20 years. We show (i) how institutional development and infrastructure development are related to each other within time; (ii) whether and how demand and supply of renewable energy carries can be met at the regional level; and (iii) which factors in household behavior affect decision making- and consequently energy demand in the housing sector. Finally, we present some thoughts on the resilience of such transition processes and discuss the need for further research. Socio-ecological transitions are defined as transitions between different societal regimes and co-dependent ecological changes. In the past, two major transitions have occurred as are the transition from the hunter and gatherers society to the agricultural society and from the latter to the industrial society. These transitions have both been characterized by an increased material and energy consumption per capita and an increase in urban population. Scholars have stated that we are in the middle of a new transition maybe towards a sustainable society. This transition is likely to encompass a further increase in the share of the population living in urban areas, however linked to significant efforts to change the metabolism of cities by e.g., transforming the energy system away from a fossil fuel based towards a renewable energy system. The experiences of various scholars have led to the insight that this transition cannot be analyzed with disciplinary approaches alone. They have to be dealt with in an integrative, interdisciplinary way that considers the dynamics and interactions between social and ecological systems. This presentation will show how inter- and transdisciplinary research could be framed to better understand, simulate, and provide policy recommendations for the ongoing transition. These approaches significantly feed into the new research foci in urban ecology, as they specifically study the dynamics within and the interaction between the social and ecological systems. Empirical results for the transition of energy regions will be presented.

2016

Rusty dinosaurs and the surviving species in the new energy system? Analysing urban utilities in the German and Swiss energy transition

Claudia Rebeca Binder Signer, Susan Marie Mühlemeier

After the nuclear accident in Fukushima, amongst others Germany and Switzerland decided to accelerate the sustainability transition of their energy systems not only by expanding the share of renewables actively but also by quitting nuclear power. Regarding this political level of ambition, energy companies´ strategies play a decisive role in terms of the implementation, progress and success of the energy supply system’s transition. So far scholars in sustainability transition research working on the role of energy companies for the transition process, mainly focused on two actor types: firstly, big energy utilities, the incumbents which often hinder the transition and secondly, the new entrants, small innovative businesses challenging the incumbents with new technologies or business models. However, hardly any scholarly work studies another important actor group, which lies in between: the municipal utilities (“Stadtwerke”). In Germany and Switzerland, some big municipal utilities are part of the ten most powerful energy providers and in Germany they are even seen as the fifth big power besides the “big four”. Hence, the municipal utilities form an important and powerful actor group in terms of the energy transitions’ progress, which need to be studied more in detail. In our work, we analyse i) the structural characteristics of four big municipal utilities in Germany and Switzerland, ii) their business strategies regarding the increase of renewables, iii) how these strategies are influenced by factors from the economic, socio-political and physical environment and iv) how the utilities strategically react to the various influence factors on different scales. We employ the triple embeddedness framework (TEF) by Frank Geels, which considers the interaction of firms with their economic and socio-political environment and facilitates an in-depth case study analysis. For empirical evidence, we conduct an explorative case study analysis with four big municipal utilities in Germany and Switzerland in the cities of Munich, Hannover, Geneva and Zurich. This allows not only for an in-depth analysis of the single municipal utilities, its business strategies and local environment but also for an inter-national comparison of different political settings, which are highly important for the municipal utilities. Methodologically, we firstly employ a document analysis on the utilities structural characteristics and business strategies – on the general firm level but also on the specific business area of renewables. Secondly, we conduct explorative expert interviews with researchers and members of associations in the field as well as the CEOs of the four selected utilities to further reveal the specifics of municipal utilities, obtain an improved knowledge on their business strategies and an overview on important influence factors. Thirdly, we conduct semi-structured expert interviews with different members of the four utilities’ strategic management board, the municipal supervisory board and the renewables department in order to validate and discuss the revealed results and analyse the causal interrelations between the influence factors and the utilities’ strategies. These empirical results will be mirrored with findings from scholarly and practical literature. Preliminarily, our studies show that the four chosen cases are the biggest and oldest municipal utilities in each country, established in the end of the 19th century and they are still mainly in the possession of the cities (min. 75%). The legal form of the utilities varies from being a dependent division of the municipal administration, an independent public enterprise, a private company with limited liability or a corporation. Therewith, the influence from the municipal supervisory board and the room for manoeuvre of the firm varies enormously. Regarding the business areas there is less variation, since all utilities offer a broad range of products in electricity, heat, water and energy consulting. In the area of business strategies, the targets for and the investment in renewables as well as the resources in use are again very divers: some have clear targets to become 100% renewable, others 100% Co2 neutral or there is no such target at all; Zurich and Munich invest intensively in renewables all over Europe whereas Geneva and Hannover focus on the regional and national level. Finally, our first analysis show, that the different relations to their communes and the national laws depict one important set of formal influence factors. In this merely political context, the market liberalisation also plays a fundamental role, since the municipal utilities have to compete in the liberalised energy supply market - since 1998 in Germany, and in Switzerland partly since 2009. As all other energy utilities, the municipal utilities struggle with the multiple uncertainties in the energy supply system, but additionally to the international competition, the municipal actors also need to fulfil their obligations as public service provider for their local urban system. These preliminary results show already, that municipal utilities are important and complex actors with very specific characteristics embedded in multi-scalar environments full of suspense. With our study, we contribute to a better understanding of this actor type, the important context factors and the utilities’ strategic answers in the context of the energy transition. By revealing the specifics in an international comparison, we enrich not only to the scholarly discussion on key actors in the sustainability transition of urban energy supply systems but also provides decision-makers in policy and economy valuable insights for the future design of sustainable and resilient energy governance systems.

2017

Torn between international competition and municipal claims: Analysing key influence factors on municipal utilities’ business strategies in the German and Swiss energy transition

Susan Marie Mühlemeier

2017

The energy transition – an integrative analysis

Claudia Rebeca Binder Signer

2016

Rusty dinosaurs and the surviving species in the new energy system? Analysing urban utilities in the German and Swiss energy transition

Claudia Rebeca Binder Signer, Susan Marie Mühlemeier

After the nuclear accident in Fukushima, amongst others Germany and Switzerland decided to accelerate the sustainability transition of their energy systems not only by expanding the share of renewables actively but also by quitting nuclear power. Regarding this political level of ambition, energy companies´ strategies play a decisive role in terms of the implementation, progress and success of the energy supply system’s transition. So far scholars in sustainability transition research working on the role of energy companies for the transition process, mainly focused on two actor types: firstly, big energy utilities, the incumbents which often hinder the transition and secondly, the new entrants, small innovative businesses challenging the incumbents with new technologies or business models. However, hardly any scholarly work studies another important actor group, which lies in between: the municipal utilities (“Stadtwerke”). In Germany and Switzerland, some big municipal utilities are part of the ten most powerful energy providers and in Germany they are even seen as the fifth big power besides the “big four”. Hence, the municipal utilities form an important and powerful actor group in terms of the energy transitions’ progress, which need to be studied more in detail. In our work, we analyse i) the structural characteristics of four big municipal utilities in Germany and Switzerland, ii) their business strategies regarding the increase of renewables, iii) how these strategies are influenced by factors from the economic, socio-political and physical environment and iv) how the utilities strategically react to the various influence factors on different scales. We employ the triple embeddedness framework (TEF) by Frank Geels, which considers the interaction of firms with their economic and socio-political environment and facilitates an in-depth case study analysis. For empirical evidence, we conduct an explorative case study analysis with four big municipal utilities in Germany and Switzerland in the cities of Munich, Hannover, Geneva and Zurich. This allows not only for an in-depth analysis of the single municipal utilities, its business strategies and local environment but also for an inter-national comparison of different political settings, which are highly important for the municipal utilities. Methodologically, we firstly employ a document analysis on the utilities structural characteristics and business strategies – on the general firm level but also on the specific business area of renewables. Secondly, we conduct explorative expert interviews with researchers and members of associations in the field as well as the CEOs of the four selected utilities to further reveal the specifics of municipal utilities, obtain an improved knowledge on their business strategies and an overview on important influence factors. Thirdly, we conduct semi-structured expert interviews with different members of the four utilities’ strategic management board, the municipal supervisory board and the renewables department in order to validate and discuss the revealed results and analyse the causal interrelations between the influence factors and the utilities’ strategies. These empirical results will be mirrored with findings from scholarly and practical literature. Preliminarily, our studies show that the four chosen cases are the biggest and oldest municipal utilities in each country, established in the end of the 19th century and they are still mainly in the possession of the cities (min. 75%). The legal form of the utilities varies from being a dependent division of the municipal administration, an independent public enterprise, a private company with limited liability or a corporation. Therewith, the influence from the municipal supervisory board and the room for manoeuvre of the firm varies enormously. Regarding the business areas there is less variation, since all utilities offer a broad range of products in electricity, heat, water and energy consulting. In the area of business strategies, the targets for and the investment in renewables as well as the resources in use are again very divers: some have clear targets to become 100% renewable, others 100% Co2 neutral or there is no such target at all; Zurich and Munich invest intensively in renewables all over Europe whereas Geneva and Hannover focus on the regional and national level. Finally, our first analysis show, that the different relations to their communes and the national laws depict one important set of formal influence factors. In this merely political context, the market liberalisation also plays a fundamental role, since the municipal utilities have to compete in the liberalised energy supply market - since 1998 in Germany, and in Switzerland partly since 2009. As all other energy utilities, the municipal utilities struggle with the multiple uncertainties in the energy supply system, but additionally to the international competition, the municipal actors also need to fulfil their obligations as public service provider for their local urban system. These preliminary results show already, that municipal utilities are important and complex actors with very specific characteristics embedded in multi-scalar environments full of suspense. With our study, we contribute to a better understanding of this actor type, the important context factors and the utilities’ strategic answers in the context of the energy transition. By revealing the specifics in an international comparison, we enrich not only to the scholarly discussion on key actors in the sustainability transition of urban energy supply systems but also provides decision-makers in policy and economy valuable insights for the future design of sustainable and resilient energy governance systems.

2017