Environmental Engineering Reference
In-Depth Information
monopoly. For example, the Japanese case study demonstrated how the
nation's regional utilities enjoy monopoly positions and have been obstruc-
tive of policy eforts to establish even minor market footholds for wind
power. In the Canadian case study, provincial monopolies which also con-
trol generation facilities in many provinces has ceded the fate of wind power
development to the whims of bureaucrats working within the utilities.
Similarly, in the Chinese case study, government control over the electricity
sector resulted in limited prospects for wind power until about 2001, when
national leaders inally began to get serious about expanding wind power
development—catalyzing a market boom.
his evidence suggests that two market reforms are most likely to enhance
wind power development. First, the electricity grid should be nationalized
as a public service but laws should be created to allow any form of electric-
ity generation to be sold into the system, provided that the electricity lows
meet certain production standards. However, development of production
standards must be technologically neutral. For example, some nations have
bidding systems that require generators to contractually agree to deliver a
ixed output of electricity at a future time. his disadvantages renewable
energy technologies because renewable energy power lows are more sto-
chastic and cannot be controlled in the same way that coal ired-power
plants can control energy output.
Second, the electricity generation function should be fully liberalized in
order to encourage enhanced competition. he government body that over-
sees operation of the nation's electricity grid should not possess electric-
ity generation infrastructure because this gives rise to conlicts of interest
and engenders technological lock. Rather, the national grid operator should
focus on developing smart grid infrastructure to efectively balance lows
from various technologies and from numerous generators. By doing so, grid
resilience is assured and national energy security is bolstered by diversifying
and decentralizing supply.
10.3.7 Technological Factor 7: Technological Network Links
Research indicates that political decisions made regarding the nature of links
between industry, academia and policymakers inluence whether collabora-
tive links beneit or disadvantage wind power developers. At one extreme,
government policy that is biased toward energy technologies other than
wind power can potentially create a well-insulated regime that hinders mar-
ket entry for wind power developers. Perhaps the best example of this is
in Japan, where government support for nuclear power has been so strong
