Implementation of Wind Energy in the Netherlands: The Importance of the Social-Institutional Setting

Abstract

This paper analyses the differences in performance of the different types of wind power entrepreneurs now active on the wind power supply market in the Netherlands. The development of the market is divided into three successive market periods: Monopoly powers (1989–1995), Interbellum (1996–1997) and Free market (1998–2002). For each of these periods, the interdependency between various systemic conditions—technical, economic, institutional and social conditions—is analysed, with the focus on the relative importance of the institutional and social settings for market development. This interdependency is analysed using the implementation capacity concept. Implementation capacity is defined as the total of those systemic conditions and mutual interdependencies that influence the behaviour of wind power entrepreneurs. It indicates the feasibility for wind power entrepreneurs to adopt wind turbines. From the analysis it was concluded that no overall implementation capacity exists, and implementation capacities differ for entrepreneurial groups with different entrepreneurial features. With respect to the relative importance of institutional and social conditions, it became clear, that it is mainly these conditions that differentiate between the various entrepreneurial groups. The dynamic configuration of institutional and social conditions facilitates some and hinders other types of wind power entrepreneurs, and as a result determines the development and composition of the market. Finally, the analysis explains the changing roles of entrepreneurial groups throughout the 1990s.