Explaining the role of incumbent utilities in sustainable energy transitions: A case study of the smart grid development in China
Title
Explaining the role of incumbent utilities in sustainable energy transitions: A case study of the smart grid development in China
Subject
China
Distributed energy sources
Governance
Incumbent utilities
Smart grids
Socio-technical transitions
Description
Smart grids (SGs) have been widely recognized as an enabling technology for delivering sustainable energy transitions. Such transitions have given rise to more complex government-utility-consumer relationships. However, these stakeholder relationships remain largely under-researched. This paper critically examines and explains the role of incumbent utilities in sustainable energy transitions, using SG developments in China as a case study. We have three major findings. First, China has developed an incumbent-led model for deploying SGs. Second, two incumbents, the major-state-owned grid companies, act as enablers of SG deployment. They are strategic first-movers and infrastructure builders of SGs. They have also developed five types of networks as they increasingly reach out to other state actors, businesses, and electricity consumers. Thirdly, these two grid companies also act as a fundamental block to structural changes in socio-technical regimes. Disincentives to these large existing grid companies coupled with excessive reliance on them to provide public goods have resulted in major weaknesses in China’s incumbent-led model. Our findings have clear policy implications. Innovation in regulating incumbents is needed in order to provide sufficient regulatory incentives for advancing SG developments in China.
794-806
109
Creator
Ngar-yin Mah, Daphne
Wu, Yun-Ying
Ronald Hills, Peter
Publisher
Energy Policy
Date
2017
Type
journalArticle
Identifier
0301-4215
10.1016/j.enpol.2017.06.059
URL
https://www.sciencedirect.com/science/article/pii/S0301421517304135
Citation
Ngar-yin Mah, Daphne, Wu, Yun-Ying, and Ronald Hills, Peter, “Explaining the role of incumbent utilities in sustainable energy transitions: A case study of the smart grid development in China,” Lamar University Midstream Center Research, accessed May 14, 2024, https://lumc.omeka.net/items/show/26752.