Networks and Niches for Microturbine Technology in Europe and U.S. - A Strategic Niche Management Analysis of Microturbines

Abstract: Microturbine technology is an emerging technology aiming for small scale, on-site power andheat generation applications. Producers realize they have a technology with high performancepotential but have difficulties in finding users that values the advantages that microturbinescan offer. Therefore the purpose of this thesis is to analyze the microturbine networks andniches in Europe and the U.S., and discuss future niche strategies. A niche is defined as aprotected space where the selection criterias of users and producers are different fromestablished markets. The following research questions are answered:• What do the present microturbine networks look like, in terms of technological,institutional, user, and producer relational dimensions?o How are networks and niches functioning and developing and what factorsinfluence the development?• What are the visions, expectations, and strategies of actors in the networks?o From a niche management perspective, are microturbine actors using effectivestrategies?The review highlights that regulatory forces favour large scale, combined heat and poweralternatives in general. Energy institutions and several energy organisations are promotinginternal combustion engines for general small scale heat and power generation, but envisionmicroturbines as a promising alternative in waste utilisation applications. Microturbineproducers in general have small, volatile and narrowly focused networks. The maincompetition, reciprocating engine producers have well established and diversified networks,aiming at the same niches as microturbines. There are some diversified actors, such asGeneral Electric, being present in all small scale, on site niches with several alternativetechnologies to microturbines as well as reciprocating engines.The analysis of the networks highlights some general factors influencing the development ofthe microturbine networks and niches. The main blocking factors are found in utility rates andprices set by current energy utility providers, as well as volatility and general increase innatural gas prices. Another blocking factor comes from the lack of interconnection standardsand infrastructural issues for providing the fuel needed for the small scale units. The niche management evaluation in the analysis highlights the following issues;• Producer networks are weak and diverse, with only one actor having extensivelinkages in both distribution and development.• Producer- institutional (state) linkages are strong in the U.S., but focus is mainly onR&D.• User- producer linkages are weak, and most potential users need much educationabout benefits and values.• Partnerships and information sharing organisations play a key role in spreadingoutcomes and insights to a wider community, which is an active practice in the U.S.,but not in Europe.• For most applications, microturbine producers need to ally with complementarytechnologies and system integrators, since the actual microturbine unit often onlyaccount for a small part of the total system installation cost.• Microturbine producers initially formed unbalance between expectations and actualpotentials and benefits.• In order for microturbine producers to bring more focus to current niches, they mustlisten to their users. Current articulations are voiced by producers without potentialusers participating. Developments should integrate insights between producers andusers, to shape more precise and accurate value proposals in the future.The discussion of future niche strategies state that the niche of utilising waste biogases atlandfills, sewage sites and farms should be the primary target for microturbine technology. Inthis niche, the values of the technology have the greatest chance to become acknowledged byall actors, such as users, producers, and institutional and regulatory organisations.Furthermore, microturbines can get the highest protection against competition, constituted byreciprocating engines and large scale combined heat and power technologies.