A strategic management framework for the commercialisation of multi-technology renewable energy systems: The case of concentrating solar power technologies in South Africa

Thesis (MEng)--Stellenbosch University, 2018.ENGLISH ABSTRACT: In today’s globalised world, mankind faces an increasing number of economic, social, and environmental problems. The complexity and integrated nature of these challenges has led to recognition of the need for sustainable development. One of the underlying elements of sustainable development is the need for clean sources of energy, such as that produced from renewable energy technologies (RETs). In order to increase the rate of adoption of RETs into the global energy supply, there is a need to increase the rate of commercialisation of these types of technologies. It is likely that as the time taken for RETs to reach the market is reduced, a faster rate of adoption will be realised, thus contributing towards the transition to a sustainable energy supply, and sustainable development efforts. In response to this need, a strategic management framework was developed as a tool to support the development of strategies, aimed at increasing the rate of commercialisation of RETs. Given that many subcomponents of RETs may already be considered commercialised, the conceptual term multi-technology renewable energy system (MTRESs) was introduced as an umbrella term for such systems, highlighting the need to focus on those components within the system hierarchy that lie in a pre-commercialised state. As a case study for the framework, concentrating solar power (CSP) technologies in South Africa were selected based on the unique value proposition of CSP, able to operate as a dispatchable, mid-merit, or baseload energy source, the relatively immature state of CSP technologies, and South Africa’s immense solar resources. Following completion of the research study, it is clear that there is no single or universal approach to commercialisation. Comprehensive tools such as the framework developed, which supports strategy development via multiple avenues, are able to provide commercialisation practitioners with a range of options for their toolkit. However, presently there are significant barriers to the use of such tools. In a demonstration of the current political ecology of South Africa’s energy sector, the national government appears not to favour the incorporation of CSP technologies into the country’s energy mix on a large scale. This hinders the potential effectiveness of any strategy developed through use of the framework, given the weak market prospects for CSP technologies in South Africa, and possible loss of technology champions likely to use such a tool, especially within the country’s solar thermal energy associations. While alternative commercialisation prospects may exist in the global production network of CSP technologies, it is difficult to commercialise a technology for a foreign market. As such, the framework presents a proof-of-concept approach of how the rate of commercialisation may (theoretically) be increased, should industry conditions permit. Moreover, it encourages dialogue on the subject, while highlighting the need to investigate how buy-in can be secured from different stakeholders in South Africa’s energy sector, given the country’s complex socio-political dynamics. Lastly, the study contributes towards a recent trend in literature, which aims to move the debate from the analysis of energy transitions towards practical measures aimed at increasing the speed at which such transitions occur, thus accelerating progress towards a sustainable future.AFRIKAANSE OPSOMMING: In vandag se geglobaliseerde wêreld, staar die mensdom 'n toenemende aantal ekonomiese, sosiale en omgewingsprobleme in die gesig. Die kompleksiteit en geïntegreerde aard van hierdie uitdagings het gelei tot erkenning van die behoefte aan volhoubare ontwikkeling, en dat hierdie soort probleme nie in isolasie oorweeg of opgelos kan word nie. Een van die onderliggende elemente van volhoubare ontwikkeling, is die behoefte aan skoon bronne van energie, soos dié wat deur hernubare energie tegnologieë (RET) opgewek word. Ten einde die aanwendings koers van sulke tegnologieë as deel van die globale energie-voorsienings industrie te verhoog, is dit nodig om die huidige kommersialisasiekoers te bespoedig. Dit is waarskynlik dat soos die tyd wat dit vir RET's neem om die mark te bereik, verminder word, sal 'n hoër tempo van aanwending gerealiseer word, wat daardeur vêrder bydra tot die oorgang na meer volhoubare energie voorsiening, en ontwikkeling. In antwoord op hierdie behoefte is 'n strategiese bestuursraamwerk ontwikkel as 'n instrument om die ontwikkeling van strategieë te ondersteun, wat daarop gemik is om die kommersialiseringskoers van RETs te verhoog. Aangesien baie subkomponente van RETs egter reeds as gekommersialiseer gesien kan word, is die konseptuele term multi-tegnologie hernubare energie sisteme (MTRESs) as 'n sambreelterm vir sulke stelsels bekendgestel, wat die klem vestig op die komponente binne die stelselhiërargie wat lê in 'n pre-gekommersialiseerde fase. As 'n gevallestudie vir die raamwerk, is gekonsentreerde sonkrag-tegnologieë (CSP) in Suid-Afrika gekies, gebaseer op die land se geweldige sonkrag hulpbronne, en die unieke waarde-toevoeging van CSP, wat as 'n versendbare, middel-aanvraag of basislas-energie bron kan funksioneer, en in lig van die feit dat CSP-tegnologië tans nog relatief onvolwasse in Suid Afrika is. Na afloop van die navorsing studie is dit duidelik dat daar geen enkele, of universele, benadering tot gekommersialisering is nie. Dus, is omvattende gereedskap, soos hierdie raamwerk, wat strategie ontwikkeling via verskeie kanale ondersteun, beter geskik om kommersialisasiepraktisyns met 'n verskeidenheid aanpasbare opsies te voorsien. Daar is egter tans steeds opmerklike struikelblokke in die gebruik van sulke raamwerke. As ‘n demonstrasie van die huidige politiese ekologie van Suid Afrika se energie sektor, blyk dit dat die regering afgunstig is teenoor die grootskaalse inkorporering van CSP tegnologië in die land se energie voorsienings netwerk in. Hierdie afgunstigheid verhinder die potentisiële effektiwiteit van enige strategie wat ontwikkel is in hierdie raamwerk, gegewe die swak mark vooruitsigte van CSP in Suid Afrika, en moontlike verlies aan tegnologie kampioene wie ideale verbruikers van so raamwerk so wees, veral binne die land se termiese sonkrag verenigings. Terwyl alternatiewe kommersialisasie geleenthede dalk kan bestaan in die globale netwerk van CSP, is dit moeilik om ‘n tegnologie vir ‘n buitelandse mark te komersialiseer. As sodanig, bied hierdie raamwerk ‘n bewyse-van-konsep benadering van hoe die kommersialiseringskoers verhoog kan word, indien industriële toestande dit toelaat. Verder, moedig hierdie studie diskoers aan op die onderwerp, en in parallel lig dit die nood uit om verdere ondersoek te doen oor hoe aanvaarding verseker kan word by die verskillende belanghebbendes in die Suid Afrikaanse energie sektor, gegewe die land se komplekse sosio-politiese dinamiek. Laastens, dra die studie ook by tot 'n onlangse tendens in die literatuut wat daarop gemik is om die debat te beweeg van die analise van energie-oorgange na praktiese maatreëls. Hierdie maatreëls is daarop gemik om die tempo waarteen sulke oorgange voorkom, te verhoog en sodoende die vordering na 'n meer volhoubare toekoms te versnel