Technological innovation systems for microgeneration in the UK and Germany – a functional analysis

Abstract

This paper examines the deployment of microgeneration in Germany and the UK from a technological innovation systems (TIS) perspective. Based on the TIS functions approach, we condense supportive and obstructive factors and discuss the differences in the respective national setting for small-scale renewable and combined heat and power (CHP) technologies. The findings underline the relevance of legitimation and of institutional and financial support. High degrees of legitimacy were achieved in both the UK and Germany. In Germany, early institutional and financial support reduced uncertainty for new market entrants and consumers, and fuelled a self-reinforcing diffusion dynamic for small renewables. In the UK, by comparison, microgeneration enjoys little support. The paper concludes that distributed generation will not be successful without a more focussed and technology-oriented innovation policy.