Politics in frugal innovations

Politics in frugal innovations: Assessing the relationship between political risks and the market diffusion of frugal solar-PV systems

Kooijman, Saskia (TU Delft Technology, Policy and Management)

van Beers, Cees (mentor)
Scholten, D.J. (graduation committee)
Bouwmans, I. (graduation committee)

Delft University of Technology

Complex Systems Engineering and Management (CoSEM)

2021-08-26

Thirteen percent of the world’s population currently does not have access to electricity. This lack of access to electricity limits the overall development. Having access to clean energy can provide education access, productivity and possibilities for economic growth. Frugal innovations are new or improved products, with a lower cost and fewer used resources in their production chain, while maintaining quality, achieving predefined criteria, fulfilling a specific purpose and are user-friendly. Frugal solar-photovoltaic systems, are one of the possible technologies that could be able to contribute to reducing the number of people without access to electricity. Despite the potential of frugal solar-PV systems for reducing energy poverty, market diffusion of these innovations is not a given. Political risks can pose a barrier to the market diffusion of these innovations, due to endangering a stable environment for development and investments.
However, the span of this relationship, specifically in the combination with frugal solar-PV systems, is unknown. To analyse this, the following main research question has been posed in this research: ‘To what extent is there a relationship between political risks and the market diffusion of frugal solar-PV systems?’. The answer to this research question has been researched with a mixed-methods research approach. First, a quantitative analysis is performed with a correlation analysis. The second phase includes qualitative research. Based on the results of the quantitative results, the factors which could influence the diffusion of frugal solar-PV systems in Uganda and Namibia are analysed with means of case studies and interviews.
The correlation analysis showed that there is no relationship between political risks and the diffusion of frugal solar-PV systems. There are too little significant results to convince that there is a relationship between the political risks and the diffusion of frugal solar-PV systems worldwide and per continent. Given the fact that this is a research area where little operationalising has been done so far, it is also important to find possible explanations for this result. Based on the case studies and interviews, it can be stated that that there are more factors playing a role in the diffusion of frugal solar-PV systems than the included political risks. For example, the need for frugal innovations, (renewable) energy technologies which are already invested in, the varying degree of involvement of foreign investors and non-governmental organisations, the history of relationships with other countries and current trading agreements.
To conclude, this research has contributed to the knowledge gaps and scientific debates in the frugal innovation field by looking at the market diffusion of these systems and the possible role political risks can play in this process. Valuable knowledge has been gathered, which has contributed in filling in gaps in academic research: political risks have been operationalised, a contribution has been made in the field of diffusion theories, specifically for frugal innovations, and the scope of the extent of a relationship between political risks and the diffusion of frugal solar-PV systems has been determined. The results of this research can hopefully on the long term contribute to increasing the percentage of people having access to affordable and renewable generated electricity and reducing the energy poverty worldwide.

Frugal innovation
Market diffusion
Political risks

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Student theses

master thesis

© 2021 Saskia Kooijman