Abstract of Meeting Paper

Society for Risk Analysis - Europe 1998 Annual Meeting

Centralization and Decentralization in Energy Systems and Associated Risks. Wolfgang Rehm, Felix Schinner, and Wolfgang Kromp, Institute of Risk Research (IRR), University of Vienna, Tuerkenschanzstraße 17/8, A-1180 Vienna

The concept of centralization/decentralization is -- considering its widespread use -- surprisingly ill-defined. Within the SERF-program (Socio Economic Research on Fusion) an attempt is made to clarify the complex issue of centraliza­tion/decentralization and to analyze its expected interaction with the electricity production system in the case of nuclear fusion.

Fusion research at the time is a multinational, highly centralized undertaking. As a result of this, and due to the expected large energy production units, it is generally expected that fusion will be embedded in a highly centralized, international energy supply system.

The degree of centralization of an energy supply system, however, is believed to have far reaching consequences on the stability of the system, and beyond that, on decision making processes in energy policy, as well as democratic structures on the national or even international level. Internationalization might require control instruments that do not exist so far. Amongst other reservations, it is the possibly unwanted consequences of such a highly centralized, international energy supply system that limit acceptance of the fusion technology in the public.

Therefore, centralization and decentralization trends of energy supply systems over the years are being looked at, to study their influence on the political and social systems (and vice-versa).

In a first step, an attempt is made to classify centralization. Careful analyses and evaluation of available literature revealed a broad spectrum of different forms and degrees of centralization. Various parameters describing energy production and distribution are used. A differentiation of centralization on a technical and on an organizational level seems necessary, although they are not fully independent of each other. Beyond this, the choice of parameters must depend on the questions to be addressed.

A new approach defining different levels and degrees of centralization in energy systems with a view of an application to nuclear fusion will be presented.


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