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PoliticaleEconomic Governance of Renewable Chapter j 4 85

pay for it since it is part of the transmission of energy, for example, over long
distances, which must be secure and dependable.
However, as the GIR moves much more into local on-site power, the costs of
the smart grid are at the home, office buildings, schools and colleges, shopping
malls, and entertainment centers. Local governments are also involved as they
are often one of the largest consumers of energy in any region and hence
emitters of carbon and pollution. Within any building, a smart grid must know
when to regulate and control meters and measurement of power usage and
conservation. The consumer needs the new advanced technologies, but the
government must support these additional costs and their use of energy as they
impact the local community and larger regions’ residential and business needs.
Economics has changed in the GIR. And yet, economics has a basis of
success in the 2IR. Historically, 2IR economics was successful because the
government was needed to support its technologies along with goods and
services. The evolution into the neoclassical form of economics was far more a
political strategy backed by companies that wanted control of infrastructure
sectors. However, the reality was that “greed” took over and has now forced a
rethinking of economics as nations now move into the GIR.

CHART A: THE GERMANY FEED-IN-TARIFF POLICY AND
RESULTS (1990e2010)