Governance for sustainable energy transition: How to reconcile various concerns?

Transcription

1 Governance for sustainable energy transition: How to reconcile various concerns? By Audun Ruud Senior Business Developer SINTEF Energy Research - Norway at energi2i Energy and Innovation Workshop Academy of Sciences of Moldova December 10,

2 CO2 price is falling in the EU ETS! What is the problem? The challenge of reconciling different concerns!

3 Agenda: SINTEF at a glance and SINTEF Energy Research What is governance? There are horizontal and vertical challenges at different levels of decision making! The often forgotten challenge of communication! Current energy policy challenges in Europe and the need for transition but how? Whom and what do we trust? How to reconcile various concerns? 3

4 SINTEF is the largest independent research organisation in Scandinavia Leading expertise in the natural sciences and technology, environment, health and social sciences 2100 employees from 67 countries Annual sales of EUR 350 million customers in 60 countries A non-commercial research foundation with subsidiaries

5 A multidisciplinary research organisation with international top level expertise in specific fields SINTEF Building and Infrastructure SINTEF ICT SINTEF Materials and Chemistry SINTEF Technology and Society SINTEF Energy Research SINTEF Fisheries and Aquaculture SINTEF Petroleum Research MARINTEK

6 More than 90 percent of our income comes from contracts won in open competition 6 % basic grants from The Research Council of Norway 19 % project grants from The Research Council of Norway 10 % public-sector contracts 45 % business and industry, Norway 16 % international contracts 4 % other sources Sources of income 2013: Percentages of gross operating revenues. Total 2942 MNOK = 350 million Euros.

7 We see opportunities and develop successful solutions for our customers and partners We collaborate closely with universities, authorities and industry We combine the cultures of research and business We are socially responsible and maintain high ethical standards in all our activities

8 We sell research to customers all over the world The USA is our largest international market. Office in Houston. Extensive cooperation with European research partners. Leading participant in EU s research programs. Part-owner of aquaculture research company in Chile. Environment projects in China. Petroleum and energy research. Offices in Rio. Projects on health and living conditions in Africa.

9 SINTEF Energy Research a part of SINTEF 200 employees with offices both in Trondheim and Oslo 9

10 Strategic priorities 1. Energy efficiency 2. CCS Renewable energy: 3. Hydro power 4. Offshore wind 5. Bioenergy 6. Systemintegration of renewable energy Electricity grid: 7. Distribution and use of electric energy 8. Transmission of Norwegian power to Europe 9. Gas technology and LNG 10. Subsea power supply and processing 11. Policy and governance 10

11 SINTEF Energy Strategy 11

12 Bioenergy across SINTEF - Main research priorities Stationary bioenergy Biofuels Other District heating jetfuel Biochar Heat and Power Biodiesel/bioethanol Wood stoves Biocarbon

13 How much water is needed? for hydropower and ecology

14

15 Standard model of a virtuous cycle for a supportive policy environment :

16 High Sustainable Energy System Innovation: the challenge of increasing lock-ins Institutionalisation of the product and its mode of consumption Increasing Lock-in Low Time Potential for change in the product and its mode of consumption The importance of public policy coordination both horizontally and vertically

17 The expanded virtuous cycle : Structural variables conditioning the degree of inertia in dominant energy systems Path dependence Technologyrelated variables conditioning the development and systemic integration of RES technologies Market-related variables conditioning the competitive advantage and learning potential of RES in EL markets Contextual variables conditioning integration of RES-E in specific regional-local settings Path creation Dominant techno-market model for RES-E promotion The techno-market bias + Contextual variables from national studies Improved governing strategies for promoting renewables

18 The major drivers influencing the energy system: Technology and Production Policy and governance Markets and Society Financial actors 18

19 The challenge of developing energy projects National regulatory policies and procedures Implementation in specific sectors Implementation in specific sectors Implementation in specific sectors Environment Energy Finance?? A specific energy project Local governance and public engagement

20 The EU ETS is not delivering necessary changes How to improve the current situation? First of all we need to agree on the question!! How to influence the decision making space towards 2050? EU Others Interest Reduce the interest in carbon sources Increase their interest In EU Renewables Control Increase the control of renewables Reduce their control of carbon sources Is the energy union THE solution? 20

21 The five pillars of the energy union: Energy security Competitive and integrated market Reduce EU Energy consumption Decarbonization of the EU energy mix including CCS Research and Development But still we must await the implementation of recent decisions!

22 Decision-making in the EU: From policy formulation via policy outputs to policy outcomes (results) a demanding process 22 Policy objectives; Green and White Papers Proposal from the EU Commission Interests and Council and EP; Decisionmaking Policy outputs: Off. Journal National follow-up Policy outputs: National laws etc.and regulations Policy outcomes Such as the state of the environment or RES share in electricity production NGO s And then we have not mentioned the challenge of communication! 22

23 Same week as the vice president for the Energy Union was approved, the EU national leaders through the European Council, agreed on 23 October 2014 to : Reduce greenhouse gas emissions by at least 40% Increase the share of renewable energy to at least 27% Increase energy efficiency by at least 27% Reform the EU emissions trading system Set up a new governance system: The 2030 framework proposes a new governance framework based on national plans for competitive, secure and sustainable energy as well as a set of key indicators to assess progress over time. The European Council agreed that a reliable and transparent governance system will be developed to help ensure that the EU meets its energy policy goals!!!!! 23

24 Perspectives on further development of policy instruments: What will be the primary drivers? Politics Finance Energy industry development Feed-in tariffs Handling of social acceptance Compensation Society Emission trading/ Tradable certificates But how to manage non ETS sectors? Environmental design/ Planning and impact assessments Ecology 24

25 Is social conflict inevitable? Can grid development be conducted in a manner that lessens conflict and reduces uncertainty?

26 When a Renewable Energy Technology (RET) project is announced, it is often loaded with different expectations

27 These expectations lead to strategies and actions Developer (grid company) may: 1. Avoid public meetings to prevent emotional outbursts 2. Provide information to remedy knowledge deficits 3. Offer incentives to address selfishness 4. Site the project offshore or distant from backyards Concerned stakeholders may: 1. Treat developer s claims with scepticism and mistrust 2. Organize collective action 3. Network with protest groups in other locations 4. Use internet to gather support Social conflict is often the outcome!

28 How can energy- and environmental policy goals better be reconciled? Central areas of concern: Institutional procedures and path dependency 5. Actor interests and exercise of power 4. The knowledge base and technological change 2. International commitments - particularly EU Directives 1. The decision-making system and practice including the planning and concession procedures with public engagement 3. The question Specific decisions: Policy outputs, but still we need to seek sustainable outcomes

29 Keep in mind that there are global and local challenges: the case of environmental policy making Need to handle the double environmental challenge! 29

30 Promoting more sustainable outcomes : The critical issue of trade-offs and priorities requires proper governance 30 Economic concerns Economy-welfare tradeoffs: Social-welfare concerns Economy-ecology tradeoffs Ecological concerns Economy + Welfare + Ecology Welfare-ecology trade-offs A better reference for governing needed sustainable energy transitions 30

31 31 Thank you for your attention!