Policy and Institutional Influences on Bioenergy and Rural Development in Emilia Romagna and Norway

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1 Policy and Institutional Influences on Bioenergy and Rural Development in Emilia Romagna and Norway

2 What stimulated this research? Renewable energy policy at the forefront of the political agenda for 3 main reasons: energy security climate change challenges agriculture and rural areas on-going crisis.

3 Why do Rural Areas matter? Ideal context to place RE facilities scattered settlements and abundance of land Abudance of RE sources (water, forest, agriculture biomass, manure, etc). Main question: Is RE policy fostering rural development?

4 5 Crucial issues 1. Institutional and policy framework 2. Support scheme structure 3. RE gold rush and land grabbing in rural areas 4. Lack of social acceptability 5. Geography matters

5 ITALY/EMILIA-ROMAGNA

6 ITALY/EMILIA ROMAGNA 1. Institutional and policy framework Ministry of Environment, Land and Sea + Ministry of Economic Development RE policy not officially linked to RD policy: National and Regional Rural Development Plans set measures to support agriculture through RE

7 ITALY/EMILIA-ROMAGNA National government sets: main overall medium and long term goals; regional burden sharing; administrative responsibilities; criteria for RE permission process and environmental conservation

8 ITALY/EMILIA-ROMAGNA 1. Institutional and policy framework: Regional governments have concurrent legislative competence with the state on energy issues (production, transportation and delivery).

9 ITALY/EMILIA-ROMAGNA 1. Institutional and policy framework Local governments have administrative responsibilities : passive role within the permission process no power to decide where and how to place the RE plant no mandatory task to set a local energy plan rare participatory process of consultation not customary habit

10 ITALY/EMILIA-ROMAGNA Policy is centralized Constitutional Court and Regional Administrative Courts stated: only the State, together with the Regions (Unified Conference), can set the criteria for the environment and landscape conservation. permission cannot be bound to the regional energy plan, nor to the regional or municipal urban planning. WHY? RE sector liberalization

11 ITALY/EMILIA-ROMAGNA Support schemes: Feed in Tariff structures for electricity production differentiated by source nationally managed by GSE Energy Service Manager: Solar panels and all the other RE sources Feed in tariff for BIOGAS: no prerogative for agriculture waste and manure vs energy crops no prerogative for the short chain raw material supply No prerogative for community investments/ownership but farmers investments are to a higher extent supported GC for RE facilities of more than 1MW European Funds and Regional/Province Programmes

12 ITALY/EMILIA-ROMAGNA Energy market NATIONAL LEVEL: Oligopoly both in electricity and heating market REGIONAL LEVEL - Emilia Romagna: major power multi utility HERA spa for electricity and heating from household waste.

13 EMILIA - ROMAGNA Why geography matters? orural areas in the Padana Plain are more exploited territory is easily accessible oactors in Mountain areas tend to cooperate more natural limits

14 EMILIA-ROMAGNA

15 ITALY/EMILIA-ROMAGNA Consequences: orandom investments oland grabbing and RE gold rush olack of social acceptability oenvironment commodification opositive Province of Bologna: institutions, research centers, farmers and local inhabitants collaboration is leading to a little green innovation platform around RE

16 NORWAY Institutional and policy framework: Cross-Ministry Policy but lack of coordination Bioenergy strategy ( ) OED ENOVA Climate Change challenges Ministry of Environment ( ) KLIF Climate Challanges - Agriculture part of the solution ( ) Ministry of Agriculture and Food - Bioenergy Program administered by Innovation Norway No official link with rural development Wind turbines and big biogas plants are the main political focus (see Tromsø) Road tax on biofuel Permission: NVE (wind turbines, district heating, power plants between 1-10 MW, hydropower plants > 1MW)

17 NORWAY Municipalities: More resources and decision making power on energy issues than in Italy More political autonomy and economic resources coming from local taxes Owners of power companies decision making power on energy issues + revenues Local climate and energy plan (Planning and building Act 71/2008) Municipalities are in charge of energy efficiency in buildings they own, distribution lines, small wind turbines (<1kWh) and small hydropower plants

18 NORWAY Support schemes: Green certificate system for electricity with Sweden (no support for heating) ENOVA Energy Fund large investments in RE (wind power, district heating, energy efficiency in industry and buildings, support to municipalities for green projects) INNOVATION NORWAY small and medium size RE projects, mainly farm or forest owners-based for heat, biofuel, biogas production. Demonstrational plants TRANSNOVA focus on reducing CO2 gas emissions in transports.

19 NORWAY Other means of indirect support: Environmental taxes major national instrument advised in the Bioenergy Strategy OED CO2 tax Sulfur tax Nox Consumption tax on electricity and heating oil Norwegian Research Council Programmes

20 NORWAY Energy market Local and regional power companies (Statkraft and Statnet biggest competitors) 1991 liberalization: prices rely on market vs pre-reform prices decided by administrative or political decree steps towards regionalization Oil sector deterrent to biofuel/biodiesel support

21 NORWAY Findings: Municipalities main drivers of RE sector (wood-district heating) Wood-based district heating involve local knowledge, local economy and natural resources no support scheme Heat from wood unbalanced competition with hydropower No effective and proper incentive for farm-based Biogas in contradiction with the climate change strategy Wind turbines and big biogas plants have usually no connection with the local economy and society. Strongly opposed by local communities GCs consequence

22 Ways forward Under which economic, socio-political and institutional conditions renewable energy can contribute most to sustainable rural development; under what conditions the emergence of a regional innovation system (and associated upstream and downstream activities) is fostered or inhibited.

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