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Lecture Notes in Energy 57 Evanthie Michalena Jeremy Maxwell Hills Editors Renewable Energy Governance Complexities and Challenges Lecture Notes in Energy Volume 57 For furthervolumes: http://www.springer.com/series/8874 Evanthie Michalena Jeremy Maxwell Hills • Editors Renewable Energy Governance Complexities and Challenges 123 Editors Evanthie Michalena Jeremy Maxwell Hills ENeC Laboratory,UMR 8185 CTLConsult Paris-Sorbonne (Paris IV) Newcastle uponTyne and CNRSINSHS UK Paris France ISSN 2195-1284 ISSN 2195-1292 (electronic) ISBN 978-1-4471-5594-2 ISBN 978-1-4471-5595-9 (eBook) DOI 10.1007/978-1-4471-5595-9 SpringerLondonHeidelbergNewYorkDordrecht LibraryofCongressControlNumber:2013954027 (cid:2)Springer-VerlagLondon2013 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purposeofbeingenteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthe work. Duplication of this publication or parts thereof is permitted only under the provisions of theCopyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the CopyrightClearanceCenter.ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface Two decades after the take-off of the renewable energy (RE) systems and con- tinuous increasesinthe electricity bills,customers start toseek answers. Answers related to the efficiency/effectiveness of RE systems, answers related to local benefits in relation to huge profits of some private RE developers, and answers related to tax being spent supporting the ballooning institutional architecture (EnergyRegulators,TransportSystemOperators,PublicUtilities,InternationalRE Agencies). Fromthepointofviewoftheeditors—twoscientistswhohavefollowedtheRE Market almost since its birth—the above issues have not been discussed suffi- ciently (if not at all) and answers have not been given. Indeed, the focus of academic and institutional studies has been on the race for RE, the technological advances, and the barriers and constrains which slow that race down. In the meantime climate pressures and ‘‘environmental problems related to energy’’ constitute the perfect ‘‘camouflage’’ for developers to become even richer, for customerstopayforunknownor‘‘hidden’’services,andforenergyinstitutionsto be created whose role remains dubious. Toapproachsomeofthoseemergingquestions,wehavethoughtofsuggesting this book, a book where examples of ‘‘rushing’’/‘‘not-well-planned’’ Renewable Energy Governance have been analyzed. As already mentioned, RE has been around for more than two decades now, which allows maturity and experience to lead to more secure conclusions. This book is made from case-study interrogations of highly educated people that live (or work in) countries from around the world. Therefore, there is a collection of case studies from USA, Brazil, New Zealand, Australia, Kenya, China, Japan, and European countries (Belgium, France, Germany, Greece, Ireland, Spain, and UK). To keep things simple, this book is mainly emphasizing RE Governance for electricity purposes and not transport. Therefore, cases on biofuels are only referred at a limited extent in this book. The choice of authors was not ‘‘accidental’’. The energy sector covers a range of aspects related to RE such as trade, production, employment, pricing, taxes, environmental regulation, etc. Selected academics were asked not only to cover the different disciplines surrounding RE, but also to be as illustrative as possible andtobecritical,keepinganobjectiveviewoverREexpansion.Inshort,thisbook offersanhonest,fresh,andthoroughlookatREGovernancefactsand/ormistakes. v vi Preface Theidea was thateach chapter should beedited fromapairoracademics, one beingexperienced(aProfessor,anAssociateProfessororequivalent)andtheother ayoungResearcher(aPh.D.candidate,apostdoc,aLecturer,aresearchfellowor equivalent) or an Executive from the Market. This was done to add depth and freshness to the views under examination and move away from ‘‘ritual’’ expla- nationsanddeeplyengrainedpath-dependentthinking.Wehavedeliberatelyasked Market Executives to participate, as this would balance the academic perspective of this book. We judged this inclusion as necessary because we consider that the voiceoftheMarketshoulddefinitelygohandinhandwiththevoiceofacademics on crucial issues that touch everyday life, such as energy. This book is designed to provide lecture material as well as numerous case studies to be further considered in seminars and discussions related to energy governance. More particularly, the book is targeted at those who want to actively learnaboutrenewableenergyandthegovernanceaspectsthatshapeanddefinethe sector.ThebookdoesnotprovidearecipebutapalimpsestofemergingREideas and examples from across the word which raise questions, create challenges, and require solutions. It is designed to provide background information and case studies to help with the development of lectures for specialist undergraduate modules or postgraduate Higher Education courses. It is also for postgraduate or researchstudentswhoarefromothersectoralbackgrounds,suchasengineeringor finance, but who want to more broadly access the aspects which shape the RE sector.Finally,itisforprofessionalswhohaveexperienceofenergyutilitiesorthe REdomainandarewellfoundedintraditionalexpositionsanddescriptionsofthe sector, but who are not entirely convinced by contemporary rhetoric and want to probe deeper to see what lies beneath the smooth veneer of the RE sector. Evanthie Michalena Jeremy M. Hills Contents Part I Introduction Introduction: Renewable Energy Governance: Is it Blocking the Technically Feasible?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Evanthie Michalena and Jeremy Maxwell Hills Renewable and Conventional Electricity Generation Systems: Technologies and Diversity of Energy Systems. . . . . . . . . . . . . . . . . . 9 George Kosmadakis, Sotirios Karellas and Emmanuel Kakaras Part II Transitions Towards Renewable Energy Systems Institutional Factors That Determine Energy Transitions: A Comparative Case Study Approach . . . . . . . . . . . . . . . . . . . . . . . . 33 Auriane Magdalena Koster and John Martin Anderies Renewable Energy: Urban Centres Lead the Dance in Australia?. . . . 63 Cathryn Hamilton and Jon Kellett Endogenous Tourism Development Through Renewable Energy Governance: A Questionable Challenge . . . . . . . . . . . . . . . . . . . . . . . 81 Dimitrios A. Parpairis and Dimitrios Lagos Outliers or Frontrunners? Exploring the (Self-) Governance of Community- Owned Sustainable Energy in Scotland and the Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Niki Frantzeskaki, Flor Avelino and Derk Loorbach vii viii Contents Part III Hidden Problems Behind the ‘‘Re Miracle’’ Renewable Energy Governance in Kenya: Plugging into the Grid ‘Plugging into Progress’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 James Mwangi, Nicholas Kimani and Maina Muniafu Renewable Energy in New Zealand: The Reluctance for Resilience. . . 137 Hugh Byrd and Steve Matthewman The Development of Renewable Energy Governance in Greece. Examples of a Failed (?) Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Antonis Metaxas and Michael Tsinisizelis Lost in the National Labyrinths of Bureaucracy: The Case of Renewable Energy Governance in Cyprus. . . . . . . . . . . . 169 Paris A. Fokaides, Andreas Poullikkas and Constantinos Christofides The Perplexed Technical Governance of Wind Turbines in Greek Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 George Caralis, Arthouros Zervos, Gao Zhiqiu and Kostas Rados Environmental Impacts of Renewable Energy: Gone with the Wind? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Viktor Kouloumpis, Xiongwei Liu and Elspeth Lees Champagne and Metal Flowers: Who is Invited to the Wind Generation Party in France?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Céline Burger and François Mancebo Part IV Renewable Energy Governance: Food for Thought Renewable Energy Governance Challenges Within a ‘‘Puzzled’’ Institutional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Maria Kottari and Panagiotis Roumeliotis Geopolitics, Climate Change and Energy Governance: A Grey Area in the Black Sea Region . . . . . . . . . . . . . . . . . . . . . . . . 249 Jeremy Maxwell Hills and Evanthie Michalena Times of Recession: Three Different Renewable Energy Stories from the Mediterranean Region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 Sofia-Natalia Boemi and Agis M. Papadopoulos Contents ix The Shadows Cast by Inadequate Energy Governance: Why More Sun Does Not Necessarily Mean More Photovoltaic Electricity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 Sarah J. McCormack and Brian Norton Germany: Challenges of a Full Transition to Renewable Energy. . . . . 295 Volkmar Lauber and Moritz Buschmann Part V Hopes and Fears: Considerations for Future Governance Green Electricity Certificates in Flanders: The Gradual Extension of a Market-Based Mechanism and Doubts Over its Cost-Efficiency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Ils Moorkens, Yoko Dams, Luc Van Wortswinkel and Gerrit Jan Schaeffer Building on Norway’s Energy Goldmine: Policies for Expertise, Export, and Market Efficiencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Tomas Moe Skjølsvold, Marianne Ryghaug and Jon Dugstad The Significance of the Environmental Communication for the Renewable Energy Governance Scenario: Who Decides for Whom?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Constantina Skanavis, Christos Giannoulis and Vassilis Skanavis The Political-Economics of the Green Industrial Revolution: Renewable Energy as the Key to National Sustainable Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Woodrow W. Clark II and Xing Li Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Evanthie Michalena and Jeremy Maxwell Hills Part I Introduction