252 Jenny Lieu et al.
An example of a subsidy policy is seen in the Dutch sustainable energy
subsidy scheme to support the adoption of, among other options, large- scale
ground- mounted solar power projects. Investors receive a government guarantee
of a stable revenue stream for a period of 15 years, which addresses the main
implementation risk of this technology option. While the scheme reduces risks
for solar park investors, it creates an extra financial burden and uncertainty for
the government around the future costs of expanding sustainable energy. The
Dutch government mitigates this risk by maximising the annual subsidy
amounts under the scheme. However, for the longer term, it is uncertain how
large the subsidy schemes will become as this will depend on cost development
of solar PV systems, electricity prices, and European energy and climate directives and how these are incorporated into national energy and climate
policymaking.
In Indonesia, national and regional subsidy programmes partially or fully subsidise individual biogas digesters in order to reduce the barriers of initial capital
investments for biogas digesters. However, policies do not explicitly support
larger- scale biogas- for-electricity generation and renewable electricity generation.
Many of the issues are linked to subsidies for coal- powered generation. Even then,
fully subsidised programmes have not necessarily lead to the successful uptake of
the technology. In fact, biogas programmes that were highly subsidised were often
less successful than lightly subsidised schemes, due to limited personal investment
and a low sense of ownership among the farmers involved. If leakage in the tank
occurred during biogas operation, the farmer would often abandon the installation
due to high cost of repair and lack of support. Thus, ongoing maintenance or warranty, supported by a monitoring programme, is also needed in addition to subsidies. This will be discussed further in the next section.
Incoherence across the design, implementation, monitoring, and
enforcement of policies
In most cases presented in this book, stakeholders see implementation risks
through the particular lens of the policy implementation process. We observed
a lack of coherent policy design and implementation process (including monitoring and enforcement) across many country studies. The design, implementation, and monitoring of policies is influenced by policymakers and their
corresponding institutions, along with politicians and the governments who
support the policy goals and technologies behind the low- carbon transitions.
Challenges occur when policies are implemented, usually requiring coordination across various government institutions at different governance levels
to ensure effective monitoring and enforcement. Finally, there may be barriers
to implementing these policies due to poor monitoring and enforcement
procedures within the existing governance structure. We see examples of these
across different case studies.
In Austria there is no clear strategy to promote hydrogen- based technologies,
which would be important for addressing energy storage and reliable supply
An example of a subsidy policy is seen in the Dutch sustainable energy
subsidy scheme to support the adoption of, among other options, large- scale
ground- mounted solar power projects. Investors receive a government guarantee
of a stable revenue stream for a period of 15 years, which addresses the main
implementation risk of this technology option. While the scheme reduces risks
for solar park investors, it creates an extra financial burden and uncertainty for
the government around the future costs of expanding sustainable energy. The
Dutch government mitigates this risk by maximising the annual subsidy
amounts under the scheme. However, for the longer term, it is uncertain how
large the subsidy schemes will become as this will depend on cost development
of solar PV systems, electricity prices, and European energy and climate directives and how these are incorporated into national energy and climate
policymaking.
In Indonesia, national and regional subsidy programmes partially or fully subsidise individual biogas digesters in order to reduce the barriers of initial capital
investments for biogas digesters. However, policies do not explicitly support
larger- scale biogas- for-electricity generation and renewable electricity generation.
Many of the issues are linked to subsidies for coal- powered generation. Even then,
fully subsidised programmes have not necessarily lead to the successful uptake of
the technology. In fact, biogas programmes that were highly subsidised were often
less successful than lightly subsidised schemes, due to limited personal investment
and a low sense of ownership among the farmers involved. If leakage in the tank
occurred during biogas operation, the farmer would often abandon the installation
due to high cost of repair and lack of support. Thus, ongoing maintenance or warranty, supported by a monitoring programme, is also needed in addition to subsidies. This will be discussed further in the next section.
Incoherence across the design, implementation, monitoring, and
enforcement of policies
In most cases presented in this book, stakeholders see implementation risks
through the particular lens of the policy implementation process. We observed
a lack of coherent policy design and implementation process (including monitoring and enforcement) across many country studies. The design, implementation, and monitoring of policies is influenced by policymakers and their
corresponding institutions, along with politicians and the governments who
support the policy goals and technologies behind the low- carbon transitions.
Challenges occur when policies are implemented, usually requiring coordination across various government institutions at different governance levels
to ensure effective monitoring and enforcement. Finally, there may be barriers
to implementing these policies due to poor monitoring and enforcement
procedures within the existing governance structure. We see examples of these
across different case studies.
In Austria there is no clear strategy to promote hydrogen- based technologies,
which would be important for addressing energy storage and reliable supply