14 RENEWABLE ENERGY IN FINLAND: FROM A PRODUCTION-CENTRIC …
355
The next section will address the transforming field of stakeholders,
summarising the interests driving the stakeholders as they seek to respond
to the trends and problems associated with a higher share of renewable
energy. Our empirical analysis addresses possible solutions in the transformation from a production-centric to a consumption-centric system as
viewed by the stakeholders, especially regarding smart grids and storage
issues. The analysis draws upon 25 expert interviews (see Appendix 1) on
the 2030 energy system conducted with stakeholders in the public sector,
companies and NGOs. We also make use of key policy documents, such
as the 2016 Energy Strategy of the Government of Finland and the 2018
final report by the smart grid working group set up by the Ministry of
Economic Affairs and Employment, alongside other reports and strategies published by the public sector and companies as well as previous
literature. In the concluding section, we discuss how the transition to a
higher share of renewable energy sources and a more consumption-centric
system is becoming established among the different stakeholder groups,
while the development of policies and regulations for this development
path is still in the initial phases, especially when speaking of grid and
network development issues. We also note how difficult it is to simultaneously pay attention to the various interests the energy system is supposed
to serve alongside the main policy goal of decarbonisation.
The Transforming Field of Stakeholders
What do we know of the stakeholders?
Existing research has argued that furthering the energy transition requires
governments to develop legislation to shape the market and support
new forms of energy production through incentives. In a country where
the incumbent energy industry is accustomed to centralisation, and
energy-intensive heavy industries are influential, new business models
furthering the transition require active development (Valkila and Saari
2010, p. 2073; 2013, p. 287). Finnish energy prices are low by European
standards, and this has until recently contributed to the need for subsidies to support investment in variable renewable energy (Valkila and Saari
2010, p. 2074). The initially high feed-in tariff in terms of e/kWh—especially for wind power production entering the system in 2009—evoked
policy debates on renewable energy subsidies. Often, however, the several
times higher indirect fossil fuel subsidies were neglected in this debate,
355
The next section will address the transforming field of stakeholders,
summarising the interests driving the stakeholders as they seek to respond
to the trends and problems associated with a higher share of renewable
energy. Our empirical analysis addresses possible solutions in the transformation from a production-centric to a consumption-centric system as
viewed by the stakeholders, especially regarding smart grids and storage
issues. The analysis draws upon 25 expert interviews (see Appendix 1) on
the 2030 energy system conducted with stakeholders in the public sector,
companies and NGOs. We also make use of key policy documents, such
as the 2016 Energy Strategy of the Government of Finland and the 2018
final report by the smart grid working group set up by the Ministry of
Economic Affairs and Employment, alongside other reports and strategies published by the public sector and companies as well as previous
literature. In the concluding section, we discuss how the transition to a
higher share of renewable energy sources and a more consumption-centric
system is becoming established among the different stakeholder groups,
while the development of policies and regulations for this development
path is still in the initial phases, especially when speaking of grid and
network development issues. We also note how difficult it is to simultaneously pay attention to the various interests the energy system is supposed
to serve alongside the main policy goal of decarbonisation.
The Transforming Field of Stakeholders
What do we know of the stakeholders?
Existing research has argued that furthering the energy transition requires
governments to develop legislation to shape the market and support
new forms of energy production through incentives. In a country where
the incumbent energy industry is accustomed to centralisation, and
energy-intensive heavy industries are influential, new business models
furthering the transition require active development (Valkila and Saari
2010, p. 2073; 2013, p. 287). Finnish energy prices are low by European
standards, and this has until recently contributed to the need for subsidies to support investment in variable renewable energy (Valkila and Saari
2010, p. 2074). The initially high feed-in tariff in terms of e/kWh—especially for wind power production entering the system in 2009—evoked
policy debates on renewable energy subsidies. Often, however, the several
times higher indirect fossil fuel subsidies were neglected in this debate,