14 RENEWABLE ENERGY IN FINLAND: FROM A PRODUCTION-CENTRIC …
361
How Do the Stakeholders View the Transition?
Views of stakeholders on smart grid development
Public authorities retain important roles regarding the development of
electricity grid infrastructure also in the context of ongoing energy market
liberalisation within the EU since the TSO is a natural monopoly as are
DSOs in their own areas. This makes governmental policy and regulatory
oversight necessary aspects of the sector’s governance wherein various
public and private companies also participate alongside the emerging
actors typical for a high-renewable energy system (Aalto et al. 2019).
In Finland, the main policy developer vis-à-vis energy markets and grids
is the Ministry of Economic Affairs and Employment, acting under the
political oversight of the government. The Energy Authority issues more
technical regulation and supervises its implementation. At the same time,
Finnish Energy, representing large power and district heating producers,
and other industrial lobby groups such as large energy-consuming industries traditionally exercises strong influence. Of the industrial sectors,
especially the forestry sector is powerful (Ruostetsaari 2010). Although
the climate neutrality interest has become the master interest driving
energy policy, it is fair to say that the interest in competitive markets is
also a key factor for the authorities, while they also bear responsibility for
security of supply questions on the national level together with the TSO.
Since the TSO and DSOs together with other public and private energy
companies are responsible for the actual infrastructure serving the promotion of these interests, the authorities consult the companies in various
formats.
In 2016, the Ministry of Economic Affairs and Employment issued a
smart grid vision for 2025. This vision was based on the work of the smart
grid working group assembled for wide-ranging consultation purposes
and to eventually function as a basis for new regulation. The vision defines
the role of smart grids as a “(…) service platform in the transition towards
a more distributed and carbon-neutral power system” (Smart Grid Vision
2016, p. 6). The group views smart grids as a tool to enable better
participation of customers in the electricity market, to improve security
of supply and to promote new energy business in a cost-efficient manner.
Apart from the customers, stakeholder groups in this vision are the whole
society, electricity supplier/service companies, electricity producers, TSO,
DSOs, as well as the technology industry (Ministry of Economic Affairs
and Employment 2018, p. 11).
361
How Do the Stakeholders View the Transition?
Views of stakeholders on smart grid development
Public authorities retain important roles regarding the development of
electricity grid infrastructure also in the context of ongoing energy market
liberalisation within the EU since the TSO is a natural monopoly as are
DSOs in their own areas. This makes governmental policy and regulatory
oversight necessary aspects of the sector’s governance wherein various
public and private companies also participate alongside the emerging
actors typical for a high-renewable energy system (Aalto et al. 2019).
In Finland, the main policy developer vis-à-vis energy markets and grids
is the Ministry of Economic Affairs and Employment, acting under the
political oversight of the government. The Energy Authority issues more
technical regulation and supervises its implementation. At the same time,
Finnish Energy, representing large power and district heating producers,
and other industrial lobby groups such as large energy-consuming industries traditionally exercises strong influence. Of the industrial sectors,
especially the forestry sector is powerful (Ruostetsaari 2010). Although
the climate neutrality interest has become the master interest driving
energy policy, it is fair to say that the interest in competitive markets is
also a key factor for the authorities, while they also bear responsibility for
security of supply questions on the national level together with the TSO.
Since the TSO and DSOs together with other public and private energy
companies are responsible for the actual infrastructure serving the promotion of these interests, the authorities consult the companies in various
formats.
In 2016, the Ministry of Economic Affairs and Employment issued a
smart grid vision for 2025. This vision was based on the work of the smart
grid working group assembled for wide-ranging consultation purposes
and to eventually function as a basis for new regulation. The vision defines
the role of smart grids as a “(…) service platform in the transition towards
a more distributed and carbon-neutral power system” (Smart Grid Vision
2016, p. 6). The group views smart grids as a tool to enable better
participation of customers in the electricity market, to improve security
of supply and to promote new energy business in a cost-efficient manner.
Apart from the customers, stakeholder groups in this vision are the whole
society, electricity supplier/service companies, electricity producers, TSO,
DSOs, as well as the technology industry (Ministry of Economic Affairs
and Employment 2018, p. 11).