14 RENEWABLE ENERGY IN FINLAND: FROM A PRODUCTION-CENTRIC …
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can fulfil their functions in the market and can promote customer involvement (Ministry of Economic Affairs and Employment 2018, p. 17). This
aim is also echoed in the stakeholder interviews where the emergence of
new actors such as aggregators is welcomed while stressing equal treatment of incumbent and emerging actors as well as the need for clear rules
on roles and responsibilities (interview 2).
Our interviewees proposed different ways of involving customers in
the electricity market. The need for active customers bringing small loads
to the grid was identified as central to creating a new electric energy
system. How precisely to involve customers was approached differently
by different stakeholders. Some respondents argued for the importance of information provision to enable customers to make informed
decisions instead of relying on pricing mechanisms alone to enhance
involvement (interview 2). Other interviewees doubted whether simply
providing information to customers will bring about results on the scale
needed, favouring increasing electricity prices, and/or increasing taxes
as providing a better incentive for customers to get involved (interview
22). Regardless of whether information activities, economic instruments
or command-and-control measures are the preferred policies (Kotilainen
et al. 2019), activating customers is a major step if not the litmus test to
ensure the development of “(…)a real smart grid” (interview 4). Businesses can assume an enhanced role through existing but little exploited
(and used) services, such as home automation and aggregation services of
different types of production (interview 4).
The role of energy pricing was discussed as a tool of increasing the
participation of customers; moreover, it was also seen as influencing the
development of emerging business opportunities and innovation. Respondents argued that pricing mechanisms support investments if they are
in tune with the market. Too low prices, especially for the industry,
can hinder innovations, investments, and structural change overall. Low
electricity prices do not provide incentives for developing new solutions
(interview 3).
The broader move towards smart grids and distributed production as
well as the development of respective policies including clarification of
the roles of actors were seen in a positive light by respondents (interviews 4, 5, 8). Especially the possibility for new business opportunities
and a possible market expansion through the development of new products and technologies needed to facilitate the electrification of the energy
system were highlighted. However, respondents cautioned that Finland
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can fulfil their functions in the market and can promote customer involvement (Ministry of Economic Affairs and Employment 2018, p. 17). This
aim is also echoed in the stakeholder interviews where the emergence of
new actors such as aggregators is welcomed while stressing equal treatment of incumbent and emerging actors as well as the need for clear rules
on roles and responsibilities (interview 2).
Our interviewees proposed different ways of involving customers in
the electricity market. The need for active customers bringing small loads
to the grid was identified as central to creating a new electric energy
system. How precisely to involve customers was approached differently
by different stakeholders. Some respondents argued for the importance of information provision to enable customers to make informed
decisions instead of relying on pricing mechanisms alone to enhance
involvement (interview 2). Other interviewees doubted whether simply
providing information to customers will bring about results on the scale
needed, favouring increasing electricity prices, and/or increasing taxes
as providing a better incentive for customers to get involved (interview
22). Regardless of whether information activities, economic instruments
or command-and-control measures are the preferred policies (Kotilainen
et al. 2019), activating customers is a major step if not the litmus test to
ensure the development of “(…)a real smart grid” (interview 4). Businesses can assume an enhanced role through existing but little exploited
(and used) services, such as home automation and aggregation services of
different types of production (interview 4).
The role of energy pricing was discussed as a tool of increasing the
participation of customers; moreover, it was also seen as influencing the
development of emerging business opportunities and innovation. Respondents argued that pricing mechanisms support investments if they are
in tune with the market. Too low prices, especially for the industry,
can hinder innovations, investments, and structural change overall. Low
electricity prices do not provide incentives for developing new solutions
(interview 3).
The broader move towards smart grids and distributed production as
well as the development of respective policies including clarification of
the roles of actors were seen in a positive light by respondents (interviews 4, 5, 8). Especially the possibility for new business opportunities
and a possible market expansion through the development of new products and technologies needed to facilitate the electrification of the energy
system were highlighted. However, respondents cautioned that Finland