14 RENEWABLE ENERGY IN FINLAND: FROM A PRODUCTION-CENTRIC …
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raises new questions of flexibility measures such as smart grid development and energy storage. It is vital to understand how stakeholders
position themselves in relation to these changes, since they are the users
of the smart grid while many of them may also become storage owners
or providers, for example, by means of EV ownership. For this reason, we
need to know more about the interests of stakeholders vis-à-vis energy
policy choices.
Our empirical analysis, based on policy documents and interviews with
Finnish stakeholders, allows for a tentative assessment of the Finnish transition from a production-centric to a consumption-centric energy system.
Whereas the need to transition to a higher share of renewable energy
is making inroads into mainstream policy thinking, the transition policy
needed for this change is still in a formative phase despite for example
a smart grids vision issued by the Ministry of Economic Affairs and
Employment following consultation among stakeholders. Actors recognise the multitude of interests to be served by this policy; however,
prioritisation among different policies and solutions is proving difficult.
Stakeholders identify a need for a regulatory framework for developing
the energy system overall, without overly detailed regulations that might
hinder innovation and policy development in specific areas, such as
energy storage solutions. Finding the right balance between policies and
giving enough room for innovation and development, while also offering
enough structure and security is crucial.
Although climate neutrality is the main interest driving this work, our
empirical material also reveals the presence of a strong interest in developing the energy business in order for the builders and developers of
solutions to remain in the game in an environment where zero marginal
cost production is invading markets. In a competitive and unbundled
market public and private actors depend on each other—private actors on
competition, regulation and supervision of a level playfield (to the extent
possible), and public actors on companies to provide the end products of
electricity and heat/cooling as well as taxation income. Here, we assume
that energy cooperatives and private individuals will not in the foreseeable
future be able to assume the main responsibility for energy services.
Such interlinking of interests of all actors is a formidable task. While
the smart grids vision stresses enabling future business opportunities, our
respondents highlight that some possibilities might be lost if Finland
proves to be a late adopter or too risk-averse. Timing is hence essential. The question is what it takes to be a smart adopter, especially when
369
raises new questions of flexibility measures such as smart grid development and energy storage. It is vital to understand how stakeholders
position themselves in relation to these changes, since they are the users
of the smart grid while many of them may also become storage owners
or providers, for example, by means of EV ownership. For this reason, we
need to know more about the interests of stakeholders vis-à-vis energy
policy choices.
Our empirical analysis, based on policy documents and interviews with
Finnish stakeholders, allows for a tentative assessment of the Finnish transition from a production-centric to a consumption-centric energy system.
Whereas the need to transition to a higher share of renewable energy
is making inroads into mainstream policy thinking, the transition policy
needed for this change is still in a formative phase despite for example
a smart grids vision issued by the Ministry of Economic Affairs and
Employment following consultation among stakeholders. Actors recognise the multitude of interests to be served by this policy; however,
prioritisation among different policies and solutions is proving difficult.
Stakeholders identify a need for a regulatory framework for developing
the energy system overall, without overly detailed regulations that might
hinder innovation and policy development in specific areas, such as
energy storage solutions. Finding the right balance between policies and
giving enough room for innovation and development, while also offering
enough structure and security is crucial.
Although climate neutrality is the main interest driving this work, our
empirical material also reveals the presence of a strong interest in developing the energy business in order for the builders and developers of
solutions to remain in the game in an environment where zero marginal
cost production is invading markets. In a competitive and unbundled
market public and private actors depend on each other—private actors on
competition, regulation and supervision of a level playfield (to the extent
possible), and public actors on companies to provide the end products of
electricity and heat/cooling as well as taxation income. Here, we assume
that energy cooperatives and private individuals will not in the foreseeable
future be able to assume the main responsibility for energy services.
Such interlinking of interests of all actors is a formidable task. While
the smart grids vision stresses enabling future business opportunities, our
respondents highlight that some possibilities might be lost if Finland
proves to be a late adopter or too risk-averse. Timing is hence essential. The question is what it takes to be a smart adopter, especially when