Renewable Energy Grid Expansion Political Economy Challenges
•
0 gefällt mir•383 views
This document discusses the political challenges of expanding electricity grids to accommodate increasing renewable energy. It argues that electric utility companies, with vested interests in the status quo, often oppose grid expansions that facilitate greater renewable integration. This resistance can slow the energy transition. The document also examines grid and policy issues in Germany, Japan, China, and considers implications for New Zealand's renewable targets.
Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Andere mochten auch
Andere mochten auch (20)
Ähnlich wie Renewable Energy Grid Expansion Political Economy Challenges
Ähnlich wie Renewable Energy Grid Expansion Political Economy Challenges (20)
Mehr von Energy Cultures 2 Janet Stephenson
Mehr von Energy Cultures 2 Janet Stephenson (7)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
Renewable Energy Grid Expansion Political Economy Challenges
- 1. Knowledge for a better world Renewable energy and the political economy of grid-line expansion Espen Moe, Department of Sociology and Political Science, NTNU
- 2. Knowledge for a better world 2 Grids • Understudied • Not sexy enough!(?) • Politically difficult – FITs and subsidies the easy bit • Leaving it to private actors – Coordination, NIMBY, different political levels, powerful vested interests, sustained government effort necessary • Potentially the biggest bottleneck for a renewable energy transition
- 3. Knowledge for a better world Solar vs. wind, capacity (MW) 0 50000 100000 150000 200000 250000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PV installations 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Wind power installations
- 4. Knowledge for a better world 4 Renewable energy share of electricity production (2015) 76.3 16.6 3.7 2 1.2 0.47.3 Fossil fuels and nuclear Hydropower Wind Biopower Solar PV Geothermal, CSP, ocean
- 5. Knowledge for a better world 5 Share of electricity consumption 0 10 20 30 40 50 60 70 80 90 100 Global Denmark China USA Germany Norway Japan Wind Solar Biomass Geo, CSP, ocean Hydro
- 6. Knowledge for a better world 6 Theory • Importance of structural change • Renewable energy is about more than countries with unsolved energy problems and abundant renewable resources prioritizing renewable energy • Gridline extensions just another structural component to a renewable energy transition • Instead: Vested interests. Very strong interests in preserving the status quo. – Joseph Schumpeter, Mancur Olson – Major structural change always fought by the losers • Few changes bigger than a transition from fossil fuels to renewables; electricity sector hit hard – Oil, gas, coal, nuclear had decades to build political influence, to get beneficial regulations and shaping the institutional framework. • Industrial giants • Institutional frameworks, regulations, access to politicians, supporters/allies within institutions, media, politics, etc. – Renewable energy has no level playing field, but has to rise against the shadow of some of the largest industrial giants the world has ever seen. • AND against the utility companies!
- 7. Knowledge for a better world 7 Role of electric utility companies • Major vested interest in most national energy systems • Centralized energy systems challenged by wind and solar – Often fought the integration of wind and solar into «their» grid – Eroding profit margins • Often priority access for REN – «Prosumer revolution» in Germany • Disruptive potential of solar PV – Potential decentralization of the electricity system • Gridline expansion: Utilities the crucial actor – But their profit margins eroded by the same process that makes gridline expansion necessary
- 8. Knowledge for a better world 8 Germany, wind and PV capacity (MW) 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 1995 2000 2005 2010 2015 Wind Solar PV
- 9. Knowledge for a better world 9 The German grid • Among the best in Europe (= the world) • But also, renewable installations of the highest in Europe • Energiewende, nuclear phase-out • «Prosumer revolution» • NIMBY problems • Wind in the north, PV in the south • Utilities going bankrupt – Becoming maintenance companies
- 10. Knowledge for a better world 10 Wind vs. solar in Japan, pre- and post- Fukushima, annual installations (MW) 0 2000 4000 6000 8000 10000 12000 2000 2005 2010 2015 Wind power Solar PV
- 11. Knowledge for a better world 11 The Japanese grid • 10 regional monopolies, weak interlinkages, 60Hz vs. 50Hz – (Liberalized April 1, 2016) • Historically kept wind power out, forced to accept PV • Powerful utilities in cahoots with METI – Until Fukushima! • Unbundling (by 2020) – But attempts at hollowing out • PV phased in at such rates that utilities reluctant
- 12. Knowledge for a better world Is politics important? Installations vs. electricity generation 0 20000 40000 60000 80000 100000 120000 140000 160000 2000 2005 2010 2015 China USA Germany
- 13. Knowledge for a better world 13 The Chinese grid • Priority access to the grid – But violations not enforced • Curtailment problems – Going down, now shooting up again (and for PV as well) – Lack of coordination, incentives for installation, not generation – Off-grid capacity • Central government vs. the provinces – Coal first, everything else second • UHV grid – Salvation or white elephant? – State Grid solving the problem or just in it for itself? (SOE)
- 14. Knowledge for a better world 14 X-factor: Energy storage • Grid must be upgraded while utility companies go bankrupt – Paradox: Decentralization of the grid making it even more important to upgrade it. – And at the same time: Main actors (utilities) going bankrupt • Scaling up more or less impossible without energy storage breakthroughs – (Denmark has Norway) – Scaling up to 20% clearly possible (Germany). But most countries more ambitious long-term targets!
- 15. Knowledge for a better world 15 Conclusions • Utility companies at the core of the process – Exercizing political influence to slow down the process • Germany, end of FIT • Japan, hollowing out of unbundling, continued rejection of wind • China, State Grid a very powerful SOE fighting for its own interests, grid companies reluctanctly connecting in the provinces – Close political connections, and using these…! – Crucial part of the future system, but not in their present form – Still a bottleneck!
- 16. Knowledge for a better world 16 Relevance for New Zealand? • Target: renewable 90% of electricity by 2025 (2015 = 80%) • Hydropower: 57% of electricity generation (2014) • Wind power: 5% of electricity generation (623MW) – But wind power the most cost-effective option for new grid-based power in 2015 • Solar power: <0.1% of electricity generation • Geothermal: 13% of electricity generation (1GW = 5th in the world, 2nd per capita) • Vulnerable because of isolation, but energy structure that makes grid line extensions less critical than in other countries.