Factors Influencing the Development of Local Renewable Energy
Transcript Of Factors Influencing the Development of Local Renewable Energy
LUMES Masters Thesis
Date: June 2008
Factors Influencing the Development of Local Renewable Energy Strategies:
The cases of Lolland and Samsø Islands in Denmark
Carlos Eduardo Torres Silva
Thesis Supervisor:
Dr. Ransom Lekunze LUMES, Lund University
Masters of Science Degree: Lund University Centre for Sustainability Studies
Lund, Sweden, May 2008
Thesis for the fulfilment of the Lund University’s Masters of Environmental Studies and Sustainability Science
Table of Contents
TABLE OF CONTENTS ................................................................................................................................................. 2
ABSTRACT ...................................................................................................................................................................... 4
ACKNOWLEDGEMENTS ............................................................................................................................................. 4
1. INTRODUCTION AND BACKGROUND................................................................................................................. 5
1.1 CLIMATE CHANGE..................................................................................................................................................... 5 1.1.1 International Participation – Kyoto Protocol.................................................................................... 6
1.2 RENEWABLE ENERGY................................................................................................................................................ 6 1.3 THE PROBLEM ........................................................................................................................................................... 7 1.4 PURPOSE OF THE PAPER ............................................................................................................................................. 7 1.5 METHODOLOGY......................................................................................................................................................... 8 1.6 SCOPE AND LIMITATIONS .......................................................................................................................................... 9
2. BACKGROUND ......................................................................................................................................................... 10
2.1 MAIN ACTORS......................................................................................................................................................... 10 2.2 LOCAL MATRIX OF ACTORS IN RENEWABLE ENERGY ............................................................................................. 12 2.3 RENEWABLE ENERGY BARRIERS............................................................................................................................. 13 2.4 SOCIAL ACCEPTANCE OF RENEWABLE ENERGY ...................................................................................................... 14
2.4.1 Socio-Political Acceptance............................................................................................................. 15 2.4.2 Community Acceptance ................................................................................................................. 15 2.4.3 Market Acceptance ......................................................................................................................... 15 2.5 POTENTIAL BENEFITS OF RE ADOPTION .................................................................................................................. 16 2.6 SUMMARY OF LITERATURE FINDINGS ...................................................................................................................... 16
3. RENEWABLE ENERGY POLICIES ...................................................................................................................... 17
3.1 GLOBAL POLITICS OF RENEWABLE ENERGY ........................................................................................................... 17 3.2 REGIONAL RENEWABLE ENERGY POLICY – EUROPEAN UNION............................................................................... 18 3.3. DENMARK AND RENEWABLE ENERGY.................................................................................................................... 19
3.3.1 Danish Approach towards RE ........................................................................................................ 19 3.3.2 KEY ELEMENTS IN THE DANISH ENERGY PLAN.................................................................................................... 20 3.3.3 DANISH SUPPORT FOR RENEWABLE ENERGY AND ITS PENETRATION................................................................... 21 3.3.4 DENMARK AND THE KYOTO PROTOCOL ............................................................................................................... 22
4. FINDINGS AND IMPLICATIONS: LOLLAND AND SAMSØ ISLANDS ......................................................... 23
4.1 LOLLAND ISLAND.................................................................................................................................................... 23 4.1.1 Employment and Industry .............................................................................................................. 24 4.1.2 Phase 1: Renewable Energy Strategies in Lolland ......................................................................... 24 4.1.3 Actual Situation of Renewable Energy in Lolland ......................................................................... 24 4.1.4 Phase 2: Renewable Energy Strategies in Lolland ......................................................................... 26 4.1.5 Main Actors in Lolland .................................................................................................................. 28 4.1.6 Driving forces for the development of Renewable Energy ............................................................ 30 4.1.7 Benefits of Lollan’s Strategies of Developing Renewable Energy ................................................ 31 4.1.8 Renewable Energy Challenges in Lolland...................................................................................... 32
4.2 SAMSØ ISLAND........................................................................................................................................................ 35 4.2.1 Employment and Industry .............................................................................................................. 35 4.2.2 Renewable Energy Strategies in Samsø ......................................................................................... 36 4.2.3 Actual Situation of Renewable Energy in Samsø........................................................................... 38 4.2.4 Main Actors in Samsø .................................................................................................................... 39 4.2.5 Driving forces for the Development of Renewable Energy ........................................................... 40 4.2.6 Benefits of Samsø’s Strategy for Developing Renewable Energy ................................................. 40 4.2.7 Renewable Energy Challenges ....................................................................................................... 41
4.3 SUMMARY ............................................................................................................................................................... 41
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5. DISCUSSION.............................................................................................................................................................. 41
5.1 NATIONAL FACTORS FOR THE DEVELOPMENT OF RE. ............................................................................................. 42 5.2 LOCAL FACTORS FOR THE DEVELOPMENT OF RE .................................................................................................... 43
5.2.1 Political Support ............................................................................................................................. 43 5.2.2 Local Economic Resources ............................................................................................................ 44 5.2.3 Inclusion of the Community ........................................................................................................... 45 5.2.4 Networks........................................................................................................................................ 45 5.3 BENEFITS OBTAINED BY THE RE DEVELOPMENT AT THE LOCAL LEVEL ................................................................... 46 5.4 CONCLUSION AND RECOMMENDATIONS.................................................................................................................. 46
REFERENCES ............................................................................................................................................................... 49
APPENDIX I – LIST OF INTERVIEWEES ............................................................................................................... 51
APPENDIX II – QUESTIONS LOLLAND MUNICIPALITY & BASS ................................................................... 52
APPENDIX III – QUESTIONS GRØN CENTER LOLLAND.................................................................................. 54
APPENDIX IV - QUESTIONS TO THE COMMUNITY .......................................................................................... 55
APPENDIX V – QUESTIONS SAMSØ ENERGY ACADEMY................................................................................ 56
Acronyms
RE BASS CTF DEA DKK EU IPCC kWh LOKE MW ND SEC UN UNFCCC
Renewable Energy Baltic Sea Solutions Community Testing Facilities Danish Energy Authority Danish Crowns European Union Inter-governmental Panel on Climate Change Kilo-Watt hour Lolland Energy Holding A/S Mega-Watt No Date (in case of reference) Samsø Energy Company United Nations United Nations Framework Convention on Climate
Change
List of Figures
Figure 1: Implemented Wind Turbines in Lolland……………………………...…………………………...25 Figure 2 Wind Turbine Implementation in Samsø……………………………………………………………38
Tables
Table 1 District Heating Plants in Lolland ...................................................................................................... 25 Table 2 Price of Rapeseed ............................................................................................................................... 33 Table 3 District Heating Plants in Samsø ........................................................................................................ 38
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Abstract
Climate change is now one of the most significant challenges our planet has ever faced. The increasing emission of Greenhouse Gases (GHGs) into the Earth’s atmosphere directly contributes to a series of devastating impacts affecting the entire planet. Furthermore, fossil fuel consumption is forecasted to remain the primary source of energy for a long time. In order to reduce GHG emissions and fossil fuel dependency, international and national strategies propose the increased use of Renewable Energy (RE) as an alternative. However, while some level of political will does exist, challenges persist and can be difficult to overcome, at all levels. This study addresses the non-technical barriers and the important factors which represent the key elements for the development of RE in two local settings. The study focuses on RE in Denmark, a clear example of a country with a high commitment and long experience in the development and implementation of alternative energy sources. It examines the successful development and deployment of local RE strategies and projects in two local (island) settings, Lolland and Samso. Furthermore, it explores the factors influencing RE deployment and it addresses the barriers which can obstruct the implementation of RE and some of the main actors involved at the local level. Finally, it explores some of the possible benefits obtained by the successful development of RE strategies at the local level. The purpose of the paper is to gain insights regarding the barriers and factors that influence RE development, so as to come up with concrete suggestions that can be utilized by other local regions in the developed world that wish to make a shift towards greater use of RE.
Key Words: Renewable Energy, Local Strategies, Development of Renewable Energy
Acknowledgements
In writing such words, I know this Swedish adventure will soon come to an end. While visions of polar bears did not manifest, other opportunities, far greater, did. To LUMES for provoking thought and for assembling a great group of students, not only as academic colleagues, but more so as friends; to thank you all, I would need a few pages. Al, Andrea & Theo…Thank you guys for all the help and support on this; to Torsten, Resh, Jen, Nacho, Fran, Theo, Laurent and all, I can’t imagine living or learning without you. The roots for positive change come from the hope and respect we learn from those we admire most: Muchas Gracias Madre, Manuel y Charlie no lo hubiera logrado sin ustedes en ningun momento de mi vida. With such strong support behind me, I have courage to go ahead. And to Jenni, we have learned from each other and grown; thank you for challenging and supporting me – I hope I have done the same.
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1. Introduction and Background
The increasing emissions of greenhouse gases (GHGs) into the Earth’s atmosphere from fossil fuel burning, deforestation, livestock-farming and other human activities has resulted in complex climate variability leading to an imbalance in the globe’s atmosphere, biosphere and oceanic ecosystems1. Climate change is already influencing sea level rise, agricultural yield, forest-cover reduction, water resources and phenomena such as storms, cyclones, landslides and floods (IPCC, 2007).
Because its effects are global, efforts to find a solution for climate change require global, national and local governmental action. Within the framework of strategies to reduce the production of GHGs, the energy sector is one of the most important, requiring a substantive shift in energy production from fossil fuels into renewable energy (RE). The actual and projected dependency on fossil fuels – accounting nearly for 80% of total energy requirements – and the environmental consequences attributable to their use suggest an urgent need to change our energy production patterns (IEA, 2006). The increasing global and local impact induced by these fuels has instigated policy and technical support towards the use of RE technologies as an alternative to reduce the threats (IPCC, 2007). Drastic changes are happening and the commercial viability of RE technologies is currently at a turning point; they are fast becoming attractive due to various environmental, social and economic reasons.
However, even though technologies to exploit RE are becoming more available, affordable and accepted, the overall process of developing them encompasses a series of challenges which have to be addressed in order to overcome potential obstacles that might hinder their wide dispersion (Geller, 2003; Mendonça, 2007; McCormick, 2007).
1.1 Climate Change
Climate Change is a global phenomenon directly attributed to anthropogenic GHGs emissions (Boyle, 2004: 10). Confirmation of this was mentioned in the 2007 Intergovernmental Panel on Climate Change (IPCC).2 This report stated that a major contributor to climate change is carbon dioxide (CO2) since its atmospheric concentration has remarkably exceeded pre-industrial levels (ibid). Such concentrations suggest varying degrees of oncoming environmental, economic and social consequences (ibid). Unfortunately, CO2 emissions3 are primarily derived from the main source of modern energy: that of fossil fuels. The use of such fuels, on which modern lifestyles are dependent, supports a variety of activities: electricity production, heating, transportation and different derived products.4 Additionally, perspectives for the short- and medium-term do not forecast a reduction in the consumption of this energy source (IPCC,
1 Scientists predict that if the current trends continue, it is expected that the concentration of greenhouse gases in the atmosphere will double by the end of the century and that this will have a profound impact on the social, economic and environmental aspects of all states and people (IPCC 2001a). 2 “Warming of the climate system is unequivocal….Changes in atmospheric concentrations of GHGs and aerosols, land-cover and solar radiation alter the energy balance of the climate system. Global GHG emissions have increased markedly due to human activities…” (IPCC, 2007) 3 Accounting for 56.6% of the share of GHGs in total emissions by 2004 in terms of CO2-eq (IPCC, 2007) 4 The electricity sector and heating sector (in the case of Denmark) represents at large extent around the 40% of the total emissions (UNFCCC, 2005).
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2007; IEA, 2006).5 Accordingly, with the threat of climate change looming, governments, organizations, companies and individuals have begun to identify the necessity to direct their energy supply towards a different path.
1.1.1 International Participation – Kyoto Protocol
The environmental consequences instigated by climate change will trigger extensive economic and social impacts, in addition to environmental burden. These impacts call for international cooperation since they will involve and influence everyone (Carter, 2001: 225). The acknowledgment for urgent action pertaining to such trans-boundary6 challenges has been part of the international agenda for several decades. As such, there are various international agreements and policy-adoptions regarding climate change, realized through a long process of growing scientific concern and evidence dating back to the 1970s. In 1992, the United Nations Framework Convention on Climate Change (see Chapter 2) was formed in order to face these challenges at the international level (Carter, 2001: 233).7 For its purpose, a series of principles – not all of which were well-defined – were included. Real defined targets to reduce the emissions were not stipulated. As such, there was no clear binding clause in the document..
In 1997, member states of the UNFCCC8 started negotiations on an international agreement to create a legally binding protocol. The Kyoto Protocol includes the basis of the convention but also commitment levels by which every country is allowed to release a certain amount of emissions for a set period. For the purposes of this study, the Kyoto Protocol provides the basis of action where parties seek to promote sustainable energy by supporting the development and use of renewable forms of energy (Article. 2, a (iv)).
1.2 Renewable Energy
Across the planet, different countries use different energy sources to meet consumption demands, industry and support public infrastructure (i.e. public transport, public buildings, etc.). As a result of the consequences created by the primary sources of energy – fossil fuels – and in order to minimize present and future contributions to climate change, there are a variety of recommendations coming from the scientific community, as well as other significant actors, who call for the development of alternative solutions (Commission Proposal COM (2000) 796 final; IPCC, 2007; Mallon, 2006). Amongst these, one mechanism by which to reduce GHG emissions – and especially that of CO2 – is the diversification and utilization of alternative energy sources that release far less (arguably even zero) GHGs. These energy sources primarily come from solar-direct and solar-indirect (hydropower, wind and bioenergy), and non-solar power, such as tidal and geothermal (Boyle, 2004). All of these have been exploited by humans, some for thousands of years and others only for a few decades (ibid).
5 There is concern about a noticeable increase in CO2 emissions as global energy demand is projected to increase up to 37% by 2030 (IEA, 2005) and 50% by 2050 (Ragauskas, et al., 2006).These projections present a continuous reliance of use of fossil fuels as the primarily source of energy, accounting for nearly 80% of share of the total market (IEA, 2006). 6 Which affects more than one locality, country or region 7 The ultimate objective of the document produced was, the “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system” (Article 2, UNFCCC 1992) 8 See Section 3.1 for the creation of the UNFCCC
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However, various obstacles exist in developing such RE sources depending on energy source, implementation location, and technology available (Geller, 2003; Mendonça, 2007; McCormick, 2007). It is imperative to study how these can be overcome efficiently, since many positive impacts that can be obtained from (local) RE sources. Apart from dealing with GHG emissions, these also include improving energy supply and security, motivating local development and creating direct and indirect employment (Kelly, 2007).9
1.3 The Problem
Projections for the short- and medium-term do not forecast a reduction in consumption of fossil fuels in the world (IPCC, 2007; IEA, 2006). Actually, there is concern about a noticeable increase in CO2 emissions (ibid). Global energy demand is projected to increase up to 37% by 2030 (IEA, 2005) and 50% by 2050 (IEA, 2006). These projections present a continuous reliance of use of fossil fuels as the primarily source of energy, accounting for nearly 80% of share of the total market (ibid).
For instance, the share of RE in the world calculated in total primary energy supply (TPES) accounted in 1973 for around 0.1% of the total and by 2005 the share increased up to 0.5%. Regarding share of electricity generation, RE accounted in 1973 for about 0.6% of the total and by 2005 for around 2.2% of the market10 (IEA, 2007). The penetration of RE has not been as significant as it should be in the last fourth decades.
It becomes apparent that direct action must be pursued in order to mitigate climate change. Such action revolves around lowering GHG emissions; among other initiatives, such as reducing energy consumption, the substitution of conventional fuels for renewable ones appears as a one-way path. However there are significant problems that hinder the process of shifting towards a RE society. These problems revolve around the current institutional framework, the modern economic reality, the political circumstances and the lack of awareness from a large percentage of the population in the developed world (Wüstenhagen et al, 2007, McCormick Kes 2007, Gipe 1995, Goldemberg 1996).
1.4 Purpose of the paper
The aim of this research was to examine the important factors that contribute to the development of RE within local regions. Local communities are, in many cases, the strategic area of focus in order to develop RE projects. Therefore, in order to help the development of RE, the local setting should receive some guidance in order to deploy successfully its own resources through a series of strategies. This research focuses on local settings with high rates of production of RE. It identifies obstacles and opportunities connected to RE which have contribute for the development of RE in local settings. As mentioned above, although it is widely acknowledged that RE is necessary, the uptake and measures to develop RE has not
9 The use of RE meets a wide range of energy needs, if and when the technologies overcome the obstacles for its use. Accordingly, the accomplishment of a wide range of benefits could be obtained at the local, regional and global if it has to attain the goal of sustainable development (Kelly, 2007). 10 Includes geothermal, solar, wind, tide, wave energy, electricity and heat.
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been sufficient, therefore this paper contributes to the general knowledge of developing successful RE strategies based on local setting contexts. The purpose is explicitly to provide information that can aid local regions around the developed world to initiate similar measures. The battle against climate change cannot be fought single-handedly; this paper aims to help local regions that have the potential, to create the institutional, economic and social framework of factors identified from the success stories of Lolland and Samsø. Contributing to the understanding of how local communities develop RE based on opportunities and overcoming of challenges which can portray a series of similar insights occurring in other communities.
In order to reach the stated aim, the main research question for this study is: What are the important factors that are needed for the successful development and deployment of RE strategies and projects at the local level?
In order to answer the main research question and achieve the purpose of the paper, the case study of two islands in Denmark is discussed. The following are secondary research questions:
• What are the main actors for the development of RE? • What are the key constraints (challenges/barriers) involved in the implementation of RE? • What factors influence the development of RE in Denmark? • How has Lolland and Samsø developed and implemented RE strategies at the local settings?
1.5 Methodology
The research justification stems from an interest to study factors influencing the development of RE in order to reduce dependency on fossil fuels. To answer the research questions and the objective of this thesis, the research employed a qualitative research approach (Bryman, 2004) and a case study methodology. While qualitative research is sometimes considered soft social science research according to some, it can be hard-nosed, data-driven and outcome-oriented (Yin, 2003).
Firstly, a literature review was conducted. The literature followed a compilation and examination of official documents, academic literature, online information and different official statistics regarding RE. The literature helped identify the main challenges and barriers in RE development, as well as the significant actors who influence the process. Then, a general overview of the global and European perspective regarding RE is presented, as well as a discussion of the Danish reality regarding RE. The case studies (Lolland and Samsø Islands) are subsequently presented to understand the development of RE at the local setting.
As the purpose of this research is to contribute to the understanding on how these two localities (Lolland and Samsø) have developed strategies for the success of RE development. Contact with main actors in the field was carried to understand the reasons behind the actions taken to put in practice the utilization of local resources, and find the important factors influencing the development of RE in the localities.
The actors contacted for this research are as follow: Contact with the Municipality of Lolland. In specific, with the department of Business Development of the Municipality in order to: understand the background and development of the island regarding RE.
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Interview was carried with the Project Director to understand the perspective of the Municipality towards the exploitation of RE, and how the municipality is involved in the projects.
Contact with the company in charge of different projects on the island (Lolland). Interview with the director of the company, in order to understand how this actor has helped the development of RE strategies in the local setting. Interview with the technical expert was carried out, since this person has put in practice some of the projects and has experience the implementations. This was done in order to understand constrains (challenges/barriers) the projects have faced in the specific setting.
Contact and interview with the center in charge of agricultural/agro industrial activities of the island (Lolland) was realized to identified the challenges/barriers one of the projects the island is executing.
Contact and interview with local farmers and citizens was performed (Lolland Island), in order to understand the perspective of this actor regarding projects of RE. These interviews were elaborated to understand their reasons to use or change systems (heating and electricity) and have the perspective of the local actor which become directly or indirectly affected (positively and/or negatively).
In the case of Samsø, the Municipality was contacted and the interview was carried with the body of the municipality which was/is in charge of RE developments and implementation of the main project the island executed in the last decade. This was done in order to understand all the factors, obstacles and challenges the island faced during the years of development of RE and the implementation of the strategy.
The study uses qualitative research approaches, which attempts to describe the “how” and the “why” of the relationship or circumstances which stimulate RE implementation in the two island settings, as proposed by Yin (2003), who argued that a two-case study is preferable than a single-case design because more units of analysis lead to more insights of the studied area. After initial background research about the island situations was conducted, site interviews were performed in order to gain more insights of the situation. The interviews were conducted via a semi-structured format as recommended by Yin (2003). The interviews with various actors were conducted on two visits to Lolland Island. The list of specific actors who were interviewed, along with the rationale leading to the choice of interviewees, can be found in Appendix I, the list of questions presented to the different actors in the islands are listed in Appendix II, III, IV and V.
To complement information regarding Samsø island, review of secondary data was carried out, where pre-recorded interviews were available (a documented video of the project – (Stubkjær Leif, (ND), European RE islands. Miljø Media. (DVD)), in order to understand the process and how key actors were involved in the projects. (Interview questions in APPENDIX IV). The case study findings were subsequently compared to common barriers and factors that influence RE development described in the literature.
1.6 Scope and Limitations
This study focused on Danish initiatives undertaken to tackle climate change within the sector of RE development. While numerous technologies fall within this category, this thesis primarily refers to PV panels, windmills, solar heating, and biomass energy sources. Particularly it addresses such RE systems
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within local (island) settings in Denmark. On Samsø Island, this refers to wind turbines, biomass, solar PV and thermal. Regarding Lolland, some of the RE projects on the island are discussed, as they presently stand. Economic particularities pertaining to RE technologies and cost are not included. In addition, the Danish Domestic CO2 Cap and Trade Scheme 2001-2004 is not discussed. Furthermore, while the author recognizes the importance of CO2 taxes at the national level for electricity and space heating, this thesis primarily addresses local factors influencing the development of RE strategies, in order to scope the study. Finally, the study only briefly mentions the liberalization of the electricity market (NORDPOL) as a consequence of the variability of prices in the energy market.
Concerning particular (practical-issue) limitations, they are as follows: obtaining documents and data in English (especially in the case of Lolland) was a challenge, while time constraints and contacting relevant persons for case study visits was quite difficult. It was possible to visit Lolland and interviews were conducted onsite. However, it proved more difficult to realize a visit to Samsø because of lack of answer from key informants, and thus interviews were only conducted via telephone.
2. Background
This chapter utilizes the related literature to identify the main actors which can be involved in local RE strategies, based on a series of socio-economic and environmental considerations. It provides information that will help answer the following questions: What are the main actors for the development of RE strategies? What are the key constrains (challenges/barriers) involved in the development of RE strategies?
2.1 Main Actors
Government
In a democratic state the government is ruled by the people and is responsible for the social welfare of a society, dependent on a set of institutions that constitute the state (Mallon, 2006). The role government plays is of vital importance for the deployment of RE. If RE technologies are left to participate in the open market as a product to compete with actual players, their possibility for survival may be questionable. The current set of distribution favors significantly traditional practices, such as fossil fuels, which have been heavily subsidized in the past years (ibid.). To propitiate this, the right incentives are required to place market signals, market acceptance, to achieve the aims market-related actors (suppliers-costumers) pursue. The government, through policy implementation, is responsible for an integrated strategy to enhance community acceptance (ibid).
Regional/Local Government
Regional and local government performs responsibilities at the root of the governmental structure and works directly with citizens. Regarding GHGs, it is responsible for the implementation of policies that affect at the direct level their emission: in the building sector (planning decisions), lighting of public
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Date: June 2008
Factors Influencing the Development of Local Renewable Energy Strategies:
The cases of Lolland and Samsø Islands in Denmark
Carlos Eduardo Torres Silva
Thesis Supervisor:
Dr. Ransom Lekunze LUMES, Lund University
Masters of Science Degree: Lund University Centre for Sustainability Studies
Lund, Sweden, May 2008
Thesis for the fulfilment of the Lund University’s Masters of Environmental Studies and Sustainability Science
Table of Contents
TABLE OF CONTENTS ................................................................................................................................................. 2
ABSTRACT ...................................................................................................................................................................... 4
ACKNOWLEDGEMENTS ............................................................................................................................................. 4
1. INTRODUCTION AND BACKGROUND................................................................................................................. 5
1.1 CLIMATE CHANGE..................................................................................................................................................... 5 1.1.1 International Participation – Kyoto Protocol.................................................................................... 6
1.2 RENEWABLE ENERGY................................................................................................................................................ 6 1.3 THE PROBLEM ........................................................................................................................................................... 7 1.4 PURPOSE OF THE PAPER ............................................................................................................................................. 7 1.5 METHODOLOGY......................................................................................................................................................... 8 1.6 SCOPE AND LIMITATIONS .......................................................................................................................................... 9
2. BACKGROUND ......................................................................................................................................................... 10
2.1 MAIN ACTORS......................................................................................................................................................... 10 2.2 LOCAL MATRIX OF ACTORS IN RENEWABLE ENERGY ............................................................................................. 12 2.3 RENEWABLE ENERGY BARRIERS............................................................................................................................. 13 2.4 SOCIAL ACCEPTANCE OF RENEWABLE ENERGY ...................................................................................................... 14
2.4.1 Socio-Political Acceptance............................................................................................................. 15 2.4.2 Community Acceptance ................................................................................................................. 15 2.4.3 Market Acceptance ......................................................................................................................... 15 2.5 POTENTIAL BENEFITS OF RE ADOPTION .................................................................................................................. 16 2.6 SUMMARY OF LITERATURE FINDINGS ...................................................................................................................... 16
3. RENEWABLE ENERGY POLICIES ...................................................................................................................... 17
3.1 GLOBAL POLITICS OF RENEWABLE ENERGY ........................................................................................................... 17 3.2 REGIONAL RENEWABLE ENERGY POLICY – EUROPEAN UNION............................................................................... 18 3.3. DENMARK AND RENEWABLE ENERGY.................................................................................................................... 19
3.3.1 Danish Approach towards RE ........................................................................................................ 19 3.3.2 KEY ELEMENTS IN THE DANISH ENERGY PLAN.................................................................................................... 20 3.3.3 DANISH SUPPORT FOR RENEWABLE ENERGY AND ITS PENETRATION................................................................... 21 3.3.4 DENMARK AND THE KYOTO PROTOCOL ............................................................................................................... 22
4. FINDINGS AND IMPLICATIONS: LOLLAND AND SAMSØ ISLANDS ......................................................... 23
4.1 LOLLAND ISLAND.................................................................................................................................................... 23 4.1.1 Employment and Industry .............................................................................................................. 24 4.1.2 Phase 1: Renewable Energy Strategies in Lolland ......................................................................... 24 4.1.3 Actual Situation of Renewable Energy in Lolland ......................................................................... 24 4.1.4 Phase 2: Renewable Energy Strategies in Lolland ......................................................................... 26 4.1.5 Main Actors in Lolland .................................................................................................................. 28 4.1.6 Driving forces for the development of Renewable Energy ............................................................ 30 4.1.7 Benefits of Lollan’s Strategies of Developing Renewable Energy ................................................ 31 4.1.8 Renewable Energy Challenges in Lolland...................................................................................... 32
4.2 SAMSØ ISLAND........................................................................................................................................................ 35 4.2.1 Employment and Industry .............................................................................................................. 35 4.2.2 Renewable Energy Strategies in Samsø ......................................................................................... 36 4.2.3 Actual Situation of Renewable Energy in Samsø........................................................................... 38 4.2.4 Main Actors in Samsø .................................................................................................................... 39 4.2.5 Driving forces for the Development of Renewable Energy ........................................................... 40 4.2.6 Benefits of Samsø’s Strategy for Developing Renewable Energy ................................................. 40 4.2.7 Renewable Energy Challenges ....................................................................................................... 41
4.3 SUMMARY ............................................................................................................................................................... 41
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5. DISCUSSION.............................................................................................................................................................. 41
5.1 NATIONAL FACTORS FOR THE DEVELOPMENT OF RE. ............................................................................................. 42 5.2 LOCAL FACTORS FOR THE DEVELOPMENT OF RE .................................................................................................... 43
5.2.1 Political Support ............................................................................................................................. 43 5.2.2 Local Economic Resources ............................................................................................................ 44 5.2.3 Inclusion of the Community ........................................................................................................... 45 5.2.4 Networks........................................................................................................................................ 45 5.3 BENEFITS OBTAINED BY THE RE DEVELOPMENT AT THE LOCAL LEVEL ................................................................... 46 5.4 CONCLUSION AND RECOMMENDATIONS.................................................................................................................. 46
REFERENCES ............................................................................................................................................................... 49
APPENDIX I – LIST OF INTERVIEWEES ............................................................................................................... 51
APPENDIX II – QUESTIONS LOLLAND MUNICIPALITY & BASS ................................................................... 52
APPENDIX III – QUESTIONS GRØN CENTER LOLLAND.................................................................................. 54
APPENDIX IV - QUESTIONS TO THE COMMUNITY .......................................................................................... 55
APPENDIX V – QUESTIONS SAMSØ ENERGY ACADEMY................................................................................ 56
Acronyms
RE BASS CTF DEA DKK EU IPCC kWh LOKE MW ND SEC UN UNFCCC
Renewable Energy Baltic Sea Solutions Community Testing Facilities Danish Energy Authority Danish Crowns European Union Inter-governmental Panel on Climate Change Kilo-Watt hour Lolland Energy Holding A/S Mega-Watt No Date (in case of reference) Samsø Energy Company United Nations United Nations Framework Convention on Climate
Change
List of Figures
Figure 1: Implemented Wind Turbines in Lolland……………………………...…………………………...25 Figure 2 Wind Turbine Implementation in Samsø……………………………………………………………38
Tables
Table 1 District Heating Plants in Lolland ...................................................................................................... 25 Table 2 Price of Rapeseed ............................................................................................................................... 33 Table 3 District Heating Plants in Samsø ........................................................................................................ 38
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Abstract
Climate change is now one of the most significant challenges our planet has ever faced. The increasing emission of Greenhouse Gases (GHGs) into the Earth’s atmosphere directly contributes to a series of devastating impacts affecting the entire planet. Furthermore, fossil fuel consumption is forecasted to remain the primary source of energy for a long time. In order to reduce GHG emissions and fossil fuel dependency, international and national strategies propose the increased use of Renewable Energy (RE) as an alternative. However, while some level of political will does exist, challenges persist and can be difficult to overcome, at all levels. This study addresses the non-technical barriers and the important factors which represent the key elements for the development of RE in two local settings. The study focuses on RE in Denmark, a clear example of a country with a high commitment and long experience in the development and implementation of alternative energy sources. It examines the successful development and deployment of local RE strategies and projects in two local (island) settings, Lolland and Samso. Furthermore, it explores the factors influencing RE deployment and it addresses the barriers which can obstruct the implementation of RE and some of the main actors involved at the local level. Finally, it explores some of the possible benefits obtained by the successful development of RE strategies at the local level. The purpose of the paper is to gain insights regarding the barriers and factors that influence RE development, so as to come up with concrete suggestions that can be utilized by other local regions in the developed world that wish to make a shift towards greater use of RE.
Key Words: Renewable Energy, Local Strategies, Development of Renewable Energy
Acknowledgements
In writing such words, I know this Swedish adventure will soon come to an end. While visions of polar bears did not manifest, other opportunities, far greater, did. To LUMES for provoking thought and for assembling a great group of students, not only as academic colleagues, but more so as friends; to thank you all, I would need a few pages. Al, Andrea & Theo…Thank you guys for all the help and support on this; to Torsten, Resh, Jen, Nacho, Fran, Theo, Laurent and all, I can’t imagine living or learning without you. The roots for positive change come from the hope and respect we learn from those we admire most: Muchas Gracias Madre, Manuel y Charlie no lo hubiera logrado sin ustedes en ningun momento de mi vida. With such strong support behind me, I have courage to go ahead. And to Jenni, we have learned from each other and grown; thank you for challenging and supporting me – I hope I have done the same.
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1. Introduction and Background
The increasing emissions of greenhouse gases (GHGs) into the Earth’s atmosphere from fossil fuel burning, deforestation, livestock-farming and other human activities has resulted in complex climate variability leading to an imbalance in the globe’s atmosphere, biosphere and oceanic ecosystems1. Climate change is already influencing sea level rise, agricultural yield, forest-cover reduction, water resources and phenomena such as storms, cyclones, landslides and floods (IPCC, 2007).
Because its effects are global, efforts to find a solution for climate change require global, national and local governmental action. Within the framework of strategies to reduce the production of GHGs, the energy sector is one of the most important, requiring a substantive shift in energy production from fossil fuels into renewable energy (RE). The actual and projected dependency on fossil fuels – accounting nearly for 80% of total energy requirements – and the environmental consequences attributable to their use suggest an urgent need to change our energy production patterns (IEA, 2006). The increasing global and local impact induced by these fuels has instigated policy and technical support towards the use of RE technologies as an alternative to reduce the threats (IPCC, 2007). Drastic changes are happening and the commercial viability of RE technologies is currently at a turning point; they are fast becoming attractive due to various environmental, social and economic reasons.
However, even though technologies to exploit RE are becoming more available, affordable and accepted, the overall process of developing them encompasses a series of challenges which have to be addressed in order to overcome potential obstacles that might hinder their wide dispersion (Geller, 2003; Mendonça, 2007; McCormick, 2007).
1.1 Climate Change
Climate Change is a global phenomenon directly attributed to anthropogenic GHGs emissions (Boyle, 2004: 10). Confirmation of this was mentioned in the 2007 Intergovernmental Panel on Climate Change (IPCC).2 This report stated that a major contributor to climate change is carbon dioxide (CO2) since its atmospheric concentration has remarkably exceeded pre-industrial levels (ibid). Such concentrations suggest varying degrees of oncoming environmental, economic and social consequences (ibid). Unfortunately, CO2 emissions3 are primarily derived from the main source of modern energy: that of fossil fuels. The use of such fuels, on which modern lifestyles are dependent, supports a variety of activities: electricity production, heating, transportation and different derived products.4 Additionally, perspectives for the short- and medium-term do not forecast a reduction in the consumption of this energy source (IPCC,
1 Scientists predict that if the current trends continue, it is expected that the concentration of greenhouse gases in the atmosphere will double by the end of the century and that this will have a profound impact on the social, economic and environmental aspects of all states and people (IPCC 2001a). 2 “Warming of the climate system is unequivocal….Changes in atmospheric concentrations of GHGs and aerosols, land-cover and solar radiation alter the energy balance of the climate system. Global GHG emissions have increased markedly due to human activities…” (IPCC, 2007) 3 Accounting for 56.6% of the share of GHGs in total emissions by 2004 in terms of CO2-eq (IPCC, 2007) 4 The electricity sector and heating sector (in the case of Denmark) represents at large extent around the 40% of the total emissions (UNFCCC, 2005).
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2007; IEA, 2006).5 Accordingly, with the threat of climate change looming, governments, organizations, companies and individuals have begun to identify the necessity to direct their energy supply towards a different path.
1.1.1 International Participation – Kyoto Protocol
The environmental consequences instigated by climate change will trigger extensive economic and social impacts, in addition to environmental burden. These impacts call for international cooperation since they will involve and influence everyone (Carter, 2001: 225). The acknowledgment for urgent action pertaining to such trans-boundary6 challenges has been part of the international agenda for several decades. As such, there are various international agreements and policy-adoptions regarding climate change, realized through a long process of growing scientific concern and evidence dating back to the 1970s. In 1992, the United Nations Framework Convention on Climate Change (see Chapter 2) was formed in order to face these challenges at the international level (Carter, 2001: 233).7 For its purpose, a series of principles – not all of which were well-defined – were included. Real defined targets to reduce the emissions were not stipulated. As such, there was no clear binding clause in the document..
In 1997, member states of the UNFCCC8 started negotiations on an international agreement to create a legally binding protocol. The Kyoto Protocol includes the basis of the convention but also commitment levels by which every country is allowed to release a certain amount of emissions for a set period. For the purposes of this study, the Kyoto Protocol provides the basis of action where parties seek to promote sustainable energy by supporting the development and use of renewable forms of energy (Article. 2, a (iv)).
1.2 Renewable Energy
Across the planet, different countries use different energy sources to meet consumption demands, industry and support public infrastructure (i.e. public transport, public buildings, etc.). As a result of the consequences created by the primary sources of energy – fossil fuels – and in order to minimize present and future contributions to climate change, there are a variety of recommendations coming from the scientific community, as well as other significant actors, who call for the development of alternative solutions (Commission Proposal COM (2000) 796 final; IPCC, 2007; Mallon, 2006). Amongst these, one mechanism by which to reduce GHG emissions – and especially that of CO2 – is the diversification and utilization of alternative energy sources that release far less (arguably even zero) GHGs. These energy sources primarily come from solar-direct and solar-indirect (hydropower, wind and bioenergy), and non-solar power, such as tidal and geothermal (Boyle, 2004). All of these have been exploited by humans, some for thousands of years and others only for a few decades (ibid).
5 There is concern about a noticeable increase in CO2 emissions as global energy demand is projected to increase up to 37% by 2030 (IEA, 2005) and 50% by 2050 (Ragauskas, et al., 2006).These projections present a continuous reliance of use of fossil fuels as the primarily source of energy, accounting for nearly 80% of share of the total market (IEA, 2006). 6 Which affects more than one locality, country or region 7 The ultimate objective of the document produced was, the “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system” (Article 2, UNFCCC 1992) 8 See Section 3.1 for the creation of the UNFCCC
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However, various obstacles exist in developing such RE sources depending on energy source, implementation location, and technology available (Geller, 2003; Mendonça, 2007; McCormick, 2007). It is imperative to study how these can be overcome efficiently, since many positive impacts that can be obtained from (local) RE sources. Apart from dealing with GHG emissions, these also include improving energy supply and security, motivating local development and creating direct and indirect employment (Kelly, 2007).9
1.3 The Problem
Projections for the short- and medium-term do not forecast a reduction in consumption of fossil fuels in the world (IPCC, 2007; IEA, 2006). Actually, there is concern about a noticeable increase in CO2 emissions (ibid). Global energy demand is projected to increase up to 37% by 2030 (IEA, 2005) and 50% by 2050 (IEA, 2006). These projections present a continuous reliance of use of fossil fuels as the primarily source of energy, accounting for nearly 80% of share of the total market (ibid).
For instance, the share of RE in the world calculated in total primary energy supply (TPES) accounted in 1973 for around 0.1% of the total and by 2005 the share increased up to 0.5%. Regarding share of electricity generation, RE accounted in 1973 for about 0.6% of the total and by 2005 for around 2.2% of the market10 (IEA, 2007). The penetration of RE has not been as significant as it should be in the last fourth decades.
It becomes apparent that direct action must be pursued in order to mitigate climate change. Such action revolves around lowering GHG emissions; among other initiatives, such as reducing energy consumption, the substitution of conventional fuels for renewable ones appears as a one-way path. However there are significant problems that hinder the process of shifting towards a RE society. These problems revolve around the current institutional framework, the modern economic reality, the political circumstances and the lack of awareness from a large percentage of the population in the developed world (Wüstenhagen et al, 2007, McCormick Kes 2007, Gipe 1995, Goldemberg 1996).
1.4 Purpose of the paper
The aim of this research was to examine the important factors that contribute to the development of RE within local regions. Local communities are, in many cases, the strategic area of focus in order to develop RE projects. Therefore, in order to help the development of RE, the local setting should receive some guidance in order to deploy successfully its own resources through a series of strategies. This research focuses on local settings with high rates of production of RE. It identifies obstacles and opportunities connected to RE which have contribute for the development of RE in local settings. As mentioned above, although it is widely acknowledged that RE is necessary, the uptake and measures to develop RE has not
9 The use of RE meets a wide range of energy needs, if and when the technologies overcome the obstacles for its use. Accordingly, the accomplishment of a wide range of benefits could be obtained at the local, regional and global if it has to attain the goal of sustainable development (Kelly, 2007). 10 Includes geothermal, solar, wind, tide, wave energy, electricity and heat.
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been sufficient, therefore this paper contributes to the general knowledge of developing successful RE strategies based on local setting contexts. The purpose is explicitly to provide information that can aid local regions around the developed world to initiate similar measures. The battle against climate change cannot be fought single-handedly; this paper aims to help local regions that have the potential, to create the institutional, economic and social framework of factors identified from the success stories of Lolland and Samsø. Contributing to the understanding of how local communities develop RE based on opportunities and overcoming of challenges which can portray a series of similar insights occurring in other communities.
In order to reach the stated aim, the main research question for this study is: What are the important factors that are needed for the successful development and deployment of RE strategies and projects at the local level?
In order to answer the main research question and achieve the purpose of the paper, the case study of two islands in Denmark is discussed. The following are secondary research questions:
• What are the main actors for the development of RE? • What are the key constraints (challenges/barriers) involved in the implementation of RE? • What factors influence the development of RE in Denmark? • How has Lolland and Samsø developed and implemented RE strategies at the local settings?
1.5 Methodology
The research justification stems from an interest to study factors influencing the development of RE in order to reduce dependency on fossil fuels. To answer the research questions and the objective of this thesis, the research employed a qualitative research approach (Bryman, 2004) and a case study methodology. While qualitative research is sometimes considered soft social science research according to some, it can be hard-nosed, data-driven and outcome-oriented (Yin, 2003).
Firstly, a literature review was conducted. The literature followed a compilation and examination of official documents, academic literature, online information and different official statistics regarding RE. The literature helped identify the main challenges and barriers in RE development, as well as the significant actors who influence the process. Then, a general overview of the global and European perspective regarding RE is presented, as well as a discussion of the Danish reality regarding RE. The case studies (Lolland and Samsø Islands) are subsequently presented to understand the development of RE at the local setting.
As the purpose of this research is to contribute to the understanding on how these two localities (Lolland and Samsø) have developed strategies for the success of RE development. Contact with main actors in the field was carried to understand the reasons behind the actions taken to put in practice the utilization of local resources, and find the important factors influencing the development of RE in the localities.
The actors contacted for this research are as follow: Contact with the Municipality of Lolland. In specific, with the department of Business Development of the Municipality in order to: understand the background and development of the island regarding RE.
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Interview was carried with the Project Director to understand the perspective of the Municipality towards the exploitation of RE, and how the municipality is involved in the projects.
Contact with the company in charge of different projects on the island (Lolland). Interview with the director of the company, in order to understand how this actor has helped the development of RE strategies in the local setting. Interview with the technical expert was carried out, since this person has put in practice some of the projects and has experience the implementations. This was done in order to understand constrains (challenges/barriers) the projects have faced in the specific setting.
Contact and interview with the center in charge of agricultural/agro industrial activities of the island (Lolland) was realized to identified the challenges/barriers one of the projects the island is executing.
Contact and interview with local farmers and citizens was performed (Lolland Island), in order to understand the perspective of this actor regarding projects of RE. These interviews were elaborated to understand their reasons to use or change systems (heating and electricity) and have the perspective of the local actor which become directly or indirectly affected (positively and/or negatively).
In the case of Samsø, the Municipality was contacted and the interview was carried with the body of the municipality which was/is in charge of RE developments and implementation of the main project the island executed in the last decade. This was done in order to understand all the factors, obstacles and challenges the island faced during the years of development of RE and the implementation of the strategy.
The study uses qualitative research approaches, which attempts to describe the “how” and the “why” of the relationship or circumstances which stimulate RE implementation in the two island settings, as proposed by Yin (2003), who argued that a two-case study is preferable than a single-case design because more units of analysis lead to more insights of the studied area. After initial background research about the island situations was conducted, site interviews were performed in order to gain more insights of the situation. The interviews were conducted via a semi-structured format as recommended by Yin (2003). The interviews with various actors were conducted on two visits to Lolland Island. The list of specific actors who were interviewed, along with the rationale leading to the choice of interviewees, can be found in Appendix I, the list of questions presented to the different actors in the islands are listed in Appendix II, III, IV and V.
To complement information regarding Samsø island, review of secondary data was carried out, where pre-recorded interviews were available (a documented video of the project – (Stubkjær Leif, (ND), European RE islands. Miljø Media. (DVD)), in order to understand the process and how key actors were involved in the projects. (Interview questions in APPENDIX IV). The case study findings were subsequently compared to common barriers and factors that influence RE development described in the literature.
1.6 Scope and Limitations
This study focused on Danish initiatives undertaken to tackle climate change within the sector of RE development. While numerous technologies fall within this category, this thesis primarily refers to PV panels, windmills, solar heating, and biomass energy sources. Particularly it addresses such RE systems
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within local (island) settings in Denmark. On Samsø Island, this refers to wind turbines, biomass, solar PV and thermal. Regarding Lolland, some of the RE projects on the island are discussed, as they presently stand. Economic particularities pertaining to RE technologies and cost are not included. In addition, the Danish Domestic CO2 Cap and Trade Scheme 2001-2004 is not discussed. Furthermore, while the author recognizes the importance of CO2 taxes at the national level for electricity and space heating, this thesis primarily addresses local factors influencing the development of RE strategies, in order to scope the study. Finally, the study only briefly mentions the liberalization of the electricity market (NORDPOL) as a consequence of the variability of prices in the energy market.
Concerning particular (practical-issue) limitations, they are as follows: obtaining documents and data in English (especially in the case of Lolland) was a challenge, while time constraints and contacting relevant persons for case study visits was quite difficult. It was possible to visit Lolland and interviews were conducted onsite. However, it proved more difficult to realize a visit to Samsø because of lack of answer from key informants, and thus interviews were only conducted via telephone.
2. Background
This chapter utilizes the related literature to identify the main actors which can be involved in local RE strategies, based on a series of socio-economic and environmental considerations. It provides information that will help answer the following questions: What are the main actors for the development of RE strategies? What are the key constrains (challenges/barriers) involved in the development of RE strategies?
2.1 Main Actors
Government
In a democratic state the government is ruled by the people and is responsible for the social welfare of a society, dependent on a set of institutions that constitute the state (Mallon, 2006). The role government plays is of vital importance for the deployment of RE. If RE technologies are left to participate in the open market as a product to compete with actual players, their possibility for survival may be questionable. The current set of distribution favors significantly traditional practices, such as fossil fuels, which have been heavily subsidized in the past years (ibid.). To propitiate this, the right incentives are required to place market signals, market acceptance, to achieve the aims market-related actors (suppliers-costumers) pursue. The government, through policy implementation, is responsible for an integrated strategy to enhance community acceptance (ibid).
Regional/Local Government
Regional and local government performs responsibilities at the root of the governmental structure and works directly with citizens. Regarding GHGs, it is responsible for the implementation of policies that affect at the direct level their emission: in the building sector (planning decisions), lighting of public
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