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In the ongoing energy transition, governments in six EU member states dynamically adjust their policy priorities in response to the maturation of renewable electricity systems and the evolving mismatch with incumbent systems. Initial findings highlight the importance of strategically sequencing policy instruments to ensure a smooth transition amid changing priorities.
A comprehensive overhaul of the European Union’s energy supply system is essential to mitigate the impact of climate change and achieve net zero emissions by 2050, aligning with the Paris Agreement. Policymakers in this transition are juggling multiple objectives, including maintaining energy security, ensuring affordability, and fostering competitive domestic industries. However, these goals often come with trade-offs, and governments tend to prioritize them based on pre-existing domestic institutions and beliefs. The implementation of policies may lead to the emergence of “winners and losers,” causing shifts in priorities.
Technology change significantly influences policy priorities, as successful adoption of new technologies can reshape the learning processes and societal challenges associated with them. The study explores the interplay between government policy priorities and socio-technical systems (STS), emphasizing the linkages between social and technical elements necessary for societal functions. The research investigates whether governments sequence their policy priorities during the energy transition phases and examines the relationship between STS properties and general policy aims.
The exploration focuses on patterns in the parallel evolution of renewable electricity (RE) STS properties and government policy priorities during different phases of the transition. Changing government priorities are attributed to specific actor coalitions and their influence on the policymaking process, where preferences and power dynamics may shift due to the transition. The paper compares six EU countries—France, Germany, Italy, Spain, Sweden, and the UK—to identify broader interaction patterns between STS properties and government priorities. The study aims to provide insights into why countries modify or expand their policy schemes, employing a combination of quantitative and qualitative data analysis to identify patterns of interaction and draw conclusions on both results and methods used.
In our analysis of sampled EU countries, we find diverse histories in supporting renewable energy (RE) development through distinct support schemes. Sweden stands out as the most advanced, achieving over 50% RE share in the early 2000s and emphasizing a balance between climate measures and economic efficiency. Spain, while progressing significantly, lags behind Sweden, employing a market-pull, tariff-based instrument to establish a domestic market for renewables. Italy’s trajectory closely mirrors Spain’s, starting with a 16% RE share, implementing a feed-in tariff (FIT), and introducing competitive auctions in 2012. France, with a modest growth in renewables, faced challenges with its support schemes, leading to a renewables share below 15% by 2014.
Germany and the UK, initially with lower RE shares (around 9% and 3%, respectively), underwent strong growth after 2010. Germany adopted a comprehensive FIT in 2000, introducing a market premium in 2012 for enhanced market integration. The UK initially employed a green certificates scheme in 2002, later transitioning to Contracts for Difference for large-scale projects and a FIT for small-scale generation. Despite early adoption, these six countries displayed diverse patterns in their RE support scheme transitions, showcasing differences in policy priorities and growth trajectories.
The evolution of socio-technical systems (STS) during the energy transition can influence government policy priorities. Policy elements, categorized as “ends” (aims) and “means” (tools), are often analyzed in terms of the latter. However, our focus is on high-level “aims,” reflecting infrequent changes in policy goals observed in climate and energy contexts. These aims encompass broad objectives like affordability, environmental impact reduction, and industry competitiveness. STS properties, emphasizing the co-evolution of technology and society, vary across transition stages, with successful transitions relying on market formation for new technologies. As renewable energy (RE) STS matures, governments may prioritize limiting policy costs. The interaction between new and incumbent systems, considering socio-technical fit, becomes crucial. Governments with a higher share of intermittent RE may prioritize system flexibility to address socio-technical misfit, driven by operators and regulators dependent on a stable supply. These dynamics highlight the evolving challenges faced by governments throughout different stages of the energy transition.
Our study suggests that specific policy priorities are often associated with certain Science, Technology, and Society (STS) properties. While our findings offer a foundation for future research, it’s important to note the limitations, such as Germany and Spain standing out as outliers. The broader political and macro-economic context, along with variations in data coverage, play significant roles in shaping policy priorities. Despite these limitations, analyzing strategy documents provides valuable insights into high-level policy aims. However, it’s acknowledged that government priorities derived from these documents might oversimplify complex political dynamics. Our indicators for STS properties may not fully capture maturation and socio-technical fit, but we believe they effectively highlight main trends. While certain indicators lose predictive value in later transition stages, they remain crucial in the early stages. The study focuses on countries actively promoting renewable energy expansion and undergoing substantial STS changes, cautioning against generalizing beyond these specific cases.
This study integrates transition research and public policy analysis to investigate how government policy priorities evolve during the energy transition. The research emphasizes the impact of Science, Technology, and Society (STS) properties on the development of policy instruments, revealing that changing STS properties in renewable energy systems influence distinct policy priorities. The study identifies a sequence of priorities during the transition, starting with low-cost concerns and shifting towards system flexibility in later stages. The identified sequence plays a crucial role in shaping countries’ decisions to either dismantle or expand their renewable energy support schemes. While competing ideas hinder European coordination, the study suggests that a common sequence of priorities may foster greater policy alignment as countries encounter similar challenges in their transitions. The findings underscore the importance of strategic policy instrument sequencing for a smooth transition amid changing government priorities, with potential implications for global contexts, such as the United States.
Source:
Lana Ollier, Marc Melliger & Florence Metz (2023) How Do Governments’ Policy Priorities Change as the Energy Transition Progresses? A Cross-Country Comparison, Journal of Comparative Policy Analysis: Research and Practice, DOI: 10.1080/13876988.2023.2280270