Governance for Renewable Energyin Multi-level Systems?

Lessons from Southeast Asia

Jens Marquardt | May 26th 2014

Public Policy in Asia PhD Conference | 26-27 May 2014Lee Kuan Yew School of Public Policy | National University of Singapore

On the Agenda

RE support as a challenge of multi-level governance

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 2

Conclusions

Discussion & recommen-

dations

Findings

Focus on the Indonesian

case

Background

Introduction & theoretical framework

1 2 3

What is the topic all about?

Energy Policy Research in Southeast Asia

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 3

Ener

gy

side

Booming region: tripple demand by 2030

Developing region: build up future energy system

Previliged region: renewable energy potentials

Politi

cal

side

Diverse region: Various political systems

Developing region: social / political pressure

Changing region: democratization, stabilization

Case Studies Philippines + Indonesia

Research Question How can a regime shift towards renewable energy be governed within a decentralized multi-level political system?

Southeast Asia as a

fascinating region for

energy policy research

Background 1

Theoretical framework

Multi-level Governance[Jan Rotmans, René Kemp, Frank Geels]

Coordination between different levels of decision-makingRegime shift also depends on distribution of power

Transition Management[Derk Loorbach, Geert Verbong,Jeroen v. d. Bergh]

Multi-phase perspectiveMulti-level perspective

Niche + Regime + Landscape level

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 4

landscape landscape

electricity regime

niches

market science

industryculture policy

technologies

political system

economic system social

systemawareness

Background 1

Methodology of the paper

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 5

Expert interviews with stakeholders of the RE sector in Indonesia and the Philippines

Expert interviews with stakeholders of the RE sector in Indonesia and the Philippines

Analyze RE support in the energy system from a multi-

level perspective

Analyze RE support in the energy system from a multi-

level perspective

Discuss RE support from a

transition management perspective

Discuss RE support from a

transition management perspective

Government

Development aid

Public energy sector

Civil society

RE business

Science

5050

Philippines Indonesia

Background 1

1) Multi-level

governance does play

a role.

Results from Expert Interviews(focus on Indonesia)

Political issues related to multi-level governance are perceived as a major barrier for RE support

Actors on different levels of decision-making are perceived as barriers, but only the national level is considered to be a driving force for RE support.

There is a clear perception of a need for a top-down approach, rather than a bottom-up process to support RE

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 6

Background

Findings 2

• „local authorities“• „bupatis and walikotas“• „decentralization“• „complex corruption“

What are the key barriers for RE in IDN?

Which actor is the main barrier for RE?

Which actor is the main driving force for RE?

2) A multi-level

perspective reveals

obstacles.

The Energy System from a Multi-level Perspective(focus on Indonesia)

From a national perspective: very clear electricity system

From a multi-level perspective: Complexity and conflicts

Decentralization increased the number of veto players for RE support

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 7

Background

Findings 2

Electricity Supply

generation

Transmission &

system operation

distribution

Market Structure Policy Making

PLN

IPPsSelf-

generation

Sell to PLN (IPP)

Central

govern-

ment

Provinsi

Kabu-

paten /

Kota

Provide

framework

policy

coordinationApprove /

reject

projects

ESDM Policies

Min. of Finance Subsidies

Min. of State Owned

Companies PLN ShareholderBAPPENAS Develop. planning

Dinas for Energy

Public Works

BAPPEDA

Local

PLN

3) Transition management

can be auseful tool.

RE Support in the Light of Transition Management(focus on Indonesia)

Multi-phase perspective: IDN still in its „experimentation phase“

Niche level experimentation: theoretically positive conditions

Socio-technical regime: stable fossil-fuel based regime structure

Landscape framework: support for coal (energy security, costs…)

Coordination: Lack of scaling-up and diffusion

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 8

Background

Findings 2

??

Discussion

Discussion

Multi-level governance issues are “bottlenecks” for RE support. Weak capacity and lack of awareness for national energy planning

on the local level Lack of understanding for local circumstances among national

policy-makers Lack of consultation during the process of policy formulation

Transition management can be a useful approach, but needs to be further developed based on insights from outside the OECD.

Include non-linear behavior Emphasize the role of local capacity Include negative effects arising from decentralized structures as

well as challenges arising from rapidly growing energy systems

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 9

Conclusions

Background

Findings

3

!!

Final remarks and policy

recommen-dations

Research Question

How can a regime shift towards RE be governed within a decentralized multi-level political system?

Public policy recommendations

1.Involve stakeholders on all levels during policy formulation

2.Focus more on the process of policy implementation

3.Improve consultation & awareness raising among potential veto players

4.Focus on mechanisms of scaling-up, rather than on further pilot projects

5.Highlight positive effects from decentralization and promote a bottom-up process for RE support

26.5.2014 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia 10

Conclusions

Background

Findings

3

Thank youfor your Attention

Questions & Comments?

Jens Marquardt | Freie Universität Berlinjens.marquardt@fu-berlin.de | www.fu-berlin.de/ffu