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Renewable energyhow much do people want topay for it?
Henrik Karlstrm,
SFFE Lunch Seminar, 03.02.10
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03.02.10, SFFE Lunch Seminar Henrik Karlstrm, Center forEnergy and Society, NTNU
What will I be talking about?
Some background
About the study The questions about renewables
The findings
Remarks
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7/30/2019 Renewable energy. How much do people want to pay for it?
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03.02.10, SFFE Lunch Seminar Henrik Karlstrm, Center forEnergy and Society, NTNU
Some background
Norway has outlined its strategy
concerning renewable energy
Renewables fund through Enova
Most utilities offer a guarantee of origin
Not very popular
Does Norway need more renewables?
The free market for electricity
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03.02.10, SFFE Lunch Seminar Henrik Karlstrm, Center forEnergy and Society, NTNU
About the study
A telephone survey with
1500 respondents
Comprising 38 questions
The interviews averaged
17 minutes
Five major themes
The market for electricity,
personal consumption,
renewable energy,sustainability and security
of supply
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03.02.10, SFFE Lunch Seminar Henrik Karlstrm, Center forEnergy and Society, NTNU
The questions about
renewable energy
Taking into consideration the fact that
Norwegian electricity production is almost
100 % renewable, how important is this for
consumers?
Is it possible to gauge willingness to pay
extra for this?
If so, how much?
If not, why?
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Findings
Todays hydro-power production isrenewable. How important is it for you that
electricity is renewable in the future as well?
Very important 66.6
Somewhat important 18.8
Neither nor 6.0
Somewhat unimportant 3.1
Very unimportant 3.2
Dont know/wont answer 2.3
Total 100.0
85 % of respondents
think renewableenergy sources are
important
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03.02.10, SFFE Lunch Seminar Henrik Karlstrm, Center forEnergy and Society, NTNU
Findings
Would you be willing to pay more forelectricity with a guarantee of renewable
origin? (N=1281)
Yes 64.3
No 28.0
Dont know/wont answer 7.7
Total 100.0
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Findings
64 % of 824, or about
1/3 of 1500, willing to
pay at least 25 %
more to getguaranteed
renewable energy
Weak positive
correlation withincome (gamma =
0.107)
If YES, do you have an idea of how muchmore you are willing to pay? (N=824)
Up to 25 % more 46.6
Up to 50 % more 14.1
Up to 75 % more .6
Up to 100 % or more 2.5
No opinion 33.6
Dont know/wont answer 2.5
Total 100.0
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Findings
With 85 % thinking
renewables are
important, but 64 %
willing to pay for this,why?
More than half
concerned with
existing price levels
If NO, why not? (N=359)
Electricity is already too expensive 36.5
Its up to the public authorities to
ensure a fixed price
7.8
I cannot afford more expensiveelectricity
14.2
Its not the consumers responsibility to
make sure electricity is renewable
6.1
Dont know/wont answer 18.7
Other 26.5
Total 100.0
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Findings
Generally,
respondents
are calling for
more political
control over
these issues
Politicians dont
do enough topromote
renewableenergy inNorway
There shouldbe stronger
politicalcontrol overthe price ofelectricity
There should bestronger politicalcontrol over theconstruction ofpower plants
Agree a lot 46.0 41.1 40.0Agree
somewhat
24.9 23.0 24.7
Neither nor 14.5 13.5 13.5
Disagree
somewhat
5.7 8.5 8.5
Disagree a lot 5.1 9.4 7.8
Dont know/
wont answer
3.9 4.5 5.5
Total 100.0 100.0 100.0
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Findings
Solar Hydro Land wind Sea wind Wave Bio Gas w/
CCS
Very positive 75.9 45.5 45.5 56.9 62.5 37.9 15.8
Somewhat positive 14.6 26.2 26.2 22.5 18.3 26.5 20.2
Neither nor 5.2 11.2 11.2 7.3 7.7 17.3 18.5
Somewhat negative 2.2 8.3 8.3 5.1 2.2 7.0 19.5Very negative 1.4 7.3 7.3 5.3 2.6 4.7 17.5
Dont know/ wont answer .7 1.5 1.5 2.8 6.6 6.7 8.5
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Solar by far best percieved Bio, not so much
Gas least popular
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Findings
Do you think Norway should develop largescale carbon capture and storage systems?
Yes 51.5
No 21.3
Dont know/wont answer 27.2
Total 100.0
More people want
CCS than perceive itas a good
Means they consider
it more realistic?
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Remarks
The survey is not exhaustive
What does it tell us?
Renewables are important to the public
The prospect of higher prices is only a mild
deterrent to some
People want more active policies in this field
Some renewables are more favoured than
others
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Policy issues
Politicians shouldconsider whether atechnology neutralpolicy for renewablesis the right way to go
Can the marketsecure the right levelof investments inrenewables?
Who will pay forthem?