[email protected] renewable energy and rural development: main findings and lessons learned

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[email protected] Renewable energy and rural development: Main findings and lessons learned

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Page 1: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

[email protected]

Renewable energy and rural development: Main findings and lessons learned

Page 2: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

Outline of the presentation

1. Historical background of the Renewable Energy (RE) Policy

2. Main findings from the network of the OECD regions

3. Lessons learned from Nordic case studies

4. Friends and enemies of rural development through RE

5. Our message to the world! (or, at least, the EU…)

Page 3: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

Evolution of renewable energy policy (in 2 minutes)

Energy Security

Climate Change

1973 ca

Economic Development (employment)

DRIVERS

Energy Strategy

POLICIES

Innovation Policy

High incentives to RE production

2012

Page 4: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

1. Main findings from the network

AUSTRALIA CANADA GERMANY USA-0.0999999999999994

5.82867087928207E-16

0.100000000000001

0.200000000000001

0.300000000000001

0.400000000000001

0.500000000000001

0.600000000000001In the USA, Almost 60% of total investment in new assets goes to rural (2009)

RE is not a panacea. per se, it has a low impact on employment. It can negatively affect energy costs .

RE has to have a job in rural areas: it has to provide cheaper energy (heating, electricity, cooling) or be functionally connected with a core activity

Page 5: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

1. Main findings from the network

AUSTRALIA CANADA GERMANY USA-0.0999999999999994

5.82867087928207E-16

0.100000000000001

0.200000000000001

0.300000000000001

0.400000000000001

0.500000000000001

0.600000000000001In the USA, Almost 60% of total investment in new assets goes to rural (2009)

RE is not a panacea. per se, it has a low impact on employment. It can negatively affect energy costs .

RE has to have a job in rural areas: it has to provide cheaper energy (heating, electricity, cooling) or be functionally connected with a core activity

Se-ries1

0.00 5000.00 10000.00 15000.00 20000.00

Patents: total vs. those produced by our partner regions (2007-09)

2% of the total patents produced in the world

Innovation capacity exists in all case studies. In some cases RE in embedded in regional innovation systems. Industries have new business opportunities SMART Specialisation. Key in rural areas, which tend to have a narrow industrial mix. And a sticky endowment of skills.

Page 6: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

1. Main findings from the network

AUSTRALIA CANADA GERMANY USA-0.0999999999999994

5.82867087928207E-16

0.100000000000001

0.200000000000001

0.300000000000001

0.400000000000001

0.500000000000001

0.600000000000001In the USA, Almost 60% of total investment in new assets goes to rural (2009)

RE is not a panacea. per se, it has a low impact on employment. It can negatively affect energy costs .

RE has to have a job in rural areas: it has to provide cheaper energy (heating, electricity, cooling) or be functionally connected with a core activity

Se-ries1

0.00 5000.00 10000.00 15000.00 20000.00

Patents: total vs. those produced by our partner regions (2007-09)

2% of the total patents produced in the world

Innovation capacity exists in all case studies. In some cases RE in embedded in regional innovation systems. Industries have new business opportunities SMART Specialisation. Key in rural areas, which tend to have a narrow industrial mix. And a sticky endowment of skills. RE policy has been looking for short-cuts to avoid dealing with transaction costs: wrong

Innovative role of the central level and intermediate institutions at the regional level

Rural policy

Renewable energy policy

Coordination failure between RE and rural policy (all levels)

Page 7: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

2. Lessons from Nordic case studies

• Mid Sweden– Produce cheaper energy (heating).

• North Karelia– Connect with local businesses

• Region Sjaelland – Multidimensional and multilevel policy

• Tromsø – Always worth explaining the policy rationale to

rural communities…

Page 8: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

3. Friends and enemies of rural development through RE

• Friends – Democracy and transparency (no NIMBYsm

narrative)– Holistic approach to RE technologies– Reducing the cost of energy for a community

or for a constituency in rural areas

• Enemies– High sectoral incentives – Old energy paradigm (power plants and long-

distance transmission) – A vision of space à la Democritus.

Page 9: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

4. Future scenarios (our message to the world)

• Less new installed capacity due to negative trend of incentives. : – Lack of incentives (“doping”) – Transmission and distribution capacity (grid

management).

• In particular in rural areas.

“[…] maintaining system reliability in the presence of high wind energy penetration is a bit like trying to keep a car at a constant speed of 50mph while driving under poor visibility up and down a mountainous road with sharp turns, some very large potholes, and not much of a guardrail.” (November 2012, Electricity Journal K.F. Forbes; M. Stampini; E. M. Zampelli)

Page 10: Raffaele.Trapasso@OECD.org Renewable energy and rural development: Main findings and lessons learned

Grazie per l’attenzione

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