Renewable Energy Policy Making in the EU: What Has Been the Role of Norwegian Stakeholders?

TECHNICAL REPORT SUBJECT/TASK (title) Renewable energy policy making in the EU: SINTEF Energy Research What has been the role of Norwegian stakeholders? Address: NO-7465 Trondheim, NORWAY Reception: Sem Sælands vei 11 CONTRIBUTOR(S) Telephone: +47 73 59 72 00 Telefax: +47 73 59 72 50 Audun Ruud and Jørgen K. Knudsen www.energy.sintef.no CLIENT(S) SINTEF Energy Research Enterprise No.: NO 939 350 675 MVA TR NO. DATE CLIENT’S REF. PROJECT NO. TR A6860 2009-09-21 Sverre Aam 12E08601 EL. FILE CODE REPORT TYPE RESPONSIBLE (NAME, SIGN.) CLASSIFICATION 090921GJA143436 William M Lafferty Open ISBN N0. RESEARCH DIRECTOR (NAME, SIGN) COPIES PAGES 978-82-594-3416-6 Petter Støa 10 42 DIVISION LOCATION LOCAL FAX Energy Systems Forskningsveien 3b +47 22 96 59 80 RESULT (summary) In December 2008 the EU finally agreed upon a Directive to promote an increased share of energy consumption from renewable sources (the RES Directive). The present report assesses Norwegian stakeholders’ mobilisation as to the formulation of the RES Directive. Although the European Economic Area (EEA) Agreement provides Norway with opportunities for influence during early phases of EU decision-making, this was not considered as feasible by the Ministry in charge. The controversial nature of both the future energy policies in balancing renewables versus petroleum interests, and Norway’s relationship with the EU, contributes to explain the lack of clear, public Norwegian position vis-à-vis the formulation of the RES-Directive. Despite the lack of a clear, public position, some of Norway’s major industrial companies have aimed to influence certain aspects of the EU RES Directive. The report also assesses an emerging political and technological cooperation on off-shore wind power between Norway and the EU, with the potential of engaging both public and non-public actors. The case of off-shore wind can be an arena for improved cooperation. The report ends with recommendations on improved strategies for the promotion of Norwegian RES interests vis-à-vis the EU. KEYWORDS Renewable energy Norway SELECTED BY AUTHOR(S) EU Directive on renewable energy interests 2 TABLE OF CONTENTS Page 1 INTRODUCTION...................................................................................................................4 2 ANALYTICAL APPROACHES AND FRAMEWORK........................................................6 2.1 PUBLIC DECISION-MAKING..................................................................................7 2.2 NON-GOVERNMENTAL ACTORS..........................................................................7 2.3 TRANSFER OF KNOWLEDGE AND EXPERIENCES............................................9 2.4 SUMMARY ...............................................................................................................10 3 EU RENEWABLE ENERGY POLICIES AND NORWAY................................................12 3.1 NORWAY AND THE EEA AGREEMENT .............................................................13 3.2 NORWAY’S DECISION-MAKING STRUCTURE FOR EEA-RELEVANT ISSUES.......................................................................................................................14 3.3 NORWEGIAN RES INTERESTS IN AN EU PERSPECTIVE................................15 3.3.1 The context: Norwegian energy policy priorities and interests......................16 3.3.2 Norwegian positions towards the EU RES policies .......................................18 4 NORWEGIAN ACTORS’ APPROACHES TO THE EU RES DIRECTIVE .....................20 4.1 THE MINISTRY OF PETROLEUM AND ENERGY (MOPE) AND THE PUBLIC ACTORS .....................................................................................................20 4.2 INDUSTRIAL ACTORS...........................................................................................21 4.3 ENVIRONMENTAL NGOS......................................................................................23 4.4 REGIONAL INTERESTS..........................................................................................24 4.5 DOES OFF-SHORE WIND POWER COOPERATION PROVIDE NEW OPPORTUNITIES? ...................................................................................................25 4.6 SUMMARY ...............................................................................................................26 5 UNDERSTANDING AND CONTEXTUALISING NORWEGIAN ACTORS’ APPROACHES.....................................................................................................................28 5.1 THE IMPORTANCE OF PUBLIC DECISION-MAKING.......................................28 5.2 THE IMPORTANCE OF NON-GOVERNMENTAL ACTORS ..............................30 5.3 THE IMPORTANCE OF TRANSFER OF KNOWLEDGE AND EXPERIENCES .........................................................................................................32 6 CONCLUSION AND RECOMMENDATIONS..................................................................34 7 REFERENCES......................................................................................................................38 12E08601 TR A6860 3 12E08601 TR A6860 4 1 INTRODUCTION The main objectives for the EU’s future energy and climate change policies were endorsed by the European Council in March 2007. On this background, in January 2008, the EU Commission presented a number of proposals aiming at a triple 20 % target for Green-House Gas (GHG) emission reductions, increased use of energy from renewable sources (RES), and increased energy efficiency by 2020. Included in this ‘package’, there was a proposal for a revised Directive on renewable energies, covering electricity, heating/cooling as well as biofuels (CEC 2008b). The new RES Directive was adopted by the Council and the European Parliament in December 2008, and is replacing a former directive promoting renewable electricity (RES-E) (CEC 2001, 2009). Due to its relevance for the Agreement on the European Economic Area (EEA), Norway is committed by the new RES Directive despite being a non-member state. Norway is, moreover, considered to be an important partner for the EU in the energy field – particularly by its supply of natural gas. However, the country’s hydropower resources and off-shore wind power potential also make the country an interesting energy partner for the EU. In other studies we have assessed whether and how the EU RES-E Directive of 2001 has affected national political efforts of promoting renewable electricity consumption (Lafferty & Ruud 2008). In the present report we rather seek to explore and assess Norwegian actors’ approaches towards the decision-making processes with relevance for the formulation of the EU RES-Directive, which is also implying a broader perspective compared to the focus on electricity only in the former directive. We ask the following main question: To what extent and how do governmental and non- governmental Norwegian actors try to influence this process? This study limits its focus up to the final agreement of December 2008, but we will follow-up with subsequent studies both on the ongoing negotiation as well as the final implementation in Norway. The present report will depict to what extent there prevails a ‘Norwegian RES strategy’ vis-à-vis the EU, and to what degree this strategy is influenced by non-governmental actors. Alternatively, do industrial interests and environmental groups seek to influence EU processes through other means? In order to identify the strategies and tactics undertaken by the different actors, we will assess the framework and arenas for the relevant interest representation. Due to the EEA Agreement, there is a formalised, institutional framework to manage contact and negotiations with the EU institutions. By not being a Member State Norway lacks, however, the formal opportunity to influence decisions during the decisive final phases of the decision-making process. The potential influence for the Norwegian government is primarily related to the more technical-administrative preparatory phases. Non-governmental actors, on the other hand, are less bound by such formalized frameworks. A second aim of the report is thus to identify some critical junctures for Norwegian interest- representation, and – based on the case of renewable energy policy making – recommend possible amendments in order to strengthen Norwegian actors’ capacity for outreach and influence vis-à- 12E08601 TR A6860 5 vis the EU. In this regard, we have made a specific assessment of a recently initiated cooperation on off-shore wind power, and ask the question as to what potential this can imply for the further cooperation on RES policies between the EU and Norway. The following section provides an overview of the analytical approaches employed in the report. Section 3 outlines the political background for the relationship between Norway and the EU on renewable energies, whereas section 4 provides a mapping of the actual interaction between Norwegian stakeholders and actors at the EU-level. Section 5 gives a summarising discussion in light of the analytical perspectives, and – finally – concluding remarks as well as recommendations are given in the sixth section. 12E08601 TR A6860 6 2 ANALYTICAL APPROACHES AND FRAMEWORK In order to study to what extent and how Norwegian interests have sought to influence the relevant decision-making processes, it is necessary to take into account both the specific framework regulating the Norwegian relationship with the EU (mainly the EEA Agreement) – as will be outlined in section 3.2, as well as the

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