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Developing Nordic Cooperation in Renewable Electricity Policy: Exploring Views from Finland and Sweden

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Developing Nordic Cooperation in Renewable Electricity Policy: Exploring Views from Finland and Sweden Politics and Governance (ISSN: 2183–2463) 2020, Volume 8, Issue 4, Pages 44–52 DOI: 10.17645/pag.v8i4.3408 Article Developing Nordic Cooperation in Renewable Electricity Policy: Exploring Views from Finland and Sweden Sarah Kilpeläinen Faculty of Management and Business, Tampere University, 33014 Tampere, Finland; E-Mail: [email protected] Submitted: 30 June 2020 | Accepted: 28 August 2020 | Published: 3 November 2020 Abstract Calls for extending Nordic cooperation in the energy sector consider increased cooperation to be a tool to further support the creation of a smart Nordic energy system and realize the sustainable energy transition. To enhance our understanding of the state of Nordic energy cooperation, this article focuses on renewable electricity policy development in Finland and Sweden against the backdrop of facilitating and accelerating the Nordic energy transition. Building on previous research, the respective policy landscapes in Finland and Sweden will be scrutinized with insights from expert interviews, allowing the highlighting of the role of the actors in shaping the national and international energy transition policy. Ultimately, the article will explore the possibilities to enhance Nordic cooperation and question a possible future institutionalization of Nordic energy cooperation from the perspectives of Finland and Sweden. The aims of the article are twofold. First, to analyze the current policy mixes in Finland and Sweden with a special focus on bottlenecks and development needs and, second, to explore the viewpoints of the stakeholders from these two countries regarding potential and bottlenecks for developing Nordic energy cooperation. Keywords energy policy; energy transition; Finland; Nordic; renewable electricity; renewables; Sweden Issue This article is part of the issue “Rediscovering Nordic Cooperation” edited by Anne Elizabeth Stie (University of Agder, Norway) and Jarle Trondal (University of Agder, Norway/ARENA University of Oslo, Norway). © 2020 by the author; licensee Cogitatio (Lisbon, Portugal). This article is licensed under a Creative Commons Attribu- tion 4.0 International License (CC BY). 1. Introduction These ambitious goals and already realized achieve- ments in the energy sector position the Nordic re- The Nordic energy transition is based on a set of am- gion as a frontrunner in the energy transition, hav- bitious policy goals agreed upon in the main strate- ing an exemplary function within the EU and globally. gies pertaining to energy and climate as interconnected Simultaneously, the Nordic progress also raises questions policy fields. These national strategies are reflected on about possible acceleration and how Nordic cooperation the regional level, for example, through the Declaration can be one tool for accelerating the energy transition. on Nordic Carbon Neutrality, adopted in 2019. Striving Ambitious goals, as a part of high-level policy strate- for carbon neutrality and the electrification of inter- gies, must be operationalized at the policy level. Here, ac- connected sectors with renewable electricity (NORDEN, tors and policy processes are vital. The question of inter- 2019; TNCEP, 2020) encompasses a variety of policy chal- ests and their influence on supporting or hindering a con- lenges. The need to transform the power sector and elec- certed effort must be especially considered in this con- trify heat and transport sectors are a part of the drivers text. The focus here is on these themes in line with the for this vision (TNCEP, 2020). This entails the coordina- calls found in the policy mix literature to focus more on tion of a variety of national policies in a complex policy actors and policy processes and on how these, in turn, environment that requires speedy developments so as to can affect the content of policy mixes (Rogge, Kern, & address the multitude of challenges set out in the respec- Howlett, 2017, p. 2), with efforts to further account for tive national strategies. the role of politics in shaping policy (Meadowcroft, 2011). Politics and Governance, 2020, Volume 8, Issue 4, Pages 44–52 44 Empirically, the focus is on policies aimed at sup- velop have been focus areas in the literature on policy porting the development of renewable electricity in mixes for energy transitions. Policy mixes are understood Finland and Sweden. Finland and Sweden share inter- as consisting of respective interacting policy instruments connectors and are planning a further interconnector to as well as long-term strategies, characteristics, such as be taken into use in 2025 (Fingrid, 2016). Additionally, consistency and coherence, and the ways in which policy they share similar characteristics influencing the devel- processes shape the development of policy mixes (Rogge opment of their energy system toward having a higher & Reichardt, 2016). Recent research on policy mixes has share of renewable sources. They are sparsely popu- focused on paying sufficient attention to the complex- lated Nordic countries with population centers in the ity, interactions, and interdependencies of different ele- South requiring the development of North–South trans- ments of a policy mix as well as focusing on the temporal mission capacities; they share a similar cold climate, have dynamics and the situatedness of policies under wider energy-intensive industries and long transport distances. frameworks (Edmondson, Kern, & Rogge, 2019). The tem- Additionally, both Finland and Sweden have a strong poral dimension and the iterative nature of policymaking bioenergy component in their energy mixes as well as a are core components given the long timeframes of tran- share of nuclear energy to support the decarbonization sitions, where instruments will change according to the of their energy mixes. As opposed to Finland, where wind changing objectives and stages of innovation (Turnheim power has been slower in gaining traction, Sweden also et al., 2015). has a well-developed capacity in terms of wind power Analyzing the development of policies allows for bet- generation (IEA, 2019, p. 100). ter insight into the political processes underpinning their The aims of this article are, first, to outline and dis- development and provides an opening for better under- cuss the policy mixes, as they pertain to renewable elec- standing the variety of actors involved. Additionally, the tricity support in Finland and Sweden, and, second, to role of the actors and institutions in shaping and devel- discuss the opportunities and challenges for Nordic co- oping the energy transition policy mixes is central in mov- operation in developing renewable energy support poli- ing beyond privileging structure at the expense of agency cies in the future. To do so, Section 2 introduces the and in understanding the ways in which the actors can theoretical background for this article, focusing on poli- play different roles at different times (Flanagan, Uyarra, cies, the need to better understand actors involved, and & Laranja, 2011, p. 706). the ways in which the potential for Nordic energy co- operation has been seen in the literature. Section 3 in- 2.2. Focusing on Actors troduces the data set. Section 4 draws on the interview data to analyze the policy landscape in both Finland and Recent research emphasizes the understanding of policy Sweden before focusing on the development of Nordic as a socially constructed ideational framework (Kuzemko, cooperation. Finally, Section 5 presents the conclusion of Lockwood, Mitchell, & Hoggett, 2016). In this context, re- the article. search focuses on how actors are shaped by a “regula- tive, normative and cultural-cognitive rule system” and 2. Theoretical Background on institutional barriers as counterbalances to dominant approaches rooted in energy economics and engineer- National strategies for climate and energy encompass a ing (Tenggren, Wangl, Nilsson, & Nykvist, 2016, p. 150). set of interlinked goals for the development of the en- Lindberg, Markard, and Andersen (2019, p. 2), stress the ergy sectors and the development of electricity from re- importance of the actors’ roles and preferences as these newable sources. Putting these goals into practice re- influence the policy process as well. This aligns with calls quires a move from strategies to policy instruments for to focus on actors and politics in the study of policy mixes implementing energy transitions and the need to better (Flanagan et al., 2011; Rogge & Reichardt, 2016). understand these processes of policymaking, including a Here, it is assumed that a focus on the policies and in- focus on how different actors shape the possibilities for volved actors furthers our understanding of what works operationalizing high-level strategies into policies. This in national settings as well as the regional level of co- move from the abstract level to the operational level is of operation in renewable energy policies. Focusing on the importance for: 1) understanding different approaches role of these policies in supporting the development for developing and implementing national and regional of Nordic cooperation on the renewable electricity pol- policy mixes, 2) understanding the ways in which poli- icy also connects to the narrative of the Nordic coun- cies develop through inputs from a wide actor base, and tries as leaders in this field (Sovacool, 2017) that are 3) understanding the role of actors and a widening ac- possibly able to accelerate transitions with regard to tor base. EU-level activities. This article focuses on the
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