Energy Transitions Overview

Multi-Level Governance of Energy Transitions

• Energy transitions involve structural changes in energy supply and consumption, typically lasting 30-50 years.
• These transitions encompass technical and non-technical changes (e.g., social, economic) and are multi-level, co-evolutionary processes.
• They are non-linear and involve multiple actors.

Why Energy Transitions Are Necessary

• The climate crisis is a major driver for the need for energy transitions.
• Climate change is associated with a rise in extreme weather events, such as heatwaves, droughts, storms, and floods.

Energy Transitions: An Unfolding Process

• Renewable energy accounts for just under 20% of global energy consumption.
• Global energy consumption by source (coal, oil, other renewables, etc.) has been increasing since 1965.

Beyond the Climate Crisis

• Renewable energy is much cheaper than fossil or nuclear sources.
• Air pollution from fossil fuels contributes to one in five deaths globally.
• Easier to redistribute economic benefits of energy generation with renewables.
• Prices for electricity from solar have decreased significantly (89%) in the past 10 years.
• Prices for onshore wind electricity have decreased by 70% in the past 10 years

Electrification – A Key Part of Transitions

• There's a strong push towards electrification.
• Renewable energy sources are more efficient.
• Electrification involves energy generation and use.

Multi-Level Governance

• Governance represents decision-making and actions within a given context.
• Multi-level governance is hierarchical, nested, and involves networks/institutions (formal or informal) operating at global, EU, national, state/provincial and local levels.
• Governance must prioritize accountability, transparency, responsiveness, equity, inclusion, effectiveness/efficiency, rule of law, and participation.
• Good governance requires taking into account multiple levels, including global, national and local scales.

Characteristics of Good Governance (UNESCAP 2009)

• Accountability (legitimacy): Clear responsibility for decisions
• Transparency: Open decision processes and information
• Responsiveness: Adaptability of decisions to evolving situations
• Equity and inclusion: Consideration of all perspectives
• Effectiveness and efficiency: Responsible resource use
• Rule of law: Adherence to legal processes
• Participation: Opportunities for public engagement
• Consensus-oriented: Decisions acceptable to the majority

Multi-Level Governance of Energy Transitions (Examples)

• Paris Agreement targets, NDCs (nationally determined contributions),
• Efforts to curb emissions through the European Green Deal
• National decarbonization across all sectors, e.g., transportation, industrial, food, and electricity
• Electricity system transitions

The Importance of Effective Governance for Energy Transitions

• Transitions are disruptive, associated with growing inequality and distrust in democracy.
• Top-down climate/energy decisions can face resistance.
• Effective governance can help address and mitigate these problems.

Cases of Multi-Level Governance of Energy Transitions

• European Green Deal and the Just Transition Mechanism
• (will be continued in the paper discussion after the lecture)*
• Energy demand reduction

Energy Demand Reduction

• Energy supply balancing and demand in a reliable and affordable manner are key for sustainability.
• There's a significant focus on both climate mitigation and energy transition, with a crucial emphasis on demand reduction.
• Global and regional figures are available showing that a drop in demand is achievable.

Governing Energy Demand Reduction

• Changing energy demand requires multi-level governance, including behavior change and prioritizing both supply and demand options.
• Changes in behaviour, culture, and the prioritization of different actors, across different levels (global, national, local), are necessary.
• This is relevant to factors from how citizens approach transportation to household energy use, lifestyles, working patterns and nutritional practices.

Governing System Changes

• Effective coordination across many actors is crucial for big-system changes in the energy sector. (e.g., reducing private cars).
• Changes to factors like travel needs, development of alternatives (trains, buses, bikes), infrastructure, and community attitudes are needed.

Addressing Conflict

• Successfully addressing cultural change is crucial in transitions
• Imbalances in power and influence over institutions (e.g., media) affect good governance

Decentralization of Electricity Systems

• Modern electricity systems are primarily centralized.
• Decentralized renewable energy technologies are easier to implement and are often more affordable, lower carbon, and supported by private finance.
• Current grid infrastructure is challenging to change quickly. Transitioning to a digital system is crucial.

The Challenge of Governing Decentralization

• Decentralized energy requires substantial coordination.
• Data sharing and trust are particular issues, due to widespread distrust in existing systems.
• Robust governance is essential for managing the complexities of decentralized energy sources.

What if we don't govern effectively?

• Potential for backlash or resistance
• Suboptimal designs
• Unequal access to and ownership of crucial energy assets (related to factors like education and income)
• Energy security can become an issue, particularly where there is inadequate infrastructure

Summary

• Energy transitions are essential and are underway, but need to happen faster.
• Effective multi-level governance is needed, with varying considerations depending on the issue area, geography, and/or context.
• New systems must balance efficiency, effectiveness and fairness, by conforming to principles of good governance