ECPR General Conference | 3-6 September 2014 University of Glasgow, United Kingdom
Balancing the Energy Dilemma in Emerging Economies? Renewable Energy Support in Indonesia and the Philippines from a Multi-level Perspective Jens Marquardt | September 5th 2014 | Section 27: Energy Policy Dilemmas
On the Agenda
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Background
Findings
Discussion
Introducing context, theory & methods
Empirical insights from Indonesia
Synthesis and concluding remarks
Balancing the Energy Dilemma? RE in Indonesia and the Philippines from a Multi-level Perspective
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Background
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Background
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Talking about Energy in Southeast Asia Total Energy Consumption in Southeast Asia (Source: BP Statistical Data)
USA
Why is Southeast Asia important?
Future developments SEA is “shifting the centre of gravity of the global energy system to Asia” (IEA 2013) ASEAN countries rapidly build up their energy systems High potentials for renewables, ambitious targets and supportive policies But: RE share expected to decrease until 2030
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Balancing the Energy Dilemma? RE in Indonesia and the Philippines from a Multi-level Perspective
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Background
1 Research question
What is this research all about?
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How does the political system affect renewable energy support in Indonesia and the Philippines and how is it linked to the countries’ energy dilemma?
Two central aspects 1.
Discuss RE within the context of an energy dilemma in Indonesia and the Philippines
2.
Look at RE support from a multi-level governance perspective
Balancing the Energy Dilemma? RE in Indonesia and the Philippines from a Multi-level Perspective
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Background
1 Context: Decentralization in Indonesia and the Philippines Shift of power (and resources) to subnational authorities Various levels of decision-making involved Complex project and policy implementation process
Analytical framework
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Multi-level Governance Framework to capture… … various levels that are involved in a decision-making process … processes of bottom-up learning and top-down implementation … issues of coordination, cooperation and conflicts Limitations: schematic approach; does not answer a „why“ question (e.g. underlying power relations)
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Background
Methodology for this research
1 Expert interviews with stakeholders of the RE sector in Indonesia and the Philippines
Analyze RE support in the energy system from a multilevel perspective
Philippines 5 16
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Link RE support to the specific energy dilemma in both countries
Indonesia
Government
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Development aid Public energy sector
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Civil society
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RE business
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50
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3
Science
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Empirical Findings (Indonesia)
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Background Findings
2 Energy Resources and Development Conflict between environmental protection and economic development
Why Indonesia?
Potentials for small-, but also large-scale RE development (e.g. geothermal) Ambitious targets for renewables (25% by 2025)
Oil-importing country since 2004; coal still abundant
Political Context Consolidated democracy after decades of authoritarian rule Strong (and on-going) process of decentralization
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Results from Expert Interviews
Background Findings
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(focus on Indonesia)
Political issues related to multi-level governance are perceived as a major barrier for RE support
1) The political context does matter.
• • • •
Actors on different levels of decisionmaking are perceived as barriers, but only the national level is considered to be a driving force for RE support.
„local authorities“ „bupatis and walikotas“ „decentralization“ „complex corruption“
What are the key barriers for RE in IDN? Political Economic Environmental Technological Social
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28 19 8 4
Which actor is the main driving force for RE? EBTKE PLN NGOs Donors Others
34 28 11 9
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Which actor is the main barrier for RE?
Interview partners are clearly in favor of a top-down approach, rather than a bottom-up process to support RE
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Kabupatens Banks PLN Min. of Finance Others
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Background Findings
The Energy System from a Multi-level Perspective
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(focus on Indonesia) From a national perspective: very clear electricity system
2) A multi-level governance perspective reveals obstacles.
From a multi-level governance perspective: Complexity and conflicts Decentralization increased the number of veto players for RE support Market Structure Selfgeneration
IPPs
Electricity Supply
Policy Making Central
Generation
govern-
ment
Provide
sell to PLN
framework
ESDM Policies Min. of Finance Subsidies Min. of State Owned Companies PLN Shareholder
BAPPENAS Develop. planning
policy
Transmission &
PLN
system operation
coordination
Provinsi
Approve /
Local PLN
reject projects
Distribution
Kabu-
Dinas for Energy
paten /
Public Works
Kota
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BAPPEDA
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Background Findings
Multi-level Governance and the Energy Dilemma
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(focus on Indonesia)
Environmental protection vs. economic growth?
3) Obstacles are linked to the energy dilemma.
National level: Implementing support mechanisms for renewables fails due to (economic) concerns from other ministries than the Ministry of Energy. Local level: Large-scale renewable energy projects encounter more local skeptisism and resistance than coal power plants. National-local interaction: Implementing renewable energy projects depends on long-term and often complex negotiations.
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Discussion
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Background Findings
Conclusions
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Tackling the energy dilemma in a country like Indonesia requires to understand the country’s energy sector from a multi-level governance perspective. Multi-level governance issues are “bottlenecks” for RE support. Implementing national policies requires local support
Discussion
Weak capacity and lack of awareness for national energy planning Lack of consultation during the process of national policy formulation Renewable energy are perceived as temporary and additional. RE should cover additional demand, but not substitute fossil fuels RE good for off-grid electrification, but not for permanent supply
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Background Findings
Conclusions
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Research Question How does the political system affect renewable energy support in Indonesia and the Philippines and how is it linked to the countries’ energy dilemma? Major Arguments
Final remarks & recommendations
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1.
A multi-level governance perspective reveals obstacles for RE support.
2.
Decentralization challenges the role of renewables as a potential solution to the energy dilemma between economic growth and environmental protection.
3.
Looking at the energy dilemma in Southeast Asia is highly relevant for future global energy demand – with a need also for political scientists.
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Thank you for your Attention Questions & Comments?
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Jens Marquardt Environmental Policy Research Centre Freie Universität Berlin
[email protected] www.fu-berlin.de/ffu
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