Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

1. Public Policy in Asia PhD Conference | 26-27 May 2014 Lee Kuan Yew School of Public Policy | National University ofSingapore Governance for Renewable Energyin Multi-level Systems?Lessons from Southeast Asia Jens Marquardt | May 26th 2014

2.  RE support as a challenge of multi-level governance On the Agenda Background Introduction & theoretical framework Findings Focus on theIndonesiancase Conclusions Discussion & recommen-dations 2 3 1 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

3. 1 Background Energy Policy Research in Southeast Asia Whatisthetopic all about? Southeast Asia as a fascinatingregionfor energy policyresearch • Boomingregion: tripple demandby 2030 Energy side • Developingregion:buildupfuture energy system • Previligedregion: renewableenergypotentials • Diverse region:Variouspoliticalsystems Politicalside • Developingregion:social / politicalpressure • Changingregion: democratization, stabilization Case Studies Philippines + Indonesia Research QuestionHowcan a regimeshifttowardsrenewableenergybegovernedwithin a decentralized multi-level politicalsystem? Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

4. 1 Background Multi-level Governance [Jan Rotmans, René Kemp, Frank Geels] • Coordination between different levels of decision-making • Regime shift also depends on distribution of power Transition Management [Derk Loorbach, Geert Verbong, Jeroen v. d. Bergh] • Multi-phase perspective • Multi-level perspective  Niche + Regime + Landscape level Theoreticalframework landscape landscape politicalsystem social system economicsystem electricityregime awareness market science culture policy industry technologies niches Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

5. 1 Background Expert interviews with stakeholders of the RE sector in Indonesia and the Philippines Analyze RE support in the energy system from a multi-level perspective Discuss RE support from a transition management perspective Methodologyofthepaper Philippines Indonesia Government Development aid Public energy sector Civil society RE business Science 50 50 Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

6. „localauthorities“ • „bupatis and walikotas“ • „decentralization“ • „complexcorruption“ Background Results from Expert Interviews (focus on Indonesia) • Political issues related to multi-level governance are perceived as a major barrier for RE support • Actors on different levels of decision-making are perceived as barriers, but only the national level is considered to be a driving force for RE support. • There is a clear perception of a need for a top-down approach, rather than a bottom-up process to support RE 2 1) Multi-level governancedoesplaya role. Findings What are the key barriers for RE in IDN? Which actor is the main driving force for RE? Which actor is the main barrier for RE? Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

7. Market Structure Electricity Supply Policy Making ESDMPolicies Central govern-ment Min. of Finance Subsidies Self-generation IPPs generation Min. of State Owned Companies PLN Shareholder Background Sell to PLN (IPP) Provide framework policy The Energy System from a Multi-level Perspective (focus on Indonesia) • From a national perspective: very clear electricity system • From a multi-level perspective: Complexity and conflicts • Decentralization increased the number of veto players for RE support BAPPENAS Develop. planning 2 2) A multi-level perspectiverevealsobstacles. Findings PLN Provinsi Transmission & system operation coordination Local PLN Approve / reject projects Kabu-paten / Kota Dinas for Energy distribution Public Works BAPPEDA Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

8. Background RE Support in the Light of Transition Management (focus on Indonesia) • Multi-phase perspective: IDN still in its „experimentation phase“ • Niche level experimentation: theoretically positive conditions • Socio-technical regime: stable fossil-fuel based regime structure • Landscape framework: support for coal (energy security, costs…) • Coordination: Lack of scaling-up and diffusion 2 3) Transition management canbe ausefultool. Findings Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

9. Background Discussion • Multi-level governance issues are “bottlenecks” for RE support. • Weak capacity and lack of awareness for national energy planning on the local level • Lack of understanding for local circumstances among national policy-makers • Lack of consultation during the process of policy formulation • Transition management can be a useful approach, but needs to be further developed based on insights from outside the OECD. • Include non-linear behavior • Emphasize the role of local capacity • Include negative effects arising from decentralized structures as well as challenges arising from rapidly growing energy systems Discussion Findings 3 Conclusions ? Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

10. Background Research Question • How can a regime shift towards RE be governed within a decentralized multi-level political system? Public policy recommendations • Involve stakeholders on all levels during policy formulation • Focus more on the process of policy implementation • Improve consultation & awareness raising among potential veto players • Focus on mechanisms of scaling-up, rather than on further pilot projects • Highlight positive effects from decentralization and promote a bottom-up process for RE support Final remarksand policyrecommen-dations Findings 3 Conclusions ! Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

11. Thankyouforyour AttentionQuestions &Comments? Jens Marquardt | Freie Universität Berlin jens.marquardt@fu-berlin.de | www.fu-berlin.de/ffu