What is really behind the adoption of new renewable electricity generating technologies? 12th IAEE European Energy Conference Venice, Italy Patrick Narbel, patrick.narbel@nhh.no IAEE student representative 2013-2014 21.09.2012 www.nhh.no Outline 1. 2. 3. 4. 5. 6. 7. Introduction Research question and results Literature review Variables and data Hypotheses Models Conclusion 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 2 Introduction • Renewable technologies (new renewables henceforth) which have not reached grid-parity in terms of cost: – Solar PV and thermal – Onshore and offshore wind – Tidal, wave and ocean power • Share of electricity from new renewables is increasing globally – 3.3% in 2010 (REN21, 2010) – 5.0% in 2011 (REN21, 2011) • Big difference between countries in terms of their share of electricity from new renewables 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 3 Research question and results • Research question: why do countries differ in terms of their share of electricity from new renewables? • Result: – energy security – climate change mitigation – income 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 4 Literature review • Most papers exploring the diffusion of renewable technologies use policies as factors rather than establishing what leads to those policies • If we think of income, energy security and climate change mitigation, only two studies are comparable – Sadorsky (2009): income & climate change mitigation pushing for more renewable consumption. – Popp et al. (2011): income & climate change mitigation driving renewable energy investment • Contribution; complete the existing literature by integrating the political objective of energy security 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 5 Hypotheses Three models to explain difference between countries in terms of their share of electricity from new renewables: • H1: energy security • H2: climate change mitigation • H3: energy security and climate change mitigation • Income • Hydro and nuclear 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 6 Variables and data • 107 middle- and high income economies • Data for 2007, 2008 and 2009 • Robust weighted least square analysis • NREshare • GDP • Hydro • Nuclear = = = = share of new renewables in % GDP PPP /capita MWh of hydro / capita MWh of nuclear / capita • DomCoal, ImpCoal, DomNG, ImpNG • Or combination: Import, Domestic, GHG 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 7 Model H1: Energy security only • Aim: reduce fossil fuel imports • Domestic: avoid energy security issues 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 8 Result H1: Energy security only 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 9 Model H2: Climate change mitigation only • Aim: reduce fossil fuels (GHG = Coal + 0.5 · Natural gas) 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 10 Result H2: Climate change mitigation only 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 11 Model H3: ES + CCM • Aim: achieve energy security and climate change mitigation 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 12 Result H3: ES + CCM ? 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 13 Conclusion • Attempt to explain the difference between countries in terms of their share of electricity from new renewables NR: solar thermal and solar PV, onshore and offshore wind power, wave-, tidal- and ocean power • Results – ES + CCM together provide insights explaining this difference – Rich countries largely relying on coal imports to generate electricity are those achieving highest shares of electricity from new renewables – CCM alone is not sufficient to lead to higher shares of new renewables • Without these political objectives, it is likely that new renewables would not diffuse in any electricity market 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 14 Thank you for your attention. 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 15 Literature review • Most papers exploring the diffusion of renewable technologies use policies as factors rather than establishing what leads to those policies • If we think of income, energy security and climate change mitigation, only studies from Sadorsky (2009) and Popp (2011) are comparable – Sadorsky: real GDP- and CO2 emissions per capita are the two major factors pushing for more renewable consumption. – Popp: Kyoto protocol, GDP per capita and knowledge stock are the major drivers behind renewable energy investment • Contribution: – Complete the existing literature by integrating the concept of energy security 21.09.2012 Patrick Narbel, patrick.narbel@nhh.no 16