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Raffaele.Trapasso@OECD.org

Renewable energy and rural development: Main findings and lessons learned. Raffaele.Trapasso@OECD.org. Outline of the presentation . Historical background of the Renewable Energy (RE) Policy Main findings from the network of the OECD regions Lessons learned from Nordic case studies

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Raffaele.Trapasso@OECD.org

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  1. Renewable energy and rural development: Main findings and lessons learned Raffaele.Trapasso@OECD.org

  2. Outline of the presentation • Historical background of the Renewable Energy (RE) Policy • Main findings from the network of the OECD regions • Lessons learned from Nordic case studies • Friends and enemies of rural development through RE • Our message to the world! (or, at least, the EU…)

  3. Evolution of renewable energy policy (in 2 minutes) DRIVERS Energy Security Climate Change Economic Development (employment) POLICIES 1973 ca 2012 Energy Strategy Innovation Policy High incentives to RE production

  4. 1. Main findings from the network RE is not a panacea. • per se, ithas a low impact on employment. It can negatively affect energy costs . RE has to have a job in rural areas: it has to provide cheaper energy (heating, electricity, cooling) or be functionally connected with a core activity

  5. 1. Main findings from the network RE is not a panacea. • per se, ithas a low impact on employment. It can negatively affect energy costs . RE has to have a job in rural areas: it has to provide cheaper energy (heating, electricity, cooling) or be functionally connected with a core activity Innovation capacity exists in all case studies. In some cases RE in embedded in regional innovation systems. Industries have new business opportunities SMART Specialisation. Key in rural areas, which tend to have a narrow industrial mix. And a sticky endowment of skills.

  6. 1. Main findings from the network RE is not a panacea. • per se, ithas a low impact on employment. It can negatively affect energy costs . RE has to have a job in rural areas: it has to provide cheaper energy (heating, electricity, cooling) or be functionally connected with a core activity Innovation capacity exists in all case studies. In some cases RE in embedded in regional innovation systems. Industries have new business opportunities SMART Specialisation. Key in rural areas, which tend to have a narrow industrial mix. And a sticky endowment of skills. RE policy has been looking for short-cuts to avoid dealing with transaction costs: wrong Coordination failure between RE and rural policy (all levels) Rural policy Innovative role of the central level and intermediate institutions at the regional level Renewable energy policy

  7. 2. Lessons from Nordic case studies • Mid Sweden • Produce cheaper energy (heating). • North Karelia • Connect with local businesses • Region Sjaelland • Multidimensional and multilevel policy • Tromsø • Always worth explaining the policy rationale to rural communities…

  8. 3. Friends and enemies of rural development through RE • Friends • Democracy and transparency (no NIMBYsm narrative) • Holistic approach to RE technologies • Reducing the cost of energy for a community or for a constituency in rural areas • Enemies • High sectoral incentives • Old energy paradigm (power plants and long-distance transmission) • A vision of space à la Democritus.

  9. 4. Future scenarios (our message to the world) • Less new installed capacity due to negative trend of incentives. : • Lack of incentives (“doping”) • Transmission and distribution capacity (grid management). • In particular in rural areas. “[…] maintaining system reliability in the presence of high wind energy penetration is a bit like trying to keep a car at a constant speed of 50mph while driving under poor visibility up and down a mountainous road with sharp turns, some very large potholes, and not much of a guardrail.” (November 2012, Electricity Journal K.F. Forbes; M. Stampini; E. M. Zampelli)

  10. Grazie per l’attenzione

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