Photovoltaic Systems as Actuators of Regional Development – a social understanding

1. Photovoltaic Systems as Actuators of Regional Development – a social understanding Response-able Communities Conference (05.22-24) 2013.05.23 Viktor VARJÚ (PhD) varju@rkk.hu

2. Baseline position: economic, industrial growth, and EU forced and financed development caused an extended utilisation of the natural capital Alerts: - Silent Spring, The Limits to Growth, Bruntland Report etc. Means in regional development: - Evaluations (ex ante, mid term, ex post) - Tools: EIA (1985), SEA (2004)  EPI into planning - EU Environmental Programme in (7th 2012-2020 is before submission) However: Energy consumption is still growing EU 2020 targets: 20%, 20%, 20% Are(is) we (the Society) ready for renewables?

3. Methods and Material Are we (esp. Hungary) ready for renewables? (For a mass photovoltaic energy using?) • Goal of REGPHOSYS (IPA HUHR) project: Development of optimal photovoltaic system configuration for climatic conditions of the cross-border region

4. Methods and Material 2. Main tasks: - Preliminary analysis of environmental, economic, social conditions - Measuring, testing technical conditions (panels, inverters) - Based on the measurement, analysis of environmental, social, and economic feasibility Methods: previous research experience; desk research; questionnaire; interviews

5. General conditions • Axioma: Solar potential is more than enough for the energy consumption, however, efficiency of the recent technology is low, and expensive, the share in the Energy Consumption is also low Fig1: Renewable Energy Share of Global Final Energy Consumption, 2008 Fig2: Renewable energy source in energy production (EU27; %) Source:1. Renewable 2010 Global status report 2. www.energy.eu

6. General geographical/climateconditions • Average insolation: 1200 kWh/m2/year • Solar yearly potential is 2500 higher than the recent consumption (in Hungary) (Source: http://re.jrc.cec.eu.int/pvgis)

7. Societal FrameworkEmpirical analysis(Desk research) • Innovation potential: - economic habits are embedded in the Society (Polányi K. 1976); regional innovation systems are also embedded into it (Vas Zs.-Bajmóczy Z. 2012). Csizmadia Z. 2009; Bodor Á. (2013): In innovation system analyses of societal circumstances is essential. Innovation is depending not only relating on (hard) institutional settings, but on soft, informal social context as well.  Hungarian innovation anomaly: informal social context is relatively good; governance and finance issues are drawing back • Energy policy: There are stimulating tools (e.g. in EU: green certificates; tax refunds; supported price – most successful) (Lux G. 2012) • Energy policy (in Hungary): different interests in strategic planning, „careful” planning  strict capacity barriers in legislation (e.g. max. 499 kW inbuilt solar capacity); hectic supportive tendering (KEOP)

8. Societal FrameworkConditions – NATIONAL LEVEL • EU2020 target in Hungary: Renewable energy share in consumption: 14.65% • General (previous empirical) experience: • Centralised decision making • Delayed environmental strategy planning and • harmonisation (e.g. NEP III.; NSDP; • SEA directive; WM directive) • caused inappropriate implementation • Low level of transparency

9. Societal FrameworkConditions – REGIONAL LEVEL • In real (environmental policy) decision making regional level was and is missing. There is only practical, servant role. • Regional Green Authority – as a potential facilitator – was totally destroyed in the past 7 years(see e.g. Kohlheb N-Pataki Gy. 2011). • New regional level (county), decision only in regional development (Shell it be real power?) Fig.: Development procedure, interaction between stakeholders in the planning of ROP for 2007-13 period.

10. Societal FrameworkConditions – LOCAL LEVEL Local (governmental) level  environmental consciousness level is low; tasks relating to environmental issues (e.g. use of renewables) is at the end of the compulsory tasks list Examples (based on empirical findings in 2012): • 9% of local governments have not „Settlement Environmental Protection Plan” – compulsory since 1995! • Q: 1st mentioned: - 36,8% basic educ.; 25% basic social • 2nd mentioned: educ.; social; health (77%) • Environmental issues: 1st.- 1,5%; 2nd.-4% 3rd.-7% (!Society is embedded into natural environment! – (Vida G. 2013; Hajnal K. 2006, etc.)

11. Societal FrameworkConditions – LOCAL LEVELREGPHOSYS interviews (Background) motivations of renewables investment (in local government) • Accidental occasions lead to the investment (previous geological excavation papers emerged) • Main motivation depends on economic interests (almost exclusively) – environmental „sustainability” slogans appear after the investment as marketing element • „Tender-led society” – no „green” or energy strategies on local level – ad hoc investments • Decision is based on holder of „knowledge”, on personal competence – no public (or NGO) involvement How would you characterise renewable energy issue in Hungary?

12. Conclusion • Climate conditions are good • Hungarian national strategic, legislative and governance framework and economical interests are not supportive (top-down; centralised and bureaucratic) • Social conditions – Social aspects of innovation – institutional and financial drawback • Discrepancy in strategic planning – „Tender-led society”  new tools of 2014-20 planning period (ITI and CLLD) can be facilitator solution – (Of course: tendering is unavoidable in the first phase of the introduction and dispersion of renewables) • Dispersion of expert knowledge should be improved • Public participation/transparency (in every level) need to be improved

13. Thank you for your attention E-mail: varju@rkk.hu www.regphosys.eu