1. Technology policy for renewable energy Knut H. Sørensen NTNU 2003-11-20

2. Aim of the talk To discuss the conditions for a technology policy that supports the development of new renewable energy technologies To outline possible elements in such a policy

3. Some socio-cultural considerations I We live in a comfort society –Price elasticity is low –Income elasticity is low –Comfort is difficult to decrease –Increasing demands of user friendliness We live in a hydroelectric society –Hydropower electricity is the golden standard of energy supply –Electricity is perceived as clean

4. Some socio-cultural considerations II We live in a society of mobility –Mobility is a human right –Mobility is non-urban We live in a petro society –Norway is a large exporter of oil and gas –Oil and gas provide large revenues We live in a energy economic rather than energy efficient society

5. Are new energy technologies reflecting the socio-cultural conditions? Problems in the technological culture: –The engineering ethos: You can’t always get what you want - but you’ll get what you need? –The professor Higgins’ problem: I’m an ordinary man - why can’t everybody be like me Problems outside the technological culture: –Ideology –Instruments

6. Inside technology-problem: Big is beautiful? Heatpumps Windmills Wave power

7. Technology policy – a contradiction in terms? Three common problematic assumptions: –Technology = progress –”Soft” technological determinism –Accept of the anatomic validity of the linear model of innovation Thus, no need for policy. Technology is above policy and politics

8. Common weaknesses in technology policy thinking: tendency to leave technology out of policy tendency to focus only on development and design as the main policy objects tendency to limit policy to innovation tendency to limit policy to experts inefficient policy instruments

9. Example: ENØK – economic efficiency of energy use. A story in three acts Act 1. invention: 1976-1985 –small efforts, mainly financial instruments –focus on five activities: information r&d financial support for prototypes to demonstrate usefulness of new technologies committee to explore energy conservation issues improvements in the transfer system of electric power the last remained very dominant in terms of funding.

10. Act 2: Growth 1986-1992 Increased economic efforts –Use of subsidies to make investments in energy conservation more attractive –Establishment of education programmes –Economic support of local energy planning

11. Act 3. Liberalization Reduced efforts, in particular of subsidies and incentive systems –Greater emphasis of Norway's role as exporter of oil and - in particular - gas –Greater emphasis on the market as instigator of energy conservation –Integration of energy conservation r&d into general energy r&d Withdrawal of politics?

12. Some highlights: With bureaucratic assistance, the Norwegian parliament invents a particular understanding of sustainable energy-use, called “energy economization” (economically optimal use of energy) This concept is a compromise between economists concerned with the economics of the energy market and the role of relative prices, and engineers concerned with technologies for increased energy efficiency and new energy supplies.

13. Outcome I A very heterogeneous constituency of actors: –Research communities from different fields, spanning from physics to economics –New institutions with vested interests in energy economization - ENOVA –New support systems form development of new technologies as well “diffusion” –Partly reorientation of relevant regulatory bodies –Parliamentary routines to survey the successes and failures of the efforts

14. Outcome II A regulatory regime with serious deficiencies: –Sidetracks sustainability –Does not communicate well with actors in technological fields (including architechts) –Imposes inflexible economic criteria as the basis of evaluating renewable energy technologies –Sidetracks technology

15. Example 2: Hydrogen A shared dream about a not-to-soon-to- happen future Positive, but vague political support A market issue?

16. Brief comment on the anatomy of technology policy: Infrastructure Innovation Regulation Participation

17. Outline of a technology policy for a hydrogen economy Infrastructure: How to make hydrogen available Innovation: What innovations need to be supported in what ways? Regulation: How should the use of hydrogen be controlled? Participation: How to involve the public in the hydrogen future?

18. Sustainable technologies: From low tech to high tech? Electrical cars: –1970s: small scale, artisan production, simple solutions –Today: technologically advanced, engineering-based production Ecological buildings: –”Nature-like” solutions vs –Smart, energy-efficient, high-tech buildings A general trend?

19. Criteria of sustainability I 1970s: Appropriateness –Technologies should be adapted to local conditions and resources - modular –Simple rather than complex, artisan-based rather than engineering science –Preferably low cost –Small is beautiful! –Critical towards technical fixes –Alternative rather than new technologies –Limits to growth

20. Criteria of sustainability II Today: Ecological efficiency –Advanced methods to measure sustainability, like LCA, input-output, etc. –Mainstream efforts, utilising front-end engineering science –Sustainable growth –> high costs are acceptable as part of techno-economic optimation –Big is beautiful?

21. Towards a new regime of sustainable engineering? Is high tech appropriate? What are the consequences of making sustainability a mainstream engineering concern? Out of control: Oh, not again!