1. Public Policy in Asia PhD Conference | 26-27 May 2014
Lee Kuan Yew School of Public Policy | National University of Singapore
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia
Jens Marquardt | May 26th 2014
Field of research dominated by economists and engineers: Promotion of RE
Especially in the field of development aid: Conducting economic feasibility studies + promoting technical pilot projects  showing feasibility since 20 years
Interstingly, no major breakthrough despite availability of resources, technical solutions and economic feasibility
Highlight the importance of public policy and governance in this field of research
In this paper: Apply a multi-level governance approach to RE support in Southeast Asia  Philippines and Indonesia

2. On the Agenda 1 2 3 Background Findings Conclusions
Introduction & theoretical framework
Findings
Focus on the Indonesian case
Conclusions
Discussion & recommen-dations 1 2 3
Agenda for remaining 8 minutes:
Background: Short Introduction into the overall topic + theoretical framework
Findings: Experiences from the Philippines and Indonesia
Conclusions and recommendations for public policy
 RE support as a challenge of multi-level governance
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

3. What is the topic all about?1
Energy Policy Research in Southeast Asia
Background
What is the topic all about?
Southeast Asia as a fascinating region for energy policy research
Booming region: tripple demand by 2030
Energy side
Developing region: build up future energy system
Previliged region: renewable energy potentials
Diverse region: Various political systems
Politicalside
Developing region: social / political pressure
Changing region: democratization, stabilization
Case Studies Philippines + Indonesia
Research Question How can a regime shift towards renewable energy be governed within a decentralized multi-level political system?
Introduction
SEA as a highly intersting region  rapid changes concerning energy + high RE potentials, BUT: energy system based on fossil fuels
Research question: How does a multi-level governance system in Southeast Asia influences RE support / policies / projects etc.?
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

4. Theoretical framework1
Background
Theoretical framework
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
landscape
landscape
political system
economic system
social
system
electricity regime
awareness
market
science
culture
policy
industry
technologies
Theory: Multi-level governance
Complexity of regime shifts: depends on coordination and the distribution of power (actor constallations, networks etc.)
First step: understand the energy system from a multi-level governance perspective
Analytical framework needs to cover the multi-level perspective = transition management:
Niches = „the locus of radical innovation“ (Geels)  for innovations not in line with the existing regime
Regime = socio-technical regimes, crucial level for change
Landscape = overarching framework conditions, context, visions, norms
Very eurocentric model, but important to acknowledge different levels of political decision-making
niches
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

5. Methodology of the paper1
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
Methodology of the paper
Philippines
Indonesia
Government
Development aid
Public energy sector
Civil society
RE business
Science 50 50
Three steps approach:
1. expert interviews, semi-structured, qualitative analysis (pros and cons)
2. based on interviews & literature: analyze RE support within the energy system from a multi-level perspective
3. use transition management as an analytical framework + discuss the usability of this approach
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

6. 1) Multi-level governance does play a role.
„local authorities“
„bupatis and walikotas“
„decentralization“
„complex corruption“
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
Findings
1) Multi-level governance does play a role.
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?
Findings following the three steps approach  focusing on Indonesia (excluding the Philippines)
Indonesia: biggest and most populous country in SEA, rich in natural resources, especially coal (world‘s biggest exporter)
At the same time: less than 80% electrification of households, energy demand increase 7-8% per year
Political barriers perceived as the biggest challenge for RE support  not representative, but gives a snapshot of the sector
These political barriers related to decentralization and multi-level governance
Main driving force = national government (EBTKE) / Main barrier = local government  top down rather than bottom up
Negative perception of decentralization when it comes to RE support (only some interview partners positive)
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

7. 2) A multi-level perspective reveals obstacles.
Background
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
Findings
2) A multi-level perspective reveals obstacles. 2
Electricity Supply
generation
Transmission & system operation
distribution
Market Structure
Policy Making
PLN
IPPs
Self- generation
Sell to PLN (IPP)
Central govern- ment
Provinsi
Kabu- paten / Kota
Provide
framework
policy
coordination
Approve /
reject
projects
ESDM Policies
Min. of Finance  Subsidies
Min. of State Owned
Companies  PLN Shareholder
BAPPENAS  Develop. planning
Dinas for Energy
Public Works
BAPPEDA
Local
Identified crucial actors for RE suppport  what is their role in the country‘s energy system?  look at it from a multi-level perspective (to highlight power, coordination etc.)
From a narrow perspective: simplistic energy system with state-owned PLN as the dominating actor (85% generation, transmission, distribution)
From a multi-level perspective: Complexity and conflicts  horizontally & vertically fragmentation of responsibilities
EBTKE as driving force? Only one directorate at ESDM, only one national ministry  many other veto players + coordination needed
Example 1: promote RE at PLN  coordination with Min. of State Owned Companies + Min. of Finance (subsidies)
Example 2: geothermal project implementation  Min. of Forestry, provinces + Kabupatens
Example 3: FiT  coordination with MoF
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

8. 3) Transition management can be a useful tool.
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
Findings
3) Transition management can be a useful tool. 2
TM sees itself as a model to cover these issues of fragmentation, coordination and multi-level interaction  can it be applied to IDN?
Multi-phase perspective  IDN still in its „experimentation phase“ despite decades of experiences with large scale RE
Niche level experimentation  theoretically good conditions due to decentralization
Socio-technical regime  stable fossil-fuel based regime structure
Landscape framework  support for coal (energy security, increasing demand, costs)
Coordination  Lack of scaling-up and diffusion
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

9. ? Discussion 3 Background Discussion Findings Conclusions
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
Findings
Discussion 3
Conclusions
Findings are by far not new, but multi-level governance approach helps to understand these effects and put them into a holistic context ?
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

10. Final remarks and policy recommen-dations
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
Findings
Final remarks and policy recommen-dations 3
Conclusions
Major aim: emphasize the importance of political science research in the energy field  specifically the issue of multi-level governance when it comes to RE support
Research question: How can a regime shift towards RE be governed within a decentralized multi-level political system? !
Governance for Renewable Energy in Multi-level Systems? Lessons from Southeast Asia

11. Thank you for your Attention Questions & Comments?
Jens Marquardt | Freie Universität Berlin |