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511-Article Text-1790-1-10-20170628 PDF
511-Article Text-1790-1-10-20170628 PDF
Yağmur Masmas
University College Maastricht, Maastricht University
yagmurmasmas@gmail.com
Abstract
This paper examines the transition to renewable energy within the context of a nation-state using
Australia as case study. Both the Australian government and independent energy agencies have the
potential to drive the transition as forerunner, with societal support. After determining currently
ongoing initiatives, a framework is established for carrying out a hypothetical Integrated
Sustainability Assessment. Both the theoretical framework and practical guide to implementation are
presented in several stages: Stakeholder Analysis, Public Consultation, Modelling, Stakeholder
Conference, Scenario analysis and lastly Monitoring and Evaluation. Finally, insights from the case
study are translated into a synthesis of ideas for promoting country level renewable energy transitions.
The Australian government is among the Hugh et al., 2006). A Roadmap report of
most ambitious with regard to renewable the Australian Greens concludes that this
energy targets. Currently, ten per cent of transition is possible. Its costs would be
Australia’s energy comes from renewable similar to the cost of replacing ageing fossil
energy sources (RES). By 2020, this should fuel plants. Several governmental
reach twenty per cent according to the institutions have been established to guide
Renewable Energy Target, or RET the transition from conventional to
(Australian Government Department of renewable energy sources. Their main aim
the Environment and Energy, n.d). is to build the energy infrastructure that is
Research teams, both governmental and going to determine the energy market in
independent, have concluded that a several decades’ time. Two of these
complete transition is technically agencies, the Australian Energy Market
achievable and economically feasible Operator (AEMO) and Clean Energy
(Elliston et al., 2013; The Greens, n.d.; Finance Corporation (CEFC), are the
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Also, environmental compatibility is not ation is not taken into account. The focus is
assessed. The report does not give a on the process of production, extraction,
complete overview of the three pillars to storage, maintenance and replacement of
assess RE potential as defined in the World machines.
Energy Council Report, namely Thus, this case study aims to assess
geographical potential, technical potential plausible pathways towards a 100%
and economic potential (De Vries et al., renewable energy target by 2040 as well as
2007). The ISA outlined in this paper the respective consequences for Australia’s
loosely works within these three quality of life, environmental quality and
definitions and relating mathematical economic vitality. Sub questions of the
formulas in order to create backcasting problem description are to be refined by
scenarios. The end point of the scenarios is the research team during the execution of
identical, namely a 100% domestic the proposed ISA.
renewable energy production. Different
pathways to this end, from 2014 to 2040,
are explored. II. Stage I. Stakeholder
As the assessment of technical and analysis
economic potential of RES in Australia is
already thoroughly documented, existing
Crucial stakeholders in the energy sector
research can be used in the ISA. New
are the two problem owners, AEMO and
knowledge is generated in the area of
CEFC. AEMO is the body advising on
social and ecological implications of a large
planning and operating the National
scale energy transition. Thus, the ISA is
Energy Market (NEM). As independent
meant to identify possible constraints of
agency it ensures the long-term security
scaling up RES, constraints which may not
and quality of the NEM in the interest of
previously have been considered. A
its members, the Australian consumers. By
challenge frequently named is the vast
commission of the national government
amount of land required to produce
AEMO has conducted a study on energy
alternative energy. Renewables must
transition (AEMO, 2013) including a
compete with humans, nature and
Working Group for scenario
agriculture. Other key variables are
development (See Appendix I). Similar
disturbances to ecosystems or settlements,
in status, CEFC is an independent,
the use of water, materials and possible
commercially oriented agency initiated by
negative impacts on the global climate
the national government. Its main
system. These and other issues are
stakeholders are investors, businesses and
included in five to ten scenarios using a
scientists in the field of Research and
combination of stakeholder dialogue,
Development (R&D) of clean technology.
observational data and mathematical
The CEFC prioritizes investment that
modelling. Consumption and transport-
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Maastricht University Journal of Sustainability Studies 2017
vitality. The institutional dimension covers should be further extended and deepened
both regional and local policies regarding by the research team. In addition, data
energy, ETS, carbon pricing, from the International Futures Model can
environmental protection, RET etc. Social prove helpful (See Appendix III). This
effects include health effects, possible online scenario development software
undesired disturbances in surroundings of functions as example to translate the causal
inhabited areas, employment and possible model into a simple, static, interactive
(cultural) benefits for local communities. computer model. This can be categorized
Inputs are lifestyle and consumer as ‘modelling for vision-building’, to
behaviour. structure the problem and identify possible
The researchers collaborate closely measures. When completed, the created
with representatives from AEMO and program is peer-reviewed by a group of
CEFC. AEMO annually publishes National modelling experts. The computer model
Electricity Forecasting reports including embodies a scenario framework which the
extensive analysis of input assumptions consequent ISA stages are building on.
(AEMO, 2013) and a number of 2014 In order to assess the potential of
scenarios (See Appendix II). However, RES, the focus of the model is determined
these scenarios focus only on the economic three concepts, namely geographical
domain. The outcomes were mainly potential, technical potential and economic
limited to the rise and fall of GreenPower potential. De Vries et al. (2007) define
sales, not including wider environmental geographical potential as the energy flux
or societal impacts. The ISA partly builds that is theoretically extractable in areas
on findings of these reports. It includes considered available and suitable. The
assumptions regarding both large-scale formula of technical potential takes into
renewable energy targets (LRET) and account also losses of the conversion, see
small-scale renewable energy targets figure 2 (De Vries et al., 2007). This
(SRET). The LRET is defined by AEMO as formula serves as guideline for input
main policy driver, while the carbon price variables in the model. Furthermore, it can
has less impact on investment (AEMO, be used to establish input numbers per
2014). Next to annual reports, findings RES which are run through the models in
from AEMO’s public consultation program order to create scenarios.
can be used (AEMO, 2012). The variables fi and Di include
In a first attempt to model social and socio-geographical factors,
interdependencies in the energy market, all respectively location, acceptability and
four dimensions of uncertainty as social constraints, such as wind park
identified by Rotmans and Van Asselt density. Moreover, physical- geographical
(2001) are integrated, respectively social, parameters, such as terrain, habitation
economic, environmental and institutional and biomass yields complement these
uncertainties (See figure 1). This model factors. Thus, the interactive computer
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model includes all possible RES that have should be clearly communicated to the
enough potential for scaling up by 2040. As various groups by the researchers.
input, it is possible to select any Simpson and Clifton (2014) conclude that
combination of RES percentages, always extensive consultation of agents in
adding up to 100% RE. The abstract Australia regarding the MET may lead to
consequences of different scenarios can be negative externalities such as a loss of
explored in a strictly quantitative manner. investor confidence; this should be
This is done in stage IV. The model can be reduced, primarily through transparency.
considered a policy optimization model Since the government is currently
(Rotmans & Van Asselt, 2001), as it reconsidering its plans regarding the
explores different pathways to a set goal. It NRET, there may not be direct results in
has hybrid characteristics in the sense that policymaking. This stage is aims at
it combines biophysical models with social creating a shared understanding among
models. The economic supply and demand stakeholders.
system is not elaborated on. On the level of Upon finalisation of the model, it is
individual RES, new insights from presented to several national focus groups
modelling can be used for energy consisting of maximum twenty individuals
transition planning projects in different representing an interest group. The
world regions. The complex model that various focus groups arrive at a conference
integrates the feedbacks between the together, but are split part of the time.
different RES and other variables is During this full day program, experts are
specific to Australia. asked to explain the key considerations of
the region in a small presentation with
Q&A possibility. Experiences from existing
V. Stage IV. Stakeholder RE production methods are mentioned to
Conference get an overview of specific effects on the
local population, flora and fauna. If
research and development is currently in
The ‘envisioning stage’ of the ISA starts in
an early phase, then experts are asked to
Stage IV, continuing in stage V. The
summarise findings and explore the
modelling exercises in the previous stage
probability of opportunities. Although
can be used to identify and analyse
these insights are considered by
possible pathways to achieve a 100%
participants, the general model at the basis
renewable energy target in Australia by
of the program is stochastic. The main
2040. This stage brings together tacit and
outcomes from the public consultation are
explicit knowledge, powerful companies
presented and evaluated. Definite critical
and smaller interest groups, in order to
uncertainties are defined per focus group,
eliminate risks. The expectations of
possibly including technology, energy
stakeholder participation in this stage
prices and policies.
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Maastricht University Journal of Sustainability Studies 2017
This stage develops narratives mixed groups. This forms the basis for the
for different backcasting scenarios research team to build detailed versions
using the knowledge presented during and thoroughly analyse the scenarios. In
the conference as well as the interactive this stage, participation is used to a certain
computer model developed in the previous extent to reach consensus regarding
stage. The development of scenarios of medium-term regional scenarios.
Australia’s RES by 2040 builds on a
workshop prepared by the research team.
In this ‘experimenting stage’, scenarios VI. Stage V. Scenario
clarify the potential interactions between analysis
the three pillars. The model and summary
of assumptions serve as communication
Modelling experts are consulted to
tools in stakeholder dialogues. Participants
integrate the scenario frameworks from
can then try different combinations of
Stage IV into more extensive quantitative
scaled up renewables and discuss the
backcasting scenarios. Scenarios are
consequences of these pathways more
necessary because of high uncertainties,
elaborately in order to choose one scenario.
such as behavioural variability, techno-
Each focus group presents the
logical development and policymaking
scenario it has chosen and elaborations on
decisions. Formal, complex decision
the reasoning behind it. Clear instructions
support scenarios are necessary for this
are given on the content and format of this
multi- dimensional, multi-scale tangled
presentation. It should include a
web of problems (Van Notten et al., 2003).
comparison of the impact of the chosen
The main task is to combine newly
scenario versus the others. Why did the
generated knowledge with already
group believe the total impact of a certain
existing models and the updated reference
pathway was most convincingly positive
model. In all cases, validation through
and for whom? The primary concern is
model performance tests is required. The
that of direct, regional impacts such as
NUSAP method is used for the
biodiversity loss. In the later stage,
management of uncertainty and quality
scenario narratives are finalised by fitting
of quantitative information. GAINS and
the initial ‘complicated’ model into a more
PROMETHEUS are used to simulate
‘complex’ and dynamic one, dealing with
influences from the earth system impacting
feedbacks in a local as well as a global
the region Australia. At this point,
context.
scenarios should include both biophysical
After the different groups have
and socio-economic models, with a hybrid
presented their chosen pathway, a debate
result. The outcome is less comprehensible
is organized to select with five to ten final
for the wider public than the models and
scenario frameworks. The participants will
then write a concise report per scenario in
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scenarios used and developed until this organizations hosting the public
point in the ISA. consultation. It is left to them to spread this
As with all ISA projects, difficulties knowledge, stimulating engagement in the
arise with the transgression of time-scales, process of change that was triggered
spatial scale- levels and domains. Scenarios during Stage II. It is in this way that the
are not predictions. Models are mostly two ultimate aims of scenarios are
deterministic. As for the scenarios, key achieved.
expectations are discussed here. Renew-
ables are expected to cover a larger surface
area than the conventional energy sources VII. Stage VI. Evaluation and
they replace, emit less greenhouse gases Monitoring
and produce less waste. The least cost
scenarios of Elliston et al. (2013) rely
In this final stage, a framework for
mostly on wind and solar power, as do
monitoring is established, which can be
AEMO scenarios (AEMO, 2014). Zahedi
used to administer national planning and
(2010) identifies a trend of fast growth of
reliability. The baseline for this framework
these RES in Australia. If technology
is the Reference Scenario. Parsimonious
furthers, Australia’s climate is particularly
policy evaluation scenarios until 2040 are
suited for algae production and solar
defined. It is not the task of the research
power, two highly efficient types of RES.
team to regularly update these scenarios,
Commercial-scale solar power plants are a
only to establish the quantitative computer
reality in Australia today, roof top PV is
model. In essence, this is a simplified
increasingly popular among the popu-
version of the extensive model developed
lation. In terms of consequences, algae are
in Stage III, refined with the experiences
interesting due to high yields and the
that were shared during the stakeholder
possible use of waste heat, waste fertilizers
conference and expert scenario analysis. Its
and wastewater, reducing use of water,
format is similar to the International
nutrients and energy.
Futures Model, notwithstanding less
The task of the research team is to
comprehensive. It resembles a regional
translate the quantitative scenarios into
input-output model. The data has to be
visually attractive narratives, while clearly
updated by an agency with a grasp of
addressing input assumptions. The
nationwide trends, the most obvious being
scenario analysis should be presented as
AEMO, CEFC or a governmental
appropriate to guide decisions of investors,
department. The outcomes are to be made
companies and eventually the government.
public to ensure continued stakeholder
This includes a report, an executive
engagement.
summary and an explainer video for all
With regards to evaluation of the
who participated in the conference. These
ISA, the details of the process will have
resources are also received by the regional
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Maastricht University Journal of Sustainability Studies 2017
been documented in every stage. This is of the meeting first, find out which tools
used as a basis for a critical, reflective facilitate the group process and how to
report which is then presented to the most effectively raise interest. In the hyper-
clients. It includes an overview of all connected era it can be beneficial to take
stages, evaluates the outcomes in advice from experienced social media
comparison to expectations and provides managers in order to position the ISA
recommendations for future research. online as national campaign, clearly
communicating the mission and bigger
picture. Utilise the public consultations to
VIII. Conclusion and establish a baseline; a reference scenario
recommendations incorporating the people’s experiences
with renewable energy up until that point.
Next to this, the public consultation aims
This case study has delved into the current
to involve and empower stakeholders, thus
status of Australia’s policy environment,
creating a common ground for under-
with a particular interest in initiatives
standing the ISA results at a later stage.
aiming to expand the country’s renewable
The outcomes of this stage can be fed to
energy production and use. The main goal
the central agency carrying out the ISA by
of the ISA was to raise awareness,
means of standardised questionnaires.
understanding between stakeholders and
The modelling stage has a
finally to catalyse action. Recom-
theoretical focus, mostly consisting of
mendations for conducting an ISA are now
research and complementing existing
summarised. First, establish the main
knowledge by possible field visits. This
drivers, actors and critical uncertainties in
paper gave an overview of environmental,
the case. This stage can lay the foundation
economic and social variables to take into
of expectation management in local
account in this stage. In the process of
communities. Classify all relevant
‘modeling for vision-building’, integrate
stakeholders in five categories: Scientific
social, economic, environmental and
experts, businesses, interest groups,
institutional uncertainties. The theoretical
citizens and government. Map the actors in
framework used in this paper works with
a power-interest matrix.
the three concepts geographical potential,
In the public consultation stage, the
technical potential and economic potential.
research team can save time and effort by
This policy optimisation model can be
collaborating with existing local organi-
used to explore several backcasting
sations - or national organisations with
scenarios.
local branches - who take it upon
The subsequent two stages are part
themselves to host a meeting. The key to
of an ‘envisioning’ process. Firstly, the
success of a spread out large-scale public
stakeholder conference gathers national
consultation is preparation. Test the format
focus groups. It is the aim of the
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conference to develop narratives for the conference are used to create complex,
different backcasting scenarios presented. dynamic, highly quantitative models
In other words, participants ask which will have a status of authority for
themselves which changes would have to investors, companies and government
take place for a certain scenario to become institutions. Moreover, it is vital to
reality? What are the likelihood and communicate the resulting conclusions
consequences of these changes? The and actions to all participants.
presence of experts is vital to ensure that The extensive process described in
the conversation does not reach a deadlock this paper can be scaled-down and used as
due to a ‘technical’ question in a focus a guide for ISA’s in any region. Future
group. In contrast to the broad focus of the research into other case studies is
public consultation, this conference recommended.
narrows down the focus of the ISA in a
democratic process. The outcomes of the
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Maastricht University Journal of Sustainability Studies 2017
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Multi-Actor Systems (Chapter 4)
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Appendix
Environmental variables Economic variables Social variables
Outputs Air pollution Market prices Health effects
Water pollution National energy Disturbances
stability and security
Water use Stranded assets Employment
Waste generation Cultural
Greenhouse gas
emissions
Land requirements
Inputs Environmental Economic vitality Lifestyle
degradation
Climage change Consumer behaviour
Table 1. Overview of environmental, economic and social variables in the modelling stage.
Figure 1. Model of key inputs and outputs in the energy market
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Maastricht University Journal of Sustainability Studies 2017
Figure 2. Formula for technical potential by De Vries et al. (2007).
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Appendix II. International Futures Model scenario Australia example
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Maastricht University Journal of Sustainability Studies 2017
2. Citizens
Energy Users Association of Australia; Consumer Advocacy Panel#
3. Interest groups
Australian Student Environment Network Australian
Youth Climate Coalition
Banksia Environmental Foundation
Northern Alliance for Greenhouse Action Townsville
Enterprise
Total Environment Centre
World Wildlife Fund
South Australia Farmers Federation
4. Business
Production
Australian Geothermal Energy Association
Australian Sugar Milling Council
CSR Sugar
ElectraNet
Energy Networks Association
Energy Retailer’s Association of Australia Energy
Supply Association of Australia EnergyAustralia
Grid Australia
Independent Market Operator WA Intergen
Major Energy Users
National Generators Forum
Origin Energy
PowerCor
Powerlink
Private Generators Group
Queensland Generators Group
Southern Generators Coalition
Sucrogen; Transpower NZ; Transend; and Western Power
InvestorAEMO
CEFC
Renewables SA
Synergies Economic Consulting
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5. Scientific experts
Australian Photovoltaic Institute
ddAustralian Solar Institute
Academy of Technological Sciences and Engineering
Commonwealth Scientific and Industrial Research Organisation (CSIRO)
Roam consulting
The Bureau of Resources and Energy Economics
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