Professional Documents
Culture Documents
Pami Aalto
Faculty of Management and Business/Politics Unit, Tampere University, Tampere, Finland
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I 3.1 Introduction 57
3.2 The interests driving policy-makers 59
Framework for transition to 3.3 How policy-makers can catalyze change: Types of
electrification policy instruments 63
3.4 How do policy-makers formulate policies? 67
1. Introduction: electrification and the energy 3.5 From policies to solutions 71
References 72
transition
€
PAMI AALTO, TERESA HAUKKALA, SARAH KILPELAINEN,
AND MATTI KOJO
v
vi Contents
5. The role of energy storage and backup 7.7 Case study: Emission reduction in the heavy-duty
solutions for management of a system with a transport sector by means of biogas 165
7.8 Conclusions: Policy lessons 167
high amount of variable renewable power
References 170
JUHA KOSKELA, SIRJA-LEENA PENTTINEN, TAIMI VESTERINEN,
HANNELE HOLTTINEN, JUKKA KONTTINEN,
€
PERTTI JARVENTAUSTA, JUHA KIVILUOMA, PAMI AALTO, 8. Electrification and energy efficiency in
AND KIM TALUS buildings: Policy implications and interactions
SIRJA-LEENA PENTTINEN, KARI KALLIOHARJU, JAAKKO SORRI,
5.1 Introduction 105 JUHANI HELJO, AND PIRKKO HARSIA
5.2 Energy storage options and features in flexible
systems 107 8.1 Introduction: What does electrification mean in the
5.3 Battery storage in the USA 109 context of buildings? 175
5.4 Gas engines and heat storages in future power 8.2 The problem: Policies for electrification and energy
systems 112 efficiency 177
5.5 The case of household-level batteries 118 8.3 Case study: The EU’s “energy efficiency first” principle
5.6 Conclusion 121 in the electrification of buildings 178
References 122 8.4 Case study: Implementation of EU legal rules in
Finland 181
6. Toward smarter and more flexible grids 8.5 Interlinkages of energy-efficiency policies with the
€
SAMI REPO, HANNELE HOLTTINEN, TOMAS BJORKQVIST, electrification of buildings 189
KIMMO LUMMI, JUSSI VALTA, LASSE PELTONEN, AND 8.6 Conclusion 193
€
PERTTI JARVENTAUSTA References 194
Pami Aalto Faculty of Management and Business/ Juha Kiviluoma VTT Technical Research Centre of
Politics Unit, Tampere University, Tampere, Finland Ltd., Espoo, Finland
Finland Matti Kojo Faculty of Management and Business/
Kalle Aro Faculty of Management and Business/ Politics Unit, Tampere University, Tampere, Finland
Politics Unit, Tampere University, Tampere, Finland Jukka Konttinen Faculty of Engineering and Natu-
Mert Bilgin Department of Political Science and ral Sciences/Materials Science and Environmental
International Relations, School of Humanities and Engineering, Tampere University, Tampere, Finland
Social Sciences, Medipol University, Istanbul, Juha Koskela Faculty of Information Technology
Turkey and Communication Sciences/Electrical Engineer-
Tomas Bj€ orkqvist Faculty of Engineering and Natu- ing, Tampere University, Tampere, Finland
ral Sciences/Automation and Mechanical Engineer- Kirsi Kotilainen VTT Technical Research Centre of
ing Unit, Tampere University, Tampere, Finland Finland Ltd., Espoo, Finland
Pirkko Harsia Faculty of Building Services Engi- Kimmo Lummi Faculty of Information Technology
neering, Built Environment and Bioeconomy Unit, and Communication Sciences/Electrical Engineer-
Tampere University of Applied Sciences, Tampere, ing, Tampere University, Tampere, Finland
Finland
Jyrki Luukkanen Finland Futures Research Centre,
Teresa Haukkala Aalto University School of Busi- University of Turku, Tampere, Finland
ness, Espoo, Finland
Yrj€
o Majanne Faculty of Engineering and Natural
Juhani Heljo Faculty of Built Environment, Civil Sciences/Automation and Mechanical Engineering
Engineering Unit, Tampere University, Tampere, Unit, Tampere University, Tampere, Finland
Finland
Akihisa Mori Graduate School of Global Environ-
Hannele Holttinen Recognis Oy, Espoo, Finland mental Studies, Kyoto University, Kyoto, Kyoto
Pertti J€arventausta Faculty of Information Technol- Prefecture, Japan
ogy and Communication Sciences/Electrical Engi- C. Johannes Muth Faculty of Management and
neering, Tampere University, Tampere, Finland Business/Politics Unit, Tampere University, Tam-
Jari Kaivo-oja Finland Futures Research Centre, pere, Finland
University of Turku, Tampere, Finland; Kazimiero Fanni Myll€ari Faculty of Engineering and Natural
Simonaviciaus University, Vilnius, Lithuania Sciences/Physics, Tampere University, Tampere,
Kari Kallioharju Faculty of Built Environment, Civil Finland
Engineering Unit, Tampere University, Tampere, Anna P€ a€
akk€onen Enmac Oy, Tampere, Finland;
Finland; Faculty of Building Services Engineering, Faculty of Engineering and Natural Sciences/Mate-
Built Environment and Bioeconomy Unit, Tampere rials Science and Environmental Engineering, Tam-
University of Applied Sciences, Tampere, Finland pere University, Tampere, Finland
Sarah Kilpel€ainen Faculty of Management and Lasse Peltonen Faculty of Information Technology
Business/Politics Unit, Tampere University, Tam- and Communication Sciences/Electrical Engineer-
pere, Finland ing, Tampere University, Tampere, Finland
ix
x Contributors
Sirja-Leena Penttinen Faculty of Social Sciences and Jaakko Sorri Faculty of Built Environment, Civil En-
Business Studies/Law School, University of Eastern gineering Unit, Tampere University, Tampere,
Finland, Joensuu, Finland Finland
Esa Pursiheimo VTT Technical Research Centre of Benjamin Sovacool Center for Energy Technolo-
Finland Ltd, Espoo, Finland gies, Department of Business Development and
Antti Rautiainen Faculty of Information Technol- Technology, Aarhus University, Herning,
ogy and Communication Sciences/Electrical Denmark; Science Policy Research Unit (SPRU),
Engineering, Tampere University, Tampere, University of Sussex Business School, Falmer, East
Finland Sussex, United Kingdom
Sami Repo Faculty of Information Technology and Kim Talus Faculty of Social Sciences and Business
Communication Sciences/Electrical Engineering, Studies/Law School, University of Eastern Finland,
Tampere University, Tampere, Finland Joensuu, Finland
Topi R€onkk€o Faculty of Engineering and Natural Jussi Valta Faculty of Management and Business/
Sciences/Physics, Tampere University, Tampere, Industrial Engineering and Management, Tampere
Finland University, Tampere, Finland
Ilkka Ruostetsaari Faculty of Management and Jarmo Vehmas Finland Futures Research Centre,
Business/Politics Unit, Tampere University, University of Turku, Tampere, Finland
Tampere, Finland Taimi Vesterinen Faculty of Engineering and Natu-
Ulla A. Saari Faculty of Management and Business/ ral Sciences/Materials Science and Environmental
Industrial Engineering and Management, Tampere Engineering, Tampere University, Tampere, Finland
University, Tampere, Finland; J€
onk€
oping Interna- Matti Vilkko Faculty of Engineering and Natural
tional Business School, J€ onk€
oping University, Sciences/Automation and Mechanical Engineering
J€
onk€oping, Sweden Unit, Tampere University, Tampere, Finland
Preface
This book focuses on a subject that is little dis- outcome of the globally ongoing transition to
cussed on its own termsdthe electrification of new renewable energy sources such as wind
energy systems and societies. Such a focus dif- and solar power that produce “only” electricityd
fers from most studies examining the electric en- but not heat, unlike fossil fuels, biomass, or
ergy system as such or its future development. geothermal energy. This switch to renewable en-
Indeed, studies abound in various engineering ergies is also a pervasive topic in the predomi-
disciplines on the evolution of electric energy nantly social scientific field of sustainability
systems. Often these studies also mention how transitions, but very rarely do these studies
electricity is becoming the main energy carrier, extend to questions such as what electrification
notably replacing the combustion of fossil fuels is ultimately all about, how it might develop,
for power and heat. A burgeoning field of what such development presupposes, what prob-
studies also concentrates on how electric energy lems will likely be encountered on the way, and
systems are developing toward “smart grid” what the consequences of all this may be.
type “systems of systems,” where the manage- In this book, electrification is considered from
ment of electricity flows becomes central not the perspective of climate neutrality. Climate
only for the production, distribution, and con- neutrality is a grand policy goal set by human
sumption of power but also for energy use in beingsdan increasing number of societies, com-
transport, buildings, and industry. Such studies panies, and civil society actorsdone that envis-
span perspectives from several engineering, in- ages renewable electricity generation with
formation, and communication sciences with “electricity-only” resources as the main means
research on computer science, artificial intelli- to that end. Because of this essentially societal
gence, software, as well as studies on innovation aspect of electrification, studies on this subject
and technology development, for example. The should not be limited to the characteristics of
technical insights of such studies will naturally the energy system. Ultimately, research should
be surveyed in this book but chiefly to help us reach out to address the implications of electrifi-
better understand electrification as a megatrend cation for society, economy, and politics and
that transforms energy systems and societies. likewise to international relations and what is
The field of research on electricity markets is often called the geopolitics of energy in a world
already well established in economics and busi- where oil or natural gas matter less than they
ness studies. However, electrification as an over- once did. In other words, electrification becomes
all megatrend reshaping the energy markets and a relevant subject of enquiry in multiple fields
business in several ways has so far received scant because of the outcome of climate neutrality it
explicit attention. This is surprising, given that can deliver, although its character as a technical
electrification is a logical yet game-changing phenomenon also remains important.
xi
xii Preface
Moreover, the world is anxiously hastening find some sections of this book familiar terrain,
the efforts for climate neutrality. This means some other sections should guide them to new
that most societies will for a long time be seeking territories. For policy analysts, professionals,
ways to speed up their actions. Accelerated tran- and practitioners, this book is intended to serve
sition therefore becomes urgent. Hence, the focus as an accessible handbook on the state-of-the-
here is on how the adoption of various electrifi- art of technologies, infrastructures, and policies,
cation measures could be accelerated by means and no less of their interrelationships, illustrated
of developing and implementing policies and by means of several case studies. Overall, the
policy instruments. Approaching electrification role of various policy instruments and their use
from the perspective of how its introduction in suitable combinations is what differentiates
could be accelerated in the interests of achieving this book from most studies on electric energy
climate neutrality is the new path of research this systems and climate-neutral transitions.
book seeks to pioneer. The agenda of energy systems transitioning
Naturally there are many important transition toward climate neutrality via electrification in
paths toward climate neutrality meriting atten- an accelerated manner, and the related policies,
tion in parallel with and apart from electrification. is a very broad field we can probe only selec-
However, hardly any of these offer equal mea- tively. Our case studies mostly concern devel-
sures of globally scalable potential. One of them oped countries. In many of them, electrification
is the frequently mentioned field of power-to-X is progressing satisfactorily. Some references
technologies and the associated hydrogen econ- are made, however, to more challenging cases,
omy, where gas-based fuels replace fossil fuels where either material or social structures, or
in several energy end-use sectors and open up their combinations, inhibit similar development.
promising new value chains. While those pros- In prospective studies, more attention will be
pects are indeed great, we wish to accentuate needed on the world’s numerous emerging and
that these will mostly likely be outcomes of wide- developing countries. This is especially the
spread electrification that first needs to advance. case, given that the patterns of inherited energy
Large-scale hydrogen economy has to be climate infrastructures and societal constraints are to
neutral or sustainable in the wider sense, and it some extent case-specific, requiring follow-up
may best be achieved when based on hydrogen work on a number of cases. The implications of
produced by renewably generated electricity. electrification for development policy and inter-
This book is intended for several reader national relations are another area in need of
segments. Energy engineers will learn of the further research. Likewise is the wider circle of
interface between technologies, infrastructures, policy processes from policy formation and
society, and policy. With this, this book refers development to implementation, evaluation,
to societal path-dependencies, lock-ins, vested and follow-up, to which this book can only
interests, and other constraints along the way make passing reference.
to new technologies and infrastructures, elabo- The field opened up for enquiry here is decid-
rating policy instruments to overcome these, edly interdisciplinary and should be even more
and describing some unsuccessful attempts to so in the future. In many of the chapters that
do so. Social scientists and energy lawyers will follow, engineers and social scientists represent-
learn of the technologies and infrastructures for ing a variety of specializations have worked
electrifying energy systems, their mutual inter- together, in the capacity of codesign of the
dependencies, and how they both constrain research reported, co-authorship, or interdisci-
and enable societal choices and policy options. plinary commentary and debate. This is not yet
In other words, while readers will undoubtedly the new normal, but it should indeed become
Preface xiii
so for many questions on electrification. The coordinated by Tampere University, 2016e18,
need for more disciplinary studies naturally con- with 15 companies involved); this project
tinues to exist simultaneously, but such studies comprised an Internet-of-Things (IoT)-based
cannot exist alone. technology platform for the exploitation of
The authors are grateful for several sources of various distributed energy resources, taking
funding that have enabled the efforts reported into account both the electricity market and po-
here. The bulk of the work was supported by wer system management perspectives. The proj-
the large-scale consortium “Transition to a ect “Prosumer Centric Energy
Resource Efficient and Climate Neutral Elec- Communitiesdtowards Energy Ecosystem”
tricity System” (EL-TRAN, funded by the Stra- (ProCemPlus, 2019e21), with Tampere Univer-
tegic Research Council at the Academy of sity, Tampere University of Applied Sciences,
Finland, project no. 314319, 2015e21, and led and VTT Technical Research Centre of Finland
by Pami Aalto). The partners comprised Tam- involved alongside 11 companies. This project
pere University, Tampere University of Applied examined the formation of individual energy
Sciences, the University of Eastern Finland, the communities into broader business-oriented en-
University of Turku, and VTT Technical ergy ecosystems through several research
Research Centre of Finland, with several public, themes and concrete pilot cases related to the
private, and NGO sector stakeholders playing development of energy communities, and ana-
key roles as part of the consortium’s interaction lysed the role of microgrids and energy commu-
panel. This wide stakeholder involvement was nities in the future energy ecosystem.
invaluable for the consortium’s work and helped Several chapters of this book have also
to make it more relevant for the ongoing energy benefited from work within the Business
transition. Many colleagues not directly Finlandefunded consortium “Black Carbon
involved in this book have also greatly sup- Footprint” (BCfp, 2019e22, coordinated by Tam-
ported the consortium’s work in various capac- pere University and Finnish Meteorological
ities and through invaluable cooperation: Institute, Topi R€ onkk€o and Hilkka Timonen),
Karoliina Auvinen, Marika Hakkarainen, with several universities and companies as part-
Mikael Hilden, Kaisa Huhta, Iida Jaakkola, ners. The research for Chapter 10 is also linked to
Jari Ihonen, Johanna Kirkinen, Maria the project “Platforms of Big Data Foresight
Kopsakangas-Savolainen, Timo Korpela, Aki (PLATBIDAFO),” which has received funding
Kortetm€ aki, Heidi Krons-V€ alim€aki, Raimo from the European Regional Development
Lovio, Anna M. Oksa, Ontrei Reipala, Armi Fund (Project No 01.2.2-LMT-K-718-02-0019) un-
Temmes, Pasi Toivanen, Sanna Uski, and Seppo der a grant agreement with the Research Council
Valkealahti. of Lithuania. For speedy and reliable language
We also wish to acknowledge the Business revision work, we would like to warmly
Finland funded project that has supported our acknowledge Virginia Mattila.
work on energy use in buildings: the Center for Finally, the authors wish to thank numerous
Electrical Engineering and Energy Efficiency colleagues and commentators for critical com-
STEK (co-operation project “Future Energy Solu- ments and detailed observations in conferences
tions for the Urban Environment”). Our work on and seminars, and our significant others for all
producer-consumers (prosumers) has been sup- their support and tolerance in the fairly chal-
ported by two further Business Finlandefunded lenging times of lockdown owing to the
projects. The project “Social Energyd Prosumer COVID-19 pandemic under which this book
Centric Energy Ecosystem” (ProCem, was prepared.
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P A R T I
1
Introduction: electrification and the
energy transition
Pami Aalto1, Teresa Haukkala2, Sarah Kilpel€ainen1, Matti Kojo1
1
Faculty of Management and Business/Politics Unit, Tampere University, Tampere, Finland; 2Aalto
University School of Business, Espoo, Finland
1.1 Electrification as the “new oil” conceptions of the role of resources in interna-
tional relations. We briefly survey each of these
Electricity is frequently referred to as the “new changes in order to outline the scope of this
oil” or the new backbone of energy systems book.
globally. Electricity powers an increasing number
of activities, making electrification a megatrend
1.1.1 What changes will electrification
decisively shaping our social and material
environments. While this implies drastic changes
bring about?
and entails new questions to answer, it will First, in the production phase of the energy
also help to address some thorny problems we system, the globally ongoing turn to renewable
are facing. energy sources acts as a major catalyst of electrifi-
We characterize the megatrend of electrifica- cation. There are sufficient renewable energy
tion by referring to seven interrelated changes. resources to replace our current use of fossil fuels,
The first three relate to the energy system, where since renewables are plentiful in various forms
the production, distribution, and consumption throughout the planet; likewise a wide range of
phases are becoming increasingly electrified. technological solutions for their exploitation are
The fourth change pertains to indirect electrifica- also available (Yahyaoui, 2018a,b). Despite this
tion, whereby electricity is used to produce for great potential, several problems remain to be
example synthetic fuels. The last three changes solved to actually build and operate energy
widen the perspective considerably. At the soci- systems based entirely on renewable sources.
etal level, electrification has several highly trans- Many of these problems are tackled in this
formative repercussions. On the wider book, where we proceed from the observation
international level, electrification has develop- that globally the most potent and fastest expand-
mental implications while it also shapes our ing sectors of renewable energy, wind power, and
Electrification
https://doi.org/10.1016/B978-0-12-822143-3.00006-8 3 © 2021 Elsevier Inc. All rights reserved.
4 1. Introduction: electrification and the energy transition
solar PV power are “electricity-only” resources. fossil fuels. The climate benefits of divestment
Emerging resources such as tidal and wave are undeniably contested; some think it may
power, alongside traditional hydropower, are hamper the industry’s conversion into less
also electricity-only resources. By contrast, climate burdening business. Nevertheless, the
burning fossil fuels releases heat that can be con- greater problem from the perspective of climate
verted into mechanical energy and further into neutrality is the ever-increasing global energy
electricity. At the same time burning creates demand. This increase is fueled predominantly
emissionsdincluding waste heat from inefficient by the growing energy needs of developing
conversion processesdand noise from the com- (and emerging) countries, which consume
bustion engines used for instance in the vehicles most of the expanding fossil fuels supply while
that populate our streets and roads. simultaneously increasing their own renewable
We will propose several reasons for this turn production. In other words, the absolute
to electricity-only renewable resources. Howev- volume of fossil fuel consumption may increase
er, we contend that this transition is particularly globally, despite divestment, alongside expan-
warranted because it can support the ambitious sion in the absolute volume of renewables and
goals of the 2015 Paris Agreement on climate an increase in their share of the energy mix.
policy. In this Agreement, 175 countries agreed This would mean de facto higher cumulative
to reduce emissions of greenhouse gases GHG emissions. Such scenarios are possible,
(GHGs) into the atmosphere to jointly delimit for instance, in Southeast Asia, India, and the
long-term global warming to 1.5 C (UN, 2015). Middle East (IEA, 2019a, Annex A). Finally,
The Agreement expresses a political commit- when contemplating who should reduce emis-
ment to pursue climate neutrality, by which the sions and by how much, a solution fully serving
International Panel on Climate Change refers to the principles of distributive justice is elusive.
a state of affairs where human actions have The developed member countries of the Organi-
zero effect on climate change. These include zation of Economic Cooperation and Develop-
not only CO2 emissions but also emissions of ment (OECD) remain responsible for roughly
other GHGs, of which Short-Lived Climate a half of the historically accumulated CO2 emis-
Pollutants (SLCPs) such as methane, black car- sions (Kolstad et al., 2014, pp. 217e19; Blanco
bon, and ozone are most crucial (UNEP, 2019). et al., 2014, p. 359).
Land-use issues are inseparable from GHG emis- Alongside the transition to electricity-only
sions, and refer to the “carbon sink” or the ability renewables, we also need to recognize the other
of forests, crops, swamps, seas, and, for example, transition paths to climate neutrality, some of
wood products to bind CO2 (IPCC, 2018, p. 545). which are complementary or built on electrifica-
Yet the transition to electricity-only renew- tion while others, at least to some extent, may
ables is hampered by several issues, primarily compete with widespread electrification. Each
that they have to compete with the continuously of these paths has its own benefits and associated
expanding supply of fossil fuels. This expansion problems (see Box 1.1).
results from the production of unconventional The transition path based on electricity-only
oil and natural gas and the ability of the oil renewables offers high climate neutrality gains,
and natural gas industries to develop better geographically wide applicability, and high
methods of fully exploiting old, depleting scalability. These features may well make it the
fields (Covert et al., 2016). Fossil fuel industries predominant path, but it is not problem-free.
nevertheless face constraints of their own. By Regarding climate neutrality, the biggest prob-
the end of 2020, more than 1200 institutional lem in the production phase is high raw mate-
investors had announced long-term divestment rials intensity. In life cycle analysis, wind and
plans (withdrawing their investments) from solar power face questions of environmental
BOX 1.1
sustainability, as do all energy technologies (see gradual drift away from that world will decrease
Chapters 2 and 10). Moreover, wind and solar the strategic significance of oil and natural gas
power are weather-dependent. Fortunately, in resources and their respective infrastructures
many regions, their use can be combined with including pipelines, tankers, and fuel terminals.
the use of traditional renewable technologies The networks of filling stations will also be un-
such as hydropower, or biomass-based or der pressure. Yet in the natural gas sector, invest-
geothermal facilities producing both power and ment in transmission and distribution pipelines,
heat, improving their attractiveness in environ- as well as liquefaction and regasification termi-
ments requiring space heating. In some regions, nals for liquefied natural gas (LNG) are expected
concentrated solar power (CSP) plants can pro- to proliferate until the end of the 2020s in devel-
vide heat, cool, and power, while in others, solar oping and developed countries alike, and partic-
thermal collectors or small-scale geothermal ularly in the USA. Natural gas infrastructure
systems can supply heat to buildings. Further may also serve the potential expansion of the
transition paths include hydrogen and other use of biogas, which is largely an unexploited
gas-based technologies, synthetic fuels, and car- resource (IEA, 2019a, pp. 583e7; see also Chap-
bon capture, utilization, and storage (CCUS) ters 2 and 7). Weather-dependent resources
technologies (see Box 1.1), as well as traditional may also need access to gas-based infrastructure
nuclear power alongside small-scale modular if, for example, excess wind power is converted
nuclear reactors (SMRs) (see Chapter 2). In fact, into hydrogen to be fed into a pipeline network
no form of production represents a “silver bul- (see Box 1.1).
let” on its own. Hence electricity-only At the same time, enormous investment is
renewables alone do not have to completely expected in electricity gridsdglobally, in the
solve the climate neutrality challenge and are IEA’s “stated policies” scenario, $354 bln annu-
likely to be combined with other modes of ally during 2019e30, and $455 bln during
production (see Chapters 2, 4, 5, 11, and 12). In 2031e40. In the “sustainable development” sce-
many cases, “sector-coupling” solutions are nario, the cumulative needs are even greater
applicable whereby electricity is converted to (IEA, 2019a, pp. 748e9). Roughly a quarter of
heat, used directly in the heating of buildings this investment need would be for Transmission
or in industrial sectors in place of other fuels, System Operators (TSOs) to enhance transmis-
or stored in gaseous or liquid form to be used sion networks, for example, to connect offshore
later in transport, building or industrial sectors wind power parks with large-scale consump-
(Pilpola and Lund, 2018). tion in cities. The remaining three-quarters
Second, in the distribution phase, electrification would be invested by Distribution System
reforges the global chains of energy as once they Operators (DSOs) (Petit, 2019, pp. 116e117).
were knowndbased on unevenly distributed, Such needs may arise because DSOs must rein-
point-source fossil fuel resources (van der Ploeg, force their grids because of the extra demand for
2011). The nature of these resources enables grid capacity created by the electrification of
generating high revenue from long chains of heating. Further needs may arise from the inte-
value creation where minerals are extracted gration into the grid of decentralized electricity
onshore and offshore, transported over long dis- infrastructure such as rooftop solar panels.
tances, converted into various fuels, and finally Such changes profoundly affect the manage-
burned at high temperatures to produce power ment practices of electric energy grids, as in
and heat. These end products are then distrib- developed countries the grids are generally
uted for consumption, with emissions trans- centralized, one-way systems built to deliver
mitted locally, nationally, and globally. The electricity from large or medium-scale power
solutions enable, we should also think of them running into familiar problems of producing
as people: citizens or members of the public ambiguous outcomes and reproducing unequal
with a stake in the changes (cf. Labuissiere power relations (Ahlborg, 2018). Energy justice
and Nada€i, 2018). In a word, changes in issues are pivotal here. In terms of distributive
everyday practices are required if households justice, it matters if everyone within the same
are to offer “flexibility services” in the same jurisdiction is offered similar access to electricity.
way as industries have traditionally done in In terms of procedural justice, the concerns
some countries. For example, several funda- involve transparency and participation in
mental social dimensions emerge when home decision-making over solutions, siting, financing,
automation technologies use real-time data on and capacity transfer (Delina, 2018, pp. 155e7).
electricity consumption (on the loads caused Seventh, electrification ultimately changes the
by certain appliances), to adjust electricity role of energy resources in international relations
consumption in response to the variation in as we know it. Resource conflicts typical for
weather-dependent production or to ameliorate unevenly distributed point-source fossil fuels,
peak demand situations (Strengers, 2013, pp. as seen, for example, in the Middle East and
5e9). Such behavioral aspects are not insignifi- Africa (Colgan, 2013), should not repeat. Yet
cant since buildings in the residential and the literature on the “geopolitics of renewables”
business sectors account for over half of global addresses new types of interdependencies where
electricity demand (Philibert, 2019). Further producers of renewable energy technology can
electrification is the most important solution become dependent on trade flows of rare earths
for reducing emissions in this sector, followed and minerals used as raw material in the produc-
by the use of renewable sources in heating and tion of the technology (Scholten and Bosman,
improvements in building design and efficiency 2016). So far, these flows go in particular from
standards set for home appliances (Wang et al., China to companies in the USA, Europe, and
2018). Yet such electrification requires full Japan. These flows are combined, for example,
comprehension of the controversies between with the expected increase in flows of cross-
these policy domains and the related interest border electricity trade, helping to balance
groups (see Chapters 3 and 8). In summary, to production and consumption across regions
fully understand residential consumption, the and countries. This is necessary as variable,
analysis needs to extend to everyday practices, weather-dependent production increases. Such
life course practices, and societal structures a wider region where production is shared and
shaping these (Yamaguchi, 2019). traded can also support the technical quality of
Sixth, electrification can also advance develop- electricity by helping to maintain sufficient levels
ment. Many studies describe rural electrification of inertia in the electric energy grids when they
projects and programs, and small-scale decen- are chiefly supplied by variable production
tralized off-grid solutions in developing coun- (Aalto and Muth, 2019). Together, such trade
tries (Kirchhoff et al., 2016; Mandelli et al., flows alter the power relations among major
2016). A typical argument is that developing fossil fuel exporters and their traditional cus-
countries or some of their more remote regions tomers in North America, Europe, and Asia.
can in this way leapfrog the historical patterns Trade in renewable energy technologies and
of energy system development in the industrial- equipment may also involve more traditional
ized countries where economies of scale have protectionism, as seen in the “solar protection-
supported the building of fossil fuelebased ism” of the USA, the EU, and India, where they
centralized systems with high upfront costs impose tariffs on Chinese solar PV technologies
(Levin and Thomas, 2016). If such electrification as antidumping measures. Overall, however, the
projects involve development aid, they risk emerging agenda of “geopolitics of renewables”
1
On a global scale, natural gas is the most often mentioned fuel, since it has lower combustion emissions than coal or oil.
However, the final emissions depend on the type of natural gas. In the USA, increasing shale gas production partly replaced
coal-generated electricity and doubled natural gas plant liquids (NGPL) production from the late 2000s to 2016. Yet studies
disagree on whether the emissions from extraction processes from shale, when combined with combustion emissions, cause
greater or less overall GHG emissions (methane) than the use of coal. This controversy originates in the imprecision of
measurements from widely varying drilling conditions, which cannot reliably report the methane leakage nationwide (Smil,
2015, pp. 175e180). Toward the 2020s, biogas and hydrogen-based alternative fuels forcefully entered global policy debates,
used either independently or alongside natural gas (IEA, 2019a, p. 578).
studies suggest that this is not necessary for any TABLE 1.1 Climate neutrality targets in selected
technical reasons. By 2050, a world with close to countries.
100% of electricity supplied by renewable Country Target year Target status
resources is technically feasible (e.g., Breyer
et al., 2018). Some modeling studies even claim Suriname Achieved Already carbon negative
that such systems with intermittent resources Bhutan Achieved Already carbon negative
like wind, solar, and hydro would be operable
Norway 2030 Legal obligation
with no load losses across the world (Jacobson
et al., 2018). Several country-specific modeling Uruguay 2030 Policy commitment;
submitted to the UN
studies also support their technical feasibility
(Mathiesen et al., 2015). Finland 2035 Policy commitment
Second, accelerated electrification is possible Austria 2040 Policy commitment
in the political sense. Dozens of countries aim
Iceland 2040 Policy commitment
at an electricity supply based 100% on renewable
resources by 2050 or earlier. Hundreds of com- Sweden 2045 Legal obligation
panies, many of them global leaders, commit to Denmark 2050 Legal obligation
a similar pledge, for example, through the
EU (26 Member 2050 Policy commitment
RE100 initiative. The boldest targets comprise
States)
not only 100% renewably produced electricity,
but renewable sources replacing fossil fuels in Canada 2050 Policy commitment
the overall energy system (see Table 1.1). In Chile 2050 In policy document
Europe, in 2019, the Member States (MS) of the
China 2060 Policy commitment
EU accepted a 100% climate neutrality target
by 2050, with the sole exception of Poland; at Costa Rica 2050 Policy commitment;
submitted to the UN
the same time, many MS will retain nuclear
power as part of their generation portfolio. All Fiji 2050 Policy commitment;
this would nevertheless mean renewables submitted to the UN
becoming globally predominant not only in Japan 2050 Policy commitment
energy production but also in the consumption
Marshall 2050 Policy commitment
sectors of transport, heating, industry, and agri- Islands
culture. In this way, these consumption sectors
New Zealand 2050 Legal obligation
would also become to a large extent electrified.
However, because technical feasibility and po- South Africa 2050 Policy commitment
litical targets do not necessarily translate into South Korea 2050 Policy commitment
transition outcomes (Roberts and Geels, 2019),
Switzerland 2050 Policy commitment
our main question in this book is how can
renewable-based electrification of the overall energy UK 2050 Legal obligation
system be achieved in practice, and how can it be accel-
Based on (Climate Home News, 2020). Which Countries Have a Net Zero
erated? A sobering thought here is how in the Carbon Goal? https://www.climatechangenews.com/2019/06/14/countries-net-
“stated policies” and “sustainable development” zero-climate-goal/. (Accessed 13 November 2020). EU Member States are listed
scenarios of the International Energy Agency separately in case their national target is stricter than that of the whole EU.
health benefits, reduced healthcare costs, better At the other end, we have to take into account
crop yield, reduced flooding risks as global the wider field of economic, social, and political
warming is combatted, while they also augment stakeholders necessary for the development,
extreme weather patterns associated with adoption, and implementation of the technolo-
warming (Arif et al., 2014). In other words, the gies (Kilpel€ainen et al., 2019). This means that
co-benefits or “win-win” policy approach in order for a technology to be actually adopted,
promises something for everyone, which may we need to consider how it “fits” with society
help to involve more actors. A closely related and its stakeholders to ensure the desirability
policy approach is issue-linkage (Eikeland and of the transition.
Skjærseth, 2016). These approaches can dramat- This leads to our main argument: since acceler-
ically improve the desirability of change by ated electrification depends not only on the technolog-
multiplying the options for successful resolu- ical and infrastructural part-solutions, but also on
tion or new lock-in to renewable resources, political support and social desirability, it requires
although the risks of hampering or prolonging interaction between the key actors of the electric
decision-making remain (Stevenson, 2018).2 energy system and the wider field of stakeholders for
The big question is how to remedy the prob- actually accepted and functioning solutions to
lems inherent in accelerated transitions. One emerge. Such interaction can be detected on
possibility, elaborated in detail by Fouquet various levels of analysis ranging from the micro
(2010), is that those pushing for the transition to the meso and macro-levels. A brief survey of
can draw upon the lessons learned from past some established literatures will elucidate this
energy transitions. Although our focus here is wide research agenda and help us to develop
not on past transitions as such, we will go an interdisciplinary framework for the study of
through some case studies on experiences during accelerated electrification.
the 2000 and 2010s. We will address the balance
between technical feasibility, policy instruments
to support change, the innovation and destruc- 1.3 Technological part-solutions
tion involved and the prospects for delivering
co-benefits. Studies in the natural scientific and engineer-
At one end, we have to pay attention to the ing disciplines form the backbone for any analysis
technological, infrastructural, and further part- of accelerated electrification, as they explain
solutions in the production, distribution, and the different technological and infrastructural
consumption sectors, and on how to combine part-solutions. Here our main message is that,
these in the context of a particular electric energy although absolutely crucial, technologies are
system. Each electric energy system has its own rarely the main problem, even if some major
key actors such as power producers, TSOs, RDI work and scaling-up is still due for some
DSOs, service providers, and energy consumers. individual technologies (see Chapters 2 and 5).
2
In the East Asian case, the familiar pattern features the regional states each bringing their own concerns onto the nego-
tiation table, multiplying both cross-sectoral policy linkages and the number of affected stakeholders. At the same time, the
region’s states delegate insufficient powers to the regional organizations and task forces set up to deal with the policy issues at
stake. This results in real difficulties to adopt any binding decisions for policy change (Aalto, 2014). Similar problems of how
multiple actors weigh different co-benefits and ultimately fail to decide will emerge beyond this East Asian case.
dwindling among young people in some devel- property owners, cooperatives, and physical as
oped countries, and what kind of consumer well as virtual energy communities, which may
decisions they may make if given access to benefit from renewable energy installations on
information on the GHG footprint of products buildings, farms, and fields (see Chapter 9).
and services (see Kanger and Schot, 2019, pp.
63e4). In brief, accelerated electrification entails
treating people not only as economic rationally
1.4.2 The meso-level
behaving consumers, but as active agents of Niche actors seek to challenge and eventually
change in multiple roles (see Chapter 9). Ulti- replace the incumbent actors such as energy
mately, the research agenda extends to routines, utilities with existing investments in the fossil
social practices, and norms (e.g., Strengers, fuel or nuclear power sectors (Geels, 2004). The
2013; Yamaguchi, 2019). However, not all cluster of incumbent actors, or what the socio-
responsibility for making the choices for climate technical literature calls the socio-technical regime,
neutrality can be delegated to individuals consists of (a) networks of actors and social
(Stevenson, 2018). groups, which in the case of the electric energy
Here, for analytical purposes, we can discern system consist of utility companies providing
three levels of transition: the micro-, meso-, and power (heat and increasingly in some places
macro-levels, as commonly presented in the cooling); government ministries in charge of
context of the so-called multilevel perspective energy questions, local governments, regulators
(Geels, 2002). Since then, several literatures and public sector agencies, and large industrial
have further developed this research agenda. energy users. The regime also includes (b) the
formal rules such as regulations and standards,
which for their part are interlinked with informal
1.4.1 The micro-level
or normative and cognitive rules such as belief
On this level we find that not only is the systems and behavioral norms and practices,
energy consumption and future behavior of users working as a social glue as noted in the institu-
and consumers becoming vital, since an acceler- tional literature (Aalto, 2014; Andrews-Speed,
ated transition is not possible by concentrating 2016). Finally, the regime comprises (c) the tech-
solely on production side technologies. There is nologies and infrastructures including resources
the activism of consumer-producers (prosumers) and the networks of TSOs and DSOs (Verbong
with small-scale production, for example, via and Geels, 2007). Several types of regime are
solar PV panels, and resource providers offering, discernible in electrification: the energy regime
for example, the batteries of their EVs for with its own actors, rules, and technologies; the
the use of the electric energy network (see transport regime with a view to EVs, a wider
Chapters 7e9). Early adopters of new solutions industry regime vis-a-vis the industry’s electrifi-
are the targets of those who develop new cation, and the building regime in relation to the
solutions in the niches of innovation (Schot and electrification of residential, commercial, and
Geels, 2008; Verbong and Geels, 2007). The public sector buildings (Kotilainen et al., 2019;
strategic niche management studies elucidate see Chapters 4e9).
how innovative niche actorsdscientists, agencies, To fully analyze the meso-level, socio-
institutes, companies including start-ups, equip- technical studies frequently draw upon institu-
ment manufacturers, service providers, consul- tional literature, originally developed in the field
tancies, etc.dcan respond to the global of political economy and today widely applied
transition pressures by developing new solutions. in several economic organization studies
Furthermore, the micro-level includes land and and policy disciplines. Institutionalism helps to
Electrifica on
n
The energy system & society tio
t r uc efits
s n
de -be
Interests t ive Co
ea
-vested interests Cr
Path- -generic interests
dependencies -na onal interests
and lock-ins Technological solu ons:
their ’fit’ with the
society & stakeholders;
wider socio-economic,
Consumers developmental and
Service, TSOs, Power & Governmental global implica ons
Prosumers Start-up
consultancy DSOs, heat (& and municipal
Resource companies
& IT microgrid cool) actors incl.
providers RDI actors
companies owners producers regulators
that the study of energy policy formation in tran- by stressing how a relevant policy mix for main-
sition processes can usefully proceed bottom-up, streaming renewables typically includes a vari-
from the interests of the actors, and in this way ety of policy instruments, including economic
probe the fundamental factors driving their incentives, climate and/or renewable energy tar-
conduct. For example, in addition to climate gets, and RDI policies to develop enabling tech-
neutrality, actors may value security of supply nologies; policies targeting grid integration of
or affordable energy prices while they may also renewables and local acceptance of renewable
prefer the energy sector to serve socioeconomic energy installation are also important.
needs in terms of, say, providing jobs. The au- The pivotal role of energy storages and back-
thors argue that policies need to be relevant for up solutions in systems largely based on variable
the multiple needs of actors and stakeholders power is discussed in Chapter 5. The power sys-
in order to have realistic prospects of eventually tem must be constantly balanced to avoid severe
gaining acceptance and achieving implementa- blackouts and paralysis of business and society.
tion, delivering targeted outcomes such as Power systems have traditionally used flexibility
climate neutrality. Second, the chapter surveys provided by generation assets such as fossil fuel
the types of policy instruments available to power plants that can adjust production to the
policy-makers for catalyzing and accelerating changing demand. As fossil fuel plants are
the transition and then discusses how policy- increasingly replaced with variable output
makers assess their policy environment and, on renewablesdwind and solar powerdenergy
that basis, eventually choose between competing storages and back-up solutions become indis-
policy options. Overall, for the transition to suc- pensable to maintain a balance between supply
ceed, the set of policy instruments has to be and demand. The chapter presents several types
tailored to the needs of each county and sector of energy storages that help to respond to the
of the electric energy system. needs of such electrification, ranging from fast
The ways of accelerating the deployment of response to long-term, seasonal, and annual
wind and solar power, the two most potent balancing needs. The case studies consider
renewable energy resources, are scrutinized in utility-scale bioenergy and battery solutions, as
Chapter 4. As these are relatively mature tech- well as small-scale battery storage installed in
nologies, the fundamental issue concerns a suit- residential buildings, to improve the cost-
able mix of policy instruments to accelerate efficiency of solar PV. Battery storages in partic-
their development in different socio-technical ular are found to benefit from several types
and institutional contexts. In addition, it is neces- of policy instruments to become more widely
sary to pay attention to the integration of wind deployed, while bioenergy solutions may
and solar resources into existing energy systems, require support from policies to adjust their busi-
where many other resources and infrastructures ness models to the changing energy system and
are already operational. The chapter introduces market.
case studies on the EU context, contrasting these Chapter 6 probes deeper into the flexibility
with the American, Moroccan, and Japanese solutions required by electrifying energy sys-
cases, to illustrate different policy development tems with a large share of variable power. The
strategies. The authors point out that because chapter first discusses the concepts of smart
wind and solar power are weather-dependent, grids and flexibility that become crucial in such
variable output resources, their scaling up contexts. These concepts are illustrated by means
ultimately requires enabling technologies such of case studies on large-scale industrial loads as
as energy storage and various solutions for flexible resources, smart metering, power-based
more flexible demand. The chapter concludes grid tariffs, and energy communities and
readiness alone is not sufficient for a more deci- The future development of the energy system
sive shift toward prosumerism. An appropriate can alternatively be examined with the help of
policy mix including incentives can remove modeling approaches, illustrating how different
behavioral obstacles. Three key proposals are part-solutions can be combined in particular
presented. First, the diffusion of renewable contexts and how such part-solutions influence
energy technologies needs to be accelerated. one another. In Chapter 11, the authors pay
Second, the prosumer policy mix should foster attention particularly to the functionality and
flexibility and technology interoperability. For operability of the system in conditions of an
instance, EVs and home battery storages can increasing share of variable power with expand-
be utilized as flexibility resources during the ing wind and solar generation. They propose
peak moments of electricity demand. Third, that generating a sufficient volume of climate-
prosumers need to be incentivized to use their neutral and low carbon energy is not the real
resources and to participate actively in energy problem, but that the challenge relates more to
markets and flexibility schemes. producing and delivering electricity to meet
The global and regional trends and debates on demand at a given time and place. The Finnish
energy transition are the subject of Chapter 10. electric energy system is used as a case study
The authors first examine the discourses framing to present scenarios on how to ensure a balance
the agenda-setting for energy policies in transi- between the production and consumption of
tions to climate-neutral power systems. They power in a transitioning system, mindful of the
argue that hegemonic discourse is crucial for fact that storing electricity in large amounts in-
the agenda-setting of energy policy and can curs costs. The authors model the main contours
decisively shape the direction of transition. In of the system at 2030, expecting many resources
other words, technology change also involves a of the present energy system to persist in a future
discursive change that can shed important light system as well. However, some further flexibility
on the contours of technology change. Since will be needed to accommodate the increasing
discursive trends decisively frame future energy share of variable power. The chapter suggests
transitions, research focusing on such trends can that policies and investment should indeed focus
provide vital information for future policy on such flexibility investments in generation and
planning. Such research can moreover expose consumption.
potential discord in the ways in which the trends Chapter 12 for its part models the wider
may interact in what is essentially a complex northern European region where several coun-
system where multiple industries interact. The tries have announced ambitious targets for
chapter also introduces further theoretical per- climate neutrality. The case study with three
spectives to examine the interaction between geographical layers explores how most of the
national level debates and global transition, energy systems, including power, heat, industry,
alongside a big data approach to enable studies and transport, could be decarbonized through
on how, for example, key words such as EVs, electrification. The year 2030 is examined to illus-
digitalization, and artificial intelligence occur in trate the short-term policy options and 2050
transition debates. In this way, the chapter pro- to scrutinize almost total decarbonization. The
vides new insights into how various technolo- chapter demonstrates how decarbonization
gies are debated on these levels and how may take place in techno-economic terms and
socially and political significant framings of the on this basis prepares the ground for questions
global technology landscape gradually emerge regarding policy targets, policy coordination
from such debates. between countries, as well as the design of
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2
Globally and locally applicable
technologies to accelerate electrification
C. Johannes Muth1, Pami Aalto1, Fanni Myll€ari2, Topi Rönkkö2,
Pirkko Harsia3
1
Faculty of Management and Business/Politics Unit, Tampere University, Tampere, Finland; 2Faculty of
Engineering and Natural Sciences/Physics, Tampere University, Tampere, Finland; 3Faculty of Building
Services Engineering, Built Environment and Bioeconomy Unit, Tampere University of Applied Sciences,
Tampere, Finland
Electrification
https://doi.org/10.1016/B978-0-12-822143-3.00005-6 25 © 2021 Elsevier Inc. All rights reserved.
26 2. Globally and locally applicable technologies to accelerate electrification
scale in frontrunner countries such as Denmark energy systems and societies. This would mean
and Germany, as well as some US states, after extensive sector coupling whereby renewably
the 1970s oil crisis (see Chapter 4). produced electricity also becomes the main en-
Since the 2000s, increasing awareness of the ergy source in the transport, heat, and industrial
climate change effects of fossil fuels, coupled sectors, which so far have proven less amenable
with the vulnerabilities associated with fossil to reform. No single renewable energy technol-
fuel imports and a possible “peak oil” situation, ogy will suffice alone as each energy source
has caused attention to return to renewables. In and technology entails both benefits and con-
2019, the power-producing sector was the pri- straints. Thus, to achieve maximum impact,
mary source (41%) of energy-related CO2 emis- combining different technologies requires care-
sions (IEA, 2020b). Large-scale change in the ful examination, taking into account existing en-
power sector is hence crucial for a transition to ergy systems and society-specific needs.
climate neutrality, and renewable energy is Our chapter will cover the most promising
well suited for this purpose. Indeed, it is widely renewable energy technologies, namely wind
expected that by 2050 renewable energy will power, solar power, hydropower, marine power,
regain its historical primacy. The respective tech- several forms of bioenergy, and geothermal
nological solutions will range from small-scale power. We will also discuss small-scale nuclear
residential PV rooftop and micro-hydro systems reactors (SMRs), which do not represent renew-
to the gigantic Noor Solar Power Plant in able energy technology but which are low-
Morocco or the Three-Gorges Dam in China. At carbon in terms of power production and as
the same time, existing and proposed nuclear po- such offer one possible part-solution in the pur-
wer plants will be important part-solutions in suit of climate neutrality. A basic description of
several countries. each technology will be complemented by a dis-
Obviously, external events may decisively cussion on its accelerated deployment with an
shape the transformation. The lockdown occa- eye to meeting the emission reduction targets
sioned by the COVID-19 pandemic in 2020, for of the 2015 Paris Agreement. To this end we
example, reduced global economic activity, use the Sustainable Development Scenario
halted some energy projects, and temporarily (SDS) of the International Energy Agency (IEA)
decreased energy consumption as well as emis- as a shorthand. Particular emphasis is placed
sions. This event may afford an opportunity as on how the economic, social, and environmental
did the oil crisis of the 1970s (Aklin and Urpelai- implications of each technology shape the pol-
nen, 2018). For example, 30% of the EU’s icies needed for their accelerated development
2021e27 recovery package of EUR 1.8 trillion is (see Chapter 3).
earmarked for “green transition.”
With several renewable energy sources and
technologies available, it is important to 2.2 Wind power
acknowledge the global and local variation in
their applicability. Some are more global, some In 2019, wind power accounted for nearly 6%
more local. Nevertheless, in most countries, of global power generation. Wind power is
either wind or solar PV power technologies, or becoming more competitive and more widely
their combination, will assume key roles. adopted than hydropower, with 651 GW in ca-
Because wind and solar PV power are pacity and commercial wind power plants in at
“electricity-only” technologies and do not pro- least 102 countries (REN21, 2020). This accelera-
duce any heat, their increasing adoption will tion builds on the growing maturation of
strengthen the global trend of electrification of onshore wind power technologies. Offshore
1
Neodymium (circa 170 kg/MW) and Dysprosium (circa 24 kg/MW) (Zepf, 2020).
example, arguments about wind turbines dis- The basic concept of offshore installations is
turbing the landscape, especially near human close to that of onshore turbines, although
settlements. There have also been allegations some new offshore systems utilize permanent
about health hazards due to low-frequency noise magnets in place of a gearbox. The more uniform
from the turbines (Usher, 2019), which, however, wind speeds on the sea not only offer greater
some studies report to be fairly low (see Chapter 4). wind resources but also cause lower turbulence,
Some environmental groups moreover point to increasing the lifetime of components (Dinh and
avian mortality caused by wind turbines. Yet McKoegh, 2019). Offshore installations run up to
the annual collision rates per turbine vary from 4500 full load hours per year, more than double
0.01 to 23, of which the highest figure was from that of onshore turbines (Klinger and M€ uller,
a turbine at a coastal site with a large population 2017b). The higher capacity factor and remote
of gulls, terns, and ducks (Drewitt and Langston, location allow large turbine sizes, with designs
2006). New turbines should therefore not be sited extending to over 14 MW in capacity with height
near birds’ migration pathways or habitat. How- and diameter spanning well over 200 m and ex-
ever, wind turbines account for the deaths of less pected to increase.
than 600,000 birds per year in the USA, signifi- The technical constraints increase with the
cantly lower than for cats (up to 4.7 billion/ water depth. Most of the technology for con-
year), buildings (365e988 million/year), or fossil structing the foundations of offshore turbines
fuel power plants (14 million/year) (Sovacool, comes from the oil and gas sector. From the
2013). At the same time, some opponents may typical foundation of a monopile bottom-fixed
simply have a vested interest in their backyard concept (<30 m), the trend is toward deeper wa-
or in competing technologies. ter offshore wind power plants based on tripods
(<50 m) or jacket structures (<60 m). Floating
designs allow the installation of wind turbine
structures in water depths of several hundred
2.2.2 Offshore wind power meters, offering wind exploitation in larger sea
The deployment of offshore wind power only areas (O’Kelly and Arshad, 2016). Such wind po-
began during the early 1990s. Despite its vast po- wer plants could, in principle, generate over 18
tential, it is only gradually becoming main- times of global electricity demand, which in
streamed. In 2019, the total installed capacity 2019 was around 27,000 TWh (IEA, 2020b; BP,
reached 29 GW (þ5.9 GW), with over 6000 tur- 2020).
bines connected to grids in 18 countries, most The main constraints for accelerated deploy-
in the UK, China, and Germany. ment include costs. In 2019, the global average
While this accounts less than 1% of global LCOE of approximately 0.115 USD/kWh for
electricity supply (REN21, 2020), the best new installations significantly exceeded that of
offshore wind sites in shallow water (<60 m) other renewable energies (see Appendix 1). The
and near the shore (<60 km) could potentially foundation represents only one driver of the
supply almost 36,000 TWh, which almost equals costs alongside exposure to strong waves and
the expected global electricity demand in 2040 high wind speeds, which cause increased mate-
(IEA, 2019). To meet the IEA’s SDS targets for rial and maintenance costs. Repair or restoration
2030, annual capacity additions would have to work is time-consuming and expensive due to
quadruple from 2019. The maturing of the tech- the remote location (Poudineh et al., 2017).
nology brings economies of scale, further sup- Offshore wind power plants also require longer
ported by standardization and industry and more expensive connections to onshore
clustering (IEA, 2020b). grids. In Germany and the Netherlands auctions
Solar cells are based on the photovoltaic effect Solar PV power is also applicable to remote
which converts electromagnetic radiation (light) areas and developing countries with no strong
into electric current (power) through the absorp- central grids. Off-grid applications can range
tion of photons by a semiconducting material from a single home to a village and on to mega-
(e.g., silicon). In other words, solar energy is con- watt scale installations. Most off-grid (“behind-
verted directly into electricity with no emissions the-meter”) systems can be connected with a
or noise. In 2017, around 95% of all panels pro- battery or function as a hybrid power system
duced used silicon variations (Fraunhofer ISE, combined with a fuel generator to ensure con-
2019), with polycrystalline used in more than stant power supply. With grid connection, they
half of these. It is cheaper and causes less silicon can sell excess energy (“net-metering”). These
waste than monocrystalline, but its temperature so-called producer-consumers (prosumers) have
tolerance and efficiency (11%e16%) are low. significantly driven the market in Europe and
Monocrystallines last for up to 25 years, have the USA despite the small size of their systems,
high-efficiency rates (15%e20%), but are expen- often called distributed generation. Commercial-
sive (IRENA, 2019a; Pavlovic, 2020). Thin-film scale applications can supply electricity to build-
solar cells are the third-most used PV technol- ings or businesses and include both off-grid and
ogy. They offer a flexible material but have low on-grid types. Utility-scale applications feature
efficiency (7%e12%, Fraunhofer ISE, 2019; grid-connected production with an installed
IRENA, 2019a). Ongoing RDI work is devel- capacity of at least 1 MW but often reach over
oping other primary materials (e.g., organic or 500 MW, combining millions of panels and
perovskite) and building-integrated photovol- stretching over an area of several thousands of
taics (BIPV) such as flexible panels, transparent hectares (Usher, 2019). In such systems, solar
solar cells for windows, and vertically installed power in fact features centralized rather than
PV panels (IRENA, 2019a). However, energy distributed generation.
analysis should consider that laboratory tests Floating solar photovoltaic (FPV) started as
usually produce better results than actual small-scale pilot projects (20 kW) in 2007, reach-
installations. ing utility scale (150 MW) within a decade. In
The high learning curve of solar PV and over- 2019, 35 countries had such systems with a total
supplies in China have significantly reduced the capacity of 2.4 GW, and China dominating the
cost of solar panels from 300 USD/Watt in the market (REN21, 2020). FPVs are driven by land
1950s to 2 USD/Watt in 2010 and 0.36 USD/ constraints in densely populated areas. Their
Watt in 2019 (Penna, 2020; REN21, 2020). In benefits include readily accessible cooling,
addition, operation and maintenance costs are reduced evaporation of freshwater reservoirs,
low. The first unsubsidized solar PV systems and compatibility with existing hydropower
had bid prices below 0.020 USD/kWh (REN21, infrastructure. However, they need to be robust
2020). The global average LCOE remained to withstand waves and strong winds. Problems
much higher at around 0.068 USD/kWh (see Ap- include limited experience and proper licensing
pendix 1). The costs depend on the level of solar and permitting (REN21, 2020; IRENA, 2019a).
radiation, the maturity of the PV market, and the The environmental constraints of solar PV
local policy environment. In many developing relate to land-use requirements unless incorpo-
regions, specific financial and institutional con- rated in buildings and to the waste in panel pro-
straints may include inadequate financing; lack duction and its energy intensity. Furthermore,
of available transmission capacity for larger pro- solar panels contain toxic materials (e.g., lead,
jects; lack of skilled workforce, information, and cadmium) that may be washed out by rainwater
consumer awareness (Pedraza, 2015). from panels damaged during natural events