Climate change urges us to find new ways to decarbonize our energy sector. Currently, low-emission renewable energy technologies, particularly solar and wind, are developing and their dropping prices are challenging the existing fossil fuel-based energy regime. However, replacing the existing modes of energy production with more sustainable alternatives is not an easy task. This is largely because of strong path dependencies in the socio-technical system of energy production. Therefore, the transition towards a more sustainable energy system does not entail only the development and implementation of novel technological solutions, but also meets cultural, institutional and political challenges and requires involving multiple stakeholders.
Finnish Environment Insistute’s (SYKE) TRIPOD project focuses on the roles of one particular group of actors in the energy transition process: public intermediaries. These intermediaries mediate between the users and developers of new technologies and create ways of collaboration.
In my contribution to the TRIPOD projects as a Master’s thesis worker, I focused on a case study of joint procurement of solar power plants in Välke projects, that has strong links the Carbon neutral municipalities project (HINKU). These joint procurement experiments initiated and coordinated by SYKE and its partner organizations have been able to significantly increase the share of solar power and to stimulate the solar business sector in Finland. In the analyses for my thesis, I found these intermediary actors to serve many roles in the energy transition.
First and foremost, intermediaries can disrupt the prevailing energy regime and support the development of sustainable niche technologies. The joint procurement experiments were able to create space and opportunities for private people, companies and municipalities to participate in climate change mitigation action. Further, the initial investments through the joint procurement catalyzed an increasing demand of solar power in the regions. The public role of intermediaries in this development was crucial, since the joint procurement scheme did not seem to provide any business opportunities for the coordinators.
My case also shows that especially the public sector intermediaries were able to utilize and develop governance innovations that were not bound to a particular technology. For example, following the success of the joint procurement of solar power plants, SYKE and KL-Kuntahankinnat Ltd. are currently utilizing the concept to arrange cheaper e-car charging stations for municipalities.
The analysis of solar joint procurement shows that intermediary actors play a crucial role in the governance of sustainability transitions and innovation. However, many intermediaries work under unclear mandates. For example, the HINKU project and its joint procurements have been praised, but on the other hand the participation of public sector actors in business ventures is criticized. To solve this conflict and to secure the urgently needed mediation, the role of intermediaries could be clarified. This could be done by extending the mandates of existing intermediaries or by creating new organisations that are not burdened by their institutional background.
Antti Seppälä is a (soon former) Master’s student in the University of Helsinki who is interested in sustainable societal transitions.
Opinions of blog contributors do not necessarily reflect the official views and opinions of the Finnish Environment Institute.