The Politics of the Nordic Energy Transition: Policies, Stakeholders, and Interests

This dissertation studies the ongoing energy transition of the electric energy system in the Nordic region and the interrelation between policy development, stakeholders and their interests as well as the role of regional cooperation in the Nordic energy transition.

Achieving the goals of the Paris Agreement and decarbonizing societies presupposes a successful energy transition towards an energy system that relies on renewable energy production. Achieving these goals also requires sustainable energy policy frameworks that facilitate the ongoing energy transition with all its future uncertainty and proclivity for change. Achieving these goals also requires for political, technological, and socio-political developments to proceed in tune with each other given the far-reaching societal implications of the energy transition and the development of the energy system.

The theoretical framework of the study builds on the need to better account for political perspectives in studying energy transitions and makes the argument that a stronger focus on political approaches to the energy transition is needed given the far-reaching impact the energy transition has on society. Theoretically, the study employs new institutionalist approaches, the role of stakeholders and their interests as well as policy and policy change to ground the political analysis of the energy transition.

The thesis uses a multi-method approach to study these questions, employing triangulation of document study, Q-methodology as well as semi-structured expert interviews. The multi-method approach of the dissertation is grounded in an understanding of energy transitions as complex phenomena whose multidimensionality should also be reflected in the methodological choices made when studying them.

The thesis is based on four publications, each of which approaches policy development, stakeholders and their interests as well as Nordic cooperation from a different angle but come together in studying the politics of the Nordic energy transition. In addition to the research questions specific to each publication, they form a whole that speaks to the overarching topic of how energy transitions can be developed coherently, continuously, and in a timely manner. This also allows for discussing the potential for accelerating energy transitions in the Nordics.

Publication I explores coordination mechanisms in Nordic intergovernmental organisations via a focus on the interconnection of interests, leadership, and identities in building cooperation and avoiding overlap in policy work. Publication I highlights the importance of national interests in the coordination of policy work as well as regional cooperation. Publication II employs a narrower focus on exploring stakeholders’ interests on the development of the Nordic electric energy system among expert stakeholders. Here, the analysis shows the clustering of stakeholders around three diverging Views while also pointing to a set of issues where wider agreement among stakeholders can be found. Publication III deepens the analysis of stakeholder interests via an analysis of electrification, decentralisation and variability as features of the energy transition in Finland. In this context the central role of stakeholder interests in operationalising agreed-upon targets is stressed as agreement is found regarding the overall goal of the energy transition, while more diverse views abound with regard to the specific policy instruments to be employed in the transition. Publication IV then focuses on the impact of national approaches to implementing the energy transition and also furthers the discussion on regional cooperation. It is argued that the heterogeneity of national interests is not identified as major hindrance in the energy transition. Regarding Nordic cooperation, its positive impacts are stressed, while further institutionalisation is seen cautiously and with a view to being clear on limits of this cooperation in the sphere of the ongoing energy transition.

Overall, the analysis shows a strong commitment of stakeholders to the overall policy goals of the energy transition, while also pointing to differing views on how to operationalise these policy targets via policy instruments. Here, understanding interests takes a key role in understanding stakeholder preferences for specific policy solutions. Regarding Nordic cooperation, the strong Nordic commitment to sustainability and the energy transition provides a solid grounding for cooperation on work to further the energy transition in the region. Yet, properly accounting for the heterogeneity of the Nordic region in assessing possibilities and limits of cooperation is called for, as is a cautious approach to framing the Nordic experience as transferable to energy transitions in other regions.