Wind Power Policy Options in Finland: Analysis of Energy Policy Actors' Views Using Regulation Theory

Varho, V. (2004). Wind Power Policy Options in Finland: Analysis of Energy Policy Actors' Views Using Regulation Theory. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-04-073

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Abstract

In this paper I present and discuss views expressed by Finnish energy policy actors on wind power policy options in Finland. Views were collected with a questionnaire and interviews. The views reflect criteria for good regulation and are analyzed through criteria drawn from regulation theory literature. The arguments contain many elements from the regulation criteria, as well as political and value-based criteria. Increasing wind power's competitiveness is a paramount objective of policy, but there is no uniform view of the way to reach it. Emphasis on free competition is strong, setting boundaries to methods that are considered appropriate for promoting wind power. Information guidance instruments were not considered very effective, but nevertheless fairly probable and quite preferable, particularly consumer information. Financial incentives were considered very probable and rather preferable. They were deemed necessary for the competitiveness of wind power, but should be phased out (except R&D support). Unpredictability of support was found problematic. Command-and-control mechanisms were considered rather improbable, and the views about their preferability were sharply divided. They were criticized for not being suitable for liberalized electricity markets, and for having limited impact on innovation.

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