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Governing Energy Transitions: Transition Goals in the Swiss Energy Sector

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Energy and Finance

Abstract

European countries are currently committing to energy transitions so as to make the supply of electricity more sustainable. In this chapter we present our theoretical extension of a transition framework with the concepts of power, agency and politics in order to study the governance challenges of energy transitions. Furthermore, we demonstrate the application of our extended framework to a case in the Swiss energy sector. We focus on analyzing the distribution and gradual concentration of power within the sector and its implications for the energy transition. We conclude that the promotion of renewable energy through subsidization leads to a price scissor effect that squeezes small Swiss utilities out of the market by lowering electricity consumption and wholesale prices, while increasing self-production by households. The power increasingly lies with several large utilities, cities and cantons that are currently committing to ambitious energy transition goals. Such a concentration of power and alignment of goals can help in accelerating the energy transition in Switzerland.

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Notes

  1. 1.

    Institutions are defined as (1) informal rules such as customs, traditions, norms and religion, and (2) formal rules such as laws and property rights (North 1991, p. 97).

  2. 2.

    Power is defined as (1) power-over “A has power over B to the extent that he can get B to do something that B would not otherwise do” (Dahl 1957, p. 203), and (2) power-to “the probability that one actor within a social relationship will be in a position to carry out his own will despite resistance” (Weber 1978, p. 53).

  3. 3.

    Agency is defined as “the ability to take action and make a difference over a course of events.” (Giddens 1984, p. 14).

  4. 4.

    Konferenz Kantonaler Energiedirectoren.

  5. 5.

    Broadly speaking, the pro-growth coalition is in favor of economic growth, while the pro-ecology coalition is in favor of environmental protection.

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Acknowledgments

This research has been supported by the Swiss Competence Center for Research in Energy, Society and Transition (SCCER CREST). The authors acknowledge the helpful comments and suggestions of Yannick Perez, Gianluigi Viscusi and two anonymous reviewers.

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Correspondence to Reinier Verhoog .

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Verhoog, R., Finger, M. (2016). Governing Energy Transitions: Transition Goals in the Swiss Energy Sector. In: Dorsman, A., Arslan-Ayaydin, Ö., Karan, M. (eds) Energy and Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-32268-1_7

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