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ADDRESSING THE

WICKED PROBLEM OF

SUSTAINABLE AND

RENEWABLE ENERGY

A comparative analysis: Austria and Germany

MASTER THESIS STUDENT: M. SITARAM S2085720 SUPERVISOR: DR. G. E. BREEMAN SECOND READER: PROF. DR. A. TIMMERMANS

DATE: AUGUST 9, 2019

LEIDEN UNIVERSITY

FACULTY OF GOVERNANCE AND GLOBAL AFFAIRS

MASTER OF PUBLIC ADMINISTRATION

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Acknowledgements

I would like to offer a special thank you to my supervisor Dr. G. E. Breeman for his valuable guidance, helpful advice and constructive critiques for this thesis. I would also like to express my profound gratitude to my parents, family, and friends

for their continuous support and encouragement throughout the writing process. Thank you.

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Table of contents

List of tables 5 List of Abbreviations 6 1. Introduction 8 2. Theoretical framework 11

2.1 Defining wicked problems 11

2.2 Defining governance as a concept 14

2.3 The Governance Capabilities Criteria (5R’s) 15

2.4 Hypotheses 17

3. Research design and data collection 19

3.1 Governance capabilities: observing, acting, and enabling 19

3.2 Research methods 22

4. Energy policies in context: Renewable Energy Directive (2009/28/EC) 25

4.1 Contextual background of the RED (2009/28/EC) 25

4.2 National Renewable Action Plans (NREAP) 27

5. Austria: Energy policy 28

5.1 Reflexivity 30

5.2 Resilience 32

5.3 Responsiveness 34

5.4 Revitalizing 36

5.5 Re-scaling 37

6. Germany: Energy policy 38

6.1 Reflexivity 40

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6.3 Responsiveness 46

6.4 Revitalizing 49

6.5 Re-scaling 51

7. Discussion: Austria and Germany 52

8. Conclusion 61

8.1 Concluding remarks 64

Appendix I: Governance Capabilities Overview 66

Appendix II: List of documents 67

Appendix III: NREAP – Austrian energy policies and measures 77

Appendix IV: NREAP – German energy policies and measures 80

List of References 84

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5

List of tables

Table 1: A comparative perspective: Austria and Germany 57

Table 2: Governance Capabilities overview 66

Table 3: Overview of selected documents and data analysed 67

Table 4: Measures for achieving the targets in Austria 77

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List of Abbreviations

BMEL Bundesministerium für Ernährung und Landwirtschaft

Federal Ministry of Food and Agriculture

BMWi Bundesministerium für Ernährung und Landwirtschaft

Federal Ministry of Economic Affairs and Energy

BMU Bundesministerium für Umwelt, Naturschutz und nukleare Sicherheit

Federal Ministry for the Environment, Nature Conservation, Building, and Nuclear Safety

BMVBS Beauftragter der Bundesregierung für die neuen Bundesländer

Federal Ministry of Transport, Building and Urban Development BMVIT Bundesministerium für Verkehr, Innovation und Technologie

Ministry for Transport, Innovation and Technology

BMZ Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung

The Federal Ministry of Economic Cooperation and Development

CDU Christlich Demokratische Union Deutschlands

Christian Democratic Union of Germany CSU Christlich-Soziale Union in Bayern

Christian Social Union in Bavaria DENA Deutsche Energie-Agentur

German Energy Agency

EC European Commission

EEG Erneuerbare-Energien-Gesetz

German Renewable Energy Sources Act EEL Energy Efficiency Law

EEWärmeG Gesetz zur Förderung Erneuerbarer Energien im Wärmebereich

Renewable Energies and Heat

EU European Union

FIT Feed-in Tariffs

GHG Greenhouse Gas

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

German Corporation for International Cooperation

IEA International Energy Agency

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7 KNE Nature Conservation and Energy Transition Center

KWKG Kraft-Wärme-Kopplungsgesetz

Renewable Energies and Heat Act NABEG Network Expansion Acceleration Act

NOAA National Oceanic and Atmospheric Administration NREAP National Renewable Energy Action Plan

OECD Organisation for Economic Co-Operation and Development

PJ Picojoule

RED Renewable Energy Directive RES Renewable Energy Sources R&D Research & Development

SPD Sozialdemokratische Partei Deutschlands

Social Democratic Party of Germany

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1. Introduction

From rising sea levels leading to potential hazardous flooding to extreme drought threatening food production, climate change has been one of the most contested debates in the international community. It poses a fundamental threat to a large scale of regions, communities, the livelihood of people, and species all around the world. The effects of climate change are evident on a worldwide scope and are unprecedented in its extent. The National Oceanic and Atmospheric Administration (NOAA) dataset also showcase these serious impacts, namely the year 2016 has been the warmest year on record, with an anomaly of approximately 1 degree Celsius (Potter, 2017). If no immediate action will be taken, adapting to these effects and other climate change consequences in the future will be increasingly more challenging and costlier (United Nations, 2019). In fact, the Intergovernmental Panel on Climate Change (IPCC) points out that without proper measures to implement greenhouse gas (GHG) emission cutbacks, temperatures will most likely continue to increase to 3.7 and 4.8 degrees Celsius above the pre-industrial era levels by the year 2100 (IPCC, 2014).

However, throughout the past few decades there has been a demand by several actors, stakeholders and citizens for action in the form of policies and legislation in order to address the issue. In response several policy programmes, frameworks, strategies, regulations etc. have been set in place in efforts to deal with the environmental changes. An example is the United Nations Framework Convention on Climate Change (UNFCCC), an international environmental treaty that has been ratified by 50 states (UNFCCC, 2018). Addressing climate change includes a variety of challenges however the main issue is related to limiting the maximum global average temperature rise and thereby focusing on the minimalization of the amount of GHG emissions. Targets in relation to global access, energy efficiency and sustainable and renewable energy are therefore at the core of many efforts dealing with climate change and GHG cutbacks. For instance, the European Union (EU) published the Renewable Energy Directive (2009/28/EC) (RED) that repealed and amended prior legislation in the field. The directive serves as a framework for the production and promotion of sustainable and renewable energy sources to reduce greenhouse gas emissions and to encourage cleaner transport (BuildUp, 2012). In order to implement these objectives, the directive has set clear targets. However, as the directive covers a number of challenges, it has become an extension of the broader EU 2020 Energy Strategy and targets.

In order to reach these goals, the directive requires the EU member states to transpose the directive through their own individual targets and domestic energy policy. These national

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9 targets have been outlined in the National Renewable Energy Action Plans (NREAP) of the member states. The NREAPs include the targets that need to be met for the 2020 goals and the (already existing or new) measures and regulations to achieve them. Moreover, with the energy transition taking on a more fundamental role in the domestic approach, countries face several challenges and experience ups and downs throughout their efforts to establish a more environmentally friendly energy policy whilst creating policy stability. As the issue of energy is not only intertwined with various policy areas such as climate change, fiscal and industrial policy it is also an issue that has interconnected elements. It is therefore often considered a ‘wicked problem’. Wicked problems are very resistant to solutions as today’s problems emerge as a result of the efforts to understand and solve the problems of yesterday (Head, 2008; Rittel & Webber, 1973). Taking this into account, it can be questioned to what extent a government or policy framework is able to deal with wicked problems such as sustainable and renewable energy. Based on the prior notion, the main research question for this study has been formulated as followed:

▪ ‘‘How do the national governments of Austria and Germany address the wickedness

of the issue of sustainable and renewable energy?’’

As the directive 2009/28/EC serves as the foundation for numerous NREAP to reach the targets, the focus of this research will be on the case of Austria and Germany and their approach towards the sustainable and renewable energy strategy as well as the energy transition. Moreover, the measures, policies and activities related to the action plans of the Austrian and German government will be assessed. The two countries have been chosen based on their similarities in terms of country profile and approach to environmental issues and difference in regard to their share of renewable energy and their achievements and performance related to the EU 2020 targets. The usage of a case study has been selected based on the fact that climate change and energy concern a very broad area. The focus of the cases will be on the time period of 10 years, namely the run up to the publication of the NREAP in relation to the RED and a few years after its introduction in order to be able to pinpoint any progress and whether adjustments have been made regarding the 2020 targets and sustainable developments. The main focus of the time frame thus runs from approximately 2007 to 2017. This time frame has also been chosen based on the notion that in this time period the ‘energy transition’ became more prominent in both countries and they experienced a (gradual) shift towards a sustainable, efficient, and renewable energy approach. Moreover, a case study has been applied in order to narrow down the scope of the issue and to be able to effectively analyse the specific field.

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10 Furthermore, document analysis has been used as method to analyse the relevant policies and documents which enables the possibility to assess whether working with the strategies and executive plans is sufficient and addresses the wicked problem of sustainable and renewable energy. In order to make this assessment, the Governance Capabilities Criteria (Termeer, Dewulf, Breeman, & Stiller, 2015; Termeer & Dewulf, 2014) will be used as the theoretical framework and foundation of this research.

While there is a variety of research on wicked problems in relation to sustainable challenges, studying the phenomenon from different angles and perspectives, there is a gap in the literature in terms of theory testing with the usage of an analytical tool, namely the governance capabilities criteria. Though this can be explained by the fact that the theory is relatively new. While it has been used in prior literature such as ‘The European Commission’s ability to deal with wicked problems: an in-depth case study of the governance of food security’ (Candel, Breeman, & Termeer, 2016); and ‘Enhancing food security through a multi-stakeholder process: the global agenda for sustainable livestock’ (Breeman, Dijkman, & Termeer, 2015), the theory has not been tested with a comparative approach. Moreover, there is a lack of substantive and in-depth comparative research that includes the governance capabilities criteria evaluating government approaches to sustainable challenges on a national level between two distinct states in the field of climate change with a focus on energy. This particular study therefore can scientifically contribute to narrowing the knowledge gap and suggest new ideas to extend the theory and provide implications for future research.The societal relevance is related to the notion that the study contributes to gaining a better understanding of the phenomenon and thereby how to understand and cope with the challenges involved.

This research will be divided in eight separate chapters. This first chapter provides an introduction and outlines the thesis. The second chapter addresses general information about the topic and provides an explanation in regard to essential concepts such as wicked problems and sustainable challenges as wicked problems. Moreover, it includes an in-depth explanation on the theoretical framework, namely the governance capabilities criteria. The aim of this section is to present the reader with a theoretical foundation and general knowledge of the scope of the issue. The third chapter covers the methodology of this study, the operationalization of the relevant concepts and outlines the research methods used. In addition, it includes an explanation and justification for the chosen research design and data collection methods. The fourth chapter includes background information about the Renewable Energy Directive and attempts to put it into context. The subsequent chapters include a small-N case study and will be analysed in a separate manner in order to ensure that there will be no disruption in terms of

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11 the structure and logic of each case. The chapters will provide the findings and will be focused on the National Renewable Energy Action Plan, energy transition, policies and measures of the Austrian and German government. Chapter seven will present an analysis and discussion of both countries with a comparative perspective. The purpose of this section is to specify and analyse the Austrian and German energy policy and energy transition as well as provide implications regarding the hypothesis. Moreover, it presents the reader with a systematic comparison of all the main elements addressed in the case study chapters. Finally, the last chapter concludes the research and provides an answer to the central research question of the study, limitations of the study, and implications for future research.

2. Theoretical framework

In order to provide an answer to the central research question and to make progress in regard to particular features of the comparative study, the theoretical elements of sustainable challenges and wicked problems need to be reviewed first. There have been a number of studies on sustainable challenges and wicked problems in the field of policy sciences. This chapter will therefore cover the related existing literature, approaches and theories. In terms of the theoretical framework, the main focus will be on the governance capabilities criteria and the conceptualization of the relevant concepts and ideas. The aim of this chapter is to provide the reader with a general introduction to the topic and the scope of the issue in regard to wicked problems.

2.1 Defining wicked problems

To gain an understanding about the energy policies in Austria and Germany, it is of importance to first define wicked problems as a concept and outline how it is related to one another. Rittel and Webber (1973) outline the foundation of a general theory in relation to defining and addressing wicked problems in their article ‘Dilemmas in a General Theory of Planning’. The authors point out that it is difficult to counter issues related to social policy due to the wicked nature of these problems. Considering science has advanced to cope with mainly so-called ‘tame’ problems, (social) policy issues cannot be considered tame as such due to the fact that it is not possible to assign a definite description to them. In addition, they argue that the existence and definition of an undisputable public good is absent in a pluralistic society. As there is a lack of an objective description of equity and the policy responses to societal problems are not deliberately true or false, the authors state that it is meaningless to argue the possibility of ‘optimal solutions’ (Rittel & Webber, 1973, p. 155). Accordingly, the article concludes that due

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12 to the fact of prior mentioned arguments conclusive and objective answers to these problems are not possible, therefore there are no definite solutions to wicked problems.

To understand the rationale of Rittel and Webber (1973), the following sections will address their argumentation regarding wicked problems. Throughout the years, it has become more evident that defining and locating a social policy problem is an intractable problem in itself. Social processes are now observed as components that tie open systems into broader and interrelated networks of systems, meaning that ‘‘outputs from one become inputs to others’’ (Rittel & Webber, 1973, p. 159). The issue here however is that unlike in the case of tame problems, the required information to comprehend a wicked problem revolves around the perception of the individual who attempts to solve it. This essentially refers to the idea that to be able to define a wicked problem in great detail, one needs to acquire an extensive overview of all probable solutions in advance. This is based on the theory that every question that calls for more information depends upon the comprehension of the issue and its resolution at that moment in time. In that sense, ‘‘problem understanding and problem resolution are concomitant to each other’’ (Rittel & Webber, 1973, p. 161). Thus, to be able to predict all questions, one needs information on all probable solutions. Based on the prior argumentation, the authors suggest that the formulation of a wicked problem is for that reason the actual issue as the formulation process and method of devising and understanding a (re-)solution is interchangeable due to the idea that each description of an issue is essentially a description of the direction in which an approach is contemplated. This means that with an identical process there will be a lack of a proper criteria in terms of what is considered to be an adequate understanding. Moreover, there will be an absence of ends to the causal chains that connect the interacting open systems. Subsequently, the problem-solver can continuously attempt to improve and identify more advanced solutions. This indicates that wicked problems do not have a so-called ‘stopping rule’ (Rittel & Webber, 1973).

Another characteristic that outlines wicked problems is that the answers ascribed or proposed to them are neither true or false. Rittel and Webber (1973) state that no party or individual has the authority to impose explicit decision guidelines in regard to what is correct and what is not. Moreover, the (re-)solutions are a result of and based on the interests, ideological inclinations, personal value-sets etc. of the problem-solving individual or group of actors, and therefore will naturally differ. Consequently, the answers will be considered to be within a range of ‘good’ or ‘bad’ instead of ‘true’ or ‘false’. As there are no decision rules it is increasingly more difficult to measure the (re-)solution. In addition, the implementation of any answer to a wicked problem will create a stream of consequences over a long time and may

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13 even result into unwanted side effects and thereby outweigh the advantages of the initial solution. Accordingly, it is not feasible to assess these consequences until the stream of side effects has completely passed by, however even then it is beyond the bounds of possibility to trace all the side effects that have had an impact on all the lives involved in advance or within a restricted time frame. With the absence of a direct and absolute test to assess solutions, addressing wicked problems becomes very challenging, especially as every solution is significant (Rittel & Webber, 1973). Moreover, this indicates that there is no room for trial-and-error in the process. The wickedness of the issue does not allow problem-solvers to learn from mistakes without consequences as every solution affects the lives of people and cannot be reversed. In fact, any effort to reverse or amend an answer to the problem will present a new series of wicked issues.

Whereas tame problems can be dealt with by relying on a set of rules and by accounting for all probable effects and circumstances, wicked problems do not have fixed rules or strategies that are known to be acceptable by default (Rittel & Webber, 1973). The series of solutions are therefore dependent on genuine judgement, the ability to assess unusual ideas and on the degree of trust between the problem-solver and the ones that are to be affected by the decision. Moreover, another important feature that distinguishes wicked problems from ordinary issues is that every wicked problem is fundamentally unique in the sense that even though they might seem to share similarities, it cannot be expected that the same series of approaches will be sufficient for all of them. As mentioned before, wicked problems can be seen as a symptom of another issue. This is a development of the problem-solving process as it involves identifying the causal reason for discrepancies and subsequently removing them which leads to it becoming another issue of which the initial problem is a ‘symptom’ (Rittel & Webber, 1973). As a result, it can be viewed as a symptom of yet another issue on a ‘higher level’. The authors point out that it is therefore important that wicked problems are addressed on the highest available level instead of treating the symptoms because this does not resolve the issue and could potentially make the problem even worse. As previously mentioned, before one is able to address the issue one is required to understand the problem, though in the context of wicked problems there are no fixed standards or processes to decide which explanation or a combination of them for a problem is correct. It therefore is once again dependent on the problem-solver’s perspective which drives them to often pick the explanations that are considered to be the most logical to them. Essentially, the ‘world view’ of the problem-solver has the most influence on the chosen explanation for a discrepancy in regard to wicked problems and subsequently the ability to resolve it. The last feature that set wicked problems apart from tame problems is that the goal

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14 of addressing wicked issues is to enhance some elements of the world and society rather than finding the truth (Rittel & Webber, 1973).

In essence, the location of the problem has become more ambiguous and it has also become less clear where and how action should be taken in the cases where the aim is known. Therefore, finding the appropriate strategies/actions to bridge the gap of reality and what ought-to-be has become more difficult. In that regard, whereas issues related to natural sciences and tame problems are definable and distinguishable and have potential solutions and are detectable, policy problems are ill-defined and are dependent on ambiguous political assessment for resolution. In sum, a wicked problem can thus be referred to an issue that is ‘‘ill-defined, ambiguous, and contested, and they feature multi-layered interdependencies and complex social dynamics’’ (Termeer, et al., 2015, p. 680). As energy policies are not only related to climate change it also poses a social policy issue and is considered a wicked problem due to the fact that it involves a sequence of problems that are interlinked. Moreover, the short- and long- term effect calculations and cost and benefits of interventions vary to a large extent. Furthermore, its effects are prominent on various levels and its development is contested. In addition, the allocation of accountability is difficult, and it is a subject of discussion and so on. (Head B. W., 2008).

2.2 Defining governance as a concept

Now that we have defined wicked problems the following sections will provide a description of what governance entails as wicked issues pose great challenges in regard to governance. Moreover, the Governance Capabilities Criteria framework will be explained in great detail in order to provide essential context to the later chapters of this study.

The word governance itself is derived from the Latin language ‘gubernare’, however it originates from the Greek term ‘kubernaein’, which can be translated to ‘to steer’ (Tamayo, 2014). Based on its word history, governance indicates the method or approach of steering or governing, or of directing and controlling a group of individuals or a nation (Davies, 1999). However, in the context of politics the concept of governance has significantly gained momentum and a broader definition over the past decades. While the common definition provided by dictionaries describe governance as an equivalent of government or ‘‘the act or process of governing, specifically authoritative direction and control’’ and thus concentrates on the influence of the executive arm of government, governance in the empirical world is observed as much more extensive than just government (Merriam-Webster Inc., 2019). The British Council (2019), for instance, states that it ‘‘involves interaction between the formal

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15 institutions and those in civil society. Governance refers to a process whereby elements in society wield power, authority and influence and enact policies and decisions concerning public life and social upliftment’’. The primary aim of governance is thus addressing shared issues in society. However, prior existing literature indicates and acknowledges that traditional governance approaches are not appropriate and sufficient for dealing with wicked issues (Rittel & Webber, 1973; Head & Alford, 2008). To be able to overcome this issue, various academics have come up with a number of different approaches. However, in reality the system implementing such approaches is often confronted with a number of challenges due to the fact that the new approaches tend to clash with the more conventional governance methods (Hendriks & Grin, 2007). This is in particular the case of sustainable challenges and climate change related issues because the policy area and coping with such dilemmas through governance is a development of recent decades (Gupta, 2010).

2.3 The Governance Capabilities Criteria (5R’s)

In order to assess and determine prior mentioned issues in the field of governance, Termeer, et al. (2014; 2015) have created a theoretical framework: ‘The Governance Capabilities Criteria’. To gain a better understanding of the framework, the next sections will include the conceptualization of each capability. The criteria consist of the following five capabilities: Reflexivity, Resilience, Responsiveness, Revitalization, and Re-scaling (scale-sensitivity). According to Termeer, et al. (2015), a governance capability refers to the ability of actors to recognize wicked issues, carry out appropriate action, and the capability of the administrative system to enable aforesaid observing and acting.

The first capability concerns reflexivity, this capability refers to the idea that it is of importance to be able to manage a diverse range of possible perspectives, realities, and frames regarding wicked problems. This is essential as there is no specific consensus on the issue of possible solutions to wicked problems. Moreover, as mentioned before, wicked problems involve a number of issues and tend to be unstructured and interlinked rather than just being one particular and clear problem. Therefore, to make the understanding of the issue less complicated and to acknowledge the different perspectives, reflexivity is required. In addition, this capability facilitates actors to have the skills and competences to reassess dominant issue frames and redefine action perspectives (Schön & Rein, 1994). Furthermore, reflexivity reduces the chance of actors potentially acquiring tunnel vision in the process or the occurrence of unmanageable controversy that fuels the wickedness of the issue (Gray, 1989).

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16 Resilience is the second governance capability that is part of the criteria framework.

This capability is of added value as it enables the ability to adapt to changing circumstances in regard to the definition of problems, solutions, and the context of the issue (Termeer, et al., 2015). These changes related to wicked problems are continuous in nature as they have multidimensional and interlinked features, which means that these problems concern causes and effects on various time- and space scales. Due to the fact that there is a high level of uncertainty involved when it comes to wicked problems, responding to wicked issues in any way can turn into a problem itself. Resilience, the capability to be flexible in their response and adaptation to wicked problems and uncertainty without losing their identity and dependability, is therefore important for actors in order to cope with challenges related to flexibility and stability (Duit & Galaz, 2008; Termeer, et al., 2015). Absence of resilience could potentially lead to major consequences as for instance a small disruption could bring about the inability to fulfil basic activities.

Thirdly, responsiveness refers to the ability to respond to unlimited and changing demands whilst being able to create a proper balance between a variety of public values. As Rittel and Webber (1973) indicate, this capability is necessary as wicked problems have no so-called ‘stopping rule’, meaning that they are continuously changing, reformulated, or reproduced in numerous forms and there is a lack of definite solutions for them. This essentially means that there will be a high number of demands and issues that request the attention from policy makers due to the evolvement and speed at which information spreads across society (Termeer, et al., 2015). Subsequently, the pressure on and temptation of policy makers to respond to every single issue can be high, however this is risky as this can lead to false promises and expectations and even the potential of losing legitimacy. Responsiveness as a capability is thus of importance as actors need to be able to respond in a balanced way, namely honour democratic values whilst being effective, reliable, efficient, trustworthy etc.

Revitalization is the fourth capability and outlines the ability to recognize and unblock

unproductive patterns and stagnation in the governance process (Termeer et al., 2015). As mentioned before, wicked problems involve a wide variety of uncertainties, no clear and final solutions, disorganization etc. which can be quite overwhelming and contribute to actors losing a clear overview (Weber & Khademian, 2008). The response of actors to such disorganization often involves returning back to more protective strategies and patterns, which tend to be counterproductive as these strategies and patterns might have worked in the past but do not deliver adequate solutions for wicked issues (Termeer, et al., 2015). In order to prevent this, revitalization is crucial as it enables the ability to acknowledge unproductive patterns in policy

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17 processes and ameliorate them. This will allow actors to have a clear mind and thereby improve innovation processes that are required in order to deal with wicked problems. The lack of revitalization would put actors at risk of regression or lead them to applying ‘more of the same’ type of solutions that have no added value and are thus ineffective and unnecessary.

The final and fifth capability is re-scaling, also known as scale-sensitivity. Generally, it can be defined as ‘‘the capability to observe and address cross-scale and cross-level issues’’ (Termeer & Dewulf, 2014, p. 39). This includes observing, acting, and enabling on two main levels, namely the governance scale and the problem scale. The former refers to the variety of levels at which governance arrangements take place e.g. international, national, regional, and local level. The problem scale on the other hand includes the levels at which the issue develops in time and space. The governance and problem scale both have spatial and temporal dimensions (Cumming G., Cumming D., & Redman, 2006). As mentioned before, the diverse levels of the spatial range of a problem, varying from local to global, is the spatial dimension of the problem scale. The temporal dimension of the governance scale refers to the many levels of ‘‘temporal reach of a problem, ranging from the short terms to the long term’’ (Termeer & Dewulf, 2014, p. 47). The governance scale in terms of its spatial dimension includes the different levels of the spatial range of the formal and/or informal governance structure that manages a specific wicked problem, extending from the local to the global level. Finally, the temporal dimension of the governance scale involves the different levels of ‘‘temporal reach of these governance arrangements, ranging from the short term to the long term’’ (Termeer & Dewulf, 2014, p. 47).

2.4 Hypotheses

The governance capabilities framework is of added value for this study as it allows for the testing of the ability of governments to deal with the wickedness of sustainable challenges. Moreover, it adds a different dimension to the study compared to prior existing literature. Namely, the focus of existing research is explicitly on strategies that concentrate on how to exercise certain actions (Duit & Galaz, 2008; Head, 2008; Koppenjan & Klijn, 2004). However, this means that other factors of wicked problems are ignored and excluded to a certain extend from the scope of their scrutiny and for which they lack action repertoire (Weick & Sutcliffe, 2001). The issue at hand though is that wicked problems are paradoxical, meaning that the governance strategies that are developed in efforts to solve them are a result of just observing them. In order to bridge this gap, it is important to include additional techniques and thereby

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18 involve other modes of observing and enabling, hence the usage of a comprehensive theory to cover all relevant dimensions and the need for a proper system.

Wicked problems are continuously defined in various and new ways and thus requires more than just observing. Moreover, institutional arrangements are often built on one or two governance capabilities and lack specific capacities to support these new modes and techniques. This subsequently often results in actors facing challenges and sometimes contradictions in regard to their own initiatives and existing governance arrangements (Termeer, et al., 2015). Administrative systems therefore require governance capabilities to detect the wickedness, take action, and the capability to enable aformentioned observing and acting. However, it is important to note that in order to address a wicked issue it is not a requirement that all capabilities are expressed at the same degree. Instead, actors should deem the capabilities as instruments and means that administrative systems can have and expand and in turn can be used to improve their scope of understanding and action repertoires necessary to cope with the wicked nature of these issues (Termeer, et al., 2015). Termeer, et al. (2015) therefore propose that dealing with wicked problems requires a proper balance between the capabilities to be able to address as many aspects of the issue as possible. Accordingly, the authors suggest the introduction of a so-called meta-capability which involves constant monitoring activities and the adjustment of enabling conditions which then can be used when necessary. The structure of such meta-capability and its potential usage in practice has however not been determined yet. Based on the prior notion, the main hypothesis for this study is formulated as followed:

▪ ‘‘The less governance capabilities are present and used in the energy approach of

Austria and Germany, the less the states are able to deal with the wickedness of sustainable challenges such as sustainable and renewable energy.’’

The alternative hypothesis in this case concerns the following:

▪ ‘‘The more governance capabilities are present and used in the energy approach of

Austria and Germany, the more the states are able to deal with the wickedness of sustainable challenges such as sustainable and renewable energy.’’

The energy approach involves the domestic energy policy of both countries. As the timeframe of the study involves a few years prior to the introduction of the NREAP and a few years after, several adjustments have taken place and includes a number of plans, strategies, and regulations that make up the energy approach towards not only the 2020 targets but also the energy transition to sustainable, efficient and renewable energy. The hypotheses will be tested throughout the subsequent chapters related to the case studies.

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3. Research design and data collection

The aim of this chapter is to provide an overview in regard to the operationalization of the main concepts of the governance capabilities framework. Moreover, it addresses the means that have been used in this study in order to present an answer to the central research question.

3.1 Governance capabilities: observing, acting, and enabling

The fundamental logic of the governance capabilities is that they will ‘‘help manage wicked problems through repeated small wins, based on careful observation and targeted actions, rather than through comprehensive plans or heroic deeds’’ (Termeer, et al., 2015, p. 703). Each of these capabilities have crucial features that are categorised in three main groups, namely observation, acting, and enabling. The capabilities are the independent variables in this study and are generally operationalized as the presence of skills, repertoires, capacities, commitments, and readiness of governments and/or policy makers to observe wicked problems, act accordingly, and the ability to enable corresponding observation and acting (Termeer, et al., 2015). The next few sections will cover each capability and outline the relevant indicators that are used to measure and/or detect them and thereby operationalize them. For a full overview of the governance capabilities, see Appendix I: ‘Governance Capabilities overview’.

Reflexivity

The operationalization of the relevant concepts is essential in order to analyse the governance capabilities and its presence or absence. In the case of reflexivity, the collection of problem definitions and frames and the examination of the exchange process of those definitions and frames are the main focus. As reflexivity demands a certain degree and mix of appropriate skills, resources, and structures to tolerate ambiguous conditions and observe varying perspectives, it is important to pay attention to the various frames used, the manner in which these were established and its effects on the dynamics of the sustainable and renewable energy policies and plan in order to be able to assess the capability (Termeer, et al., 2015). Thus, to observe and analyse the framing processes it is essential to question how the wicked problem of sustainable and renewable energy is defined within the relevant areas and which stakeholders are involved and/or deal with the issue. In addition, it is important to assess how these stakeholders define the wicked problem. Furthermore, other potential questions that might shed more light on whether reflexivity is present involves the following: what is the course of history in regard to the problem definitions and frames? In addition, there might be frames/ideas related to renewable energy that dominate the field of sustainable development, if so, which ones?

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20 In regard to the strategies used, the main focus concerns the evaluation of whether the different frames are acknowledged, exchanged and connected (Termeer, et al., 2015; Breeman, 2019). To analyse the acting conditions, awareness and/or knowledge of the various definitions are factors that need to be taken into account (Breeman, 2019). Moreover, the way in which the exchange of frames took place and the variabilities and similarities of frames are of importance as well. The aim of analysing the enabling conditions is to determine whether reflexive activities were initiated and how these were coordinated.

Resilience

The core of resilience is the ability to be flexible in one’s adaptation to uncertainties and everchanging conditions in regard to wicked issues. The instruments involved in the analysis of this capability are therefore mainly related to the observation and scrutinization of the trends and changes in relation to energy and whether these were observed at the right time. Moreover, resilience requires the ability to process and anticipate such changes and potential challenges, which in turn enables learning. It is essential to note that resilience demands a certain degree of flexibility. For that reason, in order to measure resilient action, it is of importance to analyse whether learning processes took place in response to changing conditions and subsequently led to adjustments. This is noteworthy as learning tends to arise through simulations and experiments and detecting signals of disturbances can be used as an advantage to enhance one’s reaction to the changing and uncertain environment.

In terms of the enabling conditions, the purpose is to examine and determine the attitude of actors in relation to change and uncertainties. Moreover, the manner in which the actors respond to those changing conditions or instability without losing their identity and dependability plays an important role (Termeer, et al., 2015; Breeman, 2019). This can be materialised by for instance taking robust or flexible measures which often to certain degree requires institutional adjustments such as flexible institutions and redundancy.

Responsiveness

The third capability ‘responsiveness’ can primarily be indicated through the patterns, processing of, and response to attention. The relevant instruments therefore also include analysing the management of responses and potential institutional constraints and enabling conditions (Breeman, 2019). The former refers to elements such as media coverage, political attention, policy windows etc., whereas the latter refers to structures set in place that manages the responses. To assess the presence of responsiveness, the political and issue attention and expectation in regard to sustainable and renewable energy is therefore the main focus. In

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21 addition, this includes analysing whether the response of the relevant actors is given in a timely fashion and in the right institutional venue.

Enabling responsiveness tends to require certain institutional and organisational settings (Jones & Baumgartner, 2005). These settings include the presence of the right actors at the appropriate venues where the attention is generated and the actors having the knowledge on how to act in those different institutional venues (Termeer, et al., 2015). In addition, this involves actors ‘knowing’ when not to participate in communication activities and how to appropriately communicate during times that involve heightened attention. Enabling conditions therefore include for example actors establishing strategies or preparing achievable policy answers that will generally be accepted in times of high demands for attention (Termeer, et al., 2015). It is thus important that actors have the right skills when it comes to political sensitivity.

Revitalizing

As mentioned before, sense-making plays a vital role in the efforts to address wicked problems. Actors attempt to comprehend what is happening, select potential suggestions to cope with the issue, act upon those ideas, create experiences through those acting activities, and eventually make sense of the circumstances (Termeer, et al., 2015). However, this can lead to stagnation as those social processes can be interrupted by unproductive patterns, which means that actors get stuck to following rules and keep meanings even in cases when its limitations are evident (Karkkainen, Sabel, & Fung, 1999). To indicate whether such stagnation has been present, the focus will be primarily on the framing process and communication. This means observing what type of stagnation occurred and if any, were these prevented or solved? These questions need to be asked as the presence of these factors indicate that the actors were aware of stagnations and were potentially animated to be innovative or enable reflection and learning (Weick, 2009). In turn, enabling conditions in relation to revitalization requires actors to overcome stagnated patterns. The aim is to focus on whether intervention skills or structures were present to unblock unproductive arrangements and potentially change the context to cut through the fixated patterns (Koppenjan & Klijn, 2004).

Re-scaling (Scale-sensitivity)

The relation between the governance- and problem scales is at the core of this capability. To measure ‘re-scaling’, the main observations concern the potential ‘‘cross-level issues on the problem scale, and the interdependencies between levels on the governance scale’’ (Candel, Breeman, & Termeer, 2016, p. 795). Moreover, the venues in which sustainable and renewable

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22 energy as a wicked issue is discussed also plays an important role because addressing wicked problems needs to occur on the right level in order to be effective. This therefore requires proper management of scales. To determine whether there is a fit or mismatch between the two scales it is essential to analyse the accountability and responsibility conditions and the dynamics between scales.

In regard to acting conditions, it needs to be questioned whether actors have taken action to deal with the spatial, temporal, and institutional mismatches, and if so, how? Through adjustments in terms of better cooperation between levels, domains, and areas? Or did they implement decoupling strategies on the problem scale in order to keep the relevant issues on the right levels? Moreover, were there institutional adjustments such as remodelling strategies implemented (Termeer & Dewulf, 2014)? In terms of enabling the capability, the openness for multiple scale logics and flexibility are essential to facilitate or empower re-scaling (Termeer & Dewulf, 2014; Breeman, 2019). This refers to governments for instance introducing alternative methods to cope with the issues in regard to sustainable and renewable energy.

3.2 Research methods

The study is explanatory, retrospective and X focused as it aims to assess whether the presence of governance capabilities in the energy policy framework of Austria and Germany has a positive or negative (enabling or constraining) influence on their progress and ability to deal with the wicked nature of sustainable challenges regarding sustainable and renewable energy. As this research involves a comparative perspective, it includes a small-N case study, namely on the energy policy and approach and its accompanying National Renewable Energy Action Plan (NREAP) of the Austrian and German government. The time frame of the study is based on the run up to the introduction of the NREAP in relation to the measures and guidelines of the RED and its 2020 targets as well as the years after its publication. Moreover, the time frame of 2007-2017 is an interesting period for this study as both countries experienced a (gradual) shift in their energy policy due to the energy transition gaining more attention on both the European as well as domestic level. The phenomenon as well as changes on the supranational level influenced their approach to energy policies and sustainable development. A review of certain elements of the prior years are significant to get a better idea about the state of affairs. The focus on the years after the NREAP, the road towards the 2020 targets and energy transition developments are essential to examine whether any progress has been made and whether the approach, plans and strategies reflect governance capabilities to address the wicked issue within the scope of the objectives.

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23 A comparative research method has been selected and used in order to obtain a more in-depth understanding of the similarities and variables of the energy policy and the NREAPs of Austria and Germany. As literature indicates, a comparative research method is meaningful in political and social sciences as it enables researchers to broaden their horizon and go beyond a single framework. Skocpol and Somers (1980) point out that this particular research approach allows for the assessment of two or more case studies and to identify the specific features that are different or similar in the cases. To ensure appropriate depth to the study, it is fundamental to incorporate an internal as well as external dimension to this research approach. As stated by Janoski and Hicks (1994), an internal dimension to a comparative analysis is of importance to be able to completely understand the content of the cases. In contrast, an external analysis assesses the similar aspects or variables of one case in comparison to one or multiple other cases. In addition, this approach has been chosen based on the fact that it grants the opportunity to acquire more knowledge about the efficiency of both frameworks.

The research will take on a deductive approach and will examine the policy framework through an analytical lens, specifically ‘the governance capabilities criteria’ (Termeer & Dewulf, 2014; Termeer, et al., 2015), thereby testing the theory. As the governance capabilities theory is fairly new a most-similar system case design has been chosen. Moreover, this design has been selected because both countries are similar in terms of their government structure (federal parliamentary republic), are within the same range of GDP per capita, are both EU member states, and have signed a high number of similar international environmental agreements. The variance in Austria and Germany however concerns their performance in terms of the 2020 targets related to the RED and domestic energy policy approach. This difference is namely visible in their share of renewable energy in gross final energy consumption. Namely, Austria’s gross final energy consumption accounts for 32.6 percent, whereas Germany scores nearly half of the Austrian percentage with 15.5 percent (European Commission, 2019a). The progress of both countries is operationalized as ‘small wins’. According to the theory of Weick (1984) the concept of small wins refers to the idea of opportunities that can be controlled and result in noticeable effects. When a small win has been achieved it enables forces to be ‘‘set in motion that favour another small win’’ (Weick, 1984, p. 43). The author points out though that small wins do not occur in a linear manner and tend to affect settings which means that subsequent efforts to accomplish another win happens in a different context (Weick, 1984). However, as the theory of governance capabilities is relatively new it poses limitations on the specificity and measurability of these small wins in the context of sustainable challenges due to the knowledge gap. The small wins in this context are therefore linked to the idea of stability

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24 (does the ‘solution’ uphold?), learning points, and small outcomes in the progress towards the fulfilment of the 2020 goals and the energy policies of both countries. In essence, the dependent variable thus entails the performance of both countries in relation to sustainable and renewable energy sources related to the 2020 measures, regulations and guidelines as well as the general energy approach towards the energy transition.

While the design does select on the dependent variable, the aim of the thesis is to also assess whether the diverging performance of the countries may be related to the governance capabilities. Moreover, this type of design enables the opportunity to explain and trace the relevant factors. Furthermore, the unit of analysis concerns the Austrian and German policies and principles related to energy. The unit of observation on the other hand includes the data of the relevant documents, plans and strategies on (sustainable and renewable) energy.

To provide a comprehensive comparative research on the energy policies of Austria and Germany, extensive qualitative desk research and document analysis has been conducted as part of the data collection method. The qualitative research consists of relevant books, professional papers, academic journals, reports etc. Moreover, theoretical literature, official data of international institutions and policy documents of federal governments have been acquired and used in efforts to obtain the data and information required to draw comprehensive answers to the central question of the study. These documents have been obtained through official and legitimate websites from the European Union and other international and national institutions to ensure the reliability and accuracy as much as possible. The sources have been obtained by focusing on the timeline and through the usage of contextual keywords (related to each country) such as ‘renewable energy’, ‘sustainable energy’, ‘Renewable Energy Directive’, ‘energy policy’, ‘energy framework’, ‘energy transition’, ‘EU 2020 energy targets’, ‘National Renewable Energy Action Plan’ etc. As Merriam (1998) indicates, ‘‘Documents of all types can help the researcher uncover meaning, develop understanding, and discover insights relevant to the research problem’’ (p. 118). Moreover, documents are stable in nature, meaning that they do not provide a response and therefore can be analysed, assessed and read at different points in time and maintain the same data without being affected by the researcher or the process of the research (Bowen, 2009).

For a complete overview of and information on the main documents used and analysed for the case studies, see ‘Appendix II: List of documents’. The documents have been selected based on the relevancy of the research subject, relation to the country’s energy policy, the EU 2020 targets, and the NREAP. Moreover, the relevancy, purpose of the source, authors, and target audience are important features of the selection process of the research documents.

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25 Furthermore, the media sources have been selected based on relevancy and the reliability and validity of the credibility of the newspapers. Relevant sources include those that cover the developments and events that took place within the specified timeframe of this paper. Multiple documents on the same events and developments have been used to increase the validity of the data and/or information. The data of the sources have been analysed through the use of a systematic rapid review method in order to outline correlation between features and aspects and review existing data in regard to the policies and practices. These sources are of importance to understand the relevant framing, arguments, and strategies used in the framework of both governments to address the issues involved in sustainable and renewable energy. The aim of the usage of such approach is to collect data that contains a legitimate assimilation of evidence in order to draw conclusions with proper substance. Although this approach has several benefits in regard to stability and limiting the expenses and time spent on the collection of data and research, there are a number of challenges in terms of the usage and incorporation of secondary sources. These limitations may include insufficient details and potential bias. Accordingly, it is essential to take the intricacy of the sources into consideration during the research process. The concluding chapter elaborates further on other limitations of the study.

4. Energy policies in context: Renewable Energy Directive (2009/28/EC)

Directives set in place by the EU are binding legislation to only those members states to whom they are addressed. Directives are generally adopted in line with the originating treaties. After the adoption, the transposition process follows in which the framework of the directive is integrated in the legislative scheme of the member state(s). While the framework determines certain measures, targets, rules etc. the implementation process and practical design are left to the members (EUR-LEX, 2018).

This chapter will present the contextual background of the Renewable Energy Directive (RED) and outline the main aim and targets. In order to provide a substantial discussion, the purpose of this chapter is to provide a foundation for the following chapters that will address and analyse the national energy approach of Austria and Germany in relation to the governance capabilities in more depth.

4.1 Contextual background of the RED (2009/28/EC)

As the effects of climate change become more and more prominent, the establishment of an Energy Union has become more important as well. However, the creation of such union calls for a significant shift in the energy framework of Europe. Sustainable and renewable energy is

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26 a fundamental component to the achievement of the EU as it contributes to meeting the goals of the Union (European Commission, 2015). These targets include the provision of security of supply, a shift towards a sustainable energy scheme with lower greenhouse gas emissions, industrial advancement resulting in growth and increased employment, and a reduction in the energy costs for the economy in the EU (European Commission, 2015). To meet these targets and to encourage the transition to the production and consumption of sustainable and renewable energy, an extensive European policy scheme has been institutionalized. Namely, on April 23, 2009 the Renewable Energy Directive (2009/28/EC) was adopted and took effect on June 25, 2009 (EUR-LEX, 2017). It amends and repeals the EU Directive on Electricity Production from Renewable Energy Sources (2001/77/EC) and the Transport Biofuels Directive (2003/30/EC) (EUR-LEX, 2009a). By amending and repealing the prior legislation, the EU introduced legally binding targets for the production and promotion of renewable energy sources on a supranational level. Specifically, the directive requires the EU to ensure that the share energy used is set to be 20 percent renewable by 2020 based on the common set of rules (EurActiv, 2008; EUR-LEX, 2017). In addition to these targets, the European Union also needs to reach 10 percent share of renewable energy in the transport sector (European Commission, 2019b). In essence, the directive aims to reduce GHG, promote cleaner transportation, and encourage the transition from traditional biofuels to modernized and sustainable sources which enables significant GHG savings. Moreover, it allows for a 7 percent cap on traditional biofuels to add to meeting the 2020 final energy usage in transport (EUR-LEX, 2017).

Over the past 10 years the directive has become the main stimuli for Europe to dominate the international investment in renewable technologies and encourage sustainable and renewable energy policies that stretch beyond the borders of the Union thereby assisting renewables to develop into a cost-competitive energy source on both a European and international level (European Commission, 2015). As the promotion of development and innovation in relation to renewable energy technologies is also emphasized, the directive and its objectives play a crucial role in the European roadmap for advancement, industrial modernization, leadership and the limitation of GHG (European Commission, 2015). As mentioned before, due to the intricacy of the challenges involved in ensuring sustainable and renewable energy and moving towards a more advanced Energy Union, the directive has been incorporated in the overarching EU 2020 Energy Strategy. This framework aims ‘‘to reduce its greenhouse gas emissions by at least 20 percent, increase the share of renewable energy to at least 20 percent of consumption, and achieve energy savings of 20 percent or more’’ (European Commission, 2019b, para. 1). Essentially, the overall goal of the directive is to be achieved

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27 through the efforts of and targets set by the individual member states, meaning that the countries’ own (existing) measures, policies and approach are the fundamental instruments to reach these targets. This often means that different energy measures, plans, mechanisms become interconnected and may lead to complications resulting in various challenges for the governments to be dealt with.

4.2 National Renewable Action Plans (NREAP)

To reach the aim of the directive, the EU required the member states to draw up and submit a detailed National Renewable Energy Action Plan (NREAP) by the end of June 2010. These national plans draft the commitments and initiatives to establish renewable energy as prescribed by article 4 of the Directive 2009/28/EC. However, unlike prior directives in the policy area that only had simple monitoring requirements in the shape of a report, the Council and Parliament required not only a progress report but also to comply with a mandatory template. The reason behind this decision is based on the fact that the EU states used to have different reporting techniques which led to insufficient monitoring. With the mandatory template all member states are required to report on the same elements. The plans thus serve as a roadmap on how the states will comply with the legally binding 2020 targets. These domestic targets range from 10 percent in Malta to 49 percent in Sweden (European Commission, 2019b). The plans report on the sectoral targets related to electricity, heating and cooling, and transport (European Commission, 2019c). Moreover, the plans also contain details on the policy measures required to reach domestic targets involving mutual effort between local, regional, and national actors.

The progress and position of the member states in relation to the directive and 2020 targets can be tracked through the National Renewable Energy Progress reports. These reports are published every two years by the countries. Based on these reports and other information the European Commission generates a detailed report on the renewable energy policy developments of all the EU member states (European Commission, 2019d). For instance, the data of the 2017 report indicates that the overall Union has moved forward to reaching its 2020 goals as the shared renewable energy was 16 percent in 2014. Moreover, in 2016 the approximate share of renewable energy in Union’s gross final energy usage was 17 percent. Furthermore, at the time of writing, most of the EU states have made progress in their efforts to meet the 2020 targets (European Commission, 2019b). Essentially, the reports and plans are expected to generate valuable and detailed knowledge of the field that enables the main goal of

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28 the directive, the European energy transition and the creation of an Energy Union which is to establish policy stability and thereby stimulate investment and green economic recovery.

5. Austria: Energy policy

Austria is a federal republic consisting of nine states and has a rather robust economy. At the time of writing the country has a population of 8.7 million and a GDP per capita of 56,259 international dollars (IMF, 2019; Statistik Austria, 2019). Over the past twenty years, Austria has gradually made progress in terms of moving towards the generation and consumption of sustainable and renewable energy sources and prioritizing energy efficiency and sustainability. Although the country is quite dependent on imports from mainly Russia, Germany, and Norway when it comes to meeting the domestic gas demands and is also dependent on Kazakhstan in terms of oil, it has a substantive share of renewable energy (e.g. wind, solar, biomass, biogas, and hydroelectric power) (Green Gas Grids, n.d.; Kerr, 2014a). In fact, Austria is one of the leading countries in regard to sustainable and renewable energy resources in Europe. The consumption and generation of renewable energy sources and the promotion of energy efficiency and sustainability has thus also become more prominent in the Austrian energy policy mainly to reach targets related to the reduction of GHG emissions and to limit their reliance on foreign fossil fuels.

The targets, objectives, and measures taken by the country have been described in their government programme. The federal state assigns tasks to either just the federal level (e.g. energy taxation, energy supply emergency regulations, energy statistics etc.) or to the federal as well as the provincial level (e.g. gas, heating, subsidies etc.). While energy policy decisions are taken by the federal government as well as the provincial level, as an EU member state, the country’s policies are to a large degree shaped by the EU level (International Energy Agency [IEA], 2014). From the 2000s onwards, the main focus of the energy policy has been on the security of supply, cost-effectiveness, environmental compatibility, and social compatibility. To achieve these objectives, the country pursued amongst others liberalisation of the energy markets, energy taxation, energy Research and Development (R&D), and diversification of energy sources (Environmental Protection Department [EPD], 2007). At the time, Austria had developed two sets of objectives to encourage electricity generation from renewable energy. The first targets were related to the electricity liberalisation legislations. These legislations outlined goals for the incorporation of renewable energy resources and mandated domestic electricity suppliers to draw a specific percentage of their electricity from renewable sources (EPD, 2007). The other targets were focused on the consumption of renewable energy in the

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29 country. These targets were related to the EU Directive on Electricity Production from Renewable Energy Sources (2001/77/EC) which established a goal for 2010, namely 78.1 percent of gross electricity consumption should be derived from renewable energy resources. In 2002, approximately 24 percent of the total energy consumption accounted for renewable energy sources (WorldData, 2019). Since then the country has made substantial progress, however the focus of the Austrian energy policy has shifted slightly and is now more based on three main elements, namely energy efficiency, renewable energy resources, and security of supply (IEA, 2014). Moreover, the consumption of fossil fuels has slowly decreased as well though the country continues to work towards lowering the numbers (The World Bank, 2019). Namely, since 2007 Austria has increased and invested in the public funding for energy research, development and demonstration by threefold (IEA, 2014).

The shift within the country has also been influenced by the changes that occurred on the supranational level. As renewable energy resources became more important in EU policies and with the introduction of energy specific targets, the policies of member states also incorporated some elements to achieve the EU objectives. For instance, the country drafted a comprehensive domestic Energy Strategy to establish a sustainable energy scheme to adhere to the regulations on EU level as well as make energy accessible for private and business consumption. Another example is the amendment and replacement of the Directive 2001/77/EC by the RED 2009/29/EC (EUR-LEX, 2009b). As the RED has set clear guidelines for the member states, the importance of sustainable development and energy in Austria became more evident after its introduction. Under the directive the country has set a goal of 34 percent renewable energy in gross final consumption by the year 2020. This target ranks as the fourth highest share in relation to other EU countries. The approach to this specific target has been outlined in the Energy Strategy as sustainable and renewable energy is one of the main elements of the strategy alongside efficiency and security (IEA, 2015a). To achieve various targets Austria submitted their NREAP on June 30, 2010 describing and elaborating on their goals and approaches. In essence, the NREAP is an action plan that makes regulations and measures such as the Energy Strategy, Energy Efficiency Law, and the Green Electricity Act more concrete and specific. See ‘Appendix III: NREAP – Austrian energy policies and measures’ for a complete overview of all the main policies and measures set in place to promote the usage of renewable energy resources, energy efficiency and sustainability in Austria.

By the end of 2017 the country had almost already reached their goals, namely their renewable energy sources share accounted for 33,72 percent (European Environment Agency, 2018). Renewable energy accounts for approximately one third of the country’s total primary

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