renewable energy. how much do people want to pay for it?

7/30/2019 Renewable energy. How much do people want to pay for it?

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Renewable energyhow much do people want topay for it?

Henrik Karlstrm,

SFFE Lunch Seminar, 03.02.10


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03.02.10, SFFE Lunch Seminar Henrik Karlstrm, Center forEnergy and Society, NTNU

What will I be talking about?

Some background

About the study The questions about renewables

The findings

Remarks


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Some background

Norway has outlined its strategy

concerning renewable energy

Renewables fund through Enova

Most utilities offer a guarantee of origin

Not very popular

Does Norway need more renewables?

The free market for electricity


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About the study

A telephone survey with

1500 respondents

Comprising 38 questions

The interviews averaged

17 minutes

Five major themes

The market for electricity,

personal consumption,

renewable energy,sustainability and security

of supply


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The questions about

renewable energy

Taking into consideration the fact that

Norwegian electricity production is almost

100 % renewable, how important is this for

consumers?

Is it possible to gauge willingness to pay

extra for this?

If so, how much?

If not, why?


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Findings

Todays hydro-power production isrenewable. How important is it for you that

electricity is renewable in the future as well?

Very important 66.6

Somewhat important 18.8

Neither nor 6.0

Somewhat unimportant 3.1

Very unimportant 3.2

Dont know/wont answer 2.3

Total 100.0

85 % of respondents

think renewableenergy sources are

important


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Findings

Would you be willing to pay more forelectricity with a guarantee of renewable

origin? (N=1281)

Yes 64.3

No 28.0


Total 100.0


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Findings

64 % of 824, or about

1/3 of 1500, willing to

pay at least 25 %

more to getguaranteed

renewable energy

Weak positive

correlation withincome (gamma =

0.107)

If YES, do you have an idea of how muchmore you are willing to pay? (N=824)

Up to 25 % more 46.6

Up to 50 % more 14.1

Up to 75 % more .6

Up to 100 % or more 2.5

No opinion 33.6


Total 100.0


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Findings

With 85 % thinking

renewables are

important, but 64 %

willing to pay for this,why?

More than half

concerned with

existing price levels

If NO, why not? (N=359)

Electricity is already too expensive 36.5

Its up to the public authorities to

ensure a fixed price

7.8

I cannot afford more expensiveelectricity

14.2

Its not the consumers responsibility to

make sure electricity is renewable

6.1


Other 26.5

Total 100.0


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Findings

Generally,

respondents

are calling for

more political

control over

these issues

Politicians dont

do enough topromote

renewableenergy inNorway

There shouldbe stronger

politicalcontrol overthe price ofelectricity

There should bestronger politicalcontrol over theconstruction ofpower plants

Agree a lot 46.0 41.1 40.0Agree

somewhat

24.9 23.0 24.7

Neither nor 14.5 13.5 13.5

Disagree

somewhat

5.7 8.5 8.5

Disagree a lot 5.1 9.4 7.8

Dont know/

wont answer

3.9 4.5 5.5

Total 100.0 100.0 100.0


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Findings

Solar Hydro Land wind Sea wind Wave Bio Gas w/

CCS

Very positive 75.9 45.5 45.5 56.9 62.5 37.9 15.8

Somewhat positive 14.6 26.2 26.2 22.5 18.3 26.5 20.2

Neither nor 5.2 11.2 11.2 7.3 7.7 17.3 18.5

Somewhat negative 2.2 8.3 8.3 5.1 2.2 7.0 19.5Very negative 1.4 7.3 7.3 5.3 2.6 4.7 17.5

Dont know/ wont answer .7 1.5 1.5 2.8 6.6 6.7 8.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Solar by far best percieved Bio, not so much

Gas least popular


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Findings

Do you think Norway should develop largescale carbon capture and storage systems?

Yes 51.5

No 21.3


Total 100.0

More people want

CCS than perceive itas a good

Means they consider

it more realistic?


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Remarks

The survey is not exhaustive

What does it tell us?

Renewables are important to the public

The prospect of higher prices is only a mild

deterrent to some

People want more active policies in this field

Some renewables are more favoured than

others


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Policy issues

Politicians shouldconsider whether atechnology neutralpolicy for renewablesis the right way to go

Can the marketsecure the right levelof investments inrenewables?

Who will pay forthem?

renewable energy. how much do people want to pay for it?

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