Power from the People? Driving forces and hindrances.

The aim of the project has been to identify the driving forces and hindrances behind Norwegian households becoming prosumers. We have analyzed why some households in Norway choose to become prosumers, their experiences, energy practices and how they perceive prosumer policies and the solutions offered by key stakeholders in this field. In addition, we have considered how an increasing number of prosumers are perceived and handled by key stakeholders. The findings from the Norwegian study are analyzed in light of prosumer developments in the UK and Germany to provide perspectives on how national policies, regulations and practices for prosumers can be designed. Our studies show that: - If it is desirable to increase the number of prosumers in Norway, it is important to introduce a stable, generously, risk-reducing, predictable and simple support scheme. The most effective support scheme that covers these requirements have been called Feed-in-Tariffs (FIT). They connect a predictable support level and simple bureaucratic procedures to the amount of electricity produced by the prosumers. - Reducing transaction costs is important for increasing the number of prosumers. The importance of reducing transaction costs is clearly illustrated through the local support schemes being implemented in Norway. - Stakeholders had different views of the importance of prosumers in the Norwegian energy system. They also differed in their willingness to facilitate prosumer developments. The district system operators clearly expressed that they would not put up any hindrances for households to become prosumers. On the other hand, they have not implemented an active marketing strategy towards prosumers. The Norwegian Water Resources and Energy Directorate (NVE) had similar perspectives, and perceived its main role to work with the established (hydropower-based) technologies and regulatory solutions for those. The favorable conditions for solar energy production in parts of Norway and the need for environmental sustainability led stakeholders that are working to promote solar power in Norway to conclude that it is important to stimulate a prosuming market also by use of support schemes. Amongst the general Norwegian population, PV (Photovoltaics)systems were perceived as an expensive investment and many did not know much about the technology. On average, households who participated in the representative survey of the Norwegian population were willing to pay 9 180,- NOK for the installation of a PV system in their household. - The motivations for investing in PV systems among our prosumer informants were threefold. Many stated that environmental considerations were an important motivational factor for investing in PVs, others were interested in the technology and perceived the installation of PVs as an opportunity to pursue that interest. Many of our informants who have moved into homes equipped with PVs, indicated comfort as an important factor for their choice of buying such a house. They wanted to live comfortable lives without thinking much about energy use. - None of our informants saw a direct connection between having PVs and their total energy consumption. Most of the informants moved their energy consumption to times of the day when the PVs produced electricity, but their total energy use were not reduced. Furthermore, PV systems were an important factor for identity formation. What was pinpointed as important factors for prosumers identity formation corresponded with the prosumers motivation for acquiring PV systems or houses equipped with those. Our results indicate that a growth in the number of prosumers in Norway will come as a result of market forces driven by households own motivation to acquire PV systems and further developments of the technology. Households own motivation to acquire PV systems can contribute to a growing market for prosuming in the coming years due to that PV systems might be of interest for different groups of energy customers. Against this background, we see a potential for further user-driven growth of this market in Norway, but probably not to an extent that makes PV systems widely used by Norwegian households. Beyond that a further increase in prosuming in Norway seems to depend on the interest of Norwegian authorities to introduce support schemes for PV systems.

We address the driving forces and barriers for households in Norway to become producers of electricity which is made possible by smart grids and smart meters, allowing energy users not only to consume energy, but also to generate energy and feed this into the grid. The project consists of four parts: 1) Mapping of the regulative features that underpin prosumer activities in UK, Germany and Norway. We pay particular attention to renewable energy schemes, energy policies for buildings and energy market regulations. The aim is to improve our understanding of the differences and similarities in the prosumer policies in UK. Germany and Norway. 2)Investigation of why households engage as prosumers, their experiences, their energy practicies and responses to prosumer-regulations and solutions. The WP includes two empirical studies - a survey and case studies of prosumers in Norway. 3)Examination of how central stakeholders such as local authorities and companies perceive and respond to prosumer participation in the energy system. 4) Synthesis and user engagement. This WP will provide a common plattform for synthesizing disciplinary approaches, project activities and user engagments. We will through means of distinct participatory process methods involve stakeholders in reference groups, scenario workshops and focus groups. The project adresses the need of policy makers and business actors for assessing under which conditions and how a transition of households as passive end-users of electricity to active prosumers can be realized in the Norwegian context.Five scholarly papers will be produced in addition to three reports aimed at stakeholders. In addition, we will submit one to three panel proposals to major academic conferences and workshops. Researchers will write one opinion piece per year based on their research and publish those in mainstream news outlets.