Shapeshifting Energy: Understanding EU and Finnish Energy Governance Through REPowerEU

Abstract

This thesis investigates the current state of energy governance in Finland and the European Union’s evolving influence through the REPowerEU initiative. Using a theoretical framework combining multi- level governance (MLG), metagovernance, and the spectrum of soft to hard governance, the research examines how Finnish actors adapt to EU objectives through the roles and relationships of key actors, different levels of governance involvement, as well as the mechanisms and challenges in coordination. Empirical findings from ten semi-structured interviews reveal that EU-level conditionality manifests through funding, reporting obligations, strict deadlines and strategic leveraging, while differentiation by leveraging national strengths, robust energy networks, and a strong emphasis on research institutes and local acceptance.

The study highlights that Finland's REPowerEU implementation is a complex, multi-layered effort. The European Commission acts as meta-governor and steers through hard governance mechanisms, while national actors like the MEE and MOF manage implementation, often collaborating horizontally with research institutes and engaging with private sector actors. Despite limited formal power in funding, local communities exert significant soft power through social acceptance. This research contributes to existing literature by offering a detailed case study of how a member state translates EU policies, expanding on theories of conditionality and differentiation. It illustrates that while the EU sets a broad framework, there is considerable room for national innovation, challenging purely hierarchical views of MLG and enriching the understanding of metagovernance as a two-way process. Ultimately, this thesis underscores the dynamic identity of the EU in energy governance, emphasizing the critical balance between top-down directives and bottom-up engagement for democratic legitimacy and effective policy.