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The role of regulatory learning in energy transition: The case of solar PV in Brazil

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  • Vazquez, Miguel
  • Hallack, Michelle

Abstract

An important problem that has attracted significant amount of attention within the context of energy transitions is the carbon lock-in: a situation in which energy systems are locked-in to high carbon technologies through a path-dependent process. Several measures to avoid the carbon lock-in involve technology-specific measures, which in turn implies that those measures may result in an energy system locked-in to certain low carbon technologies. We consider that the Brazilian system needs policies to escape the carbon lock in, which are based on providing incentives to low carbon technologies. We develop an analytical framework to analyze the role of regulatory institutions in the possible lock-in to utility-scale photovoltaic, in the sense that they create barriers to the adoption of distributed-generation photovoltaic. We show that the definition of a process to adapt the institutional framework in a context of stress in the innovation system is crucial for the adoption of new technologies. Applying our framework to the Brazilian power sector, we observe that only when regulators consider the possibility that the system is locked-in to centralized production technologies (and not when they just consider the carbon lock-in) they manage to eliminate barriers to distributed generation based on solar PV.

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  • Vazquez, Miguel & Hallack, Michelle, 2018. "The role of regulatory learning in energy transition: The case of solar PV in Brazil," Energy Policy, Elsevier, vol. 114(C), pages 465-481.
    • Handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:465-481
    DOI: 10.1016/j.enpol.2017.11.066
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    Cited by:

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    2. Bhatt, Brijesh & Singh, Anoop, 2021. "Power sector reforms and technology adoption in the Indian electricity distribution sector," Energy, Elsevier, vol. 215(PA).
    3. Costa, Vinicius B.F. & Capaz, Rafael S. & Silva, Patrícia F. & Doyle, Gabriel & Aquila, Giancarlo & Coelho, Éden O. & de Lorenci, Eliane & Pereira, Lígia C. & Maciel, Letícia B. & Balestrassi, Pedro P, 2022. "Socioeconomic and environmental consequences of a new law for regulating distributed generation in Brazil: A holistic assessment," Energy Policy, Elsevier, vol. 169(C).
    4. Elia, A. & Kamidelivand, M. & Rogan, F. & Ó Gallachóir, B., 2021. "Impacts of innovation on renewable energy technology cost reductions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    5. Felipe Barroco Fontes Cunha & Maria Cândida Arrais de Miranda Mousinho & Luciana Carvalho & Fábio Fernandes & Celso Castro & Marcelo Santana Silva & Ednildo Andrade Torres, 2021. "Renewable energy planning policy for the reduction of poverty in Brazil: lessons from Juazeiro," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 9792-9810, July.
    6. Shidore, Sarang & Busby, Joshua W., 2019. "What explains India's embrace of solar? State-led energy transition in a developmental polity," Energy Policy, Elsevier, vol. 129(C), pages 1179-1189.
    7. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    8. Vargas Gil, Gloria Milena & Bittencourt Aguiar Cunha, Rafael & Giuseppe Di Santo, Silvio & Machado Monaro, Renato & Fragoso Costa, Fabiano & Sguarezi Filho, Alfeu J., 2020. "Photovoltaic energy in South America: Current state and grid regulation for large-scale and distributed photovoltaic systems," Renewable Energy, Elsevier, vol. 162(C), pages 1307-1320.
    9. Costa, Evaldo & Rodrigues Teixeira, Ana Carolina & Silva Costa, Suellen Caroline & Consoni, Flavia L., 2022. "Influence of public policies on the diffusion of wind and solar PV sources in Brazil and the possible effects of COVID-19," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    10. Bernardo Alves Furtado & Gustavo Onofre Andre~ao, 2022. "Machine Learning Simulates Agent-Based Model Towards Policy," Papers 2203.02576, arXiv.org, revised Nov 2022.

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    More about this item

    Keywords

    L43; L94; O31; O43; Energy transitions; Institutional evolution; Path-dependence; Evaluative criteria;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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