Energy regulatory sandboxes: harnessing global innovations and contextual differences for sustainable energy futures

Regulatory sandboxes enable policymakers to learn from new business models and technologies through experimentation. First developed in the financial services sector, sandboxes have become popular in the energy sector in recent years. This chapter compares the development of regulatory sandboxes in the energy sector across the Global North and Global South, including case studies in the UK, Netherlands, Kenya and India. Europe has seen a growth in sandboxes following the passing of new regulations giving consumers and communities a central role in the transition to a greener energy grid. There is a growing interest in energy sandboxes in the Global South, to address challenges including electrification, as well as leveraging private investment and promoting innovation. Key findings are that cross-sectoral sandboxes are crucial to promote innovation in the energy sector, they need to address region-specific concerns to mitigate risks.