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Energy transitions and uncertainty: Creating low carbon investment opportunities in the UK electricity sector

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  • Ronan Bolton
  • Timothy J Foxon
  • Stephen Hall

Abstract

This paper examines how actors in the UK electricity sector are attempting to deliver investment in low carbon generation. Low carbon technologies, because of their relative immaturity, capital intensity and low operational costs, do not readily fit with existing electricity markets and investment templates which were designed for fossil fuel based energy. We analyse key electricity market and infrastructure policies in the UK and highlight how these are aimed at making low carbon technologies ‘investable’ by reducing uncertainty, managing investment risks and repositioning actors within the electricity socio-technical ‘regime’. We argue that our study can inform contemporary debates on the politics and governance of sustainability transitions by empirically investigating the agency of incumbent regime actors in the face of uncertainty and by offering critical insights on the role of markets and finance in shaping socio-technical change.

Suggested Citation

  • Ronan Bolton & Timothy J Foxon & Stephen Hall, 2016. "Energy transitions and uncertainty: Creating low carbon investment opportunities in the UK electricity sector," Environment and Planning C, , vol. 34(8), pages 1387-1403, December.
    • Handle: RePEc:sae:envirc:v:34:y:2016:i:8:p:1387-1403
    DOI: 10.1177/0263774X15619628
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    3. Chiranjib Bhowmik & Sumit Bhowmik & Amitava Ray, 2020. "Optimal green energy source selection: An eclectic decision," Energy & Environment, , vol. 31(5), pages 842-859, August.
    4. Claudia Ghisetti & Susanna Mancinelli & Massimiliano Mazzanti & Mariangela Zoli, 2017. "Financial barriers and environmental innovations: evidence from EU manufacturing firms," Climate Policy, Taylor & Francis Journals, vol. 17(0), pages 131-147, June.
    5. Steen, Markus & Weaver, Tyson, 2017. "Incumbents’ diversification and cross-sectorial energy industry dynamics," Research Policy, Elsevier, vol. 46(6), pages 1071-1086.
    6. Matos, Stelvia & Viardot, Eric & Sovacool, Benjamin K. & Geels, Frank W. & Xiong, Yu, 2022. "Innovation and climate change: A review and introduction to the special issue," Technovation, Elsevier, vol. 117(C).
    7. Sirin, Selahattin Murat & Uz, Dilek & Sevindik, Irem, 2022. "How do macroeconomic dynamics affect small and medium-sized enterprises (SMEs) in the power sector in developing economies: Evidence from Turkey," Energy Policy, Elsevier, vol. 168(C).
    8. Pepa Ambrosio-Albalá & Catherine S. E. Bale & Andrew J. Pimm & Peter G. Taylor, 2020. "What Makes Decentralised Energy Storage Schemes Successful? An Assessment Incorporating Stakeholder Perspectives," Energies, MDPI, vol. 13(24), pages 1-22, December.
    9. Geddes, Anna & Schmidt, Tobias S. & Steffen, Bjarne, 2018. "The multiple roles of state investment banks in low-carbon energy finance: An analysis of Australia, the UK and Germany," Energy Policy, Elsevier, vol. 115(C), pages 158-170.
    10. Hall, Stephen & Roelich, Katy E. & Davis, Mark E. & Holstenkamp, Lars, 2018. "Finance and justice in low-carbon energy transitions," Applied Energy, Elsevier, vol. 222(C), pages 772-780.
    11. Wegner, Marie-Sophie & Hall, Stephen & Hardy, Jeffrey & Workman, Mark, 2017. "Valuing energy futures; a comparative analysis of value pools across UK energy system scenarios," Applied Energy, Elsevier, vol. 206(C), pages 815-828.

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