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Towards a comprehensive policy for electricity from renewable energy: An approach for policy design

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  • Iychettira, Kaveri K.
  • Hakvoort, Rudi A.
  • Linares, Pedro

Abstract

Energy policy design in Europe is a complex issue involving multiple levels of governance, and heavily influenced by institutional contexts. However policy design in Europe, and model-based analysis even more so, is arguably shaped by the neo-classical school of thought. There is a need to provide a structured approach that would facilitate the incorporating of institutional contexts into Renewable Energy Sources for Electricity (RES-E) policy design and analysis. This paper presents a formal approach to RES-E policy design based on Design Theory, the Institutional Analysis and Development (IAD) Framework, and Agent Based Modelling and Simulation. Given a certain frame of analysis, we propose that it is theoretically possible to identify the complete policy design space, a set of design elements. Crucially, this aspect potentially opens up to the policy analyst new avenues for intervention, and allows her systematically explore, given a range of uncertainties, which element(s) of intervention is(are) the most vital to achieve the goals of the community. Its empirical applicability is demonstrated by representing and differentiating between six RES-E schemes from Western Europe in terms of the design elements; a model-based illustration demonstrates the value of this approach to quantitatively analyse the impact of design elements.

Suggested Citation

  • Iychettira, Kaveri K. & Hakvoort, Rudi A. & Linares, Pedro, 2017. "Towards a comprehensive policy for electricity from renewable energy: An approach for policy design," Energy Policy, Elsevier, vol. 106(C), pages 169-182.
    • Handle: RePEc:eee:enepol:v:106:y:2017:i:c:p:169-182
    DOI: 10.1016/j.enpol.2017.03.051
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