Currents of Change - Actors, policies and market design in an advancing energy transition

Abstract

Which types of policies are important in advancing sustainability transitions? Why and how do the preferences of some actors change? This thesis investigates the role of politics, policies and electricity market design(s) in the unfolding European energy transition in the period 2013-2018. Through systemic assessments of existing policies, market configurations and the policy preferences of key actors, it analyzes how the relationship between policies and markets change during a transition. In four individual papers, the thesis shows that advancing transitions embody competing pathways. The European energy transition is characterized by the tension between increasing decentralization of the energy system versus (continued) centralization of production, infrastructure, and system operation. In the current phase of the transition, there is more disagreement about the direction of the transition, than whether it should take place at all. Finally, the thesis provides new insights about the role of electricity market design. A key finding is that market design can simplify the integration of renewable energy by increasing flexibility and bringing system costs down.