Institutions in Shaping Electricity Capacity Mix and Sustainable Tradeoffs

• In Event: The Political Economy of Energy

Abstract

The fundamental nature of energy transitions entails changes in relative compositions across various energy services and several broad institutions are considered to influence this the fundamental structure of a socio-technical system across countries. Can policy and market institutions shape these structural shifts in relative composition, and if so, which energy source options are promoted at the expense of others? This study examines these questions by directly examining trade-offs between relative capacity compositions of electricity sources electricity capacity mix across countries from 2000 to 2020. Using both dynamic compositional models and classifications based on different degrees of renewability of electricity sources, carbon emissions, and electricity intermittency, this paper evaluates whether a country’s electricity mix can be shaped by existing policies and institutional structures. The results suggest that renewable promotion policies have kept the momentum of its growth of intermittent renewable energy, such as solar and wind, at the expense of electricity from fossil fuel. But the more deregulated market structure shows mixed results and asks further for the role of market institutions suitable for the sustainable energy transition.

Author

• Hyodong Sohn, University of Colorado Boulder