The dynamics of renewable energy transition in developing countries - The case of South Africa and India
Radhika Mia
#2012-067
The innovation dynamics in the transition to renewable energy industries
in India and South Africa is explored, by examining the development of
the two main renewable energy technologies and comparing the
transitional approaches. The functions of a technological systems
approach is used to trace the evolution of actors, networks and
institutions that have had a bearing on the generation and diffusion of
renewable energy technologies in these countries. Through this analysis
we improve our understanding of the processes or functions involved in
the formation and uptake of renewable energy systems in developing
countries and identify the associated key challenges for policy makers
managing the transformation process. Current technological and
innovation systems approach analysing the evolution of renewable energy
systems ignores renewable energy industrial evolution in developing
countries. We argue that developing countries have different learning
stages of industrial development and different learning strategies,
which need to be considered when evaluating renewable energy innovation
systems, which has remained neglected in existing studies. Functions
that induce the transition are found to be weak in South Africa as
compared to India. India compares fairly well in terms of development of
positive externalities, degree of legitimation and entrepreneurial
activities. However, the availability and effect of the inducement
instruments in each country varies from one renewable energy technology
to another. Wind and solar energy technologies are explored and their
transitions compared.
Keywords: renewable energy, technological innovation systems, low-carbon
transitions
JEL Classification: Q42, Q01, O33