Energy, competition and innovation: how policies’ coordination may contribute to a new energy model

Abstract

The aim of this paper is to shed light on the role played by the coordination of public policies – competition and innovation policies - in achieving a new organizational model in the energy sector. The acknowledgement that the use of energy represents a main issue in today’s world, due to its impact on the sustainability of global resources, is the central driver for the current debate. Taking investment in the renewables energy sector as a proxy to innovation, the paper shows that policies coordination is likely to promote a swifter transition to a new energy system. The paper is focused on the electricity industry and market in Portugal, but its main assertions are likely to apply to other European countries and to other network industries.