Legal Framework for Energy Transition: Balancing Innovation and Regulation

Abstract

The global energy landscape is undergoing a significant transformation, driven by the dual imperatives of innovation and regulation. This paper reviews the work in the areas of sustainable energy transitions, focusing on the intricate balance between demand-side innovations and governance, as seen in Germany’s energy transition journey. The study further delves into the European context, highlighting the emergence of Renewable Energy Communities (RECs) and the challenges and opportunities they present in achieving a just and democratic energy transition. The paper also introduces the World Economic Forum’s Energy Transitions Index (ETI), a comprehensive tool that tracks the performance of energy systems at the country level, offering insights into the macroeconomic, institutional, social, and geopolitical considerations that shape energy transitions globally. Collectively, these areas of study underscore the importance of a holistic approach to energy transition, one that harmonizes technological advancements with policy frameworks and societal needs.

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