The sustainable diffusion of renewable energy technologies as an example of an innovation-focused policy

Renewable energy technologies constitute a techno-economic system that is radically different from conventional systems, in terms of density, structure, regulatory and management practices. Consequently, their incorporation into the production and management of energy has to be approached as an innovative and sustainable diffusion process of an alternative technology with system-wide consequences for the whole energy system. Here, an alternative approach is proposed, which integrates the supply- and demand-side perspectives, arguing that a successful policy for the speedy deployment of renewables should focus on the systemic innovation processes that characterize the development and sustainable diffusion of renewables. It is suggested that a strategy that focuses on selected niches should aim at the integration of the innovation dimension into a policy for renewables. Such a perspective may contribute to the growth of successful applications as well as to the development of the corresponding industry of equipment production and services, leading to the deployment of a new technological regime. (c) 2004 Elsevier Ltd. All rights reserved.