Understanding institutional layers and modes of change for energy transitions: Analysis of Norway's electricity sector reforms

Abstract

Institutions have significant implications for whether and how energy systems restructure, evolve, and successfully transition. Yet, literature analyzing energy sector reforms often approach transitions from economic or technical perspectives, with much less attention to the underlying roles and influences of institutions. This paper explores the roles and influence of institutions on the speed, direction, timing, and sequence of energy transitions. A conceptual framework integrating the hierarchy of institutions with an historical institutionalist approach is developed and applied to explore transitions in Norway's electricity sector as a case study. Results show that conversion followed by layering emerge as the dominant modes of institutional change in Norway's electricity sector reform, illustrating the importance of alignment between institutions in creating the conditions for large‐scale energy transitions and the importance of boundaries to maintain alignment between levels of institutions. Governments can minimize potential gaps between transition intentions and outcomes through effective conversion and layering of institutional arrangements, but layering challenges emerge when institutional change introduces new actors or energy arenas to existing policy paradigms.