The effects of institutional layering on electricity sector reform: Lessons from Norway's electricity sector

Abstract

Institutional layering is a dominant mode of change in shaping energy transitions, whereby new institutional rules or practices are added on top of or alongside existing ones. Characterized by the introduction of new actors, policies, and expanding energy arenas, energy transition processes can become progressively layered, resulting in institutional complexity and potentially undermining energy transition goals. This paper explores the impact of layering on actors and on the outcomes of energy transitions. A conceptual framework that integrates institutional change with a layering typology is developed and applied to Norway's electricity sector reform as a case study. Results show that Norway's energy landscape has become more diversified, leading to complex institutional arrangements, differential growth in the energy sector, and gaps between reform intentions versus outcomes. Whether layering produces the intended energy transition outcomes depends on the complexity of layering, the interaction, coordination, and alignment of the layered elements, and the vested interest of stakeholders. Insights from Norway's experience can guide institutional design to support the rapid expansion of renewable energy investments, or the reform or restructurings of existing energy institutions.