Greening Electricity Production: A Success Story of Multi-Level Governance Convergence and Innovation

Abstract

This paper analyzes the diffusion of wind power in Spain from the perspective of the multi-level governance features that contributed to the outcomes observed so far. Public authorities at all governance levels designed strategies that converged to reinforce each other's positive effects on potential investors and social acceptance. Next to implementing traditional policy instruments for financial support, Spanish authorities also engaged in direct capital investments in wind power, in the form of public-private partnerships, to reduce the risk perceptions of investors. Besides, regional authorities developed long-term strategies for wind power deployment to accommodate investors' plans. The convergence of these three strategies has led to a high investment interest and resulted in an exponential annual increase in the installed capacity of wind power.