A Policy design model for market formation of solar and wind electricity generation in Turkey

Erden Topal, Yelda
The aim of this study is to design technology policies for diffusion of solar and wind electricity generation technologies by analyzing the market formation dynamics from the perspective of key actors in the framework of technological innovation system approach. For this purpose, qualitative data is collected through 57 face-to-face semi-structured interviews with the key actors from private and non-private sectors who are engaged in economic activities of electricity generation, regulation of the market, consultancy to the actors, and equipment supply. The study proposes a policy design model to formulate policy recommendations based on three pillars of policy aim, policy tool and policy target. To build this model, first, the energy problems that can be solved by solar and wind electricity generation are determined to find out policy problems and policy aims. Second, obstacles and facilitators which affect solar and wind electricity generation are specified to determine policy tools. Third, the market formation dynamics are examined to formulate policy targets. By combining these three analyses, policy recommendations are formulated based on theproposed policy design model. The policy problems are found to be about import dependency for the energy sources and governance of the renewable energy sector. The policy tools are formulated based on the administrative, economic, institutional, physical, political, psychological and technological obstacles and facilitators. The market in solar and wind electricity generation forms as two market segments of licensed and unlicensed electricity generation. The policy targets are specified for this market formation process. To conclude, policy recommendations at macro, meso and micro levels are formulated by using policy design model. To solve import dependency problem, the policy recommendations at macro level are considering complementarity relationship between energy sources and modelling a domestic technology development strategy. The policy recommendation at micro level is promoting self-consumption. To solve the governance problem, the policy recommendation at macro level is preparing clear roadmaps and plans about solar and wind electricity generation. The policy recommendations at meso level are formulating manuals for renewable energy investment, changing the role of government in energy sector and introducing a governance mechanism to include renewable electricity generation in industrial production. The policy recommendation at micro level is rehabilitating electricity infrastructure.


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Citation Formats
Y. Erden Topal, “A Policy design model for market formation of solar and wind electricity generation in Turkey,” Ph.D. - Doctoral Program, Middle East Technical University, 2016.