A Systemic Approach to the Analysis of Nicaragua’s Transition towards Renewable Energy Generation

Abstract: Drawing upon Transition and Technological Innovation Systems' theory, the author analyzed the process by which the Nicaraguan electricity sub-sector transitions towards renewable energy generation, the actors and networks of actors that play central parts in this process, the regulatory infrastructure that frames actors' actions and the factors and mechanisms that drive and block technological change in the sub-sector. The end-goal was to identify key areas where State policies could best act upon to facilitate the transition to Renewable Energies (REs) and ensure its long-term sustainability. The author's departure point is that, only by seeing transitions from a system's perspective, with special attention to the value of institutions, policy-makers can understand what the real contribution of different agents in the system is, how they interact with each other and in which ways can public policy's coherence and effectiveness be optimized. From the findings of this study it should be emphasized that an excessive focus in attracting large-scale generation projects to allow for a fast-track transformation of the electricity generation matrix can lead government officials to oversee the added-value that small/medium RE generators, promoters and users contribute to the sustainability of the transition. Finally, socio-political stability and close coordination between the different powers of the State shall prove to be a determinant factor in this transition. If the process is seen for what it is, a historic window of opportunity for the nation, then it has the potential to become the type of inclusive and integrative national project that Nicaraguans have long searched for.