The transfer of knowledge for renewable energy policy-making                   between Europe and Peru in the period 2006-2009 : Impacts in the Peruvian Solar Photovoltaic innovation system

Abstract: Energy generation and use is one of the main contributors to climate change, as it is responsible for two thirds of the global greenhouse gas emissions (IEA 2015). In this context, renewable energies (RE) are increasingly gaining momentum as a key driver for the transition towards a low-carbon society (REN21 2016) and a source of technological and social innovation. The deployment of RE and its integration in large-scale power generation systems has been progressively driven by supportive policy frameworks adopted by pioneering countries such as Germany, Spain and France. This has subsequently fostered a process of learning and spreading of policies between leading countries and other governments willing to implement RE support schemes. Within the field of comparative public policy, different but interrelated approaches of the phenomenon of policy spreading have been developed, among which the most rehearsed are policy diffusion, policy transfer, policy convergence and lesson-drawing. The present study addresses a specific case of policy transfer between Germany-Spain and Peru for the implementation in the latter of a policy framework to foster the development of RE technologies (Legislative Decree 1002) in 2008, and the subsequent adoption of a support policy mechanism, Renewable Auctions (RA) in 2009. The assessment of the policy transfer process has been carried out by applying the Dolowitz and Marsh Model (Dolowitz and Marsh 1996, 2000). Furthermore, an exploratory analysis of the impacts of the policy transfer process in the development of the Peruvian Solar PV technology innovation system has been conducted in order to assess the outcomes of the policy transfer process in terms of RE technological deployment in the country, tackling Solar PV as the RE technology in focus. For this purpose, a simplified adaptation of the technology innovation system framework (TIS) developed by Hekkert et al. 2007 and Bergek et al 2008 has been employed. The results of the study show that the transfer of knowledge related to RE policy-making involved both voluntary and coercive causes. The drivers for the occurrence of policy transfer were the pressure exerted by a foreigner actor (US) for the enforcement of the RE policy framework (LD 1002) in Peru and the institutional support provided by a “convinced bureaucrat” (the former Vice Minister of Energy). The choice of adopting RA instead of other instruments such as  Feed-in-tariffs or Feed-in-premiums is related to the know-how of the country in terms of infrastructure investments and its traditional “modus-operandi”, the availability of natural and financial resources within the country, the perception of technical and financial risks, the negative lessons drawn from the experiences of Spain and Germany regarding the implementation of FITs, and the current state of development of the global RE sector. The policy transfer process has contributed to the development of some components of the Peruvian Solar PV innovation system. From a structural point of view, it has triggered a diversification of the actors involved, mainly driven by the incorporation of large foreign companies specialized in RE, as well as conventional energy companies that have diversified their core activities towards RE. From a dynamic perspective, the implementation of RA has promoted the increase in Solar PV installed capacity and its contribution to the electricity mix, promoting chiefly the function of market formation.