Renewable Energy Policy and Legitimacy: a Developing Country Case

Abstract

This paper analyzes some policies to promote renewable energy technologies in order to level the playing field in the energy sector. It is argued that although there are several energy policy options to be considered, their successful implementation depends on specific market and institutional contexts in any given country. Ecuador´s electricity sector is presented as a case study. By extending the concept of industry legitimacy this study makes contributions to institutional and strategic change theories. The Ecuadorian case has important implications for policy makers and energy managers because it shows how a renewable energy industry can be developed in a regulated electricity market.