Taking first steps so that others can run – functions and limitations of governing the local energy transition

Rising energy prices and fuel scarcity are exposing the volatility of our energy system and creating additional pressures to speed up the transition towards renewable energy using distributed production and integrated local grids. This raises the need for local governments to become more actively involved in energy governance by managing the transition of their energy systems and involving local stakeholders. However, the exact role of local authorities in steering this transition remains uncertain as they lack financial and administrative capacities and rely extensively on experimental innovation projects and external stakeholders. This paper therefore asks what functions local authorities exercise to govern the energy transition and under what conditions they can facilitate participation in and scaling of energy innovations. Drawing on the literature on experimental governance, the paper analyses four qualitative case studies of energy innovation projects run by local governments in Sweden, Belgium, the Netherlands, and the UK. It finds that local authorities can actively support innovation projects through funding and knowledge, convene between stakeholder groups, scale innovations through planning and promotional work, and use trial insights to advocate for policy change. However, their ability to exercise these functions is dependent on local stakeholder constellations and domestic policy conditions.