Governing experimentation to decarbonise the electricity sector

This article explores one of the most critical challenges for public and private actors attempting to achieve deep decarbonisation: how to develop and decide on decarbonisation solutions in the face of deep uncertainty and significant coordination difficulties. Through the lens of experimentation, the article presents the case of Australia and its efforts to reconfigure its national electricity grid, focussing on the roles and governance approach adopted for a key institution, the Australian Renewable Energy Agency, and its Accelerator Lab, which are at the leading edge of experimentation. The article demonstrates how experimentation can be governed by a combination of institutional, regulatory and funding tools to generate new knowledge and decarbonisation solutions in a context where no one entity has all of the answers or can deliver all of the required outcomes. It shows that in the context of experimentation, the role of law and governance is transformed from a direct regulatory role to one that constructs and implements a protected arena designed to incentivise, identify, coordinate, protect and disseminate innovation. The article then provides key insights regarding the governance framework needed to conduct various forms of experimentation, a concept and practice that is politically challenging and constantly evolving. •Decarbonisation can be achieved efficiently and effectively through experimentation.•Experimentation is institutionally and politically demanding.•Tailored governance is needed to produce effective solutions from experimentation.•ARENA's experience sheds light on the challenges and the new governance forms required.