De-risking the transition: Architecting cross-sectoral governance sandboxes for grid-scale renewable energy in developing states

Abstract

The transition to grid scale renewable energy in developing states remains constrained by fragmented regulatory systems, policy uncertainty, and weak institutional coordination across sectors responsible for energy, environment, finance, and infrastructure. This study examines the role of cross sectoral governance sandboxes as institutional platforms that allow regulators, private investors, and public agencies to test new policy instruments and regulatory approaches within a controlled setting. The study is guided by the Multi-Level Governance framework which explains the interaction of institutions, policy actors, and regulatory authority across multiple layers of government and sectors. A mixed methods research design was adopted which combined survey responses from 280 stakeholders drawn from energy ministries, regulatory agencies, private energy developers, and financial institutions with semi structured interviews and policy document review. Quantitative data were analyzed using Structural Equation Modeling with the aid of SmartPLS while qualitative evidence was examined through thematic analysis. Findings reveal three critical governance failures. Regulatory rigidity continues to block experimental policy learning within energy institutions. Institutional rivalry across sectoral regulators produces fragmented decision making that weakens investor confidence. Policy pilots often remain symbolic exercises with little transition to national energy systems. The study recommends the creation of legally protected experimental regulatory zones for renewable energy projects, the establishment of a central cross sector energy coordination authority, and the adoption of mandatory policy scaling frameworks that convert successful sandbox experiments into enforceable national energy regulations..