The Energy Transition Begins with Cooperation Between Government, Academia, and Industry

When we talk about the energy transition, we usually focus on technologies. We talk about wind farms, solar power plants, batteries, hydrogen, smart grids, and artificial intelligence. All of these are important topics. However, the experience of countries that are leading the energy transition today shows that their greatest advantage does not lie in having better technology. Their real advantage is that they have built a system in which government, academia, and industry work together as partners.

During our study visit to Sweden, we had the opportunity to see what such a system looks like in practice. Particularly valuable were the insights we gained through discussions with representatives of KTH Royal Institute of Technology and RISE Research Institutes of Sweden. At first glance, these appear to be two very different institutions—one of Europe's leading technical universities and Sweden's national institute for applied research. Yet, it is only when they are viewed together that it becomes clear why the Swedish innovation model delivers such strong results.

At KTH, new knowledge is created. Research covers electricity markets, power system analysis across all voltage levels, renewable energy integration, energy communities, power electronics, and electrical machines. What is particularly striking is that research is not driven solely by academic interests. A large share of projects is financed through external funding, many doctoral candidates come directly from industry, and master's and doctoral research topics emerge from the challenges faced by transmission and distribution system operators, energy companies, and equipment manufacturers.

The university therefore does not function as an isolated academic institution but as an active participant in the development of the energy sector. However, what makes the Swedish model unique is not only the quality of its universities. An equally important role is played by RISE, whose mission is to transform research results into solutions that can be applied under real-world conditions. RISE is Sweden's largest research institute, bringing together numerous institutes from across the country into a single organization dedicated to applied technological research. Its role is not to replace universities but to bridge the gap between science, industry, public institutions, and the market. Technologies are tested, demonstrated, and refined before becoming part of the power system or the regulatory framework. In other words, the journey of an innovation does not end with the publication of a scientific paper. On the contrary, that is where its most important phase begins.

When transmission or distribution system operators identify challenges in managing the grid, when regulators consider new electricity market rules, or when companies develop new products, they do not turn to academia only when they need an expert opinion. Instead, they jointly define the problem, participate in the research process, and follow the development of solutions from the very beginning. This way of working ensures that research responds to the real needs of the energy system, while policymakers gain sufficient technical understanding to ensure that regulatory decisions are grounded in sound technical analysis.

This is perhaps the most important lesson we bring back from Sweden. The strength of its system does not stem from individual institutions but from the continuous collaboration between them. Academia does not conduct research in isolation, industry does not develop products without scientific support, and the government does not design regulations without understanding their technical implications. This creates a continuous feedback loop between research, industry, and the market.

The results of this approach are visible everywhere. New technologies reach the market more quickly. Pilot projects allow solutions to be tested before large-scale deployment. Investors have greater confidence because decisions are based on proven results. The regulatory framework is better able to keep pace with technological progress rather than slowing it down. Ultimately, the entire energy system becomes better prepared for the challenges of digitalization, decentralization, and decarbonization.

It is particularly interesting that the same principle also applies to the development of electricity markets. During our discussions in Sweden, it became clear that innovation is not limited to new equipment or software. Innovation also encompasses market models, flexibility mechanisms, corporate power purchase agreements (PPAs), balancing services, and the regulatory frameworks that enable their implementation. These changes do not emerge through administrative decisions alone. They are developed through the joint efforts of researchers, system operators, companies, and public authorities, and are then tested through different scenarios and pilot projects before becoming an integral part of the market.

Serbia is currently undergoing a similar transformation. The share of renewable energy sources is increasing, the power system is becoming more complex, and issues such as flexibility, energy storage, grid digitalization, and new market mechanisms are becoming part of everyday discussions. Under these circumstances, much more than individual technological investments will be needed. Sustainable mechanisms for long-term cooperation will have to be established.

Our universities possess knowledge, public institutions are responsible for creating a predictable regulatory framework, and the private sector has both investment potential and a clear understanding of market needs. If each of these stakeholders continues to operate independently, progress will be slower and risks will be greater. However, if we establish continuous cooperation among them, following the Swedish model, new ideas will be transformed into projects—and projects into market solutions—much more rapidly.

Perhaps this is the most important lesson Serbia can take from Sweden. The energy transition is not merely about building new power plants or introducing new technologies. It is about building institutions that know how to work together. When universities, research institutes, industry, and government become part of the same innovation ecosystem, innovations are no longer the accidental outcome of individual projects. They become an integral part of how society addresses its development challenges. That is why structured and systematically supported cooperation between academia, government, and industry may be the most important infrastructure of the energy transition.