Responsible introduction of disruptive tech in energy transition via regulatory sandboxes: learning from fintech and digital twins

Abstract

The energy transition requires introducing disruptive technologies amid regulatory uncertainty, safety concerns, and heightened public scrutiny. Traditional regulatory frameworks are often ill-suited to governing such technologies prior to deployment, particularly in high-risk sectors, such as nuclear energy. This article examines how governance approaches developed in other sectors, particularly regulatory sandboxes in FinTech and digital twin technologies, may offer insights for managing this uncertainty. Drawing on interdisciplinary scholarship in energy policy, technology governance, and regulatory experimentation, the article explores the governance implications of applying these instruments to emerging energy technologies, illustrated through the proposed NuScale VOYGR-6 small modular reactor project in Doicești, Romania. The analysis shows that sandbox-based experimentation and digital twin simulations can support regulatory learning, structured evaluation, and the early identification of technical, economic, and safety concerns. However, their application in high-hazard sectors may signal premature political commitment, shift uncertainty and monitoring burdens to regulators and local communities, and create path-dependent regulatory trajectories. Their capacity is also temporally constrained, particularly for very long-term or extremely low-probability nuclear risks. Regulatory sandboxes should therefore complement, rather than replace, established licensing and safety frameworks, with success assessed through regulatory learning and the identification of unresolved risks rather than deployment alone.