Socially responsible or reprehensible? Investors, electricity utility companies, and transformative change in Europe

• The overwhelming reliance of modern society based fossil-based non-renewable sources of energy productionrepresent a major challenge to sustainability. Moving towards a new more sustainable generation mix affectsinvestments on electricity utility companies. This presents a dual challenge for companies: 1) the electricitygeneration mix decision; and 2) their future access to and cost of capital. This research focuses on the role thatinvestors have in developing new more sustainable generation mix models. Five semi-structured interviews wereconducted with investors working at a major European asset manager company. The interviewees highlightedthe integration of renewable technologies as a key challenge to the viability of the utilities in the future. Otherkey challenges included a rising carbon price, greater decoupling of energy use and GDP growth, policy constraintsand uncertain regulatory frameworks, lack of relevant core competencies to innovate in their businessmodels, the integration of renewable energy into their own generation mixes and the grid, the role of newtechnologies, and a lack of urgency from top management. The findings indicate that investors play a key role inshaping electricity generation mixes, where the principal, agents, and clients must be willing to develop andadopt more sustainable generation mix models.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Naturresursteknik -- Energisystem (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Environmental Engineering -- Energy Systems (hsv//eng)

Nyckelord

Sustainable investment; Business model innovation; Electricity utility companies; Agency theory

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)