Characteristics of investors in onshore wind power in Sweden

Abstract

In order to facilitate the transition to electricity industries with low CO 2 emissions, it is important to understand which firms invest in renewable energy technologies. This study concentrates on the heterogeneous characteristics of investors in wind power that are embedded in the investors' dynamic capabilities. Data on 617 investors in the Swedish onshore wind industry are analyzed. Investors with higher investment and management experience and a mixed generation portfolio whose business is electricity production have more assets in wind. Investors' age in the wind industry has a negative relation with assets in wind, illustrating that latecomers are investing more. Individual incumbents of the electricity industry hold a relatively large amount of assets in the Swedish wind industry, but the group of incumbents as a whole possesses only 15 percent of wind assets. The results suggest that tailor-made policies could stimulate a greater variety of firms to invest in wind power.

Investments in the Dutch onshore wind energy industry: A review of investor profiles and the impact of renewable energy subsidies

“…The numbers reflect the realized capacity. This section analyses the impact of the Dutch renewable energy policies on the changes in investments over time, assuming that there is a time lag of two years between the subsidy and the realized capacity [4]. Table 2 summarizes the main attributes of the policies and the associated perceived risks of investing in renewable energy.…”

“…The sustainability transitions literature [4,20] argues that first movers (the older firms in an industry) experience more uncertainty than latecomers (the younger firms in an industry). First movers provide positive external economies to later firms in that they make visible new business opportunities and reduce uncertainties [21].…”

“…A variable that may also be considered in the context of wind energy [4] is the geographical location of the wind turbine. Future research may combine the geographical location with the investors' profiles for a complete understanding.…”

“…The empirical identification of the investors in renewable energy studies is only a recent issue in a long-standing discussion on the necessity and feasibility of renewable and sustainable energy [4]. In most studies [5,6] on investment in electricity produced from renewable energy sources (RES-E), attention has focused on investment rather than the investor.…”

“…Discussion on the efficacy of these subsidies and tax reductions has largely been on the growth in the share of renewable energy and less on the alignment of the policy to the characteristics of investors [3]. A better understanding of the characteristics of investors would not only be valuable to establish the effectiveness of the policy, given the diversity of investors in the Dutch wind energy industry, but also to appreciate the feasibility of the policy targets, given the lack of transparency on the contributions of investors to investments in wind energy production [4].…”