Facing transition phase two: Analysing actor strategies in a stagnating acceleration phase

Abstract

Energy transition processes are currently entering into a new phase which is characterised by the maturing of renewable energy technologies and the challenges of system integration and regulatory changes, in particular the introduction of tender schemes for onshore wind energy. In the German wind energy sector, these policy changes are resulting in a drop in build-out during a phase when acceleration rather than stagnation would be expected. Furthermore, several major wind actors are facing insolvency, instigating redundancies or deciding to relocate, increasing the level of uncertainty within the sector.This paper analyses how actors in the wind sector are reacting to the introduction of tender schemes and how their strategic activities are affecting the transition process. We analyse four strategies: geographical diversification, cooperation/mergers and acquisitions (M&A), business field diversification and market exit. Specifically, we analyse the reactions of project developers, turbine manufacturers, energy utilities and banks. We show that the strategies chosen by key wind energy actors may actually be slowing down the transition process rather than accelerating it. We argue that adopting an actor strategy perspective provides new insights for sustainability transition research while at the same time highlighting implications for public policy and strategic management.