The green transition creates revolutionary challenges to power companies that have to adjust their activity into new conditions. Green transition should be perceived as a transition from the economic system based mainly on fossil fuels to the system based on renewable and low-emission sources and ultimately emission-free production methods. Observed process shall be defined as green industry revolution. The changes in the strategy of power companies are required by the development of green economy, public expectations and changes in financial markets towards decarbonization and renewable energy sources. Hence, power companies need to reorient their strategies in a way that ensures profitable operation in fundamentally changed environment and secure economic results against rapidly increasing climate risk and both customers and decision makers' expectations to meet climate goals. There is noticed last years an increasing uncertainty concerning the future shape of the market, on which power companies operate, facing the need to take the fundamental decisions related to their future business model. New market conditions change the sources of profits and importance of current value chains elements, new entities enter the energy market, customers expect new services and existing technology does not provide expected profitability. Strategy should provide answer concerning financial perspective of power company ensuring necessary funds for investments and daily activity. It can be completed only when power company meets the requirements of customers that expect primarily the reduction of carbon footprint while providing cheap power and security of supply. It requires to consider in the strategy not only the development of RES technology and expected technology maturation and commercialization of green hydrogen but also changes in grid management, energy storage, digitalization or prosumers. The future of power companies is determined by regulatory environment creating not only conditions for particular technologies development, but taxes, fees and market-based pollution reduction mechanisms. There become useless the existing models of the power sector operating and approach to the analysis of its future. Let's perceive strategy not only as hypothesis about power company future, but as plan for programming the future of company towards necessary developments, securing profitability and continuity of operations in changed market and new regulatory environment. The structure of the power companies’ operations should evolve into business models ensuring success of such defined strategy.
Green transition should be defined as process of creation of climate-friendly and sustainable economic system based on low-carbon technologies. This process means transition into emission-free industry. It requires to secure sustainable economic development enabling reduction of environmental pollution and GHG, amount of waste and improvement of energy efficiency. It causes the power sector to operate globally under conditions that can be defined as green industry revolution focusing particularly on carbon neutrality. There is observed globally shift towards renewable energy sources (RES, renewables) that is stimulated by innovation, technology maturation, green finance and new regulations. New business models are developed rapidly on energy markets. Power companies place green transition at the center of their strategy, what is the respond to the expectation both of investor and customers. The green transition is characterized by following dimensions: technological, strategic, regulatory, environmental and economic. The adjustment to requirements of green transition becomes at present the necessary condition for long-term survival of power companies in changing business environment. The energy intensity and carbon footprint are determinant of the perception in the society and by customers. It requires to consider in the strategy the assumption of full decarbonized power sector by 2050. The influence of regulations, societies’ expectation, investors and technological change put into place the dynamics comparable to industrial revolution. This situation will have impact on all elements of power companies’ structure. There are cooled down investments in carbon-intensive industries and accelerated into green economy. Demand for green products has been growing strongly in last years. Business started to focus on green hydrogen. Capital is invested into innovation, digitalization, R&D and technology supporting the lowering of renewable energy costs, energy storage, green hydrogen and green innovations. The lower costs of green technologies encourage companies to define ambitious green goals. Necessary adjustments of power companies’ strategy should secure the sustainable improvement of profits in long-term perspective.
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