To purchase, or not to purchase, renewable electricity A study of decisive factors for increased use of renewable electricity among Swedish SMEs

Abstract

A major challenge of future electricity consumption is the need for it to be renewable to avoid depletion of natural resources. Swedish small- and medium-sized enterprises (SMEs) are vital for increasing demand for renewable electricity (RE) in Sweden, which is desired since Sweden has set the goal to be completely free from non-renewable electricity by 2040. The aim of this thesis has therefore been to increase knowledge about the factors related to the purchasing of RE that Swedish SMEs regard as decisive. To do this, a qualitative study with an abductive approach was undertaken. A literature review of earlier studies was carried out and in-depth interviews with eight Swedish RE-purchasing, and non-purchasing, SMEs from two lines of businesses were conducted. This study concluded that the most decisive factors for SMEs are the perceived price of RE and altruistic motives of decision-maker(s). Institutional isomorphic change proved to exert some influence on the probability of RE-purchasing. Additionally, scepticism towards REsuppliers in delivering actual RE seemed to affect the decision and signs were given that firm size affects the reasoning behind the decision. Interestingly, a general fear of showcasing sustainability undertakings was present due to a perceived risk of increased scrutiny. The major challenges lying ahead therefore seems to be in increasing the demand through industry-wide efforts as RE is not made a business case, to convince decision-makers not driven by altruism and to wider communicate differences as well as lessen the perceived ambiguity of RE. Further research is warranted for the effect of the Swedish legal framework, earlier sustainability undertakings and energy intensity on RE-purchasing.