The Climate Case versus The Business Case The Drivers and Motivations for Early Market Adoption of Renewable Energy Innovations

Abstract

The world has committed to a low-carbon global economy where renewable energy is believed to be one key enabler in the green energy transition. However, the adoption of renewable energy innovations is currently too slow to reach the Paris Agreement by 2050. This study examines drivers and motivations for the adoption of renewable energy innovations in the business-to-business market and which strategies start-ups set up to boost early market adoption. To investigate this research area, a qualitative study has been conducted with empirical results gathered from semi-structured interviews with eight Swedish renewable energy innovation start-ups. The empirical analysis indicates start-ups’ perceived drivers and motivations being; regulatory pressure, technological development, cost aspects and willingness to contribute to sustainability. Moreover, strategies start-ups set to meet these forces are; cost-competitive selling points, proof of concept, strategic partnerships and certain sustainability positioning. In conclusion, the findings expand existing literature with a business-to-business market perspective, demanding profitable climate cases. This thesis contributes with a better understanding of how Swedish innovation start-ups set their strategies to boost an early market adoption. As well as contributing with indications that can accelerate the transition towards a green energy supply to help the global economy to collectively reach the Paris Agreement by 2050.