Which Investors Drive the Development of Wind Energy?

In order to facilitate the transition to electricity sectors with low CO2 emissions, it is important to understand which firms invest in new renewable energy technologies, and which firms are responsive to energy policies. This study concentrates on the heterogeneous characteristics of investors in wind power that are embedded in the investors’ dynamic capabilities. The paper explores which type of investors display a positive reaction to the undifferentiated policy, and thus build up more assets in wind power. Empirical data is collected on investments in the Swedish wind energy industry in the Swedish tradable certificate system. The findings demonstrate that the cumulative wind power assets are indeed influenced by investors’ characteristics. Investors with a greater resource endowment, higher investment experience and a mixed generation portfolio hold higher share of assets in wind. The results also indicate that the investors’ age in the wind industry has a negative relation with the cumulative assets in wind, offering evidence on the important role of new entrants in this industry. This study offers insights for policy makers on which investors are responsive to the certificate system and invest in wind. It also implies that a more diversified set of policies could stimulate a greater variety of firms to invest in wind power.