Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162177
Authors: 
Brunekreeft, Gert
Buchmann, Marius
Hattori, Toru
Meyer, Roland
Year of Publication: 
2016
Series/Report no.: 
Bremen Energy Working Papers 23
Abstract: 
The German energy transition massively alters the market structure of electricity supply and forces incumbent electric utilities to rethink their business strategies. We analyze three main developments that undermine the former market dominance of the 'Big 4' incumbents in Germany. First, nuclear phase-out reduces their market shares and creates financial risk of nuclear waste decommissioning. Second, the large-scale integration of renewables fosters market entry from third parties and intensifies competition. Third, a possible coal-phase out in combination may have positive effects on market revenues but tends to increase regulatory risk. In total, incumbents face 'disruptive Challenges' and need to find new value-creating products and services beyond sole energy supply. Promising focus areas are renewable energies, the distribution business, and smart, customer-oriented solutions.
Subjects: 
electric utilities
market structure
firm strategy
JEL: 
L94
L11
Document Type: 
Working Paper

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