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The green flings: market fluctuations and incumbent energy industries’ engagement in renewable energy

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  • Tuukka Mäkitie

    (Centre for Technology, Innovation and Culture, University of Oslo, UiO.)

  • Håkon E. Normann

    (Centre for Technology, Innovation and Culture, University of Oslo, UiO.)

  • Taran M. Thune

    (Centre for Technology, Innovation and Culture, University of Oslo, UiO.)

  • Jakoba Sraml Gonzalez

    (Centre for Technology, Innovation and Culture, University of Oslo, UiO.)

Abstract

Reorientation of fossil fuel industries towards renewable energies, and the role of market changes underlying such processes, have not featured strongly in the study of sustainable energy transitions. We contribute to this important policy issue with a case study of diversification of Norwegian oil and gas industry in offshore wind power. We study how the engagement in diversification has changed during 2007-2016, and whether these changes correspond with developments in the industry’s task and institutional environments. By using news, statistical and survey data, our study reveals that despite continuous growth in offshore wind market, the industry engaged more in offshore wind during two market downturn periods in the oil and gas market, and less during an oil and gas boom period. Our results therefore draw attention to the importance of market changes in reorientation of fossil fuel industries towards renewable energies. We conclude by discussing the role of market changes in influencing reorientations towards renewable energies, and implications of results for policies which seek to support sustainable energy transitions.

Suggested Citation

  • Tuukka Mäkitie & Håkon E. Normann & Taran M. Thune & Jakoba Sraml Gonzalez, 2018. "The green flings: market fluctuations and incumbent energy industries’ engagement in renewable energy," Working Papers on Innovation Studies 20180524, Centre for Technology, Innovation and Culture, University of Oslo.
    • Handle: RePEc:tik:inowpp:20180524
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