Carbon Mitigation Strategies in the Electricity Distribution Sector in Australia

Abstract: This paper looks at strategic responses to climate change mitigation of electricity distribution companies in the National Electricity Market in Australia. The work uses institutional theory, resource dependence theory and aspects of stakeholder management theories and dynamic capabilities theory to describe and analyse current strategies of distribution companies in response to climate change mitigation. An analysis of the electricity market, policies in place and the external environment provides insights into barriers and drivers of climate change mitigation activities for the sector. This information in combination with stakeholder interviews reveals potential future business opportunities in relation to carbon mitigation and indicates actors already moving into this emerging market. It also highlights some constraints on their implementation. To analyse the actual responses to change a survey amongst distribution companies provides information on the current activities and strategic elements. Those findings are described and analysed through the lens of the theoretical framework developed for this research. The information from those different parts is finally used to provide insights into approaches and recommendations on how distribution companies could adapt their activities and business models to move towards a lower carbon electricity provision while at the same time maintain organisational efficiency and profitability.