Understanding the decision of companies to invest in renewables: An investor perspective

Department of Forestry and Management of the Environment and Natural Resources, Democritus University of Thrace, Pantazidou 193, Orestiada, 68200, Greece

^* Corresponding author: evkarasm@fmenr.duth.gr

Abstract

Investments in renewable energy sources (RES) can mobilize significant capital to support renewable energy deployment. However, policymaking does not pay adequate attention to investors’ motives and preferences and thus it is possible that current policies lack vital elements that appeal to potential investors. The aim of this study was to examine how Greek companies that have invested in renewables perceive RES investments and, in specific, to examine their views about economic drivers, barriers to investments and the measures that could facilitate investments. To that aim, 15 in-depth interviews were held with representatives of Greek companies and the data were analyzed with thematic analysis. It was indicated that perceiving the investment as profitable and secure was what mainly drove companies to invest while rapid depreciation was another driver. The perceived barriers requiring policy response involved the bureaucracy of the licensing procedure and the lack of grid capacity. In addition, companies that lack substantial capital find it difficult to ensure favorable conditions for loans. The most recommended measures to facilitate companies to invest in RES were to eliminate bureaucracy, expand the grid and accelerate procedures.