Dubravka Pekanov, Ivo Mijoč, Irena Jadrešić: CHALLENGES OF THE GREEN TRANSITION: IMPLICATIONS FOR THE OPERATION OF ENERGY COMPANIES
Scientific paper
Dubravka Pekanov, Josip Juraj Strossmayer University of Osijek, Faculty of Economics in Osijek
Ivo Mijoč, Josip Juraj Strossmayer University of Osijek, Faculty of Economics in Osijek
Irena Jadrešić, Privredna banka Zagreb d.d.
DOI: https://doi.org/10.59014/ZTOZ8029
Keywords:
business analysis, energy companies, renewable energy sources, green transition
Abstract
The effects of climate change are being felt in all parts of the world. Ways to predict
future climate change and reduce the impact of humans on the climate have been
the subject of numerous studies. The transition towards climate neutrality at EU
level is the backbone of the European Green Deal. It is about the goal of reducing
greenhouse gas emissions by 55% by 2030 and achieving a climate neutral Europe by
2050. Energy companies are responsible for three quarters of greenhouse gas emissions
in the European Union, especially those that produce energy from fossil fuels.
The paper examines the impact of efforts to reduce greenhouse gas emissions through
investments in renewable energy sources, implemented as a result of the adoption
of the regulatory framework, on the business and financial performance of three
energy companies (Hrvatska elektroprivreda – the HEP Group, Holding Slovenske
elektrarne – the HSE Group, and the Slovenské elektrárne a.s. – the SE Group)
from the European Union over a three-year period (2017-2019). The main objective
of this paper is to determine how adapting to the new European Union regulatory
framework in terms of the green transition affects the operation of energy companies,
focusing on profitability, liquidity, and financial stability. The paper revealed that the
companies observed plan to invest in renewable energy sources and reduce or abandon
the use of fossil fuels in electricity generation in line with the European Union’s
objectives. The analysis of their businesses showed that they approach changes in
business models differently with regard to the specifics of the business environment
and the development of energy infrastructure, which affects success and stability of
their businesses.
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