Business strategies in geothermal energy market: A citizens-based perspective

Abstract

The development of geothermal energy can be hindered by both technical and socio-economic issues. Technical issues are associated with the intrinsic characteristics of geothermal energy and the ways in which is exploited, whereas socio-economic ones arise from the interplay between companies and stakeholders, affected to some extent in the development of geothermal energy. In this contribution, we analysed possible determinants of the relationship between companies and citizens. On the one hand, citizens represent a key stakeholder for energy companies that want to develop a geothermal energy facility. On the other hand, they represent the potential end users of technology providers’ products. Accordingly, geothermal energy companies and technology providers are called upon to take action for involving citizens and overcome the related tensions with them. In particular, geothermal energy companies need to face social acceptance issues when developing geothermal energy facilities. In order to achieve a better understanding of these issues, we have analysed suitable strategies and practices from the Corporate Social Responsibility (CSR) perspective, which is becoming a common reference point for geothermal energy companies that need to manage stakeholders’ involvement. Technology providers, instead, aim at fostering the adoption of geothermal energy systems at building level. In order to investigate the related dynamics, in this chapter we present an analysis of the most popular promotion and risk sharing strategies and practices that are in place among geothermal players. Among such strategies and practices, two themes emerged as key blocks for citizens’ involvement: information and trust. By comparing CSR, promotion and risk sharing strategies and actions, we provide energy companies and technology providers with some suggestions to achieve local acceptance of geothermal facilities.