Renewable Executive Anxiety – A compass for energy transition executives

The energy transition in Germany, Austria and Switzerland is currently undergoing a complex and, in some respects, volatile transformation. Geopolitical upheavals, fluctuating electricity prices and disrupted supply chains are coinciding with ambitious regulatory requirements such as the EU Green Deal, national grid expansion initiatives and strategies for developing CCUS and hydrogen infrastructures.
At the same time, the financing environment is changing. Rising interest rates are making investment decisions more difficult. Pressure on executives is increasing – among other things, due to a lack of follow-up investments and higher requirements for the commercialisation of value streams from sustainable energy solutions.
This complex situation makes the energy transition a highly dynamic market in which technology segments such as photovoltaics, onshore and offshore wind, battery storage, hydrogen and electromobility are increasingly intertwined and require executives who can actively shape this complexity. It is a market in which managers must also invest more patience and care in their own change processes than perhaps ever before.

For top executives in a forced or desired phase of professional change, this situation means that they must consciously define their role as transformation leaders: Where can they use their expertise to make an impact in a volatile environment while creating sustainable value for companies, society and their own careers? Where can they find jobs with lasting impact and long-term potential for success?

Target areas and implications for work culture

Against this backdrop, the key question for managers is: which target areas currently offer the greatest opportunities for business success and long-term professional fulfilment – and what are the prevailing cultural conditions in these areas? 

Energy companies and network operators in the DACH region are pushing ahead with the decarbonisation of their existing plants and the expansion of renewable capacities, supplemented by pilot projects for green hydrogen and hybrid technologies. The working culture is characterised by stable structures, complex decision-making processes and a high level of regulation, which requires the ability to implement large-scale transformation projects with perseverance and precision and to manage a complex network of stakeholders.

At the same time, investors such as infrastructure funds and private equity firms are systematically expanding their portfolios with renewable assets, storage solutions and grid infrastructure – with a clear focus on performance and value enhancement. The underlying culture is entrepreneurial, growth-oriented and requires executives to have a strong combination of analytical acumen and operational implementation skills. At the same time, it often requires personal investment, a high willingness to change and the ability to operate in a sometimes harsh environment with a fast pace and short decision-making cycles.

In addition, project developers and solution providers, including many start-ups, are important drivers of the energy transition. They implement new projects, develop technologies for smart grids, carbon capture or flexibility markets, and operate in a dynamic, pragmatic environment characterised by speed and entrepreneurial thinking. Managers can take on entrepreneurial responsibility and directly shape the transformation – whether through growth management in CEO and CCO roles, efficiency improvements in COO roles, or technology leadership in CTO roles.

Structuring decision-making processes and actively shaping positions

Given this diversity of options and cultures, conscious positioning within these fields is becoming increasingly important for managers. Top executives should gain clarity about the technological environment and cultural constellation in which their strengths can be most effectively deployed – and where their leadership personality has the greatest potential to flourish.

This contrasts with the need for individual due diligence: managers should carefully examine whether the business models associated with a function form a viable foundation that promises long-term success.

In the highly transformative phase of the energy transition, realistic expectations regarding performance indicators, financing bases and the requirements of investors and shareholders are crucial in order to increase the probability of success of one's own actions.

Employers – but also supporting recruitment consultancies – must now be measured by their ability to accompany this personal exploratory process in a transparent, structured and coherent manner. 

Contacting specialist recruitment consultancies such as Odgers gives executives access to confidential search mandates and dedicated perspectives on the market and its current dynamics that would otherwise remain hidden. It is equally important to build and maintain active networks with former colleagues, members of supervisory boards and relevant industry contacts in order to find out about new mandates at an early stage.

The right next step in your career

The path ahead of you may be varied.

It may lead to a new, influential leadership role. It may just as easily lead you to make a conscious decision to take on advisory and supervisory roles or to pass on your valuable wealth of experience in an advisory capacity.

Much more important than the next title, the capitalisation of a new company, the number of employees or the next pay rise is simply that you can identify with the mission of your new role.

Conclusion

The energy transition in Germany, Austria and Switzerland offers rare opportunities for executives to demonstrate their effectiveness in a socially and economically relevant environment and create sustainable value. It is crucial not to leave this next step to chance, but to shape it strategically, structurally and courageously in order to actively contribute to accelerating decarbonisation as a top executive.

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