The Swedish energy system is facing a substantial transition in which, alongside new innovation companies, established energy firms are expected to play a key role. This project investigates the conditions for municipal energy companies in Sweden to actively contribute to this transition. More specifically, it analyses how different configurations of internal and external factors enable or hinder companies’ capacity to implement radical innovations and connect different social systems, such as heat, electricity, and waste management. The project applies a qualitative comparative method, drawing on qualitative and quantitative data from 15 municipal energy companies.
The findings show that there is no single path to successful transformation; instead, multiple combinations of organizational characteristics and external conditions can drive radical innovation. Using qualitative comparative analysis (QCA), the project identifies several alternative configurations that explain why some companies are more likely to act as drivers of systemic change. Furthermore, a role typology analysis highlights four distinct roles—Maintainer, Builder, Connecter, and Entangler—through which companies engage in the energy transition. The most forward-leaning firms, Entanglers, actively interconnect different social systems through groundbreaking innovations. Overall, the study contributes to a more nuanced understanding of the role of incumbents in the energy transition and shows that industrial synergies and successful innovation often require the interaction of multiple factors rather than reliance on single drivers.