Transformation of Business Model of Generating Companies in Russian Energy Sector

The paper aims at creation of an effective business model of global generatingcompanies performing on Russian market and to develop a transformation plan of business forone of these companies. Design/methodology/approach: The face-to-face interviews with Russian senior managementof foreign generating companies were conducted to define the strategic development directionsand the key characteristics of target business model. The literature review enables tosystematize knowledge about the challenges of both global and Russian energy market and ofthe energy companies' strategic initiatives. The analysis assisted to incorporate innovativeelements into new business model of generating companies and to determine the stages of itstransformation, taking one of these companies as an example. Findings: Generating companies' performance is influenced by Russian energy marketinstitutional features. The key directions for companies' development are to increase the shareof generating capacity working on RES and to diversify activities. According to these findings,the target business model was created and the scalable plan of refined business model adaptationin a particular generating company was suggested. Research/practical implications: The findings of the paper appear in elaboration of themethodological approach towards the transformation of foreign generating companies' businessmodels on Russian market. Strategic vision of market evolution and key characteristics ofbusiness acticities will let managers create state-of-the-art business model. Adoption of themodel in diverse foreign generating companies accumulates the data about the challenges ofthis process. This fact might give the ground for future research in this field. Originality/value: Review of the differencies between foreign generating companies' businessmodel in both global and Russian energy sectors. New business model including renewedelements of Russian generating companies and a plan for business model adaptation.