Offshore wind energy is considered an effective and reliable source of power with
tremendous potential for Germanys' future electricity supply. Due to the technology's capital intensity and high economic risk, however, offshore wind energy has so far been considered the domain of large electric utilities. Municipal utilities on the contrary traditionally have strong ties to their community and conduct low risk business models at the regional and local level. Recently, however, German municipal utilities started to invest in offshore wind energy.
The present study identifies the business models of small and medium sized municipal utilities in the field of offshore wind energy. The investigation also reveals that municipal utilities are mainly driven by return expectations, political influence, and established business relationships. The study discusses the contribution of business model innovation for the German offshore wind energy market and derives practical recommendations for municipal utilities.