Enablers or barriers: The multifaceted tales of power generation companies in China's energy transition

Synchronizing creation and destruction in energy transition could be challenging, and the policy mixes might not be well coordinated. Preexisting studies have given state-centered interpretations to the misalignment between the ‘creative’ and ‘destructive’ efforts. Complementing the state-centered perspectives, this paper tries to offer an alternative explanation from the lens of the political-economic rationality of the state-owned power companies (SPCs) at the micro-level. The analysis uncovers a blend of strategies through which SPCs navigate the intricate landscape of the transition mandates, including (1) engaging in territory competition, (2) utilizing natural gas to adjust the pace of transition, (3) planning renewable energy investment sequences, (4) implementing supply chain management, and (5) deploying financial innovations. Out of these strategies emerge the multifaceted roles of the incumbents, who occupy a dynamic space that lies between being barriers and serving as enablers. The complex interplay and possible discordance between government intervention and the incumbents' responses introduce elements of complexity and unpredictability into the transition process. These findings call for the integration of macro- and micro-scale perspectives to ensure that policies and interventions are robust enough to accommodate both anticipated and unforeseen challenges.