Digitalization of the energy sector in its transition towards renewable energy: A role of ICT and human capital

Abstract

Many existing studies on the digitalization of the energy sector often overlook the intertwined roles of human capital and advanced information and communication technologies (ICTs) in driving the transition to renewable energy sources (RES). This paper addresses this gap by quantitatively analyzing the impact of human capital investments on the innovation and digital competitiveness of energy companies, with a particular focus on the Russian energy sector. Employing a combination of bibliographical and network literature analysis, along with an ordinal regression model, this research analyzes data of 820 managers from the Russian energy companies collected via online surveys between June and December 2023. The study finds that a one-point increase in human capital investment scores leads to a significant improvement in the company's innovation capabilities and digital adaptation, which is critical for leveraging renewable energy technologies. Moreover, the results underscore the necessity of state interventions to bolster human capital in energy companies, thereby enhancing sustainable economic development aligned with the SDGs and Agenda 2030. Our findings not only highlight the critical role of human capital in the energy sector's transition but also suggest policy measures to support this transformation efficiently.

Keywords

• Energy sector
• Renewable energy
• Human capital management
• Energy companies
• Russian Federation