Strategic responses to the energy transition: evidence from top managers of an electricity distribution company in Southern Brazil

Purpose This study aims to understand how organizations in the energy sector respond to transformations driven by market liberalization and the adoption of new energy sources and to identify the challenges and opportunities that emerge in this context. Design/methodology/approach The research adopted a qualitative, exploratory and interpretive approach, based on interviews with top managers from an electricity distribution company located in Southern Brazil. Seven valid responses were obtained through face-to-face interviews and complementary questionnaires. Data was examined using inductive content analysis, which enabled the identification of thematic categories reflecting the organization’s main efforts to improve efficiency, modernize operations and adopt more sustainable energy sources. Findings Most energy consumers are required to remain connected to distribution companies in a regulated environment. Alternatives such as micro and mini distributed generation and the free energy market are reshaping the sector, creating both uncertainty and opportunities. The findings of this study reveal contrasting organizational responses: active strategies, such as technological investment, service diversification, smart grids and multiservice models; and passive strategies, such as reliance on compensation mechanisms, regulatory protection and the maintenance of legacy structures. Originality/value Despite the growing debate on energy transition, empirical evidence on how electricity distributors in emerging economies reinterpret their strategic role remains limited. This study contributes by presenting first-hand managerial insights from a scarcely explored context and by identifying capability patterns that help explain how distributors navigate technological and regulatory change. Managerial implications highlight the need to redesign business models, strengthen regulatory competencies and integrate digital technologies to remain competitive and sustainable in a rapidly evolving sector.