Energy Supply for Global Corporations: Strategies for Distributed Generation in Emerging Markets

With the advent of distributed generation, many companies are revisiting their approaches for energy consumption based on the fact that power can be treated as a strategic supply. In this paper we consider large corporations strategies for energy consumptions, and its relationship with global operations and supply chain aspects. The main point is to discuss the global supply chain aspects that combined to make-or-buy decision leads companies to insource electricity generation. Based on a series of case studies, a framework was developed to help understanding the influences that lead companies to develop strategies for energy supply. Our framework scrutinizes legal, economic, and strategic aspects of energy in-sourcing decisions through the lens of several features that characterize the energy supply chain such as sustainability, economy, efficiency, vulnerability, costs and resources. We conclude by offering a series of propositions that could be used to test our framework to companies in other countries.