The Evolution and Importance of Energy Branding

 By Dr. Fridrik Larsen 

What is Energy Branding?

Energy branding is a relatively new and dynamic concept that revolves around the creation and management of a brand specifically for energy companies and products. This concept extends beyond traditional branding strategies and incorporates unique aspects of the energy sector, emphasizing sustainability, innovation, and customer engagement.

I really wanted to bring something new into the literature and saw that electricity was still being sold as a commodity. Around the same time, I was looking at one of the lists of the most valuable brands in the world and noticed that all of them need electricity to exist – yet none of the most valuable brands in the world sold or manufactured electricity. I started my courses at Aston University but originally they weren’t too sure about my area of research, I was told that electricity couldn’t be branded. Fast forward and I became the first person to hold a PhD in Energy Branding.

Historically, energy companies were seen as utilities that provided necessary services without much emphasis on brand identity or customer experience. However, with the liberalization of energy markets, the rise of renewable energy, and growing consumer awareness of environmental issues, the need for energy companies to establish a strong brand has become paramount. Today, a different type of connection is needed to maintain and retain their business. That connection is from the utility to people’s hearts and minds.

Let’s look at some examples:

  • Ørsted: Formerly known as Dong Energy, Ørsted rebranded itself to reflect its commitment to renewable energy. The company’s brand transformation has been pivotal in positioning it as a global leader in offshore wind energy.
  • Tesla: While primarily known for its electric vehicles, Tesla’s brand extends into the energy sector with its solar products and energy storage solutions. Tesla’s branding emphasizes innovation, sustainability, and a vision for a clean energy future.
  • Iberdrola: This Spanish utility company has embraced energy branding by focusing on renewable energy and smart grids, positioning itself as a pioneer in the transition to a sustainable energy system.
  • Equinor: Equinor rebranded from Statoil to reflect its commitment to transitioning from a traditional oil and gas company to a broader energy company. The new name, derived from “equal” and “nor” (Norway), emphasizes equality, innovation, and its Norwegian heritage, aligning with its strategic focus on sustainability and renewable energy.
  • SLB: SLB, formerly known as Schlumberger, rebranded to highlight its evolution beyond oilfield services to encompass a wider range of energy solutions. The new name underscores its commitment to driving energy innovation and supporting the transition to more sustainable energy systems, integrating digital and decarbonization technologies into its core offerings.

When talking about energy branding differentiation from branding for other products or services here are two things: for one, electricity is at the early stages of branding – someone making a mundane consumer product as soap is engaging and creating value for the consumer by attributes like fresh-day-at-the-beach-aroma. So the possibilities in product attributes are endless – not only in creating perception but also in the ways the service is offered and presented. But most importantly – the consumer hasn’t been king in the utility world. It has been a one-way conversation. There is a lot of distrust going on.

How communication and understanding are the keys to a successful brand and that a powerful brand affects the bottom line. It is also important for brands in other sectors to utilize energy as an ingredient in their products and services – energy can add a dimension into their storytelling and add value to their brand. A well executed and planned out strategy can aid in differentiation, customer loyalty, market perception and regulatory and stakeholder relations.

Energy branding is a vital strategy for energy companies looking to navigate the evolving landscape of the energy sector. By emphasizing sustainability, innovation, customer engagement, and transparency, energy branding helps companies differentiate themselves, build customer loyalty, and positively influence market perception. As the energy industry continues to evolve, the importance of a strong, well-defined energy brand will only grow, making it an essential component of any forward-thinking energy company’s strategy.

Join us at CHARGE Lisbon 2024 on 14 – 15 October at EDP Headquarters in Portugal for discussions, presentations, and workshops on the theme “Decoding a Sector in Transition”. Together, we will unravel the complexities of brand evolution in the energy sector and equip ourselves with the knowledge to navigate this transition successfully. Find out more here: https://charge.events/europe/

Dr. Fridrik Larsen is an Associate Professor of Marketing and Branding at the University of Iceland and a pioneering authority on energy branding, being the first individual to hold a Ph.D. in this field. He is the founder of CHARGE, the world’s first energy branding conference, and the CEO of LarsEn Energy Branding.  He has also authored several acclaimed books, including “Energy Branding: Harnessing Consumer Power” and “Sustainable Energy Branding: Helping to Save the Planet.”

Note on Leaders in Energy Collaboration with CHARGE:

Leaders in Energy (LE) has been collaborating with the Charge energy branding group over many years as part of educating the LE community on related energy branding and consumer topics.

After attending the first Energy Branding conference held in Reykjavik, Iceland, Janine Finnell, the Executive Director, has been a longstanding Green Branding Awards judge for Charge. She is looking forward to participating in the Charge conference in Lisbon in October and invites other LE members to attend to meet other US and international attendees in the energy industry.

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