While Task 1.1 had a focus on the important role of firms in developing energy innovation, such innovative activities of firms are closely interlinked with financing decisions of investors. Also, firms are shaped by, but also actively shape their policy environment. Hence, Task 1.2 widens the scope of analysis beyond the boundaries of the firm, and investigates the links between energy innovation, investment and governance. Three highly innovative subtasks are pursued here. Subtask 1.2.1 on energy portfolio management explores the commonalities and differences between power generation assets and financial assets. Informed by insights from finance theory, it investigates how electricity portfolios can be optimized to achieve appropriate levels of risk and return, and how this optimization process is changing in the light of recent and upcoming technological developments, such as the increasing share of volatile sources of decentralized power generation. Subtask 1.2.2 zooms in to study investment decisions of financial and strategic investors. It takes into account that the energy transition has led to an increasing diversity of players involved in the financing of power generation. Therefore, understanding the actual criteria applied by different investor segments is crucial, especially because reaching policy objectives to increase the share of renewables ultimately is tightly linked to those policies effectiveness in influencing investor decision making, and hence in mobilizing private capital. In close collaboration with subtask 1.2.3, which adds the governance perspective to the picture, the researchers involved in this task put particular emphasis on understanding the influence of policy risk on renewable investment. Finally, task 1.2 also takes into account that Switzerland’s energy strategy takes place in an international context, and hence changes in domestic energy supply have implications for foreign policy.