This exploratory study was performed to improve the understanding of the emerging phenomena of Business Model Innovation (BMI) and Corporate Venture Capital (CVC), in the context of European electric utilities. More specifically, the potential contribution of CVC activities to BMI of European electric utilities was assessed. A thorough literature study and consultation with two external energy industry experts were conducted, complemented by a case study addressing two incumbent European electric utilities. These included Dutch utility Eneco with its CVC unit Eneco Ventures, and French utility ENGIE with its CVC unit ENGIE New Ventures. First, four different business models for electric utilities were identified: Traditional Utility, Green Utility, Cooperative Utility, and Prosumer Utility. The latter three of these all emerged during the past decade as (partly) response to six main developments that are changing the energy sector. These include the ‘Three D’s’ (Decarbonization, Decentralization, Digitalization), as well as Electrification of end-use sectors, Energy system flexibility, and Energy efficiency at demand-side. It turned out that traditional (incumbent) utilities are currently insufficiently aligned with the six developments, and their viability is challenged by innovative newcomers in the industry. As a result, they are in need for fundamental business model innovation. However, this is a highly complex process, subject to many potential barriers. Of a first set of 31 mutually exclusive potential barriers to BMI of traditional utilities, 28 were found to be relevant. These included both generic barriers hindering all BMI in general (despite sector or company differences), and specific barriers hindering BMI of incumbent utilities in specific domains related to the six energy sector developments. Subsequently, the CVC domain was assessed. A first set of 21 mutually exclusive potential benefits of CVC activities was identified. Besides the fact that CVC can lead to financial gains, in line with its purpose as instrument for stimulating BMI the remaining 20 benefits are strategic. Of these 21 potential benefits, eleven were found to be relevant for traditional utilities, mainly including the most strategic ones. Integration of the two subjects led to a first set of 29 potential relationships between barriers to BMI and benefits of CVC activities of traditional utilities. Of these 29, eighteen were confirmed, affecting seven CVC benefits and eleven BMI barriers. Hence, it was found that CVC activities can deliver a valuable contribution to BMI of traditional utilities by helping them to overcome multiple important barriers, which must ultimately result in better alignment with the energy sector developments. The affected barriers mainly include organizational and company resource barriers, but also one financial and profitability related barrier, one awareness related barrier, and one institutional barrier. Also, CVC can have a general accelerating effect on BMI. However, the contribution of CVC does not extend to most regulatory, technological, and awareness barriers to BMI. All in all, the potential contribution of CVC to BMI of traditional utilities is significant, but other organizational instruments will be required to help traditional utilities tackle their massive challenges.