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Business Models and Policies to Support Renewable Energy Community in Islands

This chapter starts with an introductory part, explaining the role of business models and analyzing the different financial models of ownership. It has been concluded that in renewable energy projects, ownership business models center in specialized complexity, economies of scale, capital costs, and financing perspectives based on its own characteristics. It has many favorable features including the ability to provide power to local communities and create jobs. However, business models include several decisive financing, service, and monitoring characteristics. Business models should be dynamic, while being adjusted to the special conditions, features, and risks of the given project. In renewable energy projects, ownership business models center on the specialized complexity, economies of scale, capital costs, and financing perspectives. The public-private partnership (PPP) is usually the optimum business model option for medium- to large-scale or grid-connected renewable energy projects, and is usually applied with a structure of a built-own-operate-transfer or multiparty ownership.