Renewable energy plants and business models: A new rural development perspective

Abstract

The paper evaluates the rural development (RD) contribution of local economic activities (LEAs), whether generated or affected by the proximity of renewable energy plants (REPs). The study also informs about LEAs’ role as co-players in the fight against climate change. Semi-structured research interviews have been applied to identify LEAs’ BM (business model) in Andalusia, Murcia, and Catalonia, autonomous communities of Spain. Most LEAs present a BM based on the RE plant, and others do not, but they still contribute to RD, rural communities’ well-being and global sustainability. Results show, first, that certain LEAs, due to their inter-connection with large REPs, can innovate and create a significant number of stable jobs. Second, land leasing to REPs allows for temporary farms’ diversification, which is conditioned to its bargaining power. Third, advice on integration RE projects in RD strategies should be provided. Conclusions suggest the need for new governance to favor energy transition coherent with the Sustainable Development Goals (SDGs).