Sustainable Business Models for Renewable Energy Communities: A Comprehensive Framework

Abstract

The “Clean Energy for All Europeans” legislative framework introduced the concept of Renewable Energy Communities (RECs) to empower citizens by granting them greater decision-making authority and control over their energy consumption. As a result, the number of implemented energy communities has been increasing since 2019, leading to a growing interest in the design of business models (BMs) that enable their development and long-term viability. While several studies classify and describe BM for RECs, most lack a structured typology definition and fail to assess their broader sustainability implications. Framing RECs within the circular economy (CE) highlights their role in resource and eco-efficiency, local loop closing, and the socio-technical integration of clean energy solution in cities, a shared and validated understanding of sustainable business model (SBM) typologies is needed to guide their effective implementation, facilitate policy alignment, and enhance social acceptance. This study combines a systematic literature review with participatory validation to define and analyse nine SBM-REC typologies. Each typology is characterised using an extended sustainable business model canvas SBMC framework that integrates governance and sustainability dimensions. Results show that SBM-REC typologies differ significantly in their contributions to social, economic, and environmental sustainability, influenced by their governance model, and local ownership structures. The framework that integrates key dimensions of the BM (value creation, delivery and capture) as well as governance and sustainability aspects enables: (i) the structured classification and comparison of SBM-REC; (ii) the identification of value management patterns; (iii) the analysis of variation in governance logics; and (iv) a qualitative assessment of sustainability (social, environmental, economic) outcomes across typologies.