Business Model Proposal for Energy Transition towards Operational and Economic Sustainability for Rural Electrification: Colombian Case

Abstract

This study focuses on strategic development for incorporating distributed energy resources into the electrical off-grid power system operator, or isolated microgrids, to guarantee sustainability and energy transition by an adapted business model. A business model canvas was adapted to allow sustainability in an off-grid Colombian microgrid by integrating distributed energy resources with voltage and frequency control as ancillary services; support services that maintain the stability and security of energy supply in isolated rural electrification. The business model canvas was studied with government funds, who cover all the costs associated with making the model attractive and sustainable in a Colombian context, and some proposed technical incentives to analyze the profitability and guarantee the sustainability of rural electrification. The proposed modified business model canvas offers a useful tool for supporting microgrid market scheme development to include distributed energy resources in a Colombian case. The model showed the importance of motivating investors and increasing profitability by including a value proposition based on technical contributions that benefit the microgrid operation; by around 80%. These benefits can solve some stability problems, including ancillary services, like frequency and voltage support, using distributed energy resources. Finally, integrating rural electrification in off-grid zones into the national energy regulation system is vital for incentivizing sustainable projects in rural zones, such as microgrids.

Business Model and Principles of a Values-Based Bank—Case Study of MagNet Hungarian Community Bank

“…Similarly, we have undertaken the integration of the core values of the GABV model, which express sustainability considerations, by creating additional blocks within the original BMC. In some of these articles, as in ours, the possibility of applying triple-layered BMC was also mentioned as a promising future research direction [89][90][91]. There are other business modelling methods that could be used, from a sustainability point of view, especially the Ecocanvas, the circular business model or the triple layered BMC.…”

“…As aforementioned, the BMC has not been used much as a framework for analysing values-based banks' practice; however, it has been used for sustainability analysis in, for example, the agribusiness sector [89], the energy sector [90] and the olive oil sector [91]. Donner and Radic's [91] study of sustainability issues in the olive sector describes how "within their Business Canvas Models, the circular bioeconomy principles' 'closing loops' and 'cascades' are principally reflected in the enterprises' key activities (collecting and re-or upcycling organic waste), key resources (using olive waste and by-products as main resources), key partners (collaborating with partners from the olive chain but also other sectors), and new value propositions (offering multiple and diversified products and services based on waste streams)" [91] (p. 14).…”

Proposing Dynamic Pricing as an Alternative to Improve Technical and Economic Conditions in Rural Electrification: A Case Study from Colombia

“…Sustainability approach of different methodologies for electrification of rural or isolated areas found in the literature. Source: Own compilation based on [10,[23][24][25][26][27][28][29][30][31][32][33][34][35][36].…”

“…Additionally, when methodologies seek to comprehensively cover all sustainability dimensions, the rigor of each dimension study decreases. This makes it necessary to establish a mechanism for prioritizing [10,[22][23][24][25][26][27][28][29][30][31][32][33][34][35][36].…”

Modelos de negocio y su influencia en el sector de servicios. Revisión de literatura

“…La innovación de los modelos de negocios tiene el objetivo de sobresalir en el mercado competitivo, al introducir servicios inspirados en rentabilidad, crecimiento social, impacto y fiabilidad (Arango-Manrique et al, 2021). Los modelos de negocio dan valor al servicio y los recursos claves que lo conforman al gestionar sus procesos, para eliminar los tiempos muertos, implementar herramientas de mejora de acuerdo a los requerimientos del cliente obtenidos por medio de una investigación de mercado (Müller, 2019).…”