Abstract
The challenges of climate change and lack of access to electricity create an urgent need for sustainable energy infrastructure projects in developing countries. Sustainable impact investment schemes are a potential catalyst to finance such projects. A particularly sustainable financing option can be the Consumer Stock Ownership Plan (CSOP), combining the interests of impact investors and the local population. The infrastructure, e.g., a sustainable energy mini-grid, is owned by the investors and the local population at the same time. The population thus benefits from access to electricity and active participation in energy supply, while investors benefit from new forms of investment with social impact. However, CSOP is a complex model that requires a secure organisation and infrastructure. By integrating blockchain technology, the organisational structure of the model can be automatically managed via smart contracts, reducing the influence of intermediary institutions. This makes the investment more secure, transparent, and efficient. The paper outlines a concept for an impact investment CSOP model coupled with blockchain-based smart contracts as a scalable solution for sustainable energy infrastructure projects, in which the ownership of the infrastructure is transferred to the community over time. The model considers all relevant parameters before, during and after the life cycle of the energy infrastructure and aims to secure a sustainable long-term energy supply in developing countries through self-administration, educational measures, and participation of all stakeholders. In the next step, the concept developed in this paper will be applied to an energy infrastructure pilot project at the Don Bosco Solar and Renewable Energy Centre in Ghana.
Highlights
The need for the transition of energy systems from fossil fuels to renewable energies (RE) is reflected in the policy targets of governments around the globe
The aim of this paper is to develop a new model combining Consumer Stock Ownership Plan (CSOP) and blockchain technology, which in the form of a holistic approach offers possibilities for a futureoriented impact investment applicable universally for different regions on the globe
Based on the results of the research in the area of CSOP and blockchain, we have developed a model that combines the possibilities of blockchain technology with the requirements in the area of impact investment in relation to renewable energy infrastructures
Summary
The need for the transition of energy systems from fossil fuels to renewable energies (RE) is reflected in the policy targets of governments around the globe. A rapid transition to renewable energy for electricity, and for heating, cooling, transportation and for the industry, is of utter importance to mitigate climate change [2]. Technical, and social innovations are needed to shape a transformation of the energy system towards a sustainable path. Around the world, this need has created business models with a focus of involving citizens. This need has created business models with a focus of involving citizens This includes participation models that give property rights to consumers in renewable energy projects in a local or regional area.
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