Commercial Business Models

There are an increasing number of different ways that renewable energy projects, particularly small scale community projects, can be commercially structured and technically designed to be financially viable. In light of changes to Government supported financial incentives, increasing innovation in the sector is required to maximise project revenues.

In addition, there are large areas of the gird infrastructure that are constrained, increasing the cost of connecting a renewable technology and decreasing the amount of electricity that can be exported to the grid to sell to electricity suppliers.

This module provides guidance on different business models that might enable a project to enable a grid connection between generator and consumer, secure additional revenue from the sale of electricity and provide the greatest community benefit. This includes information on different commercial arrangements for selling the power generated, for example, through a traditional Power Purchase Agreement with an electricity supplier or the more innovative approach of selling directly to communities through a White Label agreement with a supplier.

This module is organised into the following sections:

  1. Background: typical renewable energy business model
  2. Alternative commerical arrangements
    • White Label;
    • License Lite; and
    • Supplier under a License Exemption
  3. Further Information

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