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

Author

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  • Adriana Arango-Manrique

    (Department of Electrical and Electronic Engineering, Universidad del Norte, Barranquilla 081007, Colombia)

  • Dahiana López-García

    (Department of Electrical, Electronic and Computer Engineering, Universidad Nacional de Colombia, Manizales 170003, Colombia)

  • César Arango-Lemoine

    (Department of Electrical, Electronic and Computer Engineering, Universidad Nacional de Colombia, Manizales 170003, Colombia)

  • Sandra Ximena Carvajal-Quintero

    (Department of Electrical, Electronic and Computer Engineering, Universidad Nacional de Colombia, Manizales 170003, Colombia)

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.

Suggested Citation

  • Adriana Arango-Manrique & Dahiana López-García & César Arango-Lemoine & Sandra Ximena Carvajal-Quintero, 2021. "Business Model Proposal for Energy Transition towards Operational and Economic Sustainability for Rural Electrification: Colombian Case," Sustainability, MDPI, vol. 13(8), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4308-:d:535003
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    1. Zsuzsanna Győri & Yahya Khan & Krisztina Szegedi, 2021. "Business Model and Principles of a Values-Based Bank—Case Study of MagNet Hungarian Community Bank," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    2. Dahiana López García & José David Beltrán Gallego & Sandra Ximena Carvajal Quintero, 2023. "Proposing Dynamic Pricing as an Alternative to Improve Technical and Economic Conditions in Rural Electrification: A Case Study from Colombia," Sustainability, MDPI, vol. 15(10), pages 1-24, May.

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