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Peculiarities Of The Renewable Energy Business Models

Author

Listed:
  • BALOI Ionut-Cosmin

    (Craiova University, Economics and Business Administration Faculty,)

Abstract

By exploring the competitiveness of industries and companies, we could identify the factors whose importance is likely to generate competitive advantage. An inventory of content elements of the business model summarizes the clearest opportunities and prospects. The objectives developed throughout the paper want to identify the pillars of a renewable business model and to describe the strategic dimensions of their capitalisation in regional and national energy entrepreneurship. The trend of increasing the renewable energy business volume is driven by the entrepreneurs and company's availability to try new markets, with many unpredictable implications and the willingness of these players or their creditors to spend their savings, in various forms, for the concerned projects. There is no alternative to intensive investment strategies, given that the small projects are not able to create high value and competitiveness for interested entrepreneurs. For this reason, the international practice shows that the business models in energy production are supported by partnerships and networks of entrepreneurs who are involved in the development of large projects. The most important feature of renewable business initiatives is on attracting the latest clean emerging technologies, and obviously the investors who can assume the risk of such great projects. The benefits of a well developed business model recommend a prudent approach in the launching in the investment strategies, because the competitive contexts hide always some dissatisfaction of the partners that endanger the business concept's success. The small firms can develop a profitable business model by exploring the opportunity of the alliances, namely the particular joint ventures (association between Romanian and foreign firms). The advantages of joint venture's partners are considerable; they include access to expertise, resources and other assets that the partners could not achieve on their own. The present research emphasizes a series of positive aspects and shows the dysfunctions encountered by the companies that develop business models in the Romanian renewable energy.

Suggested Citation

  • BALOI Ionut-Cosmin, 2014. "Peculiarities Of The Renewable Energy Business Models," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1092-1098, July.
    • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:1092-1098
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    File URL: http://anale.steconomiceuoradea.ro/volume/2014/n1/120.pdf
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    References listed on IDEAS

    as
    1. Arnoldo C. Hax, 2010. "The Delta Model," Springer Books, Springer, number 978-1-4419-1480-4, January.
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    More about this item

    Keywords

    business model; renewable energy; inside-out innovation; infrastructure models;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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