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Crowdfunding niches? Exploring the potential of crowdfunding for financing renewable energy niches in the Netherlands

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  • Eleftheria Vasileiadou
  • Boukje Huijben
  • Rob Raven

Abstract

TThere is a huge gap between demand and supply of finance for energy transitions, and the financial and economic crisis have had a negative impact in the already meagre funds for transforming the energy system towards renewable resources. In this paper we explore whether crowdfunding can provide an adequate business model for the creation, nurturing and upscaling of renewable energy niches. We empirically investigate crowdfunding initiatives and platforms linked to renewable electricity projects in the Netherlands. The main conclusion is that the volume of crowdfunding today is low, but the dynamic of these projects holds potential. There is limited indication of learning processes until now, as well as limited support from regime actors, pointing at a low level of niche stabilization and break-through potential, which may however be related to the early stage of development of crowdfunding in the Netherlands. On the other hand, the heterogeneity of crowdfunders is very promising. Platforms dedicated to renewable electricity exclusively, and with an investment based business model seem to be the most successful. We show how governmental market regulation and support mechanisms are shaping crowdfunding as a business model, and discuss the implications for other countries.

Suggested Citation

  • Eleftheria Vasileiadou & Boukje Huijben & Rob Raven, 2014. "Crowdfunding niches? Exploring the potential of crowdfunding for financing renewable energy niches in the Netherlands," Working Papers 14-11, Eindhoven Center for Innovation Studies, revised Nov 2014.
    • Handle: RePEc:ein:tuecis:1410
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    References listed on IDEAS

    as
    1. Smith, Adrian & Raven, Rob, 2012. "What is protective space? Reconsidering niches in transitions to sustainability," Research Policy, Elsevier, vol. 41(6), pages 1025-1036.
    2. Gabriella Doci & Eleftheria Vasileiadou & Arthur Petersen, 2014. "Exploring the transition potential of renewable energy communities," Working Papers 14-06, Eindhoven Center for Innovation Studies, revised Mar 2014.
    3. Geels, Frank W. & Schot, Johan, 2007. "Typology of sociotechnical transition pathways," Research Policy, Elsevier, vol. 36(3), pages 399-417, April.
    4. Asmus, Peter, 2008. "Exploring New Models of Solar Energy Development," The Electricity Journal, Elsevier, vol. 21(3), pages 61-70, April.
    5. Alan Tomczak & Alexander Brem, 2013. "A conceptualized investment model of crowdfunding," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 335-359, October.
    6. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
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    Cited by:

    1. Ivelin Elenchev & Aleksandar Vasilev, 2019. "Forecasting the Success Rate of Reward Based Crowdfunding Projects," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 17(1 (Spring), pages 51-77.

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    Keywords

    renewable energy; crowdfunding; sustainability transitions; business models; up-scaling;
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