Qualitative analysis of the application of BM-LCA in the evaluation of business models for renewable energy communities

Paper in proceeding, 2025

This study explores the application of Business Model Life Cycle Assessment (BM-LCA) to evaluate the environmental performance of Renewable Energy Communities (RECs), using the Hitzar REC located in Gipuzkoa (Basque Country, Spain), as a real case study. A novel integration of a Sustainable Business Model Canvas is proposed to enhance the methodology by incorporating a preliminary qualitative assessment of governance and sustainability aspects along with the traditional business model considerations. The analysis focuses on defining a clear value proposition, evaluating environmental and economic flows, and identifying strengths and challenges in the application of BM-LCA to the evaluation of RECs, which has also proven to be a useful tool for systematically identifying the key elements that must be understood when analyzing business models. The study demonstrates how BM-LCA links material and financial flows to sustainability outcomes, enabling informed decision-making processes and contributing to the development of sustainable energy solutions. Additionally, the study highlights the importance of tailoring BM-LCA to address the unique characteristics of RECs, such as their community-oriented governance and dependence on external technical and financial support. These aspects underscore the need for methodological adaptations to better capture the social and economic dimensions of these initiatives. Future work will expand on this framework through the quantitative application of BM-LCA to compare BM configurations and energy management scenarios of different REC models, contributing to the sustainable energy transition.