Can social business be a good model for the renewable energy industry?

Both the value dynamics of renewable energy and social business economics are well-recognised - which are expanding their horizons for socio-economic and ecological values across the world. 

However, application of social business to support renewable energy growth and initiatives is rare - given the potential of their joint contribution to the people and planet. 

Specifically, the model by which social business ensures sustainable support for the socio-economic growth of the renewable energy sector is much overlooked. 

These two can supplement each other to optimise economic and ecological contributions. Hence, for practical validation on social business to improve the renewable energy value dynamics, experts often argue about joint applications.

The hidden potentials of tying social businesses to renewable energy

The socio-economic prospects of renewable energy may include, but not limited to, economic estimation, production, management, and consumption of renewable energy to support progress of all economic populations in a society.

The sources of this energy sector may include solar power, wind, hydropower, tidal waves, biomass and biofuels, and so forth. 

On one hand, increasing renewable energy production and consumption have direct or indirect implications for a number of United Nations Sustainable Development Goals. 

Importantly, experts argue that generating profits by means of renewable energy enterprises invest and reinvest have more potential than traditional profit-only firms when it comes to addressing socio-ecological challenges. 

This is because business firms that operate based on social business are more adept in addressing socio-environmental challenges, employee benefits, and work in general better for collective interest compared to the traditional firms.  

Linking the economic model of social business to that of renewable energy especially would benefit the low-income population living in remote areas. 

How to tap the potential

The contemporary capitalist economic system is yet to fully capitalise the advantages of social business, and  benefit by linking it to renewable energy economics.

To note, social business is neither charity nor a mere profit maximizer, but a hybrid of both ensuring a collective wellbeing. 

Few areas of prospective links to the renewable energy sector are discussed here - 

- the different social business forms, for instance microcredit, community benefit, cooperatives, socially responsible investments, and any other legal forms of social enterprises with commercial and social goals may be tested.

- It is essential to explore any legal and organisational social business forms that would synchronise better with renewable energy at any socio-economic settings.

This would be instrumental to bring more world population under the sustainable umbrella of renewable energy.

- The role of IT in setting platforms for the joint application must not be ignored. 

- Comparative analysis across different markets, sectors, industries, and socio-economic settings to develop greater insights on social business economy and its impact on the renewable energy dynamics increase the production and consumption.
 
This would ensure that more people in both the urban and rural regions can be benefited by the joint business concept.

Dr Riad Shams is an Assistant Professor and Head of PhD Programme at the Newcastle Business School, Northumbria University, UK. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.