There are many different business models how island off-takers can profit from renewable energy. As many island off-takers do not considered electricity generation as one of their core competencies, opportunities for external investors or for rental / leasing models occur.
Various factors are influencing the optimal electricity generation on islands. Some of these are external factors such as sun and wind conditions, grid-availability or grid stability. Some are directly related to the island community, e.g. environmental sustainability policies, availability of capital and whether or the island state directly in charge of the energy generation. Other factors are rather related to the island off-takers. Amonst these are load-profiles, availability of space directly next to the main off-takers and current electricity generation.
Depending on several internal or external factors an island off-taker may apply various business models for renewable energy:
Especially at remote locations which are diesel-powered there is often an excellent business case. So called hybrid-power plants generate solar or wind energy when the conditions permit. If there is not much wind or sun diesel gensets contribute to a larger extend to the total electricity generation. For more details see the hybrid power plant section.