Blockchain-Based Consumer Stock Ownership Plans (CSOP) As a Catalyst For Impact Investments in Sustainable Energy Infrastructure

Abstract

The challenges of climate change and lack of access to electricity create an urgent need for sustainable energy infrastructure projects in developing countries. Sustainable impact investment schemes are a potential catalyst to finance such projects. A particularly sustainable financing option can be the Consumer Stock Ownership Plan (CSOP), combining the interests of impact investors and the local population. The infrastructure, e.g., a sustainable energy mini-grid, is owned by the investors and the local population at the same time. The population thus benefits from access to electricity and active participation in energy supply, while investors benefit from new forms of investment with social impact. However, CSOP is a complex model that requires a secure organisation and infrastructure. By integrating blockchain technology, the organisational structure of the model can be automatically managed via smart contracts, reducing the influence of intermediary institutions. This makes the investment more secure, transparent, and efficient. The paper outlines a concept for an impact investment CSOP model coupled with blockchain-based smart contracts as a scalable solution for sustainable energy infrastructure projects, in which the ownership of the infrastructure is transferred to the community over time. The model considers all relevant parameters before, during and after the life cycle of the energy infrastructure and aims to secure a sustainable long-term energy supply in developing countries through self-administration, educational measures, and participation of all stakeholders. In the next step, the concept developed in this paper will be applied to an energy infrastructure pilot project at the Don Bosco Solar and Renewable Energy Centre in Ghana.