A Composite Index to Identify Appropriate Locations for Rural Community Renewable Energy Projects

Abstract

This study develops a composite index to identify and prioritize the most suitable geographical locations for rural Community Renewable Energy (CRE) projects. CRE is central to the sustainable energy transition, but its strategic deployment in rural areas is challenging due to uneven development, the necessity of coordinating diverse resources, and the need for governments to guarantee the prudent use of scarce funds. Framed under the Resource Mobilization Theory, the proposed index helps mitigate these uncertainties by providing a structure for site evaluation. Although the empirical application is performed in a specific Portuguese region, the methodological approach is explicitly designed to be transferable to other national and regional contexts. The index provides significant practical implications for CRE promoters, investors, and spatial planners, offering a transparent, clear-cut tool to define targets and optimize resource allocation. Furthermore, this study contributes to rural development literature by merging entrepreneurship and renewable energy fields, demonstrating how local CRE can effectively leverage available resources to deliver both private and community benefits.