Navigating the Nexus: Stakeholder Engagement in Hybrid Renewable Energy Power Purchase Agreements (PPAs) for Sustainable Development

Abstract

In the quest for a sustainable energy landscape, renewable energy sources are positioned to lead. Among these, power purchase agreements (PPAs) have emerged as indispensable tools, particularly when combined with energy storage solutions, in supporting grid stability and ensuring the reliability of energy provision. The aim of this study is to undertake a rigorous systematic literature review to delve into the pivotal role that community engagement and stakeholder involvement play in shaping the contours of hybrid PPAs, which amalgamate renewable energy with storage technologies. Through a comprehensive synthesis of the previous literature, this research elucidates the nuanced dimensions and consequential benefits inherent in cultivating robust agreements. The objectives include examining the tangible benefits of prioritizing community empowerment, such as securing local acceptance and support, alleviating opposition, and tailoring project designs to harmonize with specific community requirements and preferences. Moreover, this study underscores the critical role of stakeholder engagement in ensuring compliance with regulatory mandates, thereby addressing sustainability outcomes while fostering the enduring success and feasibility of renewable energy projects.

1. Introduction

The global energy landscape stands at a pivotal juncture, marked by a growing imperative to transition towards sustainable energy sources in response to mounting environmental concerns and the escalating impacts of climate change. This imperative has driven renewable energy sources to the forefront of energy discourse, indicating a paradigm shift away from fossil fuels towards cleaner, more environmentally friendly alternatives. Among these alternatives, PPAs have emerged as instrumental tools for facilitating the integration of renewable energy into the energy mix [1].

The heart of the renewable energy revolution lies in the concept of community engagement and stakeholder involvement, which are increasingly recognized as critical determinants of project success and social sustainability. As the penetration of renewable energy is increasing globally, their impacts extend far beyond the realms of technology and economics, encompassing complex economic, social/political, and environmental considerations (Triple Bottom Line (TBL) scenario of sustainability). It is within this multifaceted context that the role of community engagement and stakeholder involvement in shaping the contours of renewable energy projects, particularly those involving hybrid PPAs, is of great importance [2].

This study endeavors to delve into the intricate dynamics of community engagement and stakeholder involvement in the context of hybrid PPAs, which represent a fusion of renewable energy generation and energy storage technologies. By undertaking a rigorous systematic literature review, the nuanced dimensions and consequential benefits of fostering robust partnerships between project developers, local communities, regulatory bodies, and other stakeholders are revealed.

The objectives of this research are manifold. Firstly, the authors seek to explore the tangible advantages associated with prioritizing community empowerment within the renewable energy project development process. These advantages extend beyond mere economic considerations to encompass social and environmental dimensions, including the cultivation of local acceptance and support, the mitigation of opposition, and the customization of project designs to align with specific community needs and preferences. By placing communities at the center of the decision-making process, renewable energy projects can enhance their social license to operate, mitigate potential conflicts, and ultimately foster greater social cohesion and resilience.

Secondly, the authors’ intention is to underscore the pivotal role of stakeholder engagement in ensuring the success and viability of renewable energy projects. Effective stakeholder engagement can serve as a catalyst for innovation, collaboration, and collective problem-solving, thereby enhancing project outcomes and minimizing risks. Moreover, stakeholder engagement can help navigate the complex regulatory landscape, address environmental and social impacts, and promote the long-term sustainability of renewable energy initiatives.

By shedding light on the interplay between stakeholders, communities, and renewable energy projects, this research seeks to inform policymaking, industry practices, and academic discourse. By fostering greater transparency, accountability, and inclusivity in decision-making processes, stakeholders can build trust, enhance cooperation, and accelerate the transition towards a more sustainable energy future. This study aims to address the research gap concerning the nuanced role of community engagement and stakeholder involvement in hybrid PPAs within the renewable energy sector.

In summary, this paper endeavors to offer a comprehensive analysis of the role of community engagement and stakeholder involvement in the development and implementation of hybrid PPAs. By examining the multifaceted dimensions of renewable energy projects, this research contributes to a deeper understanding of the socio-political dynamics shaping the renewable energy transition. Ultimately, this research will inform more effective strategies for realizing the full potential of renewable energy and advancing towards a more sustainable and equitable energy system.

This paper begins with an introduction section that explores the aim, the objectives, and the research gap in relation to the significance of community engagement and stakeholder involvement in hybrid PPAs, followed by a rigorous systematic literature review. Section 3 outlines the research materials and methods followed by a comprehensive review of the engagement framework and the research approach. The results of the analysis are presented in Section 5, followed by discussion of the findings, and concluding remarks on implications for future research and practice.

2. Literature Review

This section provides a comprehensive review of the existing literature pertinent to stakeholder and community engagement in hybrid PPAs, highlighting key insights and findings from prior research. The literature cited in this section was selected to provide a comprehensive background on the topic as related works.

Despite the clear benefits of hybrid PPAs, challenges remain in maximizing their potential for sustainable development. One key challenge is navigating the complex stakeholder landscape inherent in PPA transactions. Stakeholders involved in hybrid PPA negotiations often include renewable energy developers, electricity consumers, regulators, local communities, and environmental organizations, each with distinct interests, priorities, and power dynamics. Effectively engaging with these stakeholders is essential for ensuring the successful implementation of PPAs and maximizing their positive impacts on sustainable development [3,4,5].

Community engagement entails actively involving communities in decision-making processes, fostering trust, and promoting collaboration. It is crucial for the success and sustainability of renewable energy projects, as it ensures that local interests and concerns are addressed. Effective community engagement results in higher public support and empowerment [6]. The stakeholder theory posits that organizations should consider the interests of all affected parties, not just shareholders. In renewable energy projects, this includes local communities, government agencies, environmental groups, and investors. Balancing these interests helps identify potential conflicts and develop inclusive strategies [7]. Social acceptance includes community, market, and socio-political acceptance. It refers to the approval of renewable energy projects by local communities, consumers, and political entities, which is essential for their successful implementation [8].

This Systematic Literature Review (SLR) seeks to explore the current status of stakeholder engagement in hybrid PPAs and its implications for sustainable development. By synthesizing insights from academic research, industry reports, and case studies, this paper delves into the pivotal role that community engagement and stakeholder involvement play in shaping the contours of hybrid PPAs. The real-life applications derived from this study could inform policymakers, practitioners, and stakeholders on strategies for fostering inclusive and participatory decision-making processes in PPA transactions. The SLR integrates key findings from recent studies on community engagement and stakeholder involvement in renewable energy projects. By synthesizing this body of work, the authors identify critical concerns and demonstrate how this research extends existing theories, particularly in the context of hybrid PPAs. This synthesis highlights the relevance and this study.

Heuninckx et al. [9] have highlighted the importance of inclusive and participatory decision-making processes. Torma and Aschemann-Witzel [10] have shown that early and transparent engagement with stakeholders can enhance project acceptance, minimize conflicts, and build trust among stakeholders. Moreover, engaging with local communities and other affected parties helps identify and address potential social, environmental, and cultural concerns associated with renewable energy development [11].

In the context of hybrid renewable energy PPAs, which involve the integration of multiple renewable energy sources including Battery Energy Storage Systems (BESS), stakeholder engagement becomes even more critical. Hybrid projects, such as wind–solar or solar battery installations, present unique challenges, and opportunities in terms of project design, financing, and stakeholder management. Understanding the preferences and priorities of diverse stakeholders, including developers, investors, policymakers, and local communities, is essential for designing effective projects and maximizing their sustainability benefits [12,13,14].

Recent studies have begun to explore innovative approaches to stakeholder engagement in hybrid renewable energy projects, including the use of participatory decision-making tools, community-led renewable energy initiatives, and collaborative governance models. These approaches aim to empower local communities and enhance social acceptance [15,16].

By actively involving local communities and stakeholders who stand to benefit from hybrid PPAs in renewable energy projects, project managers can enhance social acceptance, aligning with sustainability objectives [17]. This heightened acceptance streamlines the permitting and development processes, underscoring the significance of such bilateral agreements. The implementation of hybrid PPAs fosters local economic and environmental development. Engaging communities and stakeholders leads to job creation, local revenue generation, and enhanced community infrastructure [3,18,19]. The SLR findings suggest that renewable energy projects involving community and stakeholder participation typically yield improved outcomes, such as higher energy output and enhanced project efficiency, particularly when combined with battery storage [20]. Research demonstrates that active engagement of communities and stakeholders in project planning and decision-making processes reduces opposition and project delays. Early engagement enables the identification and resolution of concerns, facilitating smoother project implementation and mitigating both opposition and delays [21,22]. Hybrid PPAs that incorporate efforts to educate local communities and stakeholders about the benefits of such initiatives demonstrate heightened commitment to sustainable project operation and maintenance. Addressing NIMBY (Not In My Backyard) opposition, which stems from perceived negative impacts on local societies, is a common challenge in the renewable energy sector. Overcoming these obstacles requires effective communication and information sharing among stakeholders and communities. Transparency and accessibility of information throughout the project lifecycle are crucial for establishing socially sustainable agreements [23]. It is imperative for project managers to identify and implement well-structured conflict resolution mechanisms when dealing with diverse stakeholders with varied interests. Ensuring ongoing involvement during decision-making processes is essential to prevent misunderstandings while fostering cooperation [24]. The major benefits as extracted from the SLR are highlighted in Figure 1.

3. Materials and Methods

To explore the significance of participation in PPAs and its impact on empowering communities and engaging stakeholders, an SLR research design was employed. This approach allows for a comprehensive understanding of the research, focusing on qualitative data.

The research process and methodological approach adopted for this study, organized into distinct phases, are depicted in Figure 2. The essential steps are outlined below.

The research design steps depicted in Figure 2 illustrate an SLR process. The process begins with the initiation of the SLR to collect and evaluate all relevant research. The next step involves gathering qualitative data from the existing literature. Establishing clear research objectives and formulating specific research questions to guide the review were subsequently completed by the authors. Consequently, the criteria for including or excluding the literature based on relevance, quality, and language were defined. Based on the previous steps, the authors developed a strategy for systematically searching for the relevant literature. This included selecting databases and using specific search terms. The most popular scientific databases were selected for searching the relevant literature. Reviewing the literature identified through the search strategy and selecting studies that meet the inclusion criteria; extracting relevant data from the selected studies for further analysis; synthesizing and analyzing the extracted data to identify patterns, themes, and insights; critically evaluating the quality and validity of the studies included in the review; and finally discussing the findings and interpreting the results in the context of the research objectives and questions, were the core steps of the SLR.

Clarifying the research objectives and research questions derives from this paper’s aim. The aim of this study is to undertake a rigorous SLR to delve into the pivotal role that community engagement and stakeholder involvement play in shaping the contours of hybrid PPAs, which amalgamate renewable energy with storage technologies. Through a comprehensive synthesis of the previous literature, this research aims to elucidate the nuanced dimensions and consequential benefits inherent in cultivating robust deals. The research questions in alignment with the objectives that guided the authors through this aim were formulated as follows:

• What are the primary benefits of community and stakeholder participation in hybrid PPAs?
• How does community and stakeholder engagement influence the success of such PPAs?
• What challenges and difficulties are associated with involving communities and stakeholders in such projects?

The SLR process was meticulously designed to ensure a comprehensive and unbiased collection of relevant studies. The process involved several key steps, each aimed at progressively narrowing down the scope of the literature to the most pertinent studies. The following describes the key stages and the funneling technique used. Initially, the research question formulation was completed as mentioned above. The authors clearly defined the research questions to guide the review and established the inclusion and exclusion criteria based on these questions. Subsequently, the keyword identification and search strategy were established based on the list of relevant keywords, including terms like “renewable energy”, “power purchase agreements”, “hybrid PPAs”, “community participation”, “stakeholder engagement”, and “energy storage”. The initial screening process included the analysis of the titles and abstracts to exclude studies that do not meet the inclusion criteria and to ensure that the studies address the research questions and fall within the scope of the research. A full-text review was then conducted. Extracting relevant data from the selected studies, focusing on key findings, methodologies, and conclusions relative to the research, and a synthesis of the data to identify patterns, trends, and gaps in the existing literature were carried on.

The funneling technique was employed to systematically narrow down the pool of studies from a broad initial search to a focused set of high-quality, relevant studies. The funneling process included the stages of broad search, title and abstract screening, full-text screening, quality assessment, and final selection. The authors commenced with a comprehensive search using broad keywords and Boolean operators to gather a wide range of studies; continued with the screening of the titles and abstracts to quickly eliminate studies that are clearly irrelevant; conducted a detailed review of the full texts to further filter out studies that do not meet the inclusion criteria; performed a quality assessment to exclude studies that do not meet the methodological standards and finally selected the studies that provide valuable insights into the aim and the research questions. This systematic approach ensured the SLR was thorough, unbiased, and focused on high-quality studies that contribute to the understanding of the research topic.

Following the SLR research path, the authors aimed to condense the existing literature into a manageable database of relevant journal/conference publications, reports, articles, and books. The basic criteria for inclusion were publications dated between 2013 and 2024, focusing on PPAs (with an emphasis on hybrid PPAs), community participation, and stakeholder engagement initiatives. To ensure the quality and relevance of the included studies, the authors established the following inclusion criteria. Studies published in peer-reviewed journals or conference proceedings; papers written in English; research that directly addresses the defined research questions and objectives; and studies providing qualitative data relevant to renewable energy, PPAs, hybrid PPAs, community participation, stakeholder engagement, or energy storage. The exclusion criteria were papers not available in full text; non-peer-reviewed articles; studies focusing on unrelated or tangential topics; and duplicate publications of already included studies.

The search for documents was limited to reputable academic databases, namely Taylor & Francis, ScienceDirect, and Google Scholar. Keywords used included “renewable energy”, “power purchase agreements”, “hybrid PPAs”, “community participation”, “stakeholder engagement”, and “energy storage”. The authors explored the academic databases by single keyword search, while also utilized both the logical operators “AND” and “OR” to refine the search. The “AND” operator was employed to ensure all possible combinations between the keywords, ensuring that all specified terms were present in the search results. The “OR” operator broadened the search to include any of the specified keywords, allowing for a more extensive collection of related studies. For example, “hybrid PPAs OR community participation” included papers that discussed either term.

Initial screening involved reviewing titles and abstracts to identify relevant documents. Subsequently, a full-text review was conducted for the final selection.

Data pertaining to the abovementioned objectives, key findings, which were further analyzed in the main body, and insights related to this papers’ themes, were extracted from the final selected articles.

The quality of the selected documents was assessed based on their relevance to the research questions. The methodological path of the SLR was inspired by Stanitsas et al. [25].

The most vital phase of the SLR was the evaluation of the traced documents. During this stage, information was extracted and recorded from each of the final documents (73 in total). To ensure impartiality, the researchers conducted a two-step analysis and held additional discussions to identify any potential inconsistencies in the review findings. This methodology drew inspiration from the papers of Aladpoosh et al. [7] and Stanitsas et al. [25], who conducted systematic literature reviews on sustainability related themes.

The challenge in evaluating the selected documents lay in relating the aim of this paper to the objectives and research questions. Determining the primary benefits of community and stakeholder participation in hybrid PPAs, selecting case studies to determine the influence of community and stakeholder engagement on the success of such PPAs and unravelling the challenges and difficulties associated with involving communities and stakeholders in such projects. The incorporation of sustainable development principles into stakeholder engagement for hybrid PPAs represents the culmination of specific concepts that encompass numerous attributes. A pivotal aspect of the evaluation process involved examining how practices were conceptualized by authors and implemented within actual local societies. Guided by these principles, the final document selection was established (Figure 3).

The participation of stakeholders and communities towards hybrid PPAs identified in this study exhibit an informative orientation towards sustainability topics, aligned with the Triple Bottom Line (TBL) philosophy [3,26,27,28]. The majority of concerns were sourced from journal articles, conference papers, and online databases, predominantly based on the aim of this paper.

4. Comprehensive Review of the Engagement Framework and Research Approach

The research process and the methodological approach of this study are analytically described in this section. The authors provide an overview of the stakeholder and community engagement framework adopted in this study. The components derived from summarizing the research objectives that guided the SLR process include the importance of stakeholder and community engagement in hybrid PPAs and its role in driving sustainable energy transitions. The study’s engagement framework aimed to foster collaboration, address concerns, and maximize social acceptance. The engagement process overview included methods for identifying stakeholders, strategies for engagement, and feedback mechanisms. The study recognized various stakeholder categories such as corporations, renewable energy developers, investors, policymakers, financial institutions, and technology providers. Specific strategies for engaging local communities included outreach events, community meetings, and participatory decision-making processes. Ethical considerations guiding the framework emphasized transparency, inclusivity, and respect for diverse perspectives. Stakeholder and community engagement were integrated into the overall research methodology, encompassing data collection, analysis, and interpretation. The study also acknowledged challenges like resource constraints, stakeholder conflicts, and communication barriers encountered during the engagement process. Figure 4 illustrates the step-by-step progression of activities undertaken in separate phases throughout the research process in alignment with the prementioned components that guided the SLR process. It involves outlining the fundamental phases of the research process, reflecting this study’s methodological approach. These phases form the core structure of the research, guiding its progression and ensuring systematic and comprehensive investigation.

In order to attain the aim of this paper, the authors have meticulously examined the multifaceted landscape of stakeholder and community engagement within the context of hybrid PPAs and their pivotal role in driving sustainable energy transitions. To elucidate the intricate process guiding the research methodology, the authors present a comprehensive figure encapsulating the step-by-step progression of activities undertaken throughout this study. Figure 4 serves as a visual roadmap, delineating the fundamental research phases and components that have guided the investigation from inception to fruition.

The figure provides a structured overview, beginning with the foundational phase of the SLR and framework development. During this phase, the authors highlight the significance of stakeholder and community engagement in hybrid PPAs, connected with the importance of stakeholder and community engagement and its role in driving sustainable energy transitions, articulate the objectives of the research, and integrate these components into the broader research methodology including data collection, analysis, and interpretation. This initial phase lays the groundwork for subsequent stages, informing the approach to stakeholder identification and engagement strategy planning (Phase 1).

Moving into Phase 2, the figure elucidates the systematic process employed to identify related-to-the-research stakeholders, develop engagement strategies, and outline mechanisms for feedback and communication. Furthermore, it delineates the diverse categories of stakeholders recognized within this study, ranging from corporations to policymakers, thus ensuring a comprehensive approach to engagement. Additionally, the Figure underscores the specific strategies implemented to engage local communities, emphasizing the importance of outreach events, community meetings, and participatory decision-making processes. In identifying a highly cooperative local community, criteria such as community engagement history, strong local leadership, social cohesion, and positive attitudes towards renewable energy are essential. These factors ensure effective collaboration and support for the project’s success. Including these considerations enhances the overall stakeholder engagement strategy. Through this detailed depiction, the authors aim to provide transparency and clarity regarding the intricacies of the research methodology, fostering a deeper understanding of the aim related to stakeholder and community engagement within the realm of hybrid PPAs.

5. Results

5.1. Stakeholder and Community Engagement Drives the Emergence of Hybrid PPAs

The main concern nowadays when trying to achieve the renewable energy transition is the common dilemma of ensuring grid stability amid reliance on intermittent renewable resources like wind and solar. This growing imperative in diverse energy markets has elevated the significance of energy storage solutions, recognized as pivotal elements in any successful transition to renewables, leading to the rise of hybrid PPAs [29].

Practical examples that illustrate the implications of PPAs in enhancing grid stability and energy reliability are shown through various real-life case studies [30,31]. Numerous utility-scale solar PPAs have been conducted in Europe in which a utility enters a long-term PPA with a solar farm developer. The predictable output from the solar farm helps the utility manage grid stability by integrating renewable energy into the grid more effectively. The PPA ensures reliable energy provisioning by providing a steady source of clean energy. Another popular PPA includes wind energy projects with energy storage (hybrid PPAs). The concept is structured under a PPA in which a utility procures wind energy from a wind farm operator along with energy storage services. The combination of intermittent wind energy and battery helps smooth out fluctuations in renewable energy generation. The PPA contractually ensures that stored energy can be dispatched during peak demand periods, thereby contributing to grid stability and reliability. Additionally, corporate renewable PPAs, in which a large corporate entity enters into a bilateral agreement with a wind or solar developer, are widespread across Europe. Such agreements incentivize the development of renewable energy projects and contribute to grid stability by diversifying energy sources. The PPA allows the corporate entity to secure long-term price certainty and reliable energy supply, supporting their sustainability goals while benefiting broader grid stability. Finally, less common but also important for grid stability through distributed generation and demand response strategies, are community-based PPAs. A community-based PPA involves a local government or community organization partnering with renewable energy developers. The PPA fosters local energy resilience by decentralizing energy production and promoting community involvement in energy management.

PPAs have experienced significant growth as the most appealing energy agreements. However, amidst the ever-changing realm of renewable energy, a wave of creativity has inaugurated a fresh era of energy acquisition and investment approaches. At the forefront of this evolution are the stakeholders, evaluating the significance of this novel agreement type, which is gaining significant traction due to its potential to optimize value and address the inherent complexities of the renewables market [32,33].

Stakeholder engagement plays a pivotal role in propelling the emergence of hybrid PPAs, representing a dynamic shift in the energy procurement landscape. These agreements, which combine elements of both traditional and renewable energy sources, are gaining traction as stakeholders increasingly prioritize sustainability and flexibility. In this context, robust stakeholder engagement becomes essential for shaping the design, implementation, and success of hybrid PPAs [34].

Stakeholders encompass a diverse array of entities, including corporations, renewable energy developers, investors, policymakers, and communities. Effective engagement among these stakeholders fosters collaboration and alignment of interests, laying the foundation for hybrid PPA projects. By involving various parties from the outset, potential challenges can be addressed proactively, and innovative solutions can be devised to meet the needs of all involved [35,36]. Also, stakeholder engagement facilitates the identification of suitable project locations and resource availability. This collaborative approach allows developers to leverage local knowledge and expertise, ensuring that hybrid PPA projects are strategically located to maximize renewable energy generation while minimizing environmental impacts. Engaging with communities also promotes transparency and builds trust, mitigating potential conflicts and enhancing the social acceptance of renewable energy initiatives [8,37]. Furthermore, stakeholder engagement enables the customization of hybrid PPA structures to suit the specific requirements and preferences of participating entities. Through dialogues and negotiation, stakeholders can tailor contract terms, pricing mechanisms, and risk-sharing arrangements to optimize the value proposition for all parties involved. This flexibility is particularly advantageous in complex energy markets, where evolving regulatory frameworks and market dynamics necessitate adaptive strategies [38,39]. Moreover, stakeholder engagement fosters innovation in hybrid PPA financing and risk management. By collaborating with financial institutions, insurance providers, and other stakeholders, developers can explore novel financing mechanisms and risk mitigation strategies to attract investment and reduce project costs. Additionally, engaging with technology providers and researchers facilitates the integration of emerging technologies, such as energy storage and advanced forecasting tools, into hybrid PPA projects, enhancing their reliability and performance [40,41]. Ultimately, by reviewing the recent literature, stakeholder engagement serves as a catalyst for the emergence of hybrid PPAs by promoting collaboration, identifying opportunities, customizing solutions, and fostering innovation [42]. As the energy transition accelerates, effective engagement among stakeholders will continue to be essential for driving the development and deployment of hybrid PPA projects, ultimately advancing sustainability goals and transforming the global energy landscape.

Community engagement can be separated from stakeholder participation, constituting a critical component of the development and success of hybrid PPAs, as it ensures that local communities are active participants in the transition to renewable energy. By involving communities in the planning and decision-making processes, developers can address concerns, garner support, and create shared value. Community engagement fosters a sense of ownership and empowerment, enabling residents to contribute to the design and implementation of hybrid PPA projects in ways that align with their needs and priorities [2,43,44]. Moreover, community engagement enhances social sustainability by promoting inclusive economic development and job creation [45]. By collaborating with local stakeholders, developers can identify opportunities for workforce development, supplier diversity, and community investment. Training programs, apprenticeships, and job opportunities in renewable energy sectors can provide economic benefits to communities, particularly in regions historically reliant on traditional energy sources. Additionally, community engagement enables developers to establish partnerships with local businesses and organizations, stimulating economic growth and fostering resilience in the face of global energy transitions. It is also evident that during the last decade, the stakeholders’ and the local community’s interest/contribution demonstrate an upward trend, with stakeholders’ interest slightly higher, reflecting their increasing involvement and investment in renewable energy projects [6,46,47].

According to Bergstrom et al. [48], community engagement fosters long-term relationships built on trust and mutual respect between project developers and local residents. By actively involving community members in an ongoing dialogue and decision-making processes, developers can address concerns in real-time, adapt project plans as needed, and maintain open lines of communication throughout the project lifecycle. This transparency and responsiveness contribute to the establishment of positive relationships that endure beyond the initial development phase, creating a foundation for continued collaboration and support for future renewable energy initiatives [49]. Additionally, community engagement promotes education and awareness about renewable energy technologies and their benefits. Through outreach efforts, such as workshops, informational sessions, and site visits, developers can empower community members with knowledge about the environmental, economic, and social advantages of renewable energy adoption. By fostering greater understanding and buy-in from local residents, community engagement paves the way for broader acceptance and adoption of hybrid PPA projects, ultimately contributing to the transition to a more sustainable energy future. Practitioners and policymakers can enhance engagement by adopting diverse strategies, leveraging technology, and ensuring transparency. Customizing approaches to local contexts is crucial for fostering community support and project sustainability [50].

The SLR investigation has revealed the answer to the research questions previously set. The authors briefly address an overview of the formulated research questions to ensure clarity and comprehensiveness in the findings:

• What are the primary benefits of community and stakeholder participation in hybrid PPAs? Community and stakeholder participation in hybrid PPAs leads to increased local support, improved project acceptance, and enhanced social license to operate. It also fosters a sense of ownership and ensures that projects are tailored to meet local needs.
• How does community and stakeholder engagement influence the success of such PPAs? Engagement of communities and stakeholders positively influences the success of hybrid PPAs by facilitating smoother project implementation, reducing conflicts, and ensuring long-term sustainability through active local involvement and collaboration.
• What challenges and difficulties are associated with involving communities and stakeholders in such projects? Challenges include managing diverse interests and expectations, ensuring effective communication, and addressing potential conflicts. Additionally, there may be logistical and financial constraints in organizing meaningful engagement and participation activities.

Figure 5 outlines a summary figure as a visual overview of the stakeholder and community engagement towards hybrid PPAs, to better unravel the complex relationships and dynamics involved in stakeholder and community engagement within the context of hybrid PPAs. Stakeholders in this context include corporations, renewable energy developers, investors, policymakers, financial institutions, and technology providers. These stakeholders require collaborative relationships and interactions for project planning, financing, risk management, and innovation, all of which are essential for the successful development and implementation of renewable energy projects. Key processes for stakeholders encompass inclusive development, collaboration, trust-building, and innovation. Inclusive development ensures that all relevant parties are involved in the project from the beginning. Collaboration involves working together to achieve common goals. Trust-building is crucial for developing mutual trust among stakeholders and communities, and innovation encourages new ideas and technologies to improve project outcomes.

Communities, on the other hand, include local residents, community organizations, and local authorities. The community engagement process involves engaging the community through various methods to ensure their involvement and support. This process includes community meetings where community members can learn about the project and voice their opinions, workshops that provide information and gather feedback, surveys to collect data and opinions from a broader segment of the community, and outreach events designed to inform and involve the community.

The culmination of these interactions and processes is the development and success of hybrid PPAs, which rely heavily on the collaboration between stakeholders and communities. The positive impacts resulting from this collaboration include proper project siting, which ensures the selected location is optimal for the project’s success, gaining social acceptance, contributing to economic development through job creation and other benefits, and ensuring long-term sustainability by making sure projects are viable and beneficial over time.

Figure 5 underscores the importance of stakeholder and community involvement in the renewable energy sector. By fostering inclusive development, collaboration, trust-building, and innovation, projects can achieve significant positive impacts that contribute to their overall success and sustainability.

5.2. Stakeholder and Community Engagement within the Context of Hybrid PPAs: A Diverse Landscape

The results of the SLR shed light on the diverse landscape of stakeholder and community engagement within the context of hybrid PPAs and its implications for sustainable energy transitions. Through meticulous analysis of existing research, the authors have uncovered a multitude of insights into the role of stakeholders in driving the adoption of renewable energy solutions, particularly through the lens of hybrid PPAs. The findings reveal a growing recognition among scholars and practitioners alike of the importance of stakeholder engagement in navigating the complexities of renewable energy projects [51,52,53,54]. One of the results of this study is the identification of various stakeholder groups involved in hybrid PPAs, ranging from corporations and renewable energy developers to policymakers and financial institutions. The SLR highlighted the diverse interests and perspectives of these stakeholders, underscoring the need for inclusive and transparent engagement processes to foster collaboration and address concerns effectively [55,56,57]. Furthermore, observations on a trend on the integration of stakeholder engagement into the broader framework of sustainable development goals, signaling a shift towards more holistic approaches to renewable energy project development were noticed.

Another significant finding of this research is the emergence of innovative engagement strategies aimed at maximizing social acceptance and community participation in renewable projects that have signed hybrid PPAs [47,58]. From community outreach events to participatory decision-making processes, the SLR revealed a plethora of tactics employed by practitioners to engage local communities and build trust. Moreover, several ethical considerations and principles guiding stakeholder engagement frameworks, such as transparency, inclusivity, and respect for diverse perspectives, which are crucial for fostering meaningful dialogues and collaboration, were reported in academia.

Additionally, the integration of stakeholder and community engagement into the overall research methodology, encompassing data collection, analysis, and interpretation was necessary to attain the aim of this paper. By embedding engagement activities throughout the research process, the authors could ensure that stakeholder perspectives are adequately comprehended by the reader and that research outcomes are contextually relevant. However, the current analysis also stresses the challenges encountered during the engagement process, including resource constraints, stakeholder conflicts, and communication barriers, which underscores the importance of proactive management and mitigation strategies, especially when hybrid PPAs are present [3,59].

In brief, the results of the SLR provide valuable insights into the dynamics of stakeholder and community engagement in hybrid PPAs and their implications for sustainable energy transitions. By synthesizing existing research and identifying key trends and patterns, this study contributes to a deeper understanding of the complexities inherent in renewable energy project development. Moving forward, the findings underscore the importance of continued research and innovation in stakeholder engagement practices to address emerging challenges and seize opportunities for advancing the transition to a more sustainable energy future. Figure 6 illustrates the results of the SLR on stakeholder and community engagement in hybrid PPAs, encapsulating the main insights gleaned from this paper in a visually engaging and informative manner. At the center of the Figure 6 are the key findings on stakeholder and community engagement in hybrid PPAs, surrounded by four interconnected aspects.

The first aspect is the main categories of stakeholders, which include various groups that have a dynamic interaction and mutual influence between stakeholders and project outcomes. These stakeholders guide the stakeholder engagement frameworks by emphasizing transparency, inclusivity, and respect for diverse perspectives. The importance of ethical conduct in fostering a meaningful dialogue and collaboration is also highlighted in this aspect.

The second aspect focuses on innovative engagement strategies, which are crucial for maximizing social acceptance and community participation in hybrid PPAs. Beneficial strategies include community outreach events, participatory decision-making processes, and capacity-building initiatives. These strategies aim to showcase best practices in stakeholder engagement, ensuring that all voices are heard and considered in the decision-making process.

The third aspect is the integration with research methodology, where stakeholder and community engagement are incorporated into the overall research process. This includes data collection, analysis, and interpretation, emphasizing the iterative nature of stakeholder engagement throughout the research process. This integration is essential for generating contextually relevant and actionable insights, making the research methodology more robust and comprehensive by incorporating stakeholder feedback and participation.

The fourth aspect addresses ethical considerations and principles, which are paramount in guiding stakeholder engagement frameworks. These considerations include ensuring transparency, inclusivity, and respect for diverse perspectives. Ethical conduct is essential in fostering a meaningful dialogue and collaboration among stakeholders, ensuring that the engagement process is fair and respectful.

In summary, Figure 6 highlights the importance of dynamic interactions and mutual influence between stakeholders and project outcomes. It underscores the need for guiding stakeholder engagement frameworks that emphasize ethical conduct, innovative engagement strategies to maximize community participation, integration of stakeholder engagement with research methodology, and adherence to ethical considerations and principles. These elements collectively contribute to the effective engagement of stakeholders and communities in hybrid PPAs, leading to better project outcomes and increased social acceptance.

To address the aim of this paper, in alignment with the research objectives and the research questions, the themes found in the literature under the methodological approach of the SLR are categorized into six main themes: (1) Community engagement; (2) stakeholder involvement; (3) regulatory compliance and sustainability; (4) hybrid PPAs; (5) tangible benefits of stakeholder and community involvement; and (6) impact on project design and implementation.

Table 1. Key themes in community and stakeholder engagement for Hybrid PPAs.

Community Engagement	Stakeholder Involvement	Regulatory Compliance and Sustainability	Hybrid PPAs	Tangible Benefits of Stakeholder and Community Involvement	Impact on Project Design and Implementation
Importance of involving local communities in the implementation of PPAs.	Roles and contributions of different stakeholders in hybrid PPAs.	Ensuring projects meet regulatory requirements through stakeholder engagement.	Integration of renewable energy sources with storage solutions.	Case studies or examples where engagement has led to successful project implementation.	How stakeholders and communities input influence project planning and execution.
Strategies for effective community engagement and benefits.	Strategies for effective stakeholder engagement and their impact on project outcomes	How stakeholder involvement supports sustainability goals and feasibility of pro-jects through adherence to regulatory standards.	Benefits and challenges of hybrid systems for grid stability and reliability.	Addressing opposition and tailoring project designs to community needs.	Examples of projects that have been tailored to meet specific community requirements.
Reviewed publications: Ahmed, S., Ali, A., and D’Angola, A. (2024) [2] Standal, K., et al. (2023) [11] Tsoeu-Ntokoane, S., et al. (2024) [37] Anthony Jnr, B. (2023) [6] Surya, B., et al. (2021) [47] Bergstrom, D., et al. (2014) [48]	Reviewed publications: Malik, S.H., et al. (2023) [4] Heuninckx, S., et al. (2024) [9] Torma, G. and Aschemann-Witzel, J. (2024) [10] Kadenic, M.D., et al. (2024) [12] Taghizadeh-Hesary, F., et al. (2021) [5] Maqbool, R., Deng, X., and Rashid, Y. (2020) [53] Maqbool, R., Rashid, Y., and Ashfaq, S. (2022) [54] Bahadorestani, A., Naderpajouh, N., and Sadiq, R. (2020) [55] Bal, M., et al. (2013) [56] Ayala-Orozco, B., et al. (2018) [57] Han, Z., et al. (2023) [51] Han, Z., et al. (2024) [60] Hong, P., et al. (2024) [61]	Reviewed publications: Stanitsas, M. and Kirytopoulos, K. (2021) [19] Magano, J., et al. (2021) [17] Arantes, A. and Ferreira, L.M.D.F. (2023) [21] Stanitsas, M., Kirytopoulos, K., and Aretoulis, G. (2021) [45] Pies, I. and Valentinov, V. (2024) [62] Camilleri, M.A. (2015) [63] Santos, F.D., Ferreira, P.L., and Pedersen, J.S.T. (2022) [1] Schleifer, A.H., et al. (2021) [14] Münch, F.A. and Marian, A. (2022) [64]	Reviewed publications: Nel, D. (2018) [18] Mendicino, L., et al. (2019) [30] Stanitsas, M. and Kirytopoulos, K. (2023) [3]	Reviewed publications: Bhattacharya, C.B., Korschun, D., and Sen, S. (2008) [49] Forouli, A., et al. (2021) [38] Segreto, M., et al. (2020) [8] Leonhardt, R., et al. (2022) [46]	Reviewed publications: Stanitsas, M. and Kirytopoulos, K. (2021) [19] Pillan, M., Costa, F., and Caiola, V. (2023) [43] Heuninckx, S., et al. (2024) [9] Correia, M. (2019) [28] Zailani, S., et al. (2016) [22] Larson, S. and Williams, L. (2009) [65] Stober, D., et al. (2021) [16] Chen, S., et al. (2024) [15] Chen, S., Li, Z., and Li, W. (2021) [29] Lee, C.W. and Zhong, J. (2014) [66]

summarizes the themes and subthemes found in the literature for hybrid renewable energy PPAs with a focus on community engagement and stakeholder involvement.

6. Discussion

The aim of this study is to undertake a rigorous SLR to delve into the pivotal role that community engagement and stakeholder involvement play in shaping the contours of hybrid PPAs, which amalgamate renewable energy with storage technologies. The authors delve into the implications of the SLR findings on stakeholder and community engagement in hybrid PPAs for sustainable energy transitions. By analyzing the broader landscape of renewable energy development, emphasis is given to the pivotal role of stakeholder engagement in shaping project outcomes and fostering social acceptance. By synthesizing the existing research, the importance of understanding the diverse perspectives and interests of stakeholders involved in hybrid PPA projects, ranging from corporations and renewable energy developers to local communities and policymakers is highlighted. Through this comprehensive analysis, the contribution to knowledge arises through a deeper understanding of the complexities inherent in renewable energy project development and highlights the need for inclusive and transparent stakeholder engagement processes to navigate these challenges effectively.

This research is positioned within established theoretical frameworks, focusing on the role of community engagement and stakeholder involvement in hybrid PPAs. The findings reveal the tangible benefits of prioritizing community empowerment, such as increased local acceptance and tailored project designs. These insights advance theoretical understanding and provide practical implications for future projects.

According to Han et al. [60], in alignment with Hong et al. [61], the transformative potential of stakeholder engagement in driving sustainable energy transitions at both the local and global levels is crucial. By fostering collaboration and dialogues among diverse stakeholders, hybrid PPAs have the capacity to catalyze renewable energy deployment, reduce carbon emissions, and advance climate resilience [67,68]. Yet, the SLR revealed that the inherent tensions and trade-offs involved in balancing competing interests and priorities within stakeholder engagement processes are always present [62,69]. Additionally, the authors explore the ethical considerations and principles guiding stakeholder engagement frameworks in hybrid PPAs. Camilleri [63] highlights the importance of upholding ethical standards, such as transparency, fairness, and accountability, to ensure the legitimacy and credibility of engagement processes. By adhering to these principles, practitioners can build trust, mitigate conflicts, and enhance the social acceptability of renewable energy projects, thus laying the foundation for long-term sustainability and success. Moreover, the SLR revealed the need for ongoing monitoring and evaluation of stakeholder engagement initiatives to assess their effectiveness and identify areas for improvement [65,70,71].

Similarly, policymakers play a crucial role in shaping the regulatory environment and market incentives for renewable energy development. The conducted analysis underlines the need for policymakers to adopt proactive strategies that support inclusive stakeholder engagement and facilitate the deployment of hybrid PPAs [64,66,72]. This may involve implementing supportive policies, providing financial incentives, and streamlining regulatory processes to reduce barriers to entry for renewable energy developers. By aligning policy objectives with the principles of transparency, fairness, and accountability, policymakers can create an enabling environment for sustainable energy transitions while ensuring that the benefits of renewable energy development are equitably distributed across society [31,73]. Furthermore, it is essential for policymakers to collaborate with various stakeholders to develop comprehensive strategies that address the challenges and opportunities associated with hybrid PPAs. By fostering a multi-stakeholder approach that includes input from industry experts, community representatives, environmental advocates, and government officials, policymakers can create a more inclusive and effective framework for advancing sustainable energy transitions. This collaborative effort can lead to the development of policies that not only promote renewable energy deployment but also prioritize social equity, environmental sustainability, and economic prosperity. By engaging in transparent and participatory decision-making processes, policymakers can ensure that the benefits of renewable energy development are shared equitably among all members of society, ultimately contributing to a more resilient and sustainable energy future for generations to come.

In conclusion, the comprehensive analysis presented in this study underscores the critical importance of stakeholder engagement and community involvement in shaping the success of hybrid PPAs. While affirming the critical role of stakeholder engagement, this study advances the field by uncovering nuanced insights into implementation strategies and their impact on project success and community relations. By recognizing the diverse perspectives and interests of stakeholders, fostering collaboration, and upholding ethical principles, stakeholders can navigate the complexities of renewable energy project development effectively. Policymakers also play a pivotal role in creating an enabling environment for renewable energy deployment through inclusive engagement strategies and supportive policies. Moving forward, continued monitoring, evaluation, and proactive policymaking will be essential to ensure the long-term sustainability and success of renewable energy projects. By working together towards a common goal of a more sustainable and resilient energy future, stakeholders and policymakers can drive positive change and create a more equitable and environmentally friendly energy landscape for all.

7. Conclusions

The conclusion of this study highlights the critical importance of community engagement and stakeholder involvement in shaping the trajectory of hybrid PPAs integrating renewable energy and storage technologies. Through a rigorous SLR, the authors have explored the multifaceted role of stakeholders, ranging from corporations and developers to local communities and policymakers, in driving sustainable energy transitions. This study contributes novel insights by identifying effective engagement strategies such as community workshops and digital platforms. The authors also highlight the transformative role of technology in enhancing stakeholder participation and project outcomes.

The synthesis of the existing research highlights the transformative potential of stakeholder engagement in advancing renewable energy deployment, reducing carbon emissions, and enhancing climate resilience. However, inherent tensions and trade-offs exist in balancing competing interests within stakeholder engagement processes, underscoring the need for transparent, inclusive, and ethically sound frameworks. The dynamic nature of stakeholder engagement in renewable energy projects emphasizes the evolving roles of local communities and policymakers. By actively involving these stakeholders in decision-making processes and policy development, hybrid PPAs can build trust, enhance social acceptance, and foster positive relationships with host communities. The research findings underscore the critical role of stakeholder engagement in ensuring compliance with regulatory mandates and achieving sustainability outcomes. By prioritizing community empowerment in hybrid PPAs, projects can secure local acceptance, reduce opposition, and better align with community needs. These insights provide actionable strategies for practitioners and policymakers in the renewable energy sector.

In conclusion, this study contributes to the growing body of knowledge on stakeholder engagement in renewable energy development by providing insights into the complexities inherent in hybrid PPAs. Moving forward, it is essential for practitioners, policymakers, and researchers to continue exploring innovative approaches to stakeholder engagement that prioritize inclusivity, transparency, and accountability, thereby paving the way for a more sustainable and resilient energy future. In light of this paper’s findings, the authors also identify opportunities for future research and innovation in the field of stakeholder engagement in hybrid PPAs. Such future research may entail further investigation into the effectiveness of different engagement strategies, such as community workshops, public consultations, and digital forums, in fostering stakeholder participation and support. Examining the role of technology and digital platforms in enhancing stakeholder participation, including social media, virtual reality simulations, and interactive web portals, is vital for enhancing stakeholder participation and engagement. Integrating stakeholder engagement into broader sustainability frameworks focusing on participatory approaches can align with sustainable development goals and corporate social responsibility initiatives. Moreover, research into interdisciplinary collaboration and knowledge sharing to address emerging challenges and seize opportunities for advancing sustainable energy transitions, such as grid integration and policy adaptation, is needed. To further address the lack of quantitative data regarding the failure of renewable energy projects due to community and stakeholder disengagement, future research should focus on conducting empirical studies that gather quantitative data on project failures and successes, explicitly linking these outcomes to levels of community and stakeholder engagement. Utilizing case studies and large-scale surveys to statistically analyze the impact of engagement on project performance and sustainability outcomes will provide more concrete evidence. Additionally, collaborating with industry partners and policymakers to access data on past and ongoing projects can facilitate a comprehensive quantitative analysis, helping to substantiate the critical role of engagement in the success of sustainable technology initiatives. Another inquiry for future research could entail a focus on conducting quantitative analyses to determine the efficacy and dominance of various factors influencing hybrid PPAs. This would involve collecting empirical data through surveys, case studies, and statistical modeling to establish causal relationships and compare the relative impact of stakeholders, local communities, innovation, and other relevant parameters.

By building upon the insights generated from this SLR, researchers and practitioners can contribute to the development of more robust and inclusive stakeholder engagement processes that drive positive social, environmental, and economic (TBL) outcomes in the transition to a low-carbon future.