Local renewable energy cooperatives

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In several parts of the world, citizens are opting for different forms of energy : local, shared, ecological (solar, wind, rivers, tides, plant and animal waste, woodchip), decentralised, collective, cooperative. Local renewable energy cooperatives are thus part of the transition to a low carbon economy and less dependent on fossil fuels, multinationals or nuclear plants (they are for example part of the strategy of the Transition towns).

They keep the production, transmission and distribution at a local level and in the hands of citizens, plus raising awareness about energy consumption - energy sobriety - energy savings measures. They can add social goals to the initial project, including free or discounted electricity for families with lower incomes. Energy consumption occurs as close as possible to the resource. The cooperative form implies democratic governance, community-based structures, non-speculative purpose and the social and solidarity economy. Citizens pool their financial resources and chose their projects according to their environment.

Some studies suggest that a tradition of social enterprise or co-operation can affect how easily a community energy group is established, whilst some projects arise out of a ‘resistance spirit’ to large commercial energy projects, and the desire to do things differently. Danish cooperatives, for example, well known pioneers, surge in the context of a country prone to citizens initiatives.

To ensure consumer-owned suppliers can set up a sustainable business model, building up ownership of local renewable energy production is a precondition. Laws and support from local authorities are very important.

Equivalent concepts

Local energy initiatives

History of the concept

The oil peak pf 1973 forced the Danish government to seek the alternative energy solution. The debate on using the nuclear energy ended with the government cancelling their plan for atomic power in 1985. First citizens experiences on local renewable energy began in the 1970's. Electricity from wind, biomass, and solar power became the answer of Danish government and Danish citizens in the 1980's and 1990's. In the Flemish region of Belgium, in 1991, Ecopower started with a micro-hydropower plant. It is in 2022 a large cooperative with 65,000 members.

Public policies associated with this theme

Public policies can act in different aspects of the renewable energy production and consumption :

implementation of existing legislations (also at European level) ;
financing ;
Responsible Public Procurement ;
energy sobriety education ;
policies and measures to ensure vulnerable, energy poor and lower-income households can participate in local renewable energy cooperatives ;

and very important

long term predictable policies.

For example, in Germany, renewable energy production and consumption is part of the State policy since 2000, with the Renewable Energy Sources Act (EEG) that came into force on April 1, 2000. As of 14 December 2020, Germany's ruling coalition agreed modifications to its energy law to create the legal basis for continuing the expansion of renewable energy in the long term and help the country meet its goal of producing 65% of its electricity from clean sources from 2030.