Optimal Organizational Forms for Local Renewable Energy Projects

Abstract

Many renewable energy (RE) cooperatives undertake local RE projects, particularly in Europe. In contrast, recently in Japan, a municipality is actively involved in setting up a company that undertakes a local RE project; this will be called a “municipal RE company” in this study. The purpose of the study is to clarify the effectiveness of a municipal RE company through a literature review and an interview. The findings are as follows: First, the literature review on RE cooperatives reveals that one of the crucial factors for successful RE cooperatives is community involvement in the projects. Second, this aspect of community involvement may be realized by public employees through public service motivation. Third, an interview with a key figure at a municipal RE company confirms this view. This suggests that a municipal RE company may, to some extent, work in the same way as an RE cooperative. Thus, a municipal RE company may be highly effective in undertaking local RE projects. Taking into account that setting up an RE cooperative depends on historical, cultural, and legal conditions, a municipal RE company may be an effective alternative.