Renewable Energy Cooperatives Research Articles

Responding to policy change: New business models for renewable energy cooperatives – Barriers perceived by cooperatives’ members

Renewable Energy Cooperatives (RECs) in Germany have received considerable attention in recent years, their number having risen to nearly a thousand since 2004. This growth has resulted largely from Germany's feed-in tariff system. Recent changes in this policy, however, have made the previous REC business models mostly unprofitable, so RECs are looking for new business models. Our study aims at identifying those new models and characterizing the implementation barriers RECs face. To this end, we interviewed REC members and management and observed REC annual general meetings. We found three significant barriers: first, risk aversion on the part of both members and management; second, concerns about the environmental impacts or the ethics of certain models that, while legal, are not felt to align with the intentions of lawmakers; finally, the lack of competencies and time of the mostly unsalaried REC management. These barriers could put the future of RECs at risk, and so threaten the contributions RECs make to the German Energy Transition. Professionalization, partnerships and other strategies can help mitigate this risk. If RECs are to continue to play an important role in the energy transition, policy makers would be wise to consider measures to support their continued growth.

The exploration on the trade preferences of cooperation partners in four energy commodities’ international trade: Crude oil, coal, natural gas and photovoltaic

The aim of our research is to explore whether the countries’ local trade pattern can reflect their preferences of selecting trade partners in different commodity’s markets. Considering of the energy and their alternative ones of daily use and power generation, we choose four energy commodities to make comparisons: crude oil, coal, natural gas and photovoltaic (PV). We use complex network and link prediction to explore local trade pattern, make projections based on 2014 data and approve them by 2015 data. We find that the international PV trade involves much denser cooperation among countries than other three commodities. Certain links, such as that between Canada and France-owned islands, are key paths for other countries to establish further trade cooperation. In addition, interestingly, high number of common trade partners promote two countries to establish fossil energy trade cooperation. However, for the global PV trade market, each country’s production capacity becomes a preferential element for further cooperation. Projections about potential trade links and core patterns are estimated. Governments can develop traditional energy with more triangle-shaped cooperation, while they can promote renewable energy cooperation by increasing the number of trade channels. Future cooperation can be estimated based on trade preferences in different markets.

SOCIAL CAPITAL AND MUTUAL VERSUS PUBLIC BENEFIT: THE CASE OF RENEWABLE ENERGY COOPERATIVES

ABSTRACTOne potential major role of social economy organizations in sustainability transitions is the creation and mobilization of social capital. Yet, the social economy gathers very distinct organizational models which may be associated with different types and levels of social capital. Accordingly, the objective of this article is to explore whether, and if so how, the type and level of social capital differ between mutual benefit organizations – which essentially seek to meet their members’ needs – and public benefit organizations – which seek to enhance the well‐being of a broader community or the society as a whole. The study draws on an econometric analysis of different forms of social capital in two renewable energy cooperatives which are located in Flanders but have clearly divergent orientations toward mutual versus public benefit. The results show that, as compared with an orientation toward public benefit, an orientation toward mutual benefit is associated with lower social identification with the cooperative and weaker ties between members. Our study explores the underlying explanatory mechanisms behind these relationships. Its findings contribute to understanding the potential roles played by cooperatives in sustainability transitions.

Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders

Community-based energy organizations have been said to influence their members' energy-related behavior by activating social norms and by providing trustworthy information about sustainable energy investments and behaviors. However, little is known yet about members' actual energy use and how it differs from that of individuals who do not participate in such projects. In particular, selection effects are likely to arise, i.e. community-based energy projects may attract people that are different from the underlying population in terms of energy use. This article empirically addresses the question of the selection into community-based energy projects in terms of energy use, focusing on the case of renewable energy cooperatives. Based on quantitative data from an original survey conducted with one renewable energy cooperative in Flanders and using probit regression analyses, it contrasts a sample of cooperative members with an appropriate comparison group in terms of electricity usage. The results show that electricity consumption is positively related with cooperative membership, suggesting that high use consumers have greater incentives to join a community-based organization which provides assistance and advice on the adoption of green technologies and energy efficiency measures. These findings contribute to an understanding of the relationship between community-based governance and sustainable energy practices.

CONFLICT HANDLING IN RENEWABLE ENERGY COOPERATIVES (RECs): ORGANIZATIONAL EFFECTS AND MEMBER WELL‐BEING

ABSTRACTWe investigate conflict handling in Renewable Energy Cooperatives (RECs) in Germany. Conflict handling in this context shows to be unique due to RECs’ business model and the relationship between members and their organization. Unlike in other cooperative firms, most REC members in Germany neither work for their cooperative nor do they receive goods or services from it. We document frequent controversial topics of discussion in annual meetings and how the organizational frame conditions influence modes of conflict handling by the involved parties. Using data gathered by participant observation of the annual meetings of 15 different RECs in southern Germany, we show by a qualitative approach that conflict handling by members of the Executive Board, the Supervisory Board and the rank‐and‐file during the process of decision‐making ranges from highly cooperative to fully Competitive, but these styles tend to converge to collaborative outcomes, reflecting the members’ shared commitment to the cooperative principles of the enterprise.

Energy Cooperation in Ultradense Network Powered by Renewable Energy Based on Cluster and Learning Strategy

A new method about renewable energy cooperation among small base stations (SBSs) is proposed, which is for maximizing the energy efficiency in ultradense network (UDN). In UDN each SBS is equipped with energy harvesting (EH) unit, and the energy arrival times are modeled as a Poisson counting process. Firstly, SBSs of large traffic demands are selected as the clustering centers, and then all SBSs are clustered using dynamic k-means algorithm. Secondly, SBSs coordinate their renewable energy within each formed cluster. The process of energy cooperation among SBSs is considered as Markov decision process. Q-learning algorithm is utilized to optimize energy cooperation. In the algorithm there are four different actions and their corresponding reward functions. Q-learning explores the action as much as possible and predicts better action by calculating reward. In addition, ε greedy policy is used to ensure the algorithm convergence. Finally, simulation results show that the new method reduces data dimension and improves calculation speed, which furthermore improves the utilization of renewable energy and promotes the performance of UDN. Through online optimization, the proposed method can significantly improve the energy utilization rate and data transmission rate.

Exploring the Links between Community-Based Governance and Sustainable Energy Use: Quantitative Evidence from Flanders

Community-based energy organizations have been said to influence their members’ energy-related behavior by activating social norms and by providing trustworthy information about sustainable energy investments and behaviors. However, little is known yet about members’ actual energy use and how it differs from that of individuals who do not participate in such projects. In particular, selection effects are likely to arise, i.e. community-based energy projects may attract people that are different from the underlying population in terms of energy use. This article empirically addresses the question of the selection into community-based energy projects in terms of energy use, focusing on the case of renewable energy cooperatives. Based on quantitative data from an original survey conducted with one renewable energy cooperative in Flanders and using probit regression analyses, it contrasts a sample of cooperative members with an appropriate comparison group in terms of electricity usage. The results show that electricity consumption is positively related with cooperative membership, suggesting that high use consumers have greater incentives to join a community-based organization which provides assistance and advice on the adoption of green technologies and energy efficiency measures. These findings contribute to an understanding of the relationship between community-based governance and sustainable energy practices.

Community Renewable Energy - Research Perspectives -

Abstract A growing body of literature is addressing the emergence and impact of community renewable energy (CRE) schemes in Europe through focusing analysis on typology distinctions, governance models, financial characteristics and membership structures. The existing research has almost exclusively studied the emergence of CRE through a country specific prism and using economic and sociological theoretical models, with very few case studies, also of limited scope. The aim of this paper is to provide an overview of literature studying CRE schemes, in particular renewable energy cooperatives, to identify research gaps and to derive a research agenda for further examining the developing sub-sector.

Collective climate action and networked climate governance

Scholarship in International Relations has witnessed that the traditional concept of hierarchically organized global climate governance is joined by a network model of decentralized governance, which involves multiple actors. New actors performing networked climate governance include national governments, subnational organizations like cities, international organizations, corporations, epistemic communities, and civil society organizations. An insightful literature on networked climate governance has advanced our conceptual understanding of this empirical phenomenon. In parallel, rapidly growing research in psychology, sociology, economics, and related disciplines sheds light on factors that contribute to individuals’ willingness to engage in collective climate action. This article reviews these seemingly disparate strands of literature and aims to build bridges between them. We focus on the factors underlying individuals’ decisions to participate in local‐level climate initiatives—or grassroots organizations—including, for example, renewable energy cooperatives. Such initiatives are increasingly important parts of networked climate governance. Thus, networked governance can be understood as an opportunity structure for collective climate action, which may in turn influence citizens’ decisions to participate. Given the urgency to address climate change, this approach adds a critical novel perspective to on‐going debates about effective governance arrangements.WIREs Clim Change2017, 8:e440. doi: 10.1002/wcc.440This article is categorized under:Policy and Governance > Multilevel and Transnational Climate Change Governance

Renewable energy cooperation between the EU and North Africa

Purpose Following the issuance of the Renewable Energy Directive in 2009, the European Union (EU) is explicitly pushing for member states to cooperate with third countries to meet their EU 2020 targets. So far, no single joint project is planned or in place yet. This paper aims to look at the opportunities for and barriers to possible RE exports from North Africa into the EU through the concept of a SWOT (strengths, weaknesses, opportunities and threats) analysis. Design/methodology/approach Thus, the SWOT for a possible implementation of Article 9 projects are analyzed using expert and stakeholder knowledge. A qualitative assessment was undertaken using data collected through one stakeholder workshop in North Africa, in-depth interviews and a qualitative literature review. The analysis was structured within a three-tier analyzing concept distinguishing between macro, micro and acceptance parameters. Findings From the SWOT analysis, some lessons are drawn, future possible measures are identified and conclusions for policymakers are discussed. The authors find that no easy solutions exist as most parameters can be both a strength and a weakness or a threat and an opportunity at the same time depending on future developments and the specific ideological perspective. Originality/value This paper provides new information and analysis of renewable energy sources projects in North Africa – application of the SWOT method on Article 9 cooperation projects – application of a three-tier analysis to cope with the complexity of the topic – taking into account often neglected socio-political aspects such as public acceptance.

El bono social y las cooperativas energéticas verdes: situación y perspectivas

Las tarifas sociales son, junto con la transferencia de rentas y las medidas de eficiencia energética, uno de los instrumentos para paliar la pobreza energética. A la tarifa social española, creada en el año 2009 se le denomina “bono social”.Para acceder al bono social, aparte de cumplir los requisitos socioeconómicos estipulados por ley, hay que tener contratada la electricidad con alguna comercializadora de referencia, las cuales tienen la obligación de ofrecer el bono social.Las cooperativas energéticas verdes, un fenómeno reciente, al no ser comercializadoras de referencia, no están obligadas a ofrecer el bono social. Esto no quiere decir que entre los socios de estas cooperativas no haya personas vulnerables o en riesgo de pobreza energética.Este trabajo centra su análisis en dos objetivos. El primero es trazar el perfil socioeconómico del socio de las cooperativas verdes. El segundo es observar si estos socios tienen derecho al bono social actual, así como a otras tarifas sociales alternativas con requisitos diferentes a los del bono social.Para ello, se realiza una encuesta a los socios de la mayor cooperativa energética verde de España. Los resultados evidencian que sí existe riesgo de pobreza energética entre los socios de las cooperativas energéticas verdes, si bien su incidencia depende de cómo se defina al consumidor vulnerable.

Explaining the diversity of motivations behind community renewable energy

Community-based renewable energy initiatives may be important actors in the transition toward low-carbon energy systems. In turn, stimulating investments in renewable energy production at the community level requires a better understanding of investors' motives. This paper aims to study the heterogeneity of motivations that drive individuals to participate in community renewable energy projects and the underlying explanatory factors behind this, as well as the implications for their level of engagement in initiatives. Based on quantitative data from an original survey conducted with two renewable energy cooperatives in Flanders, the statistical analysis shows that cooperative members should not be considered as one homogeneous group. Several categories of members with different motives and levels of engagement can be distinguished. This heterogeneity is explained by contrasts in terms of institutional settings, spatial patterns and attitudes to the diffusion of institutional innovations. Regarding policy implications, the findings suggest that this heterogeneity should be taken into account in designing more effective supporting policies to stimulate investments at the community level. The activation of social norms is also shown to be a promising mechanism for triggering investment decisions, although the implications of its interplay with economic incentives should be further explored.

Situational analysis of EU renewable energy legislation

This article applies a situational analysis tool to help answer the question of how EU renewable energy policy could be reshaped after 2020 to further enhance renewable energy deployment in the EU. The article identifies ‘internal’ strengths and weaknesses of EU renewable energy legislation and relevant ‘external’ and forward-looking threats and opportunities. The identification of these four elements is based factors, deemed relevant for the deployment of renewable energy and related cooperation between countries. It next seeks to identify relationships between internal weaknesses and strengths and external threats and opportunities, resulting in four sets of policy options.Policy relevanceIn October 2014, the EU Heads of State and Government agreed to increase the EU's greenhouse gas reduction target to -40% by 2030. They also agreed to an EU-level binding renewable energy target of 27% and 27% energy savings by the same date. Over the next years, the European Commission will present legislative and other initiatives to secure the implementation of these targets. This includes a review of the EU's renewable energy directive. This directive is currently one of the main community-level tools to further the planning and deployment of renewable energy in the member states. The situational analysis applied in this paper can therefore assist policy makers in their upcoming task to redesign of EU renewable energy and related policies.

Prospective Governance and Legal Framework between the EU and MENA in Renewable Energy Cooperation

This article provides an overview of the current stage of development as well as the outlook for future cooperation in the field of renewable energy between the European Union and the countries of Middle East and North Africa (MENA). To continue with the progress achieved in the context of the Mediterranean Solar Plan the MENA region should adopt a regionally coordinated approach due to the absence of an established institutional and regulatory framework for trans-regional cooperation. While several studies have highlighted the competitiveness of electricity produced from renewable energy sources in MENA, governments and policy makers in the region should carefully assess their ability to ensure a sustainable policy framework for the renewables sector and opportunities for trans-regional exchanges of electricity. This article proposes that in order to address governance issues and facilitate the creation of a regional energy market, MENA countries may need to adopt an intergovernmental instrument such as the Energy Charter Treaty or the International Energy Charter.

Renewable Energy Cooperatives: A Review of Demonstrated Impacts and Limitations

Energy sectors of most industrialized countries are marked by a long history of state and corporate-owned and highly centralized energy generation (mostly from fossil-based sources) and distribution. Although technological developments and pressures from social/ecological movements resulted in an increased uptake of renewable energy (RE) technologies since the early 1990s, the application of these technologies have since predominantly taken place through largescale projects owned by corporate actors. In response, an increasing number of individuals and community groups have been forming renewable energy cooperatives (RE co-ops) in recent years to provide bottom-up and collective solutions to their local needs and global environmental issues. The goal of this literature review is to summarize the demonstrated impacts of RE co-ops in the economic, social and environmental realms. Thereby, their impact on community development and role in accelerating the transition towards a sustainable energy sector is assessed. Findings of this review show that successful RE co-ops generated positive outcomes for their members and the wider community while accelerating the social and perceptual dimensions of the global energy transition. However, it has also been revealed that RE co-ops’ success in generating positive impacts is often limited by various community-specific factors and by financial and perceptual barriers to their emergence and development.

Local renewable energy cooperatives: revolution in disguise?

The Eurostat statistics on the 28 EU member states’ performance in relation to renewable energy show that the Netherlands comes 25th in the EU-28. Yet, 500 initiatives were started by citizens and social groups over the last years to produce and consume renewable energy. The central question is whether these local renewable energy initiatives can be seen as a radical innovation or whether—and to what extent—they can contribute to a transition towards renewable energy production or consumption in the Netherlands. Content analysis and case studies were the methods used in this study. The establishment of local energy cooperatives is a niche innovation in an early stage of development, and their impact on the energy production system is small, whereas local wind energy cooperatives are qualified as in a mature stage of development. Two of the four case studies of front-running local energy cooperatives demonstrate an energy transition or radical innovation in their home or facility area. One of the energy cooperatives developed an innovative concept that has potential for the production of wind energy (Deltawind). The other three energy cooperatives use a concept (sell green energy and produce renewable electricity) that is probably not suitable for large groups of clients, and the possibilities of up-scaling this formula are limited. The success of one of these three energy cooperatives (Texel Energie) is driven by the characteristics of the facility area and the social and other conditions on the island of Texel. Because of the small scale of these initiatives, the performance of the Netherlands in renewable energy statistics and the rise of local energy cooperatives are not contradictory. Local wind energy cooperatives have proven to be successful, and under specific circumstances, other local energy cooperatives can be successful as well. The potential of the concept to contribute to energy transition or radical innovation is better for the local wind cooperative than for the other energy cooperatives. However, the uniqueness of each of the case studies prevents an easy reproduction of successes. The idea of up-scaling successful concepts is too simplistic, but acquiring knowledge about the mechanisms underlying energy transitions or radical innovations seems to be valuable.

Policy and Markets in the MENA: The Nexus between Governance and Renewable Energy Finance

For MENA countries, transitioning to renewables primarily depends on transnational challenges of financial and infrastructural nature that cannot be tackled at national level. New renewable energy cooperation structures with the MENA were recently established in an attempt to manage interdependence problems. Drawing on a case study of renewable energy policy and markets in the MENA, this article aims at assessing the actual capacity of emerging cooperation structures to thoroughly manage the governance gap behind the transition to renewable energy technologies across the MENA. This article argues that politics have prevailed over policy, with concrete negative implications in terms of renewable energy finance towards the MENA. It concludes that far more synergic governance structures are needed to overcome the many (non-political) barriers that still hinder the take-up of renewables across the MENA.

Potential cooperation in renewable energy between China and the United States of America

China and the United States of America (US) are developing renewable energy concurrently. In this paper, we seek the opportunities for potential cooperation between these two countries based on the analysis of annual economic data. A mathematical model has been established to characterize correlations among GDP, carbon dioxide emissions, energy prices and the renewable energy cooperation index. Based on statistical analyses, such cooperation can promote economic development, reduce carbon dioxide emissions, improve the environment and realize green growth. If US monetary and technology resources and Chinese markets are combined, benefits can be mutually gained.

Bottom-up Initiatives for Photovoltaic: Incentives and Barriers

ABSTRACT When facing the challenge of restructuring the energy system, bottom-up initiatives can aid the diffusion of decentralized and clean energy technologies. We focused here on a bottom-up initiative of citizen-funded and citizen-operated photovoltaic power plants. The project follows a case study-based approach and examines two different community initiatives. The aim is to investigate the potential incentives and barriers relating to participation or non-participation in predefined community PV projects. Qualitative, as well as quantitative empirical research was used to examine the key factors in the further development of bottom-up initiatives as contributors to a general energy transition. KEYWORDS Photovoltaic adoption, PV diffusion, Community power plants, Community renewables, Renewable energy cooperatives, Citizen engagement INTRODUCTION Climate change and energy security are strong drivers in a transition to sustainable energy. Increasing energy prices and the high dependence on non-renewable resources may be attributed to the current strong focus on centralized energy systems which operate mostly on the basis of fossil fuels [1]. By producing electricity and heat closer to the point of use decentralized energy systems can help counter such adverse effects [2]. Decentralized energy is to be preferred over traditional centralized electricity generation in that it serves to reduce distribution inefficiencies and facilitates the development of an increased contribution from renewables [3]. Bottom-up initiatives can play a crucial role in achieving more decentralized structures. Community energy projects are attracting increasing attention as potential sources of innovation in the transition towards sustainable energy [4]. Recent research, for example, has examined the role of community-based initiatives in the transition to a low-carbon, sustainable economy in the UK [5], as well as the role of new technologies in the decentralized production of renewable electricity, heat, combined heat and power (CHP) and fuels [6]. One important technology for decentralized production is photovoltaic [7]. We thus focused our research on citizen-based solar power plants as bottom-up initiatives in photovoltaic (hereafter, PV) technology. Due to its high technological potential and the rapidly decreasing costs, PV is an increasingly promising element of renewable energy production, and is the fastest growing renewable energy source worldwide. The Austrian scale-up target for PV, as stated in the electricity law of 2012

Towards a low carbon energy future – Renewable energy cooperation between Germany and Norway

Renewable energy is a cornerstone of German climate change policies. Germany has adopted particularly ambitious renewable energy targets, and is now implementing an Energiewende – a transition to a nuclear-free and low-carbon energy system. The transition could be eased through European cooperation. This article investigates the economic, political, environmental and technological factors that act as drivers and barriers to renewable energy cooperation between Germany and Norway. The article finds that German actors see Norwegian electricity as a means for enhancing the stability of their electricity system as Germany shifts to a greater reliance on renewables. In Norway the picture is more mixed. Norwegian state-owned electricity producers and grid operators are interested in cooperation largely out of profit motives, but expect Germany to create a favorable environment for investors. Energy-intensive industries and consumers on the other hand, are afraid that more electricity cooperation with Germany will raise electricity prices. The Norwegian environmental movement is split on the issue. Parts of the movement see renewable energy cooperation as an important step towards a European low-carbon energy future. Nature and outdoor organizations, however, argue that new renewable energy infrastructure, including pumped-storage hydropower, will result in major environmental impacts. If cooperation is to be achieved, these economic and environmental concerns will have to be taken seriously.