Statistical Evidence on the Role of Energy Cooperatives for the Energy Transition in European Countries

Abstract

The share of renewable energy is increasing throughout Europe. Yet, little is known about how much can be attributed to different actors, other than those commercially active. This paper provides empirical evidence of activities by energy cooperatives in the field of renewable energy in four different European countries. It draws from a database consisting of 2671 entries, contrasting results from current literature. We find that energy cooperatives are important enablers of the energy transition. However, their role is shrinking in recent years due to a tightening or removal of supportive schemes. We conclude that it is necessary to develop a systematic accounting system to properly track and make visible the contributions by different actors. In turn, this will help to better model the likely speed of Europe’s energy transition.

The role of local energy initiatives in co-producing sustainable places

“…The author also states that the lack of support at a supranational level caused the distribution of LEI to be very uneven across the EU, meaning that citizens across the Union have very different access to invest in and reap the economic benefits of energy transition. In fact, this corroborates the conclusions of Wierling et al (2018), who mention that developments in the number of LEI in different countries coincide with the development of support schemes at the country level regardless of official EU policy, and that a withdrawal of the said schemes inevitably led to a downturn or a halt of the number of initiatives.…”

“…As of the beginning of 2019, more than 3400 LEI were active in Europe, representing more than a million European citizen investors (Derveaux 2019). These initiatives are seen as a grassroots way of contributing to a transition to a lowcarbon economy (Seyfang and Haxeltine 2012;Wierling et al 2018;Soares da Silva et al 2018;Hasanov et al 2019). Local energy initiatives involve the participation of engaged local citizens, something authors such as Ornetzeder and Rohracher (2013) see as vital for a successful energy transition.…”

“…Additionally, as Wierling et al (2018) point out, the recent rise of energy cooperatives follows the development of generous governmental support schemes, especially attractive feed-in tariffs (a policy mechanism through which long-term contracts to buy power at a fixed, above market price are offered to renewable energy projects). Technical progress and economies of scale made the investment costs of small-scale wind and solar PV (photovoltaic) installations more affordable for small players such as energy cooperatives.…”

“…For example, available data from Germany (Fraunhofer ISE 2019) shows a 75% decrease in the investment costs for a PV rooftop system between 2006 and 2018. However, it is also worth noting that the termination of governmental support schemes may pose a risk to the financial viability of existing cooperatives, especially if their portfolios are not diversified (Wierling et al 2018).…”

The Impact of Subsidy Programs for Solar Thermal Applications: A Case Study for a Remote Island

“…Technical guarantees (actual performance) and after-sale service also have a significant effect on the dissemination of SWHs. Wierling et al [32] noted that energy cooperatives are important actors in the field of renewable energies. For the national subsidy program for 2000-2018, installers and technicians of SWHs had to gain certification.…”