Collaboration between Local Authorities and Renewable Energy Cooperatives

* Master of Science Thesis: Creating Collaboration between Local Authorities and Renewable Energy Cooperatives. By Simon Luyts. 2017

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KTH School of Industrial Engineering and Management ; Energy Technology EGI-2017 ; SE-100 44 STOCKHOLM

Abstract

"Addressing climate change has become a major challenge. To keep the rise in temperature below 2°C, by 2050, the carbon emissions should be reduced to 80% of their levels compared to 1990. In order to achieve the targets, all levels of society need to be engaged. But even if the targets are realized, there is a real concern in how they are realized. The many crises, society is facing now, are a symptom of a failing world view. Fighting the symptoms without addressing the underlining causes is merely postponing the problem. Business as usual will not be sufficient to tackle the problem at the roots.

Everywhere in the world, local authorities commit themselves to undertake climate action but often lack the capacity to implement these changes. They need partners for successful collaboration. Renewable Energy Cooperatives (REScoops) are identified as a great potential partner to address these challenges.

This thesis addresses the following research questions:

1. What are the challenges local governments face in realizing their climate action commitment? And what do REScoops have to offer?

2. What are the challenges cooperatives are facing? And what can municipalities do to facilitate cooperative entrepreneurship?

3. What are successful examples of collaborations between local governments and REScoops and which factors made the collaboration successful?

Case studies are used to gather insights and resulted in recommendations for local authorities to facilitate future collaborations. Evidence from the case studies illustrates that cooperatives provide an ample opportunity to implement local authorities’ climate action plan through the implementation of Renewable Energy and Energy Efficiency projects, while generating multiple other benefits such as unburdening the local authorities’ administration but also addressing the wider context of engaging citizens in the energy transition, fostering a long term behavioral change and fostering positive impact on the local economy through their mission-oriented business. REScoops and municipalities have great potential in collaborating when vision is aligned and mutual benefits are clear. Local authorities can strengthen REScoops in achieving their shared goals in the energy transition in multiple ways, such as adding specific criteria in the call for tender, advocating the cooperative model, facilitate networking and others."

Excerpts

From the introduction, by Simon Luyts:

"The topic of this thesis is the collaboration between local authorities and energy cooperatives as a possible solution to face the challenge of climate change. This collaboration has the potential of integrating multiple aspects to mitigate the crises. It does not only address the need for more installed capacity of renewable energy and energy efficiency, but tries to address the systemic failures which lie at the root of the crises. Operating from a different world view, it focusses on behavior change of citizens, a social, mission-driven and responsible economy, and fosters active and responsible citizenship. These collaborations already exist, but are rather scarce. This thesis identifies some of these successful collaboration with the intention to give them visibility and learn from them for future collaborations.

The first chapter explains the background of the thesis, the context, and the relevance of the thesis.

The second chapter explains the methodology which is used to obtain the results.

A third chapter explains some of the crucial concepts and definitions to understand the context and the starting point out of which this thesis is written. The main topics highlighted in this chapter are “the commons” and “renewable energy cooperatives”.

Chapter 4 focusses on why local authorities should collaborate with REScoops, identifying the challenges which local authorities have, and how REScoops tackle these challenges.

The fifth chapter focusses on how this collaboration can take form and which actions local authorities can do to facilitate REScoops in achieving the shared goals.

Chapter 6 takes a closer look at the success factors of these collaborations.

The seventh chapter is the conclusion, summarizing the main findings, and the final chapter contains recommendations for the different stakeholders."

Policy Recommendations

• see for background: Policy Framework of the European Response to Climate Change

Flemish response to climate change: Policy Framework

The Sustainable development goals need to be implemented on national and regional policy level. A few of the main priorities for the long term vision is the energy transition, a safe and smooth mobility plan, and a circular economy. The Flemish government is implementing the SDG’s into their policy plans for 2030 and urges cities and municipalities to also implement the SDG’s into their local policy and management planning cycles (“Beheers- en beleidscyclus BBC”). Important therefore is to form new partnerships to implement these goals (Government, 2015). The SDG goals cannot be separated from each other since they cut across policy areas. The complexity demands a multi-actor governance, collaboration with knowledge institutions, NGO’s, citizens, business and financial institutions. The specific policy plans for implementing the SDG’s on the Flemish level are still under construction but should be done by June 2017. By 2019, after the new political elections at local level, all BBC’s should be synchronized with the SDG’s.

The document released by the Flemish government “Vision 2050” focusses on the SDG’s.

Also energy is one of the main topics (Ruebens). The objective is to have reduced the CO2 emissions by 85 – 90% compared to 1990. This means big investment in renewable energy production, the energy efficiency of buildings and clean mobility.

The main challenge is to find the capital to finance the big investments needed for energy networks, the renovation of buildings and the construction of new renewable energy production capacities. Important here is a strategic planning so that the gains from the low hanging fruits can be reinvested again in measures which do not pay themselves back so easily.

In Belgium, many cities have signed the Covenant of Mayors. The Flemish region played an important role in facilitating and financing the studies to set up the Sustainable Energy and Climate Action Plan (SECAP). The Flemish region also payed for the “baseline inventory” study for all the local municipalities, providing them with the necessary data to set up an action plan. However, the implementation is still a big struggle. There is a lack of knowledge, expertise and financial resources to implement this plan."

More Information

• Energy Cooperatives