Transition Policies for the Development of the Distributed Energy Model
* Article: Transforming the energy matrix]: [[Transition Policies for the Development of the Distributed Energy Model. by George Dafermos, Panos Kotsampopoulos, et al.
Part of a special issue of the Journal of Peer Production, on the Policies for the Commons
Abstract
"This policy paper examines the application of the principles of a social knowledge economy to the energy sector. The Introduction explains the importance of the energy sector, the general principles underlying this policy document and the concept of the knowledge economy, underlining the distinction between capitalist knowledge economies and social knowledge economies.
The next section, Critique of capitalist models, looks at how the energy system has developed under two centuries of capitalist domination and argues that neoliberal policies have created unregulated energy markets and a process of global privatisation, which has weakened social control over key sectors of production and the reproduction of modern societies in both the Global North and South.
In the follow-up section, Alternative models: Distributed energy, we explore the distributed energy model as a viable alternative to centralised models based on private property and briefly describe its main features: (a) the use of renewable energy sources, (b) the empowerment of consumers through the democratisation of the means of energy production and distribution, and (c) communal management of the relevant infrastructure. To illustrate the model, we look at four case studies, which suggest that energy production could be more effectively organised as a Commons, rather than as a commodity. This, we conclude, should be the fundamental principle underlying all public policy proposals aimed at the transformation of the energy sector.
In the next section, General principles for policy making, we sum up the conclusions drawn from the case studies in the form of general policy principles and enabling conditions for the development of a post-fossil fuel society that respects the Rights of Nature.
In the Ecuadorian policy setting, we provide an overview of the energy sector in Ecuador and discuss the policy framework that pertains to national energy policy. Lastly, in the Ecuadorian policy recommendations, we put forward a series of policy recommendations for enabling the transition of already-existing policies into the paradigm of distributed energy and a set of pilot project proposals that are designed to operationalise these policy recommendations and provide a testing ground for their effectiveness."
Excerpts
Energy as a Strategic sector of the Economy and Blood Flow of the Production System:
By Kostas Latoufis, Ioannis Margaris, et al.:
The energy sector is a strategic sector in all economies: It forms the “blood flow” of the production system and is a key factor for the satisfaction of human needs. A sustainable approach to the energy sector should pursue energy sovereignty and the participation of all stakeholders of the surrounding ecosystem. Energy must be understood as a common good and be approached in a way that addresses multiple dimensions (temporal, geographic, etc.), while prioritising local benefits.
The current global energy sector is facing serious physical and environmental limitations, of which two undeniable examples are the depletion of fossil fuel resources and the threat of climate change. The energy sector requires a transition to a sustainable paradigm, a process in which universal access to appropriate sources of energy for all people should be the priority. Proposing alternatives that harmonise energy needs with ecological sustainability requires a re-consideration of the concept of “development” and a search for new evolutionary paradigms for society. Moreover, it is clear that a sustainable energy paradigm must rely on renewable resources to ensure their renew-ability. In this sense, Latin America faces a difficult challenge: Almost half of its energy supply depends on oil, and this is expected to increase. It must be emphasised that the scarcity and cost of this source of energy will increase, and even if it proves possible to access it, the environmental effects will be detrimental. The fantasy of a “flat earth economy” without entropy or biophysical limits brings society inevitably to a dead-end. To develop the good life, we must be able to examine what alternative perspectives exist for a socio-ecological transition (Guayanlema et al., 2014).
The generation, access and dissemination of information that is disaggregated, geo-referenced and open about territorial energy systems should underpin a new paradigm of energy planning and protocols. These protocols should consider the needs, capacities, renewable resources and methods of resource conservation, as well as the use of appropriate and appropriable types of open technologies.
Crucially, the transition to a sustainable energy matrix requires the development of institutions and technological capacities to effectively manage the flow of energy that is reproduced naturally through the biosphere (CEDA, 2012). The priority is the creation of spaces and mechanisms that facilitate the partnership of the state and civil society with regard to training, research, innovation and the production and management of energy. To this end, a regulatory agenda must be agreed upon to facilitate the reciprocal transformation of energy and productive structures and the democratisation of energy service provision.
An essential factor for the success of this transition is the recognition of the fact that the sustainability of this structure is not only determined by the energy supply, but also by its demand. The strategy must combine the promotion of efficient energy savings based on changing consumer habits, of new ways of exchanging goods and services, of territorial re-arrangement, etc. It is essential, therefore, to pay attention to the education and energy literacy of all people so as to ensure their active participation in the process."
An Introduction to Distributed Energy
By Beatriz Rivela, Fausto Paulino Washima et al.:
"Although different definitions of distributed energy generation exist (Gómez, 2008), the general concept of distributed energy emphasises small-scale generation, consumer accessibility and end-user participation. This is by no means a new concept. Since the 1970s, due to the oil crisis and the realisation of the gravity of the effects of environmental degradation, the concept of distributed energy has been receiving increasingly more attention.
Furthermore, technological innovations, increased transportation and distribution costs, the changing economic climate, climate change concerns, and, in some contexts, the emergence of regulatory standards, have reinforced interest in distributed energy infrastructures. Nowadays, the importance of distributed energy systems is indisputable, going well beyond the provision of energy to remote communities.[6] In essence, the paradigm shift in the energy system implies a change in our way of thinking and acting, thereby enabling our communities to propose, design, implement and operate their own infrastructures in a manner that is adapted to the particular character of their environment.
The generation of distributed energy puts special emphasis on demand management and its constant interaction with renewable supply (Kempener et al., 2013). This demand management requires an understanding of the relevant territorial and spatial factors and an identification of who will consume the energy and how it will be consumed in different areas of the territory, as well as of the interplay between different types of energy consumption and production (Ariza-Montobbio et al., 2014). In short, distributed energy promotes a closer connection between energy generation and consumption (Alanne and Saari, 2006). Consequently, this implies a territorial approach to energy, based on the use of geo-referenced information about available renewable resources and consumer dynamics. This new paradigm of planning and organisation of energy information suggests to think about energy efficiency not only from a technological point of view, but also from a socio-structural point of view. Changes in the geographical distribution of homes and workplaces, as well as in cultural practices and in the use of time associated with energy consumption can enable significant reductions in the consumption of energy. An example of this consists of the “collectivisation/socialisation of consumption” achieved through the collective use of household appliances, industrial processes, public transport and so on.
The social effect of distributed energy depends on, among other factors, the scale of production technologies. At the municipal and city level, changing the energy model to a cooperative energy system could result in the development of projects of up to 100kW of electricity generation (based on solar photovoltaic, grid-connected, low-voltage electricity). At the neighborhood level, solar roofs on houses connected to the local power grid can generate 10kW. In the case of rural areas, autonomous power systems with capacities up to 15kW can be installed in the grid, based on solar photovoltaic, small wind or small hydro power. Micro-hydro technology, in particular, is one of the most economical, clean and safe choices for rural electrification if the appropriate technologies are chosen and proper planning of its implementation, operation and maintenance is carried out. There are many successful micro-hydro projects in developing countries, which indicate the adaptability of micro-hydro technology to local conditions, its sustainability, and its contribution to local community development.
Moreover, non-electrical renewable resources, such as low-temperature solar heat, can be used to meet thermal requirements, such as boiling water for sanitation. In rural areas, one can use biogas produced from the anaerobic digestion of livestock and waste. This can also be used for cooking food. The use of these technologies favours the development of groups of producers and consumers known as “prosumers”. When citizens, families and communities use renewable technologies to produce some of the energy that they consume, they become aware of the environmental, economic and social effects of the energy system: The system of energy production no longer remains a black box. In this sense, energy consumers/producers can be made aware of the real costs of energy and thus reduce their consumption through the adoption of cost-saving and efficiency measures. Additionally, the participation of energy users in its production improves the energy planning process, making it responsive to the needs of the users, especially at the community and municipal level. This bottom-up, participatory process leads to a democratisation of energy planning that can satisfy the social, economic and cultural needs of communities without destroying the environment."
On Microgrids
Pere Ariza-Montobbio, Jesús López et al.:
"A typical example of distributed energy infrastructures is that of microgrids (also known as minigrids), which have been the most rapidly evolving field of the global energy system in recent years.[7] Combining renewable energy production and ICT with a new policy framework for the energy market, microgrids provide scientific, technical, political, organisational and social tools for a fundamental transformation of the energy system on the local and global level alike. Future microgrids could exist as energy-balanced cells within existing power distribution grids or as stand-alone power networks within small communities (given that new control capabilities allow distribution networks to operate isolated from the central grid in case of faults or other external disturbances, thus contributing to improved quality of supply).
Microgrids make use of increasingly available microgenerators, such as micro-turbines, fuel cells and photovoltaic (PV) arrays, wind turbines and small hydro gensets, along with storage devices, such as flywheels, energy capacitors and batteries and controllable (flexible) loads (e.g., electric vehicles) at the distribution level. Improvements in ICT and end-user technology for power management, load management, remote operation and metering systems, data analysis and billing algorithms have contributed to the increasing deployment of modern microgrids.
The “Microgrids for Rural Electrification” report (Schnitzer et al., 2014) published in February 2014 describes the potential of microgrids in rural and peri-urban areas in developing countries: “Over 1.2 billion people do not have access to electricity, which includes over 550 million people in Africa and 300 million people in India alone … In many of these places, the traditional approach to serve these communities is to extend the central grid. This approach is technically and financially inefficient due to a combination of capital scarcity, insufficient energy service, reduced grid reliability, extended building times and construction challenges to connect remote areas. Adequately financed and operated microgrids based on renewable and appropriate resources can overcome many of the challenges faced by traditional lighting or electrification strategies.”
More Information
- Special issue of the Journal of Peer Production, on the Policies for the Commons.