Local authorities and co-operatives are key to citizen energy transition

Citizens can play an active role in Europe’s energy market in the future, a major international event on renewable and efficient energy will hear this week. Legal and financial barriers currently prevent citizens from participating more effectively in decisions about Europe’s energy generation, but these can be overcome with help from local governments and cooperatives, as Friends of the Earth Europe, Climate Alliance, REScoop.eu, Cooperatives Europe, CECODHAS and Euro Coop will say during the event tomorrow (26 June).

The week brings together public authorities, cooperatives, campaign groups and high-level representatives from the European institutions. Participants will learn that cooperatives and local governments play an essential role in bridging the gap between producers and consumers of energy. Cities should promote a cost-efficient energy model by decentralizing electricity production and centralizing heat through co-operative ownership of renewable energy, as will be shown at the event.

Cooperative production of renewable energy in Europe is an exponentially growing movement with thousands of community and citizen energy projects all over Europe. Cooperatives, NGOs and other networks together with local authorities will present concrete solutions on how to reduce the costs of capital for renewable initiatives at the EU level, overcome legal barriers and enable citizens to contribute to a safer climate. Also, consumer cooperatives play a key role in informing and educating consumer members to the benefits of a decentralized energy model which makes sure that aware and empowered citizens are at the centre.

Local governments hold the key to unlocking the potential in local and cooperatively owned energy. In particular local municipalities are well-placed to distribute financial aid to get new energy co-ops off the ground. “The partnership between citizens and their local authorities is fundamental in setting up local initiatives in the field of climate and energy and allowing the optimum mobilization of local energy resources close to where the energy is consumed,” said Thomas Pensel, from the City of Mainz, member of Climate Alliance.

Dirk Vansintjan, president of REScoop.eu, said: “Throughout the REScoop 20-20-20 IEE project we found out that starting REScoops could use a revolving fund that gives them time to gather more members and more equity and rely less on bank loans. Now it is time to seize the opportunity!”

The benefits that can be unlocked with the right support for cooperative energy are many but of particular interest is a decreased reliance on precarious fossil fuel imports and a potential reduction in energy price. Director of Programmes of Education to Responsible Consumption at ANCC/Coop Carmela Favarulo said: “Consumer co-operatives are consumer owned retailers which put sustainability at the very heart of their action. Raising awareness, educating and eventually empowering consumers to make sustainable consumption choices is for them a key mission which should be acknowledged and further supported by public authorities both at EU and member-state level.”

“The energy transition is much more than simply liberalizing the EU’s energy markets. It’s about democratizing the production and delivery of the most basic need of citizens – heat and electricity. Renewable energy and ICT technology have been key drivers in making decentralized energy systems possible and feasible. Citizens are already contributing in the millions to this sustainable energy transition – European legislators need to walk the talk now in truly unleashing the power of the European citizens rather than remaining stuck in the fossil-based, centrally organised past,” said Klaus Niederländer, director of Cooperatives Europe.

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