You are on page 1of 54

Quarterly Bulletin

Wi n d E n e r g y A r o u n d t h e Wo rl d

P14
Community Power:
benefits for society and outlook
in tendering systems

P22
Community Power for Common Good

P36
Community Energy in the UK, 2016:
The Beginning of the End?

ISSUE 1 March 2016

From The Editor

Dear Members and Friends of WWEA,


This special edition of our WWEA Quarterly Bulletin reflects the discussion of the international
symposium Tailwind and Headwind for Community Power - Regional and Global Community Wind
Perspectives, recently held in Bonn. More than 100 experts from 20 countries, representing all continents,
discussed the current status, barriers and future prospects of community wind.
The basis of the discussion was a survey amongst community wind CEOs - of which you can read
a summary in this Bulletin. Some of the most advanced countries, Denmark and Germany, have vast
experience with local wind farm investment. In such countries, this is a clear outcome of the symposium,
community wind plays an important role in raising social acceptance of wind farms. However, one of
the conclusions of the discussion and of the survey is also that community wind is currently facing major
difficulties, as policies are more and more favoring larger investors. As the global wind community, we must
be alert with regard to the impact of such developments on the social acceptance of new wind farms and
hence on the global prospects of wind power.
In general, the status of wind power in the world looks very bright when looking at the global
installation figures of the year 2015: The world installed more than 63 Gigawatt of new wind turbines,
reaching 435 Gigawatt of total capacity. China with an additional capacity of 33 Gigawatt has once again
demonstrated its exceptional role in renewable energy deployment. It is also a strong signal that the Paris
COP21 agreement has set an achievable target by aiming at phasing out fossil fuels by 2050.
With best wishes
Stefan Gsnger
Secretary General
World Wind Energy Association

Issue 1 March 2016

Published by
World Wind Energy Association (WWEA)
Produced by
Chinese Wind Energy Association (CWEA)

Editorial Committee

01 From the Editor

Editor-in-Chief: Stefan Gsnger


Associate Editor-in-Chief: Wu Gang
Shi Pengfei
Paul Gipe
Jami Hossain
Editors: Martina Bachvarova
Shane Mulligan
Yu Guiyong
Tristan Evans
Visual Design: Liu Zhan

Contact
Martina Bachvarova
mb@wwindea.org

News Analysis
06 The World Sets New Wind Installations Record:
63,7GW New Capacity in 2015
08 Paris Defines 100% Renewable Energy As the
New Normal

Community Wind Special


10 A study on Headwind and Tailwind for
Community Power Community Wind Perspectives
from North-Rhine Westphalia and the World
14 Community Power: benefits for society and
outlook in tendering systems

Tel. +49-228-369 40-80

22 Community Power for Common Good

Fax +49-228-369 40-84

28 Community Power in-line with 100% Renewable

WWEA Head Office

Energy the Next Challenge:Industry Integrated

Charles-de-Gaulle-Str. 5, 53113 Bonn, Germany

Productive RE Use -B100 Initiative

A detailed supplier listing and


other information can be found at
www.wwindea.org
Yu Guiyong
yugy@cwea.org.cn
Tel. +86-10-5979 6665
Fax +86-10-6422 8215
CWEA Secretariat
28 N. 3rd Ring Road E., Beijing, P. R. China
A detailed supplier listing and
other information can be found at
www.cwea.org.cn
2

30 Yansa: Community Power as Social Development


Driver
34 Start of A New Network for Community Power
Projects in North Rhine-Westphalia
36 Community Energy in the UK, 2016:The
Beginning of the End?
40 Community Power in Southern Europe:from a
Wind-workers Cooperative to a Wind Community
Project
44 The Energy Union

CALL FOR PAPERS:


1ST WORLD COMMUNITY POWE
3 NOVEMBER 2016
1st World Community Power Conference WCPC
One year after Paris five years after Fukushima: Community power for a renewable future!
3 November 2016 Fukushima City, Japan

A Global100%RE Event
hosted by
Institute for Sustainable
Energy Policies ISEP
Japan Community Power
Association JCPA
WWEA Community Power
in cooperation with the
City of Fukushima
Supported by:
ICLEI, ISES, REN21, World
Future Council, and more

Bonn/Tokyo/Fukushima, 11

have agreed to switch the global energy

March 2016 WWEA Community

supply to greenhouse gas neutrality

Power, ISEP and JCPA cordially invite

by 2050, meaning in fact 100%

the world of community power to

renewable energy. WCPC happens on

attend the 1st World Community

the occasion of the fifth anniversary of

Power Conference 2016 taking place

the Fukushima nuclear accident and of

in Fukushima City on the invitation of

the 30th anniversary of the Chernobyl

the Mayor of the City of Fukushima.

nuclear accident.

WCPC aims at bring leading community

Community Power is usually

power proponents from Japan and the

defined as renewable energy

world together in order to discuss the

installations initiated, operated

role community power has to play in

and controlled by local citizens.

the global shift towards renewable

Community power has a proven very

energy. WCPC will also discuss a global

positive impact on deployment rates

community power strategy and its

of renewable energy and increases

national and local implications.

the economic benefits of renewable

WCPC will take place on the


occasion of the first anniversary of

energies.
Stefan Gsnger, WWEA Secretary

the Paris climate change agreement

General: Community Power has been

in which all governments of the world

widely recognized as a major driver

ER CONFERENCE, FUKUSHIMA,
of the global shift towards a 100%

of WWEC2016 is Concentrating efforts

renewable energy supply. Thanks

for wind power growth in Japan and

to the decentralized character of

worldwide.

renewable energy, communities are


key actors in the new energy supply
and communities around the world
have started taking the energy supply
in their own hands. The event at

Abstracts are invited on the


following topics:
1. Community power around the
world and all over Japan
2. Local/National renewable

the symbolic location of Fukushima

energy policies supporting community

intends to give a boost to the close

power

global cooperation of community

3. Community power business

power groups around the world and

models in developing and in

make community power part of the

industrialized countries

mainstream energy supply.


Dr. Tetsu Iida, ISEP Chairperson:
Along with explosive growth of
renewable energy last decade, and
structural change in energy supply

4. Financing community cower

Conference language:

in developing and in industrialized

English and Japanese

countries

Contact:

5. Climate issue and community


power

WWEA Head Office


Charles-de-Gaulle-Str. 5, 53113 Bonn,

and demand, community power and

6. Nuclear and community power

Germany

democratic process for development are

7. International, regional and local

Phone: +49-228-369 40-80

playing more and more a key role for


the process towards a 100% renewable
energy future. This very first World
Community Power Conference held in

networking
8. Democracy and community
power
All abstracts should be written

Fax: +49-228-369 40-84


community@wwindea.org
Institute for Sustainable Energy Policies
(ISEP)

Fukushima after the 5th year anniversary

in English, be concise and clearly state

4-7-3 Nakano, Nakano, Tokyo, 164-

of the disaster will be and must be a

results, objectives or key components

0001, Japan

historical signal for the future.

of the paper. They should not exceed

Phone: +81-3-5942-8937

500 words and should contain a list

Fax: +81-3-5942-8938

with and directly after the 15th World

of key words. Abstracts should be

Websites:

Wind Energy Conference WWEC2016

submitted before 31 May 2016 to:

www.wind.community

which will be held from 31 October

community@wwindea.org

www.wwindea.org

WCPC takes place in connection

to 1 November in Tokyo (www.


wwec2016tokyo.com). The main theme

The programme is to be published


in early July 2016.

www.isep.or.jp
www.communitypower.jp

News Analysis

ISSUE 1 June 2016

The World Sets New Wind


Installations Record:

63,7GW New Capacity in 2015


According to preliminary figures, the world has seen a new record in new wind installations, adding
63690 MW within the year 2015. The total wind capacity of the world has reached 435 GW.

The global growth rate of 17,2 % was higher than

The US market saw good performance with 8,6 GW

in 2014 (16,4 %). Amongst the top 15 markets, Brazil,

of added capacity, the strongest growth since 2012. Low

Poland, China and Turkey were the most dynamic

fossil fuel prices had no negative impact on the wind

countries and saw the strongest growth rates.

sector.

China has once more underpinned its role as the

Germany, in anticipation of changes in legislation,

global wind power leader, adding 33 GW of new capacity.

installed 4,9 GW. Wind power contributed a new record of

This represents a market share of 51,8 %.

13% of the countrys power demand in 2015.

News Analysis

ISSUE 1 June 2016

Like a year ago, Brazil was the fourth largest market

several weeks after the groundbreaking Paris climate

for new turbines with a market volume of 2,8 GW. It is the

agreement, we are proud to announce that the wind

first major Latin America wind market.

community is ready to contribute its part to implementing

India saw 2,3 GW of new installations by November

a 100 % renewable energy and hence greenhouse gas

2015, enough to bypass Spain as fourth largest market in

neutral future. The new record proves what can be done

terms of total capacity.

and even faster growth would be possible given the

While Canada performed well and Poland and Turkey

right policies are in place. Unfortunately we have to warn

both even climbed in the global rankings, Spain was a

especially several European governments that they are

great disappointment with 0 MW added capacity. No

about to put their leading roles in the renewable energy

country which had previously a leading role ever saw such

sectors on risk.

complete standstill.

Bonn, 10 February 2016 (WWEA)

Stefan Gsnger, WWEA Secretary General: Just

News Analysis

ISSUE 1 June 2016

Paris Defines

100% Renewable Energy


As the New Normal
By Stefan Gsnger, WWEA Secretary General

Article 2, Parties aim to reach global

I am very happy to say. Several

Conference COP21 ended last weekend

The UN Climate Change

peaking of greenhouse gas emissions

important steps have be taken since

with 195 governments agreeing on

as soon as possible, recognizing that

then:

a new climate treaty, and this Paris

peaking will take longer for developing

agreement is a big breakthrough!

country Parties, and to undertake

partners representing all the major

The agreement itself is indeed not

rapid reductions thereafter in

renewable energy technologies, we

detailed, includes no clear figures on

accordance with best available science,

have been able to demonstrate also

limiting greenhouse gas emissions, no

so as to achieve a balance between

during our well attended COP side

strong legal commitments on how to

anthropogenic emissions by sources

events that a 100% renewable energy

act. Hence my assessment is based on

and removals by sinks of greenhouse

supply is technically feasible, even at

reasons different from other colleagues

gases in the second half of this century,

a lower average cost than business as

such as some climate experts, who

on the basis of equity, and in the

usual.

might be less enthusiastic. However,

context of sustainable development

what makes me so confident is the fact

and efforts to eradicate poverty.

Together with our REN Alliance

Most of the environmental NGOs


agreed already last year (not earlier!)

that Paris has started a fundamental

Of course we, like many of our

paradigm shift, away from the failed

friends and allies in the renewables

goal. Earlier this year, the G7 leaders

Kyoto protocol with its failed goal to

community, in the REN Alliance and

agreed on decarbonizing the energy

set up a globally binding emission limit

beyond, would have preferred to

supply within this century. This

through carbon cap & trade systems.

see a clear commitment to a 100%

September, Greenpeace came out

renewable energy future. There has

with its first global 100% Energy (R)

agreed, and this is a kind of miracle

been remarkable progress towards this

evolution scenario, a very detailed and

in itself, on achieving greenhouse-gas

goal within less than three years: our

scientifically sound report which has

neutrality by 2050. The important text

Global100%RE campaign has initiated

had deep impact on the international

can be found in Art. 4:

a broad and global discussion about

energy debate. As part of the Global

whether and how a 100% renewable

100%RE campaign, a global 100%

energy supply is feasible worldwide,

cities network was presented during

In Paris, all 195 governments

1.

In order to achieve the long-

term temperature goal set out in

on the global 100% renewable energy

News Analysis

ISSUE 1 June 2016

the COP21, in cooperation with ICLEI,

both technologies characterized

right away: we, the renewable energy

with mayors from various cities

by astronomically high cost and

community, must ensure that the

on all continents committing their

unpredictable risk.

global transition towards 100%

municipalities to go for a renewable

With this in mind, I am very

renewable energy starts now, without

energy future. Others have been

confident that simply due to their

delay, and without getting too much

following the Global100%REs main

emission-free nature and the costing

distracted by the predictable efforts

goals without explicit reference to it,

development, renewables will be the

of the nuclear and clean coal lobbies

including e.g. RE100, a group of large

new benchmark, the new normal

to increase their shares and to water

international corporations adopting

when it comes to energy investment.

down the 100% renewable energy

100 % renewable targets for their

This is the paradigm shift we have

target.

companies.

been working for, and now it is

All this paved the way, so that

One major task for the renewable

even part of the official UN climate

energy community will hence be

more and more governments agreed

change agreement, supported by all

to monitor the process launched in

on 100% renewable energy as well.

governments of the world. In other

Paris: to become a watchdog that

Actually the vast majority of the

words: Paris has in fact defined 100%

governments are actually acting and

worlds governments would have liked

renewable energies as the achievable,

implementing renewable energy fast,

to include such target in Paris in the

the new normal!

and that renewables are deployed in

final text. However, UN conferences

With this, for the very first time

a way which ensures that they can

require consensus, and, as expected,

the UN climate change mitigation

maximize the benefits for all citizens

there was strong resistance from

efforts are on the right track, away

of the world, in the industrialized

influential groups against such clear

from negotiations about burden-

countries but perhaps even more

goal, so that as a first compromise the

sharing and reduction, but instead now

so in those regions where there is

term decarbonization was suggested.

focusing on progress in implementing

an urgent need to eradicate poverty

Even this found strong resistance, so

new, renewable energy technologies

once and forever. The abundance of

that the final and adopted compromise

as a key component of the economic

renewable energy in all regions and

is, as mentioned, a greenhouse-gas

and practical path to curtailing carbon

in all the different forms provides

neutral energy supply. This overall

emissions. This will also fundamentally

hope for all humans, regardless their

goal leaves of course still room,

change the character of future UN

current socioeconomic status, to

probably more a tiny niche, for nuclear

climate change conferences, which will

have, whenever needed, abundant

power and also for obviously obsolete

gain a far more positive and productive

energy available, the driving force for

technologies such as clean coal

spirit.

economic growth and prosperity.

through carbon capture and storage

Of course the real work begins

Photo: Chen Yanan

Community Wind Special

ISSUE 1 June 2016

A study on
Headwind and Tailwind for
Community Power

Community Wind Perspectives from


North-Rhine Westphalia and the World

WWEA and the Renewable

cross-roads. On the one hand, it holds

marked the biggest global commitment

Energy Association of the largest

vast potential for the energy transition

to the uptake of renewable energy

German state North-Rhine Westfalia,

from a carbon-based (and, to a lesser

technologies (RETs) in history; 195

LEE NRW, conducted recently a

degree, nuclear) energy regime

nations agreed to reach greenhouse

study on the current status, main

towards a democratic, decentralised,

gas neutrality by the year 2050, a goal

drivers and barriers of community

emission-free, and truly sustainable

only achievable through a rapid phase-

based wind farms in the state. CEOs

energy system. Moreover, Community

out of fossil fuels and transition toward

of community wind farms and other

Wind bring high levels of much needed

a fully renewable energy supply.

experts answered questions on

acceptance and contributes to local

The chosen terminology still leaves

community wind. The results of the

added value. On the other hand, the

opportunity for nuclear power, and

study were presented and discussed

upcoming auctions are expected to

fossil fuel energy in combination with

during the International Community

put a strong competitive disadvantage

carbon capture and storage. However,

Power Symposium in Bonn on 26

upon Community Wind projects. As

historically low levelised costs of

January 2016 and the final report was

a result, the externalization of wind

energy and a slowly reconciling playing

published in March 2016. A summary

power acceptance costs could have

field allow for a simple and beautiful

of the final report is included here, the

drastic effects both on the further

conclusion: Renewables are the new

following pages include summaries of

dissemination of Community Wind

normal, and any other solution needs

speeches held during the symposium.

projects and the outcome of the

to be justified. Now the question comes

German Energiewende.

to the fore of how to realize a socially,

Community Wind in North-Rhine


Westphalia (NRW) and Germany is at

10

environmentally, and economically just


The 2015 Paris agreement

transition towards a 100% renewable

Community Wind Special

ISSUE 1 June 2016

energy system. Such a transition has to


meet the needs of, and find acceptance
among the people who produce and
consume renewable energy.

Local benefits,
social acceptance
To date, Community Wind

by the Renewable Energy Sources


Act (EEG). Other drivers comprise
the current wind-energy-friendly
state government of NRW, regional/

remains an elusive concept that is

municipal renewable energy initiatives,

neither legally nor politically defined

voluntary Community Wind standards,

in NRW (or in Germany). However,

as well as regulatory guidelines aiming

Community Wind is regarded as a form

on the simplification of planning/

One pertinent option is the

of wind energy deployment which

permission procedures.

concept of Community Power, which is

entails many beneficial social and

based on the idea of local ownership

economic effects, most importantly as

of RETs. The three main criteria that

a means of enhancing local acceptance

differentiate a Community Power

and local added value.

Definition of
community wind

On the other hand, rising

project from conventional RET


deployment are local shareholding
(> 50%), local control and decisionmaking power related to the
project, and the local distribution

Detrimental
factors

Importance of
feed-in tariff
The single most important

complexity, high land leases offered


by commercial wind developers,
opposition from wildlife and nature
conservation associations and a

of the social and economic benefits

driver of Community Wind can be

perceived decline of societal interest

generated through the project.

attributed to the guaranteed feed-in

in RETs are said to impede the

(These criteria were determined

tariff introduced on the federal level

deployment of Community Wind.

by the WWEA Community Working


Group, comprising experts from all
continents). Community Wind is one
of technology-specific subtypes of
Community Power.

The study
The WWEA Community Power
Strategies project aimed to identify
favourable framework conditions for
Community Power on a global scale.
In this broader frame, a regional case
study on Community Wind in NRW
was conducted. Based on expert
interviews with CEOs of Community
Wind projects and Community Wind
facilitators, and an online survey
addressed to a broader Community
Wind stakeholder base, the following
conclusions have been drawn:

11

Community Wind Special

In addition, the upcoming auctions

ISSUE 1 June 2016

The cornerstones of the upcoming

of Community Wind projects would

for onshore wind are expected to

auction design are said to put

not be possible any more. The

entail tremendous impediments for

Community Wind projects at a strong

recently proposed February 2016

Community Wind deployment in NRW

competitive disadvantage, meaning

simplified qualification requirements

and Germany.

independent bottom-up development

for Community Wind projects can


be considered as a first step into the
right direction. However, those project
proponents still have to compete
against more experienced market
players with a higher competitive
advantage.

Future business
models for
community wind
groups
A catalogue of attractive future
business and additional market
activities for Community Wind projects
includes repowering activities, regional
electricity tariffs, storage, e-mobility
and energy efficiency. However, the
changing regulatory framework
conditions do not allow for a broad
based diffusion of those business
lines, except for some trailblazer
projects of experienced Community
Wind implementers. Community Wind
networks, information platforms and
associations are considered to be
crucial mediums for the diffusion of
the Community Wind concepts and
their innovative business lines.
The full report is available on
the WWEA website: www.wind.
community

12

ISSUE 1 June 2016

Community Wind Special

13

Community Wind Special

ISSUE 1 June 2016

Community Power:

benefits for society and outlook in


tendering systems
By Katherina Grashof, IZES gGmbH

Introduction

of community energy has been


compiled. This is why, in 2015, the

tariffs to tendering schemes. 1


The study uses the notion of

With the rise of renewable

cooperative Greenpeace Energy eG

community energy (Brgerenergie

energy to generate electric power in

and the association for community

in German, with Brger being

many countries, not only a change

energy Bndnis Brgerenergie e.V.

best translated to English with

in technological infrastructure

have commissioned the Institute

citizen) developed in an earlier

takes place, but often also a shift

for Future Energy Systems (Institut

study for the Bndnis Brgerenergie

in the actors who plan and operate

fr ZukunftsEnergieSysteme, IZES

(Leuphana/Trend:research 2013). It

the new power plants. This can be

gGmbH) to assemble and systematise

distinguishes a narrower and broader

explained by reasons such as the

the beneficial effects of community

understanding of community energy,

initial reluctance of incumbent

energy (Hauser et al 2015). The study

depending on the equity share of an

utilities to invest in renewable

began with a scan of the international

energy project held by citizens and

energy production, as well as the

scientific and grey literature in the

on the degree to which these citizens

smaller generating capacities of many

field, and complemented it with

live near to the location of the

renewable technologies that go hand

up-to date insights gathered in 24

corresponding plant(s). Accordingly,

in hand with much lower investment

interviews with scientific experts

a power plant owned entirely by its

costs per generating unit compared

and experienced practitioners in

immediate neighbours represents

with conventional power plants.

Germany. This article summarizes

a community energy project in

There is a large amount

the main results of the study and

the strictest sense, but also other

of (scientific) literature on the

subsequently gives a short outlook

constellations fall under this notion.

preconditions for community energy

on the chances and preconditions for

It should be noted that this definition

projects, yet so far, no concise

community wind energy projects in

does not include projects that have

overview of the beneficial effects

countries moving from fixed feed-in

merely been consulted with the local

1 The results of the study have also been presented at the Symposium Tailwind and Headwind for Community Power Regional and Global Community Wind
Perspectives, organized by WWEA the 26.01.2016 in Bonn. The presentation can be downloaded here: http://www.wwindea.org/presentations-internationalsymposium-on-community-power/

14

Community Wind Special

ISSUE 1 June 2016

or regional population, but only

higher short-term marginal costs

those where local citizens hold at

of power generation for smaller

and distributive outcomes of the

least some share of ownership in the

generation units which are more

projects and trust among actors.

plants.

typical for community power projects.

This refers to procedures that do

Whereas a number of energy

Fairness in procedures

This is, however, a general reflection

not only provide information and

generating technologies and

and applies to all actors realising

consultation on a planned project, but

infrastructures can be realised with

smaller projects, and not specifically

give neighbours a vote in decisions

local ownership, our study focused

to community energy.

about the concrete planning and

on projects using renewable energy


sources (RES), as to date there is only

the distribution of its (monetary)


Societal effects

limited literature and data on e.g.


the benefits of community energy
efficiency projects for a country.

Beneficial effects
of community
energy
To allow for a systematic
account of beneficial effects of
community energy, the study
differentiates between the impacts
on the energy system of a country,
on its economy and on the societal
level. An even broader assessment,
of course, would result if negative
effects of community energy on these
three levels would also be taken into
account. This was not possible in this
study, and accordingly needs to be
pointed out. Without having studied
these aspects in depth, however, it
can be said here that the authors are
not aware of specific negative effects
of a realisation of RES projects by
community actors (as opposed to a
realisation by other actors) to the
energy sector, the economic sector or
the larger society of a country with
maybe one exemption: Economies
of scale do exist for several energy
technologies, and they may entail

costs and benefits among potential


stakeholders. The high transparency

Societal effects are mentioned

associated with such procedures

most often when talking about the

also enables the perception of

benefits of community energy, which

fairness and trust to rise among

is why it will be treated first here. The

actors (Walker et al 2010). This is

fact that community energy can have

especially relevant in cases where

a significant positive impact on the

communities do not just purchase a

acceptance of RES projects has been

RES plant after it started operations

clearly detected in empirical studies

from a professional project developer,

(Gross 2007; Maruyama, Nishikido

but also take responsibility for the

& Iida 2007; Musall/Kuik 2011).

entire planning process beforehand.

Several factors are known to enhance

When the procedures are commonly

the local and general acceptance

understood as fair, both the relevant

of power generation plants (or

actors and the results of their actions

other larger infrastructures like the

the realised power plant can win

extension of electricity grids), many

significant democratic legitimacy,

of which are present in community

which in turn is an important factor

energy projects. In some cases, they

for acceptance. Studies indicate

can represent both preconditions

that actors and projects of local

for new RES projects, as well as the

enterprises benefit from higher

outcome of such projects. These

acceptance than those of entirely

factors include:

foreign firms. This is because the

An understanding that new

latter enjoy less confidence from the

RES energy projects are necessary for

local population, who ascribe purely

transitioning to a low-carbon energy

economic motives and an exclusive

system. The high level of discussion in

pursuit of profit to these actors, and

groups of potential future owners and

little regard to the interests of the

neighbours of a planned RES project,

local community (Hildebrand, Rau &

which is typical for community power

Schweizer-Ries 2012).

projects, provides for a setting that

Emotional identification

enhances such an understanding

with the planned power project and

(Renn 2014).

the experience of self-efficacy (Renn

15

Community Wind Special

ISSUE 1 June 2016

2014). Planning a renewable energy

organized projects may in the process

firms, in contrast, quantify their

plant often involves a longer process

feel empowered to start other kind of

efforts and set up detailed (monetary)

of shared decision-making and

(volunteer) activities for the common

cost-benefit balances that need to be

overcoming obstacles. Accordingly,

good, to the benefit of a democratic

clearly positive in order for a project

once successfully realised, community

society at a larger level.

to be worth realizing. Additionally,

energy plants often benefit from a

Often, community energy

certain transaction costs do not occur

strong emotional identification of its

projects become part of the local

in many community energy projects.

initiators and owners.

identity, and as such, can contribute

This applies to the costs of searching

to the positive development of the

for an optimal location for the plant,

especially when already planned

municipality. E.g. several German

when there is already an obvious

in a cooperative manner display an

villages have come to name

location available at low or zero costs

important characteristic of a modern

themselves bio energy villages

of negotiation: the roof of the local

concept of public participation,

(Bioenergiedrfer), showing clearly

school, unused land at a farm for a

moving away from an understanding

that the local bio energy projects

bio energy plant, or the land owned

of decide, announce and defend

have become part of the local identity

by a group of people who want to set

towards announce, provide an

(Renn 2014, Wste et al 2011). This

up some wind turbines.

opportunity to discuss and decide

identification becomes especially

With regard to wind energy,

(Sander 2011).

relevant in rural areas, which are

some specific aspects need to be

subject to a loss of population. Here

mentioned. First, in regions with

the (re-) appropriation of public

good wind conditions and an already

effects need to be mentioned that go

spaces e.g. by realising RES projects

ample experience with wind energy,

beyond impacts on the feasibility of

in schools or other public buildings

private land owners are often aware

an energy transition.

can enhance a sense of belonging to

of the economic potential of their

that municipality (Moser 2013).

ground for new wind projects,

Community energy projects

Three more general societal

Community energy projects

involve citizens into sustainable


economic processes. This is necessary

and the knowledge of how to plan


Effects on the energy system

when pursuing a more sustainable


economy in general, but can also

new projects is locally available.


Interviews showed that here, foreign

Several kinds of RES plants are

planners or investors have little

have very specific aspects. In regions

usually only realized in community

chances to realize new wind turbines,

with declining industries (e.g. coal

energy projects, e.g. smaller

especially if they do not provide the

mining), workers know their jobs will

photovoltaic (PV) plants on roof-

opportunities to engage the local

not be there forever. So it is important

tops, bio energy plants realized

population in shared decision-making

to actively involve citizens and

by (groups of ) farmers, or certain

with regard to project planning or

employees in the creation of more

kinds of wind projects. This may

provide some local distribution of the

sustainable economic processes.

largely be explained by the necessary

revenues of the power sold from the

transaction costs for setting up a

plant (Grashof et al 2015). Second,

incubation rooms for newly activated

power generation plant: Community

in regions with less-than optimal

citizens in general: Community

energy projects involve a lot of

conditions, the costs to acquire the

energy projects are often initiated

unmeasured work undertaken by

permission to use a sufficiently large

by people with previous experience

private actors (often on a voluntary

area for a profitable wind park can

in the field. However, people with

basis and besides a regular

be prohibitively high when land-

no previous experiences in self-

professional activity). Commercial

ownership is fragmented and many

16

Community energy creates

Community Wind Special

ISSUE 1 June 2016

owners need to be convinced. Here,

total demand if a specific supplier

owned by institutional and strategic

the interconnectedness of local land-

withdraws his entire capacity. If

investors. Only 9 GW belonged

owners may speed up decisions

not, this supplier can be considered

to energy utilities (Leuphana/

significantly in cases of community

pivotal, having the potential to

Trend:research 2013, 42).

energy projects. Third, explicit local

significantly control the market.

political preferences may favour

The results showed a high degree

community energy projects, e.g. when

of market concentration. In 2007

local authorities or councils signal to

(2008), RWE had a dominant position

foreign planners or investors that

in 94 % (74%) of the hours of the

often lead to a higher degree of

communal consent for the plant will

year, E.on in 72 % (51%) of the hours;

added regional income than projects

be easier if some degree of public

the corresponding values for the

realised by actors who are active

participation is granted, e.g. by

other two utilities were: Vattenfall

on a larger regional or national

reserving a part of a planned wind

55% (31%) and EnBW 49% (26%)

level. This refers to taxes being paid

park for future ownership by local

(Bundeskartellamt 2011, 105). For

locally and income from labour,

citizens.

the year 2012, the German monopoly

equity capital, and the lease of land.

commission updated this assessment

So far, no specific assessment of the

community energy projects on

and found RWE and E.on to have a

community energy share of regional

the larger energy system refers to

dominant position in below 1% of the

income of RES projects has been

market concentration and actor

hours of the year, and Vattenfall and

carried out. However, an exemplary

diversity. Germany can be taken as

EnBW not at all (Monopolkommission

approximation can be obtained by

a vivid example of this. Before the

2013, 81).

determining the level of regional

A second major effect of

liberalization of the electricity market

This can be attributed largely

Economic effects
Community energy projects

income achieved from the capacity

in the 1990ies, the predecessors

to the increase of community RES

of community energy RES projects

of todays four largest German

projects, since utilities have only

installed in Germany to date. This

utilities RWE, E.on, Vattenfall and

recently begun to realize relevant

same approach can also be used to

EnBW dominated power generation

capacities of RES. Of the total 73 GW

determine the number of jobs created

to a very high degree, and the

of RES capacity installed in Germany

2
by community energy. The following

liberalization itself (introducing the

in 2012, 34 GW were community

table builds on data in Universitt

freedom to choose their supplier

projects in a narrower or broader

Kassel et al (2011) and IW (2011)

to all power consumers) did little

sense, and an additional 30 GW were

and shows the amount of added

to change this. Almost a decade


after the liberalization, the German
cartel office analysed the degree
of market concentration, using the
residual supply index (RSI). This
index determines (on an hourly
basis) whether there would be

Community energy in a
narrower sense
Community energy in a
broader sense

Added regional income in 2012

Added jobs in 2012

340 680 million

6 9 thousand

700 1400 million

12 19 thousand

Source: Hauser et al 2015, 61f.

sufficient capacity available to cover

2 To account for a representative picture, of course, negative effects on regional income and jobs would need to be taken into account. However, here are strong
methodological challenges: Not the income and jobs lost because of e.g. a reduced production of conventional power due to the increase of RES capacity would
need to be quantified but only the income and jobs lost because these RES projects were realized by specific actors.

17

Community Wind Special

regional income and jobs that can


be attributed to community energy
in 2012, both from investments in
new plants in 2012, as well as from
the operation of plants that had
started operations in earlier years.
To account for the empirical variance
in important factors influencing the
outcome, the results show the spread
of plausible results.
Another beneficial effect of
community energy relates to tourism.
While wind energy opponents often
fear for the attractiveness of their
region should wind turbines be
installed there, several communities
report an increase in visitors due
to their activities. The community
of Saerbeck in North RhineWestphalia, for instance, aims to
reduce its CO2 emissions to zero
and, together with the local energy
cooperative, has installed wind, PV,
hydro, bioenergy and co-generation
plants. The plant installations have
been complemented by educational
material and the community has
received over 40.000 visitors between
2011 and 2015 (Wallraven 2016). A
renewable energy tourist guide for
Germany (Frey 2016) shows many
other examples of community energy
projects attracting high numbers of
visitors, e.g. the towns of Wolfhagen
in Hesse or Dardesheim in SaxonyAnhalt.

ISSUE 1 June 2016

Outlook on
the future of
community energy
in tendering
systems
After having given an overview
on the beneficial effects of community
RES projects, this article will finish
with an outlook on the chances
of community energy projects in
countries that determine the level of
state-organised remuneration for RES
power using tendering schemes, with
a specific focus on Germany.
According to the survey
undertaken in Leuphana/
Trend:reseach (2013), 50% of the
installed wind energy capacity in
2012 can be attributed to community
energy in a broader sense, and half of
this share to community energy in the
narrower definition (see above). The
consultancy Deutsche WindGuard
(2015) asked project developers,
turbine manufacturers and banks for
an assessment of different actors
shares in newly installed wind
capacity from 2012 to 2014. 15 16%
of the new capacity in that period was
attributed community wind projects
(and those realised by farmers) when
taking into account the planning
phase. If looking at the operational
phase (thus also including wind
projects bought by energy community

groups after operation start), their


share rises to 16 to 20% of the newly
installed capacity.
Reflecting the impact of
community energy on the acceptance
of RES, the German parliament
decided to move its support system
towards tendering in a manner
that preserves the (current) actor
diversity . 3 This needs to be actively
integrated into the design of the
planned auctions, as experiences of
RES tendering schemes have shown
a consistent tendency to market
concentration among the winners
auf such auctions (see Hauser,
Kochems and Grashof, forthcoming;
Hauser/Kochems 2014; Hauser et al
2014). To give two examples: in the
tendering scheme implemented in
Great Britain in the 1990ies, mainly
subsidiaries of established utilities
were established as winners. And in
the course of the RES auctions held in
South Africa since 2011, the degree of
market concentration has increased
significantly: The main winners are
large project developers partly owned
by international corporate companies
from the energy or mining sector.
These results are consistent
with theoretical expectations,
because tendering schemes for
wind energy remuneration usually
introduce significant risks for project
planners: Regulators often require
that projects are in an advanced

3 Section 2, subsection 5 of the renewable energy law (EEG) of 2014 states: Financial support and the level of such support is to be determined by auctions for
electricity from renewable energy sources and from mine gas by 2017 at the latest. To this end, experience with competition-based determining of the level of
financial support will be gathered, initially with electricity from ground-mounted installations. In the course of the move to auctions, the diversity of players
involved in generating electricity from renewable energy sources is to be retained (Clearingstelle EEG, unofficial translation, to be found at https://www.
clearingstelle-eeg.de/files/node/8/EEG_2014_Englische_Version.pdf)

18

Community Wind Special

ISSUE 1 June 2016

planning stage before they can be

of other factors such as the costs of

bid in order to ensure that successful

grid access. Especially smaller actors

association of energy cooperatives

bids effectively lead to new capacity

with little overview on the national

(DGRV) and the energy cooperative

built on time. Accordingly, the rather

wind sector can be expected to be

Greenpeace Energy that was co-

large preparation costs up to this

at a disadvantage when estimating

developed by the author of this article

stage need to be invested by project

the chances of winning in an auction

takes into account the requirements

planners without knowing if and

with their bid due to the uncertainty

set up by the ministry, which may

at what level remuneration can be

regarding the price level and capacity

also be relevant in other countries.

secured in the auctions. The potential

of competing bids.

It includes the following guidelines

loss of preparation costs in case of

For small actors with (very)

A proposal by the German

to allow for future community wind

unsuccessful bids can be borne much

small project portfolios, this

energy projects after the general

more easily by larger companies who

seems to lead to a significant

transition to wind tenders in Germany

can spread this risk across a number

deterrence effect to participate in

(DGRV/GPe 2016):

of projects. Community energy plants,

auctions. Many community energy

in contrast, are often unique projects,

practitioners interviewed by the

community energy projects should

without any possibility to spread

author argued that the high risk of

not need to participate in the

sunk costs across other activities.

sunk costs (and commitment) in

auctions themselves. However, the

the case of unsuccessful bids might

remuneration may be determined

German Onshore Wind Energy Agency

already prevent the collection of

in auctions among the larger

(FA Wind) analysed whether specific

sufficient equity capital to start the

actors and then be transferred to

actors might have a disadvantage

development of new wind energy

those community energy projects

in wind energy auctioning schemes

projects.

that consider this remuneration

A survey carried out for the

(Grashof et al 2015). The results


were:

Many representatives of

Actors developing

sufficient (so called non-competitive

community wind energy argue that

bidding). If this price transfer is

their projects ought to be exempted

allowed within a limited period

smaller actors are not significantly

from the obligation to participate in

after the corresponding auction,

smaller than those of larger actors;

auctions, but should be remunerated

the community energy project

and they also usually do not need

on the basis of a (predictable) tariff,

developers may re-negotiate terms

higher remuneration per kWh.

as was mostly the case with the

with land-owners, lenders or turbine

German renewable energy law so far.

manufacturers, most of which often

capital and the fact that typically

In its key points for the upcoming

have a strong negotiating power vis-

not more than one wind energy

amendment of the renewable energy

-vis small actors.

project is pursued at a time results

law (BMWi 2016), the German

in a systematic disadvantage to

Ministry for Economic Affairs and

results should be done in a project

bear the risk of sunk costs in case of

Energy acknowledges the specific

development stage that enables

unsuccessful bids in the auctions.

disadvantages of community energy

community energy planners to know

Projects developed by

The low level of equity

This transfer of auction

and small actors. Special rules for

the future remuneration for a specific

of wind energy projects, and

these actors, however, shall be kept

project before they collect equity

accordingly, the level of necessary

at a minimum to prevent impacts on

capital to start spending the larger

remuneration, vary strongly all over

the remainder of the wind auctioning

share of development costs (e.g. for

the country - not only depending on

system; this excludes a general

the permission of the plant).

wind conditions but also on a number

exemption from the auctions.

Costs and power production

Securities to be deposited

19

Community Wind Special

ISSUE 1 June 2016

for affirming the serious intention

deterring these actors to start new

for the larger energy transition,

to build the project (on time) ought

projects.

especially in times of growing

to be kept at a minimum for these

Finally, the volume of

actors in the early stage of project

capacity not auctioned but reserved

development so as not to introduce

for such projects should reflect the

additional risks of penalties, further

advantages of community energy

opposition and legal complaints


against new wind turbines.

Reference

Bundesministerium fr Wirtschaft und Energie (BMWi, Federal Ministry for Economic Affairs and Energy) 2016: EEG-Novelle 2016.
Fortgeschriebenes Eckpunktepapier zum Vorschlag des BMWi fr das neue EEG. Berlin, 15.02.2016.
Bundeskartellamt (Federal Cartel Office) 2011: Sektoruntersuchung Stromerzeugung und Stromgrohandel. Abschlubericht gem 32e
GWB, Bonn.
Deutsche WindGuard 2015: Akteursstrukturen von Windenergieprojekten in Deutschland. Varel.
Bundesgeschftsstelle Energiegenossenschaften beim Deutschen Genossenschafts- und Raiffeisenverband e. V. (DGRV), Greenpeace Energy eG
(GPe) 2016: Listenverfahren zum Erhalt der Akteursvielfalt und Brgerenergie bei Windausschreibungen. Berlin, 09.03.2016.
Frey, Martin 2016: Germany Experience renewable energy. Baedeker Knowledge. Karl Baedeker, Ostfildern.
Grashof, Katherina, Johannes Kochems, Uwe Klann 2015: Situation und Charakterisierung kleiner Akteure bei Ausschreibungen fr
Windenergie an Land. Studie fr die Fachagentur Wind an Land e.V., Berlin.
Gross, C. 2007: Community Perspectives of Wind Energy in Australia: The Application of a Justice and Community Fairness Framework to
Increase Social Acceptance. Energy Policy, 35(5), p. 2727-2736.
Hauser, Eva, Johannes Kochems 2014: Ausschreibungsmodelle fr Wind Onshore: Erfahrungen im Ausland. Kurzstudie im Auftrag des
Bundesverbands Windenergie e.V. Saarbrcken.
Hauser, Eva, Andreas Weber, Alexander Zipp, Uwe Leprich 2014: Bewertung von Ausschreibungsverfahren als Finanzierungsmodell fr
Anlagen erneuerbarer Energienutzung. Kurzstudie im Auftrag des Bundesverband Erneuerbare Energie e.V. Saarbrcken.
Hauser, Eva, Jan Hildebrand, Barbara Drschel, Uwe Klann, Sascha Heib, Katherina Grashof 2015: Nutzeneffekte von Brgerenergie.
Eine wissenschaftliche Qualifizierung und Quantifizierung der Nutzeneffekte der Brgerenergie und ihrer mglichen Bedeutung fr die
Energiewende. Berlin
Hauser, Eva, Johannes Kochems, Katherina Grashof (forthcoming): Tendering schemes for wind onshore. International Experiences (working
title). Saarbrcken.
Hildebrand, Jan, Irina Rau und Petra Schweizer-Ries 2012: Die Bedeutung dezentraler Beteiligungsprozesse fr die Akzeptanz des Ausbaus
erneuerbarer Energien. Eine umweltpsychologische Betrachtung. Information zur Raumentwicklung (IzR), 9/2012, p. 491-502.
Institut fr kologische Wirtschaftsforschung (IW) 2011: Wertschpfung und Beschftigung durch Erneuerbare Energien in MecklenburgVorpommern 2010 und 2030, Kurzstudie im Auftrag der SPD-Landtagsfraktion Mecklenburg-Vorpommern. Schwerin.
Leuphana/trend:research 2013: Definition und Marktanalyse von Brgerenergie in Deutschland.
Maruyama, Y., M. Nishikido, & T. Iida 2007: The rise of community wind power in Japan: Enhanced acceptance through social innovation.
Energy Policy, 35, p. 27612769.
Monopolkommission (Monopolies Commission) 2013: Sondergutachten 65. Energie 2013: Wettbewerb in Zeiten der Energiewende.
Sondergutachten der Monopolkommission gem 62 Abs. 1 EnWG, Bonn.
Moser, P. 2013: Sozialwissenschaftlicher Forschungsbedarf in der Energiewende Erfahrungen aus 100-%-EE-Regionen. In P. Schweizer-Ries;

20

ISSUE 1 June 2016

Community Wind Special

Reference

J. Hildebrand & I. Rau (Hrsg.): Klimaschutz & Energienachhaltigkeit: Die Energiewende als sozialwissenschaftliche Herausforderung, p. 135148. Saarbrcken: Universaar.
Musall, F. D., O. Kuik 2011: Local acceptance of renewable energy A case study from southeast Germany. Energy Policy, 39, p. 32523260.
Renn, O. 2014: Gesellschaftliche Akzeptanz fr die bevorstehenden Phasen der Energiewende. In FVEE Themen: Forschung fr die
Energiewende Phasenbergange aktiv gestalten; Beitrge zur FVEE-Jahrestagung 2014, p. 75-78.
Sander, A. 2011: From Decide, Announce, Defend to Announce, Discuss, Decide? Suggestions on how to Improve Acceptance and Legitimacy
for Germanys 380kV Grid Extension. IIIEE Theses 2011:30, Lund University.
Universitt Kassel et al. 2011: Strategische Einbindung regenerativer Energien in regionale Energiekonzepte. Wertschpfung auf regionaler
Ebene. BMVBS Online-Publikationen, Nr. 18/2011. Berlin.
Walker, G.; Devine-Wright, P.; Hunter, S.; High, H.; Evans, B. 2010: Trust and community: Exploring the meanings, contexts and dynamics of
community renewable energy. Journal of Energy Policy, 38, p. 26552663.
Wallraven, Guido 2016: Energiewende? Knnen wir! Presentation at the 5th Energy Congress of the Institute for FutureEnergySystems (IZES)
gGmbH in Saarbrcken, 02.03.2016.
Wste, A.; Schmuck, P.; Eigner-Thiel, S.; Ruppert, H.; Karpenstein-Machan, M. & Sauer, B. 2011: Gesellschaftliche Akzeptanz von kommunalen
Bioenergieprojekten im lndlichen Raum am Beispiel potenzieller Bioenergiedrfer im Landkreis Gttingen. Umweltpsychologie 15(2), p.
135-151.

Photo: Yang Gang

21

Community Wind Special

ISSUE 1 June 2016

Community Power for


Common Good

By Preben Maegaard and Leire Gorroo

ENERGY
DEMOCRACY

in a democratic way to ensure


local community support and the

of renewable energies.
Onshore wind energy is the

maximisation of local benefits. This

cheapest renewable source for

article presents a refocus of the current

electricity production (after large

fast. In 2013 worldwide 58% of new

energy system in favour of citizens,

hydro) today. Onshore wind turbines

power generation capacity came

local communities and environmental

already play an essential role in the

from the renewables. Technological

protection. To achieve a quantum

cost optimization of the transition

development and support strategies

leap in renewable energy, which is

to a low carbon energy system. They

have advanced promising solutions.

imperative to solve climate change,

are often cheaper than fossil-fuel

However, to continue sustained growth

we need renewable energy ownership

technologies for electricity production

it is imperative to develop community-

models that favour local communities.

and in many locations no longer

Renewable energy is growing

focused organisational and support


structures. Profit-driven development
can be a workable procedure in the
pioneering stage of implementation,
but for achieving a long-lasting
renewable energy society, local

require subsidies to ensure investment

LOWER
ELECTRICITY
PRICES
Electricity prices ought to be

residents must be the foundational

affordable for consumers from

focus of renewable energy projects.

households to industry. In principle,

Communities that live nearby

fluctuating renewable energy sources

wind turbines and other renewable

such as wind power can lead to lower

energy projects too often have been

spot market prices. However, cost

left apart and their needs and interests

reductions not always are reflected in

have been neglected to maximise the

consumers bills as renewable energy

benefits of investors sometimes

development often is supported by

even when projects are part of local

subsidies that are ultimately paid by

cooperatives leading to strong local

all consumers. Broad international

opposition to renewable energy.

agreement for a world fully powered

It is time to start developing


all renewable energy projects

22

by renewable energy remains stalled


due to the artificially created high cost

profitability.
Furthermore, the costs of
electricity produced by onshore
wind turbines can be lowered
even further through community
ownership approaches that can
require lower land payments than
private investments. Other profitable
community examples are emerging
where different renewable energy
sources are combined with storage
solutions to address resource
variability while ensuring reliability
and diverse valuable energy services
at low-costs (e.g. wind combined with
local combined heat and power, CHP,
for district heating in Denmark).

Community Wind Special

ISSUE 1 June 2016

COMMUNITY
DEVELOPMENT
Often when we speak about
renewable energy projects supporting
local development we refer to the
creation of new jobs (usually related to
the construction and maintenance of
the installations) or, less frequently, to
economic benefits for shareholders of

Denmark shows (for details see case).

the past but recent projects have been

Strong local support of community

fully accepted by the same residents

ownership models is essential for the

that opposed them even though the

growth of renewable energy to its full

new wind projects use bigger machines

potential worldwide.

on the same location and have similar


technical characteristics to those wind

LOCAL
ACCEPTANCE
Most people realise the liabilities

projects that were originally rejected.


The key to addressing opposition
and increasing community support is
local ownership of wind turbines and

local cooperatives. However, renewable

of climate change are vast and

other renewable energy initiatives

energy projects can do much more

therefore are supportive of renewable

using a development approach that

for the development of the local

energy solutions including wind

clearly shares the benefits of projects

communities where they are installed.

power which in Denmark enjoys the

throughout the local community.

Practical experience shows

general support of more than 80% of

that wind projects can support local

the population. However, at the local

by different ownership models,

development when appropriate

level a growing movement refuses to

which lead to vastly different results.

ownership models are applied.

have large wind turbines near their

Currently various definitions of

Community ownership models reinvest

homes. In many areas around the

community ownership are being

the income generated from selling

world local protests (in Denmark we

used around the world. In this article,

renewable energy to satisfy the needs

find more 200 local protest groups) are

community ownership is focused

of local communities e.g. through

preventing the development of many

on the objective of using the income

improvement of infrastructure,

onshore wind power projects, which

generated by renewable energy

creation of new jobs, energy

ensures that fossil fuels continue to be

projects to benefit the residents

renovation of public buildings, support

combusted allowing climate change to

of local communities, i.e. the main

to local associations, to address limited

grow or wind power being installed

objective is achieving the common

energy access, to provide support for

offshore at kWh costs more than

good. In contrast, the main objective

local organisations, for environmental

double compared to onshore wind

of commercial ownership models is to

projects, local public e-transport,

energy.

generate private profit.

etc. In short, to provide benefits

Many local residents opposing

Wind projects can be developed

According to those definitions,

not just for a few investors but for

wind turbines cite impacts in their

for-profit companies including

everybody in the community so they

surrounding environment as a

local cooperatives (guilds) are

can all see renewable energy as a local

reason to stop renewable energy

categorised as commercial owners,

improvement.

projects. However, evidence shows

whereas non-profit local cooperatives,

that arguments based in aesthetics,

municipal companies and community

capita income and high rates of exodus

noise and other local impacts are not

foundations are considered community

to urban areas, can significantly

the main reasons for opposition. For

owners. It is important to highlight

benefit from the new income stream

example in Hvide Sande (Denmark),

that renewables for individual use are

of renewable energies, as the case of

wind turbine projects faced strong

not considered as community owned.

the pioneering Hvide Sande project in

local opposition and were cancelled in

Rural regions, with the lowest per

23

Community Wind Special

ISSUE 1 June 2016

Community ownership of wind power projects reduces electricity prices for consumers, supports local
development, promotes energy democracy and increases local acceptance.
Onshore wind power is one of the cheapest renewable resources for electricity production. Hampering its
commission may only lead to higher costs in the transition to low carbon energy systems.
Excess power has to be handled by integration of electricity, heat/cooling, gas and transportation systems in
order to reduce the merit-order-effect and the use of fuels that can be stored and emit greenhouse gasses.
Even if offshore is often considered to be a plausible solution to local protests against wind power, substituting
onshore capacity by offshore capacity harms consumers economy as offshore is 2-3 times more expensive.
Achieving local acceptance is of extreme relevance for consumers and environment.
Distribution of benefits of wind power projects through local development is a must to achieve local acceptance.
National and local governments should support community ownership for onshore wind projects.
Authorities should designate areas for wind turbines with community ownership and determine requirements
of community benefits for commercial wind projects.

24

Community Wind Special

ISSUE 1 June 2016

Community ownership models

are not valid anymore in Denmark

price of those resources. Opponents

focus on enhancing the common

and in many other countries. First of

to community ownership argue

good and result in firm support for

all, wind power integration is being

that land costs should be related to

renewable energy development. In

slowed-down as a consequence

potentially alternative uses of land

Scandinavia, the prevailing form of

of growing local opposition to

thereby justifying their rationale

ownership for district heating, water

commercially-owned wind turbines.

using speculation principles. However,

supply, public transportation and the

Secondly, reducing electricity prices

in many rural areas the only other

public power distribution satisfies

is against the interest of any land

alternative land use to wind turbines is

the common good principle. However,

owner and commercial investor, who

growing crops.

until now, wind turbines have been

will advocate for higher subsidies.

primarily owned by commercial

In addition, competition among

ownership models, community

investors as they are owned in other

commercial developers is counter-

ownership models have been proven

countries.

In contrast to commercial

productive when it comes to the

to enjoy the full support of local

Faster and less costly integration

acquisition of scarce resources

residents. Community ownership

of wind power in the system has been

such as land for wind projects in

models can achieve lower financial

the main argument to promote the

highly populated Western European

costs by avoiding costly litigation and

participation of commercial investors.

countries as demand-offer market

ensuring lower land costs for project

rules will inevitably increase the

development.

Nevertheless, those arguments

In the coming years in Denmark 1,000 wind turbines of 3-4 MW will be installed onshore. With 15 GWh from each and 2
cents/kWh ACCEPT BONUS, 30 low income, windy municipalities can share 300 million EUR annually for common good
purposes. The local communities will welcome the wind turbines and society will save huge subsidies compared to offshore
generated power.

Hvide Sande (White Sands)


Winds of Development a case from real life
THE TOWN

Therefore, revitalization of rural areas


through new or improved income

Hvide Sande is a small fishing

generation, business opportunities and

town on the beach of the North Sea

job creation is indispensable to reverse

with approximately 3,000 inhabitants

the exodus and to ensure the economic

located in Ringkbing-Skjern, a

sustainability of those areas. Hvide

municipality in rural Denmark.

Sandes economy is mainly reliant on

Danish rural areas have the lowest

the harbour (owned and run by the

per capita income and have for

municipality) and on tourism.

many years languished due to the


exodus of its people to urban areas,

THE HARBOUR PROJECT

where most services, infrastructure


and job offers, especially for highly
qualified personnel, are concentrated.

Fishing vessels have become


bigger and it was crucial to deepen

the harbour area, to adapt the piers to


allow bigger ships to come in, which

25

Community Wind Special

ISSUE 1 June 2016

forced the community to upgrade

3MW wind turbines to be placed on the

requested to start-up a foundation

its facilities. The expansion and

beach on land owned by the harbour.

in Denmark. Financing required to

improvements aimed at attracting

Due to its proximity, the economy of

cover 100% of the investment related

higher amounts of ships to the harbour

every second or third household in

to the 80% owned by the community

and also provide diversification

Hvide Sande relies on Vestas, either

foundation, which was obtained from

possibilities for the transport of goods

because one or more family members

two local banks Jyske Bank (50%)

and increased service possibilities

work directly at Vestas or as Vestas

and Ringkjbing Landbobank (50%)

for the North Sea offshore industry. It

subcontractors. Therefore, the choice

with the wind turbines as the only

was estimated that the project could

of wind turbine manufacturer was

bank guarantee.

create 70 new jobs. In addition, a lively

clear.

harbour is also a good attraction for


tourists.
The required investment to

The rent of the land for the wind

As it was specified in its by-laws,


the foundation has the purpose of

turbines would generate an income of

running three wind turbines at Hvide

0.64 million EUR/year over 30 years

Sande North Harbour on an area

implement the harbour project was

for the harbour, i.e. 19.33 million EUR.

belonging to Hvide Sande Harbour and

19.5 million EUR, of which 4.8 would

But wind turbines could contribute

thereby support the development of

be funded by the Danish government

more than just supporting Vestas and

Hvide Sande harbour and the tourism

and 5.3 by EU programs. To obtain a

the land rent. Different ownership

in Ringkbing/Skjern municipality by

bank loan to cover the investment,

alternatives were analysed and, once

production of renewable energy. After

it was necessary to present a project

having compared their capability to

having paid back the loan (expected

that was economically feasible, which

support the harbour and tourism

pay-back period: 6 years after project

entailed the need for an additional

in Hvide Sande, it was decided to

commission), the foundation will

income source. Wind turbines brought

establish a community foundation,

generate 0.67-1.34 million EUR/year

the needed financial solution.

similar to a trust fund. The foundation

(i.e. 16 - 32 million EUR) exclusively to

would own 80% of the wind turbine

be used for the purpose defined in the

project and, following the Danish

by-laws.

THE WIND TURBINE PROJECT

regulation, 20% of the shares were


Hvide Sande, like the west coast

The project was first introduced

offered to local residents. The cost of

to the harbour company (which is also

of Denmark, has rich wind resources

each share was 309 EUR and they were

municipally-owned) in August 2009.

and onshore wind turbines are a safe

all sold out in two days. The project

The wind turbines were commissioned

and profitable investment in Denmark.

counted with the support of the entire

in December 2011. Since March 2012,

Integration of electricity, heat, gas

community and, as a result, many local

each of the three wind turbines has

and transportation systems enjoy

people were willing to get involved

produced an average of 16 GWh/year.

political support that will ensure

in it more than 400 people became

At the end, the harbour got the loan

proper economy for technologies

shareholders.

needed to implement the harbour

using fluctuating sources for electricity

The community foundation

project thanks to the stable annual

production in the future. Hence,

owning 80% of the wind energy

income from the wind turbines. The

onshore wind turbine projects provide

project was established by the local

initial results of the harbour project

the necessary source of income for

Tourism Association (Holmsland Klit

are already visible as the activity in the

community projects.

Turistforening) in collaboration with

harbour has incremented significantly

local industry trade associations, labor

due to the increase in ships going

local initiators spearheaded a wind

unions and utilities. The Tourism

there. This has led to creation of many

project consisting of three Vestas V112

Association raised the 40,300 EUR

jobs and increased tourism to the town

Within that context, a group of

26

Community Wind Special

ISSUE 1 June 2016

even more new jobs are expected for

was and is different from other

the future.

wind projects. It was designed and


developed with the objective of local

INHABITANTS PERCEPTION OF

economic stability, local development

THEIR WIND PROJECT

and self-sufficiency. This is why


the three wind turbines that can

Due to the good wind conditions

be seen from almost everywhere in

at the west coast of Denmark,

Hvide Sande are not just accepted,

private investors had tried earlier to

but they are warmly welcomed by

implement projects in Hvide Sande.

local inhabitants. The previously

However, those projects were stopped

experienced NIMBY effect (Not In My

because of local protests. In contrast,

Backyard) turned into POOL (Please On

the project described above achieved

Our Land) and local inhabitants today

broad local acceptance because it

feel proud of their three turbines.

NEW COMMUNITY WIND POWER ECONOMY


With bigger, higher and more efficient wind turbines as we have seen in recent years, fixed remuneration prices
like FIT over time lead to capitalisation costs of land that can be exorbitant. It was never anticipated by the pioneers
and promoters of the FIT, but it has become an onerous reality. FIT was certainly the best solution at the introductory
level, however, the negative effects have become too visible and it is time to point at other mechanisms. The most
effective solution is to re-tool policies so wind power becomes focused on enhancing the common good/public use.
Providing monetary compensation to land owners is standard practice in Scandinavia when appointing areas for
common good such as transmission towers, waterworks, roads, railways, airports or harbours and it leads to projects
with lower overall costs.
In this report it is argued that the same focus should be applied to wind turbines which can be built for enhancing
the common good land and other compensation payments should be similar to those provided for transmission
towers. That policy focus would result in a significant reduction in electricity generation costs and, as a result,
subsidies for onshore wind power could be lowered and higher income for local development would be ensured as a
result of community ownership.
It is proposed here that Municipalities should be responsible for designating areas for wind projects with a
common good objective. In addition, it is important to mention that legislation should specify that expropriated areas
can only be used by community projects not for private profit by commercial owners.

Nordic Folkecenter for Renewable Energy is an independent, non-profit organisation located in Denmark which has worked for a
world with 100% renewable energy supply since it was founded in 1983. Aware of the relevance of energy democracy for the transition
to a sustainable energy system, the organisation has put significant effort to citizen empowerment for decades. Currently Folkecenter
is focusing on the dissemination of the concept of community power as defined and described in this article , nationally and
internationally through specific projects, participation in conferences and workshops and publication of articles and reports that show
the results of the ongoing research. Folkecenter aims at making all the available knowledge regarding community power (its economy,
its potential to support local communities, existing challenges, various ownership models, legal frameworks, etc.) accessible for all
stakeholders that could use this information i.e. from local communities to national actors.

27

Community Wind Special

ISSUE 1 June 2016

Community Power in-line with


100% Renewable Energy the
Next Challenge:
Industry Integrated Productive
RE Use -B100 Initiative
By Gadi Hareli, Enter-Tech Cleantech Solutions

Ever since the second industrial


revolution, energy availability has been

limited access to electrical power.


Following the foundation of

intermittency of RE.
By combining electricity intensive

a prerequisite and the driving force of

the REN Alliance by the World Wind

industries in the local communities

economical growth.

Energy Association (WWEA), the

electrification process, the B100

International Solar Energy Society

concept is implemented in order to

energy is becoming a consensus, and

(ISES), International Hydropower

be 100% renewable, aim Beyond 100%

as the share of renewables in the

Association (IHA), the International

while allocating appropriate uses to the

energy mix increases, the challenges of

Geothermal Association(IGA) and the

so called "OVERLOAD" when matching

compensating the need for dispatchable

World Bio-energy Association (WBA)

demand and generation.

generation or energy storage with

the Global 100% Renewable Energy

renewables while keeping financial

network and campaign (GO100RE)

layer in the portfolio of energy storage

viability of electricity production, along

was launched by international

solutions, bridging the gap towards

with the need of developing countries

organizations including the WWEA,

financially viable solution and yet

for increased electrification.

World Future Council (WFC), ISES and

another pillar and enabler of 100% RE.

As the target of 100% renewable

The I2RE-B100 Productive Energy

WBA amongst others.

The B100 concept is considered a

The I2RE-B100 initiative started

Use initiative takes renewable energy

The Industry Integrated

working on green economy solutions

a step further, towards the integration

Productive RE use- B100 initiative,

for developing countries, by looking

of industries and renewable energy

is aiming at practically achieving

at the available local resources in a

resources, for the benefit of people,

prosperity and industrial growth based

holistic approach, where local available

water & food security, increased GDP,

on power intensive industries which

energy sources are investigated, in

employment and prosperity, targeting

could benefit from the abundance of

parallel to local needs, starting with

mainly remote communities which had

intermittent electricity, in line with the

water security and desalination,

28

Community Wind Special

ISSUE 1 June 2016

increased food production such

as well as expertise within the local

ongoing operational capabilities to

as highly intensive aqua-culture

human communities.

operate and maintain the infrastructure

and agriculture, followed by other

The I2RE-B100 initiative

industrial uses, depending on local

advocates the establishment of local

resources- both natural resources

know-how for local development of

which is built for the benefit of the local


population.
Preliminary projects are already
initiated, targeting regions and
communities mainly in west Africa, in
cooperation with the Mali Folk Center,
involving relevant industries, research
institutes and RE solution providers.
A training program has been designed
and is to be launched soon, addressing
from the levels of decision makers
to the financing and implementation
phase, to allow a viable sustainable
approach for local O&M of the
I2RE-B100 methodology.
We are in need of more partners
to join this initiative, which comprises
multiple stake-holders, including
research, education, training,
equipment and service providers from
the different relevant industries to
take part in this exciting community
sustainable growth for prosperity.
For further information please
contact Gadi Hareli GadHareli@gmail.
com

Photo: Li Ling

29

Community Wind Special

ISSUE 1 June 2016

Yansa:
Community Power as Social
Development Driver

By Sergio Oceransky, Company Director, Yansa Community Interest Company

limitations, but can only use the profits

twofold: the social development of

renewable energy developer created in

to advance their social mission. Their

the communities where its projects

2008 to support community projects in

most important legal features are:

take place, and the promotion of

Yansa is a not-for-profit

the Global South, as a means to foster

an asset lock that prevents

social development and lower the cost

mission drift and prohibits the use of

of the energy transition. It is composed

assets other than for social objectives,

of two entities:
Yansa Community Interest
Company Ltd. (Yansa CIC) is the social

the Community Interest

community renewable energy in other


communities.
Yansa CIC operates outside the
UK through a domestic subsidiary in

Test that ensures the protection of

the form of a LLC, as CICs only exist in

communities interests,

the UK. As part of the assets owned by

oversight from the Community

Yansa CIC, subsidiaries are subjected

enterprise of the group, active in all

Interest Company Regulator, which can

to the rules that apply to all CIC

aspects of community green energy

audit and intervene in case of breach

assets: asset lock, community interest

development: technical studies,

of the asset lock or the community

mandate, and oversight from the CIC

permitting, contract negotiation,

interest test.

Regulator.

financing and, at later stages,


construction oversight, project
management, and project refinancing.

The asset lock is very

The Yansa Foundation is a tax-

comprehensive, encompassing

exempt non-profit. The Foundation

aspects such as salary levels in order

works with communities on the

to avoid abuse or indirect dividend

creation of accountable governance

Company (CIC) Limited by Guarantee,

distribution. CICs can only transform

structures and practices for community

registered in May 2008 in the UK, the

themselves into, or donate their

renewable energy projects, and

only country where this legal form

assets at dissolution to, other asset-

provides training and capacity building.

exists. CICs Limited by Guarantee

locked entities (CICs or Charities) with

The Foundations training mandate

do not have shareholders; they are

equivalent social objectives. These

encompasses technical and governance

owned by their social objectives and

features offer protection to the social

aspects, as well as best practices in

financed through loans. Being a special

mission, an important consideration

the social development areas that are

kind of Limited Companies, CICs can

for socially responsible investors.

relevant to the priorities articulated by

Yansa CIC is a Community Interest

undertake for-profit activities without

30

Yansa CIC's social objectives are

the community.

Community Wind Special

ISSUE 1 June 2016

Yansa CIC is financed through

and will enhance the risk profile of

concessional loans from individuals,

projects vis--vis creditors. Loans

foundations and socially responsible

will be underwritten by a small

investors. The Yansa Foundation is

percentage of the profit generated by

financed through grants.

all community projects, simultaneously

The Ixtepec
Community Wind
Farm
Ixtepec is an indigenous

protecting lenders and communities

community of 30,000 inhabitants

whose projects face temporary cash

located in the Isthmus of Tehuantepec,

is in the development phase. Financing

flow problems. Once a project finishes

in the state of Oaxaca, Mexico. This

for this phase comes from social

repaying all loans, a third of its net

region is endowed with one of the

investors and foundations. Once the

balance (contributions to the guarantee

worlds strongest and steadiest

project reaches financial closure, the

instrument minus withdrawals) will

wind regimes. Almost all the land is

construction phase will be financed

go to the community, a third will be

communally owned by indigenous

through loans from investors interested

invested in new projects at different

communities, whose land rights are

in safe investments that balance social

communities, and a third will remain in

enshrined in and protected by the

and financial returns, and bank loans.

the instrument, to help reduce risk and

Mexican Constitution; however, these

Project assets will serve as collateral

increase the flow of investment into

collective rights are often disregarded

for the loans.

community renewable energy.

by the State or Federal government,

Yansas first utility-scale project

who tend to follow a top-down


When the project becomes

The model is designed to

approach in relation to communities

operational, 50% of the net profit

attract low-cost institutional capital

that often results in destitution.

(power sales minus debt service

to community-based utility-scale

Communities have few means to

and operating expenses) will be

renewable energy projects, on the

defend their rights other than protests

devoted to social value creation at the

basis of reduced social and financial

and blockades, given their inadequate

community. This 50% of net profits

risks, in order to make a participatory

access to legal defense. At a local level,

will be administered by community

and socially just energy transition a

some communities have democratic

organizations; Yansa role will be to

tangible and realistic prospect.

governance and accountability


structures, and a strong practice of

monitor inclusive, democratic and


accountable community governance.

In contrast with commercial

defending their land and collective

developers, Yansa does not initiate

rights. Other communities suffer from

or actively promote projects; it only

a system of political-social domination

remaining 50% of the net profits,

provides access to information about

based on the leadership of a strongman

devoting them to:

Yansa will administer the

the community renewable energy

(caudillo), who is not subject to

Development costs of new

model, and supports initiatives that

effective accountability mechanisms.

community renewable energy projects.

originate within communities. This

The latter situation often results in lack

represents a key criterion to distinguish

of effective control by communities

genuine community projects.

of their collective territories and

Training community members


locally and in other communities that

resources.

want to undertake projects.


Contributing to a mutual
guarantee instrument.

Utility-scale community projects


in the Global South face substantial

In 2003, the National Renewable

challenges, some internal and other

Energy Laboratory of the United States

external. These will be illustrated by

Department of Energy published

represents a mechanism of mutual

Yansas first utility-scale project, the

the Wind Energy Resource Atlas of

support between community projects,

Ixtepec community wind farm.

Oaxaca, with detailed information

The guarantee instrument

31

Community Wind Special

ISSUE 1 June 2016

on the highly competitive wind of

officials started assigning territorial

government cannot assign rights over

the Isthmus of Tehuantepec. This

concessions (similar to oil or gas

indigenous land to third parties. The

publication strengthened the interest of

exploration blocks) in the region to

initial concessions were granted in

(primarily foreign) project developers

wind power developers and energy

areas belonging to communities with

and energy companies in the region.

companies. The granting of concessions

weak collective governance structures,

Soon thereafter, State government

represented a breach of the law, as the

and in some areas where collective


land had been turned into private land.
After obtaining a concession,
companies approached communities
to sign long-term land lease contracts
in very unequal terms, given
communities lack of bargaining power.
The few community representatives
who refused to sign came under
pressure from State officials. Through
this process, wind power companies
acquired rights over tens of thousands
of hectares. Unsurprisingly, as a
consequence of this unequal process,
wind farm construction in the region
was riddled with conflict from the very

Characterization of the wind resource in the Isthmus, taken from NREL (2003)

start.
Probably due to its strong
collective governance structures, the
community of Ixtepec was not included
in the distribution of concessions.
Ixtepec community members
observed the dire consequences of
top-down wind power development
in neighboring communities, and
decided to avert a similar fate for their
community. A community assembly
in 2008 decided not to lease any land
to external developers, and to instead
seek to undertake a communitybased wind farm project. Community
members contacted Yansa in 2009, and
the cooperation was formalized soon

Initial concessions given by the State Government to wind developers

thereafter by a community assembly,


launching a process to jointly develop a
102 MW community wind farm project.

32

Community Wind Special

ISSUE 1 June 2016

Yansa CIC and community

transparency and accountability

obtain the PPA), plus audited accounts

representatives defined an appropriate

mechanisms to ensure that decisions

from the investors to prove their

site for the wind farm based on social

democratically taken by community

financial wherewithal. CFE rejected

and environmental factors, undertook

members are implemented and no

all these requests, probably as a result

all the technical studies (site-specific

funds are misused.

of influence enjoyed by transnational

wind studies, environmental and


archaeological surveys) required for a

power companies that operate in


In 2012 the project was

Mexico, which had voiced their

project of this nature, and negotiated

essentially ready; it only lacked a long-

opposition to Yansas community wind

an Engineering, Procurement and

term Power Purchase Agreement (PPA)

model.

Construction contract with a world-

which, in Mexico, is granted through a

class company. At the same time,

competitive public tenders. A group of

the Yansa Foundation and a group

social investors expressed interest in

community of Ixtepec initiated legal

of community members facilitated

financing the project through soft loans,

action against these discriminatory

community consultations and

should the project win the tender and

barriers, with Yansas support. Two

participation, including the creation of a

obtain the PPA. The community and

lawsuits were filed in October 2012,

Womens Forum and a Youth Forum, in

Yansa embarked in the tender process,

and are close to a resolution. A ruling in

order to design appropriate structures

but Mexicos national utility (Comisin

favor of Ixtepec would set an important

and processes for accountable,

Nacional de Electricidad, CFE)

precedent for future community

measurable and democratic community

erected illegal barriers to inhibit the

projects.

management of the wind farms

projects participation. Amongst other

proceeds. We researched the situation

conditions, CFE demanded audited

and priorities of the community,

accounts proving that the community


1

Faced with CFEs rejection, the

As the case of Ixtepec illustrates,


communities attempting to undertake

including the production of a socio-

had possessed working capital in

utility-scale renewable energy

demographic community profile, an

excess of US$ 50 million during the

generation in areas with extraordinary

in-depth study on the situation and

three previous financial years, a

energy resource face important

priorities of farmers, and a broader

condition that no Latin American

challenges. An inclusive, participatory,

consultation on the communitys social

indigenous community can fulfill. It

socially responsible and low-risk

development priorities. A community

also demanded a US$ 7 million letter

business transition model represents

social development trust was designed

of credit from the community to allow

a serious threat to powerful energy

with input from all community sectors

it to bid in the tender. Such prohibitive

companies. If communities successfully

to administer proceedings for social

conditions made the tender accessible

undertake utility-scale projects, the

development, and specific funds

only to large energy corporations. We

role of private energy corporations

were designed for investments in

argued that communities could not

will be thrown into question. Despite

sustainable agriculture, a pensions

be subjected to the same conditions

the opposition of energy corporations,

fund for indigenous farmers, education,

as large corporations, and requested

Yansa will continue working in

local enterprise development, health,

the possibility of replacing the US$

partnership with indigenous and other

etc. The trust governance structure

7 Mio letter of credit with legally

vulnerable communities for a complete

was designed in a bottom-up manner,

binding contracts signed by investors

democratization of the renewable

with local assemblies being the highest

(committing sufficient financing for

energy sector.

decision-making body and statutory

the community project in case it would

1 Working capital is formed by liquid or current assets such as cash or short-term investments. It does not include fixed assets such as land or buildings.

33

Community Wind Special

ISSUE 1 June 2016

Start of A New Network for


Community Power Projects in North
Rhine-Westphalia
Over the last decades

The Platform Community Power and

has been set up which comprises a

community power projects have

Energy Cooperatives addresses both

collection of best practice examples,

become very important players in

organizers of existing community

a database with basic information

the implementation of the German

power projects and founders of new

and contact details of many existing

Energiewende, especially regarding

initiatives in North Rhine-Westphalia

projects in NRW, general background

the construction of renewable energy

(NRW). Its main goals are on the one

information and news: see www.

plants. However, over the last few

hand to facilitate the exchange of

energieagentur.nrw/buergerenergie.

years changes in the legal frameworks

know-how and experience between

and funding conditions have made

community power projects. On

the realization of community projects

the other hand it aims to initiate

more and more challenging. The

cooperations amongst community

increasing complexity of business

projects or with other market players.

behalf of the state government of North

models for renewable energy projects

Membership is open to all and free of

Rhine-Westphalia as an operative

is hitting community projects

charge.

platform with broad expertise in the

particularly hard, as they are often

The services of the Platform

The EnergyAgency.NRW
The Energy Agency.NRWworks on

energy sector: from energy research,

run by volunteers with limited time

Community Power and Energy

technical development, demonstration

capacities.

Cooperatives include consulting

projects, market introduction and

services for community power start-

energy consultancy to vocational

Energy Agency.NRW has launched

ups, several annual events like

training. Many of its activities focus

a new network to help community

conferences, workshops, training

on energy efficiency and climate

power projects in North Rhine-

courses and regular regional meetings

protection.

Westphalia face these challenges.

for members. Moreover, a website

On January 21st, 2016, the

Contact person: Julian Schnbeck, EnergieAgentur.NRW, Rostr. 92, 40476 Dsseldorf, Tel. 0211 86642 293, schoenbeck@
energieagentur.nrw

34

ISSUE 1 June 2016

Community Wind Special

35

Community Wind Special

ISSUE 1 June 2016

Community Energy
in the UK, 2016:
The Beginning of the End?
By Jelte Harnmeijer1,2,3

Through the introduction of legislation that stands to exacerbate an already front-loaded


risk profile onto renewables developments, community renewables currently faces an EU-wide
existential threat. In many ways, the period following the election of a majority Conservative
UK Government in Westminster in the spring of 2015 provides a useful picture of what this
future EU-wide landscape might look like for community renewables.

A Cursory CrossSection Through


the UK Community
Renewables Sector

Since early beginnings in the 1990s, the segment


has been growing by about 30% annually in raw
capacity terms, which is roughly three times
faster than the commercial market segment
over the same period. Community electricity
has vastly dominated heat in terms of project
numbers, capacity and investment. Deployment

A detailed overview of the community


renewables market segment is provided by

hydro, with a short-lived boom of solar PV over

Harnmeijer et al. (2013) and Slee & Harnmeijer

the past 5 years that as for all UK renewable

(forthcoming; preprints available on request).

electricity technologies was curtailed by the

1 James Hutton Institute


2 Scene Consulting, http://scene.community
3 University of Edinburgh

36

has been dominated by onshore wind and

Community Wind Special

ISSUE 1 June 2016

Figure 1: Map of community


energy projects in the UK.
Source: Energy Archipelago (March
2016), http://energyarchipelago.
com. See Harnmeijer et al. (2012)
for information about this global
dataset.

unexpectedly aggressive curtailment of support

UK community renewables stands apart

mechanisms in the second half of 2015. To date,

from analogous market segments elsewhere

there are no community marine renewable

by virtue of an unusually rich diversity of

developments in the UK.

legal structures and business models. These


show strong regional variation, however, with

As might be expected, the scale of

energy cooperatives dominating in England,

development varies enormously, from 10s of

Northern Ireland and Wales; and community

kW-scale hydro- and solar projects to the 9 MW

trusts dominating in Scotland. The past decade

Point & Sandwick community wind farm in the

or so also saw an exceptionally varied upsurge

Outer Hebrides. As ambitions have grown and

in community joint ventures with commercial

policymakers and practisioners have learned

developers, wholly concentrated in Scotland.

by doing, the average size of community

In the European context, there exists an

developments has steadily risen over time.

unusually small role for local authorities in the

37

Community Wind Special

ISSUE 1 June 2016

Table 1: Overview of changes


to main UK renewable electricity
support mechanisms, 2015.

Table 2: Changes in UK Feed-in


Tariff (FiT) regime for dominant
renewables technologies, 2015.

UK segment, with few exceptions. This goes a

support renewable electricity generation by

long way to explaining the dearth of community

independent power producers in the UK: the

renewable heat projects.

Renewables Obligation (RO), the Feed-InTariff (FiT) and the Contract for Difference

Policy Shocks
Three key support mechanisms currently

38

(CfD). A fourth mechanism, the Renewable


Heat Incentive (RHI), applies to renewable
heat. Between them, these mutually exclusive
mechanisms span the breadth of major

Community Wind Special

ISSUE 1 June 2016

renewable energy technology types and


capacity classes.
Beginning on the 18th of June, 2015, a
sequence of policy reforms were introduced
that, as an ensemble, signalled an intention
to phase out support schemes specific to
renewable electricity across the UK (Tables
1 and 2). The general trend is now towards
technologically agnostic auction-based systems
that add further risk to what was already
the riskiest phase of project development,
particularly for communities (Harnmeijer et al.,
2015): the development stage before financial
close is achieved.
Another major blow to UK community
renewables came through tax reform. Tax
benefits, such as the Enterprise Investment
Scheme (EIS) and the Seed Enterprise
Investment Scheme (SEIS), have played a key
role in energising community investment into
renewables. They have incentivised market
access to non-specialist investors, effectively
lowering hurdle-rates (= cheaper cost of
capital) and giving projects access to finance at
rates more favourable than available through
commercial finance providers. Both were
removed on the 1st of November 2015.

A Bleak Outlook
Except, perhaps, in
Scotland
As is currently the case in Brussels,
a simplistic (and disappointingly underinformed) narrative of subsidy-free
renewables has overtaken present discourse at
Westminster, with no mainstream discussion of
the long-term opportunity cost: missing out on
the important positive externalities associated
with community renewables, which stands to
be impacted disproportionately.
As far as the UK goes, all eyes are now on
Scotland, where a devolved administration is
presently hard at work preparing an eagerly
awaited new Energy Strategy (anticipated in the
Autumn 2016) that is widely expected to place
community energy centre-stage. In Scotland,
community renewables enjoys cross-party
support, together with general recognition for
benefits not currently internalized through
the market. There is every reason to believe,
therefore, that Scotland will become even more
than a bastion of UK community renewables
than it already is.

Reference

J. Harnmeijer, A. Harnmeijer, V. Bhopal, S. Robinson, J. Msika, D. Roberts, E. Phimister (2015) The comparative
costs of community- and commercial renewables energy in Scotland, ClimateXChange / Scottish Government.
B. Slee, J. Harnmeijer (in press) Scottish Community Energy In: G. Wood, K. Baker (editors) A Critical Review
of Scottish Renewable and Low Carbon Energy Policy: Implications of the Independence Debate, Pelgrave
Macmillan.
C. Haggett, M. Aitken, D. Rudolph, B. van Veelen, J. Harnmeijer, M. Markantoni (2014) Supporting Community
Investment in Commercial Energy Schemes, ClimateXChange / Scottish Government.
C. Haggett, E. Creamer, J. Harnmeijer, M. Parsons, E. Bomberg (2013) Community Energy in Scotland: the Social
Factors for Success, ClimateXChange / Scottish Government.
J. Harnmeijer, M. Parsons, C. Julian (2013) The Community Renewables Economy, RenewableUK / ResPublica.
J. Harnmeijer, A. Harnmeijer, C. Loyd (2012) Towards a global database of community-led renewable energy
development, Regions, 287, 16-18.

39

Community Wind Special

ISSUE 1 June 2016

Community Power
in Southern Europe:
from a Wind-workers Cooperative
to a Wind Community Project
By Josep Puig i Boix, PhD engineer
Eurosolar Spain

Wind power in
Spain
Since 2012, when the FIT policy was

40

Background
Wind projects started being developed
in Spain when a wind-workers cooperative
was created in Barcelona. In 1981, Ecotcnia

supressed, almost no new wind development

S. Coop. was created and it developed a 15 kW,

has been made in Spain. Now Spain has almost

12 m. diameter, wind turbine (Figure 2). It was

23,000 MW of wind capacity (Figure 1). All this

commissioned in March 1983 (Figure 3). Since

capacity is owned by private companies (Table

then, Ecotcnia has developed successful wind

1). There isnt any wind community project.

turbines until 3 MW capacity (Figure 4).

Community Wind Special

ISSUE 1 June 2016

It took almost 20 years (from the early

wind turbine came together to commemorate

eighties until 1998) to install the first 1,000 MW

the event (Figure-5), a new proposal was

wind capacity. Since then the progression was

suggested: why not to start a community wind

impressive: 5,000 MW (2002), 10,000 MW (2005),

project in order to make possible the social

15,000 (2007), more than 20,000 MW (2010).

appropriation of wind technology?

The main Spanish wind manufactures were


Acciona Wind, Ecotcnia S. Coop. and Gamesa.

Eurosolar Spain took the idea and


launched a pioneering initiative in our country:
Living from the air of the sky. The project
involves the installation of a wind turbine

The first wind


community project

of shared ownership among citizens who


voluntarily provide the money needed to realize
the project. Eurosolar Spain started publicizing
it with the help of Barcelona Local Energy Group

In 2009, when people involved in the first

- BarnaGEL. After the story was published in

41

Community Wind Special

ISSUE 1 June 2016

the two main newspapers, almost 50 people

the air of the skys project is to install a wind

wrote Eurosolar asking for participation in the

turbine of shared ownership, which can

ownership.

generate clean and green electricity, making


possible the solidarity between people living in

At the end of 2009, 4 people created

urban areas and those living in rural areas. An

a small company, Eolpop S.L. (Figure 6) to

additional objective is to enable people and/or

undertake the project: to promote the project, to

families to demonstrate that the energy they use

find a suitable location (good wind, easy access

in their everyday life is green and clean, build in

and proximity to the medium voltage grid), to

the location where the turbine will be installed.

commission the project, to sign an agreement


with the owners of the land, to sign an

The cost of installation and commissioning

agreement with the Town Council, to choose the

is covered with the participation of the people,

model of wind turbine and to sign the MOU and

both individuals and/or families living in urban

the purchase agreement with the wind-turbine

or rural, and non for profit organizations. The

manufacturer, to supervise the installation and

project has the support of more than 20 local

to commission the wind turbine, and managing

and international NGOs.

sales contracts relating to energy, maintenance


of the machine and insurance. Also Eolpop

The site chosen is within the municipality

S.L. is responsible for issuing participatory

of Pujalt (Anoia, Catalunya), for the good wind

accounts that enable normal people to share the

conditions, easy access and accessibility to

ownership of the turbine.

the medium voltage network. The chosen


wind turbine model is a wind turbine of 122

The main objective of the Living from

m. diameter, 2.7 MW rated power, a wind


machine specially designed for low wind areas
(Figure-7).
On 10 March 2009 it started the process
to formalize the pre-registrations, which
are stored in a database in strict order of
arrival. Pre-registration is confirmed when
people has made an initial contribution of
100 (individuals), 250 (family) or 500
(institutions). This amount will be deducted at
the time of formalizing the capital contribution.
The minimum investment to participate
in the project will be required to generate
1,000 kWh/year of clean and green electricity.
From this small investment, you can make
higher investments, always in amounts that are
integer multiples of the minimum investment.
Investment, that each person and/or family

42

Community Wind Special

ISSUE 1 June 2016

Energy use for a family

Necessary investment to generate the amount of energy with


the wind-turbine

Electricity
3.100 kWh (862 kg CO2)
Heat
7.850 kWh (1.565 kg CO2)
Transport
10.000 kWh (2.527 kg CO2)
TOTAL
20.950 kWh (4.954 kg CO2)

2,169
5,493
6,998
14,660

wants to make, can be calculated from their

them to zero. And so, during the lifetime of the

current level of use of electricity, heat and

turbine (over 20 years!).

energy for motorized travel.


On March 2012, Eolpop S.L. started the
A family that has a total domestic energy

process asking for the necessary permits to

use of 20,950 kWh/year, Which investment

the Catalan administration. On January 2016

should meet their energy needs for electricity,

the official journals of the Catalan and Spanish

heating and transport?

governments made public the announcement of


the project.

This means that if this family would


invest 14,660 in the shared ownership of

At the end of 2015 more than 250 people

wind turbine, the family can say that she has

were registered to participate in the project,

generated all the energy she needs from the

with a commitment of almost 1,200,000. Also

equivalent in electricity produced by the wind

the first green electricity cooperative (Som

turbine. Therefore, the family must also offset

Energia) will participate in the project with a

her greenhouse gases emissions, reducing

50% of total cost contribution.

43

Community Wind Special

ISSUE 1 June 2016

The Energy Union


The Energy Union
The European Commission's
Framework Strategy for a Resilient
Energy Union with a Forward-Looking
Climate Change Policy was released on

Energy security, solidarity and


trust;
A fully integrated European
energy market;
Energy efficiency contributing to
moderation of demand;

25th February 2015 and has created a

Decarbonising the economy, and

new momentum to give EU consumers

Research, Innovation and

- households and businesses - secure,

Competitiveness

a fundamental transformation of
Europe's energy system.

Being number one


in renewables
Renewables will play an

The Energy Union strategy has

increasingly important role in

five mutually-reinforcing and closely

combating climate change by

interrelated dimensions designed

producing low-carbon energy. Since

to bring greater energy security,

energy and transport account for 80%

sustainability and competitiveness:

of EU emissions, climate and energy

1 COM(2015) 293 final

44

is why President Juncker made the


pledge for the Energy Union to become
"world number one" in renewables.
This leadership articulates around five
key areas:
Empowering citizens at the core
of the Energy Union
Boosting energy security by

sustainable, competitive and affordable


energy. Achieving this goal will require

policies must go hand in hand. That

generating locally
Leading in renewable
technologies and system integration
Rolling-out renewables inside
the EU
Maintaining and creating
sustainable jobs and added value
The existing Renewable Energy

ISSUE 1 June 2016

Community Wind Special

Directive forms an integral part of the


EU energy policy. Its implementation
is assessed on a biennial basis. In June
2015, the latest Renewable Energy
Progress Report1 concluded that
the majority of Member States are
currently on track to meeting their
2020 renewables target, but need to
pursue their effort as the trajectory is
becoming steeper.
By end 2016, the European
Commission will present a revised
Renewable Energy Directive and a
bioenergy sustainability policy for
2030. Their aim is to ensure a costeffective, sustainable and actual
delivery of a RES share of at least 27%
in the EU in 2030. It will also pave the

45

Community Wind Special

ISSUE 1 June 2016

way for increasingly important role of


self-consumption and the potential of
renewable energy in decarbonisation
of the heating and cooling sector.

Renewables: facts
and figures
In one year, renewable energy
helped to reduce CO2 emissions in
the EU by the equivalent of the annual
emissions of Spain2. Thanks to rising
amounts of renewables, the EU has
also cut its demand for fossil fuels
by 98 Mtoe compared to 2005 the
equivalent to Polands total energy
leader in wind turbine manufacturing7.

consumption3. Today, renewables


4

renewable energy production, often

power over 27% of the EUs electricity


and account for 16% of the overall
5

energy share .
But renewables are about more

The growing trend of decentralized

Renewable Energy
Communities in
the energy union

community owned, can play a key


role in facilitating the cost-effective
deployment of renewables and
increasing local acceptance. On the top

The Energy Union will have

of it, renewable energy communities

our economy and fuel our recovery.

citizens at its core, where citizens take

can also play a key role in the energy

Over the past five years, the renewable

ownership of the energy transition,

system by:

energy sector has provided almost half

benefit from new technologies to

a million new jobs and now generates

reduce their bills, participate actively

than just cutting emissions. They power

around 140 billion euros in turnover

which is a perfect illustration of

in the market, and where vulnerable


consumers are protected.

energy targets
Empowering consumers
Bringing added value to the local

the fact that it is possible to combine


growth and jobs creation with the fight

Contributing to renewable

However, if renewable energy

economy

against climate change. That makes the

benefits from increasing interest and a

Creating local employment

EU a major player on the international

generally positive opinion at EU-level,

Reducing prices for the end-

market and home to successful clean

some renewable energy projects are

energy companies, such as the world

facing strong opposition at local level.

consumer

2 European Environment Agency, Renewable energy in Europe -approximated recent growth and knock-on effects, 2015. -326Mt in 2012 compared with 2005
baseline
3 European Environment Agency, Renewable energy in Europe - approximated recent growth and knock-on effects, 2015. and Eurostat, 2012 gross inland
consumption
4 ESTAT shares 2014
5 ESTAT shares 2014
6 Eurobserv'ER
7 REN21, Renewables Global Status Report 2014. In terms of global market shares

46

ISSUE 1 June 2016

Community Wind Special

47

Community Wind Special

48

ISSUE 1 June 2016

ISSUE 1 June 2016

Community Wind Special

49

Geared for
a Better Future
Community Wind Special

Visit us at Booth 5527

Professional in Wind Gearbox and


Transmission System Solutions
NGC is one of the global leaders in wind gearbox development and production with
high performance product which can provide complete main gearboxes, yaw and
pitch drive product for wind turbine. NGC high reliability product is adapted to
various working conditions, low temperature, low wind speed, high altitude,
offshore and so on. So far, tens of thousands of NGC gearboxes have been running
well all over the world, contributing to continuous power for green energy.

www.NGCtransmission.com
50

ISSUE 1 June 2016

Extensive knowledge of our customers needs, acquired during our 21 years in the business,
endorse the versatility of the Gamesa 2.0-2.5 MW platform and its unmatched track record, with
18 GW installed worldwide. This platform, which boasts average eet availability of over 98%,
guarantees capital-light, low-maintenance power production.
That makes us the most flexible and trustworthy ally in global wind technology solutions.

Gamesa_official /

Gamesaofficialsite

You might also like