Cooperatives shape the energy transition socially

A study conducted by the Öko-Institut on behalf of Elektrizitätswerke Schönau (EWS) shows how community energy cooperatives can make the energy and heating transition more socially just.

Citizens' energy cooperatives can make a contribution to a socially balanced energy and heating transition. This is the conclusion of the study "Citizens' energy cooperatives for a socially just energy and heating transition: Options for action and obstacles", which was carried out by the "Öko-Institut" in Darmstadt on behalf of the cooperative Elektrizitätswerke Schönau (EWS).

According to the authors, the energy transition in Germany is making technical and economic progress. At the same time, social aspects have not yet been sufficiently taken into account. Rising energy prices and the high cost of living are affecting low-income households in particular. Up to now, it has mainly been owners with the financial leeway to invest in renewable energy.

The study makes it clear that tenants and low-income households often have no access to solar systems, heat pumps or affordable renewable energy. According to the Ökoinstitut, there is a risk that these groups will remain tied to fossil fuels in the long term, while others are already benefiting from more climate-friendly and, in the long term, more cost-effective solutions.

Cooperatives enable participation

According to the authors of the study, community energy cooperatives have specific starting points for narrowing this gap. These include their democratic form of organization, their regional roots and a self-image that is not exclusively geared towards maximizing profits. "As a citizen-owned energy cooperative, it is important to us that the energy transition is not only decentralized and democratic, but also socially just," said Armin Komenda, member of the EWS Board of Directors.

A key finding of the study is the importance of direct supply models. According to the study, tenant electricity projects in which locally generated solar power is supplied directly to residents can reduce electricity costs and enable participation. However, this requires a suitable legal and organizational framework.

Broadening membership

Access to membership in cooperatives also plays an important role. High minimum shares are a hurdle for many people. Possible solutions identified by the study include low entry thresholds, sponsorship or gift shares and solidarity funds. As an example, the Öko-Institut cites the Belgian energy cooperative Ecopower, which, together with a local authority, has given lower-income households access to membership.

In addition to financial aspects, the study emphasizes the importance of information, advice and co-determination. European practical examples show that low-threshold energy advice and workshops are effective instruments. With around 220,000 members nationwide, energy cooperatives also have the socio-political weight to bring social aspects more strongly into energy policy debates.

Removing obstacles

The study concludes that the social potential of community energy cooperatives has not yet been fully exploited. The reasons for this are not so much a lack of commitment as structural and organizational obstacles. In particular, smaller cooperatives organized on a voluntary basis often do not have sufficient capacity to implement additional social services.

The Ökoinstitut therefore recommends closer cooperation with municipalities, social associations and energy agencies that have access to vulnerable target groups. The study also advises low-threshold participation models and solidarity-based financing approaches such as voluntary levies or targeted investments in projects with social components.

Improving the political framework

The study also sees politicians as having a responsibility. According to the authors, improved framework conditions for energy sharing, more incentives for participation and measures for grid and system efficiency are needed. In addition, access to debt capital for cooperative projects should be made easier, for example through a nationwide guarantee program. According to the Ökoinstitut, funding instruments such as the federal subsidy for efficient heating networks should be continued.
The study confirms the EWS's own course. According to Komenda, it is involved in the development of local heating networks in rural areas and supports social projects via the Sonnencent funding program.

The study on community energy companies is available to download as a PDF.

Author: Susanne Harmsen