Thomas Bauwens

What roles for energy cooperatives in the diffusion of distributed generation technologies

Whereas a centralized model of electricity infrastructure is still dominant today, many scholars advocate the diffusion of distributed generation technologies, implying geographically dispersed and small-scale generation units located close to consumers. However, there exist various barriers of different natures to a large-scale penetration of these technologies. In this article, we focus on the behavioral and psychological ones, emphasizing the roles that citizens have to play in this issue. More specifically, we explore a specific way of involving citizens in such diffusion, namely energy cooperatives. After presenting the driving forces of the emergence of cooperative firms in the energy sector, we examine the assets of the cooperative ownership structure from the perspectives of behavioral economics and social psychology. Our analysis enables us to build a model of how cooperatives may enhance consumer engagement in the diffusion of distributed generation technologies. This provides a basic theoretical framework for future empirical research.

SOCIAL CAPITAL AND MUTUAL VERSUS PUBLIC BENEFIT: THE CASE OF RENEWABLE ENERGY COOPERATIVES

One potential major role of social economy organizations in sustainability transitions is the creation and mobilization of social capital. Yet, the social economy gathers very distinct organizational models which may be associated with different types and levels of social capital. Accordingly, the objective of this article is to explore whether, and if so how, the type and level of social capital differ between mutual benefit organizations – which essentially seek to meet their members’ needs – and public benefit organizations – which seek to enhance the well-being of a broader community or the society as a whole. The study draws on an econometric analysis of different forms of social capital in two renewable energy cooperatives which are located in Flanders but have clearly divergent orientations toward mutual versus public benefit. The results show that, as compared with an orientation toward public benefit, an orientation toward mutual benefit is associated with lower social identification with the cooperative and weaker ties between members. Our study explores the underlying explanatory mechanisms behind these relationships. Its findings contribute to understanding the potential roles played by cooperatives in sustainability transitions.

Toward a polycentric low-carbon transition: the roles of community-based energy initiatives in enhancing the resilience of energy systems

An understanding of the resilience of energy systems is critical in order to tackle forthcoming challenges. This chapter proposes that the polycentric governance perspective, developed by Vincent and Elinor Ostrom, may be highly relevant in formulating policies to enhance the resilience of future energy systems. Polycentric governance systems involve the coexistence of many self-organized centers of decision-making at multiple levels that are formally independent of each other, but operate under an overarching set of rules. Given this polycentric approach, this chapter studies the roles of community-based energy initiatives and, in particular, of renewable energy cooperatives, in enhancing the institutional resilience of energy systems. In this perspective, the chapter identifies three major socio-institutional obstacles, which undermine this resilience capacity: the collective action problem arising from the diffusion of sustainable energy technologies and practices, the lack of public trust in established energy actors and the existence of strong vested interests in favor of the status quo. Then, it shows why the development of community-based energy initiatives and renewable energy cooperatives may offer effective responses to these obstacles, relying on many empirical illustrations. More specifically, it is argued that community-based energy initiatives present institutional features encouraging the activation of social norms and a high trust capital, therefore enabling them to offer effective solutions to avoid free riding and enhance trust in energy institutions and organizations. The creation of federated polycentric structures may also offer a partial response to the existence of vested interests in favor of the status quo. Finally, some recommendations for policymakers are derived from this analysis.