Renewable energy co-operatives: allies of regional and local authorities

Brussels 10 10 2013

organised by Energy Cities

October 2013

Cooperatives: could they be supported by local authorities and the Structural Funds? (14h00-14h30) Presentation: 15 min Discussion with audience): 15 min - What is Ecopower? - How does it work (organization)? - Who are the involved partners? - What projects have been supported so far? - What are the results achieved? - What impact is expected on local jobs creation? - Are local or regional authorities involved as cooperative members? - Could local and regional authorities in Belgium and in the EU support local cooperatives? - Could structural and cohesion funds co-finance such cooperatives? Do you have any existing example?

CCLD Vlaanderen houding? Elena /Jessica

Who is who? Dirk Vansintjan- ° 1959, Halle, Flanders, Belgium

- master linguistics KULeuven, 1982

- active in renewable energy sector since 1985

- co-founder of:

- REScoop.eu in 2011: federation of groups and cooperatives of

citizens for renewable energy in Europe

- REScoop.be in 2010: federation of groups and cooperatives of

citizens for renewable energy in Belgium

- ODE-Vlaanderen in 1996: federation renewable energy in

Flanders/Belgium

- Ecopower in 1991: renewable energy cooperative (10 people around

our kitchen table)

Ecopower: organisation

- REScoop: renewable energy sources cooperative following

- 7 international ICA principles

(http://ica.coop/en/what-co-op/co-operative-identity-values-principles)

- Charter of REScoop.eu (www.rescoop.eu)

- democratic governance

- one person/one vote

- general assembly is highest decision body

- board of administration/open board meetings

- internal meetings of project engineers/supply personel

- own production facilities/distribution networks/supply

- open structure

Examples of involvement of local authorities: format 1: City of Eeklo

● Urbanistic analysis using

participatory process

● Council

● Advice committees

● citizens

● Result

● 3 zones for

windturbines

● 2 WT's on city property

City of Eeklo: 1999: public tender

● importance to

participation of citizens

● choice of Ecopower

● 100% participation

City of Eeklo: 2001 royal volunteer

● 2 x Enercon 1,8 MW et 1 x

Enercon 600 kW

● Inauguration June 01 et

January 02

● Excellent collaboration

Enercon - Ecopower - city -

landowner- citizens –

electricity grid

● From 30 (1999) to ca. 700

members (beginning of 2003)

City of Eeklo: 2001 building phase

● New public tender 2 x Enercon

2,3 MW

● Ecopower won tender

● Fixed amount for city

● Ecopower partner of city

● Engineer

● District heating

● PV

● ...

City of Eeklo: 2011

Examples of involvement of local authorities: format 2: Municipality of Dour ● Extension of existing windfarm (total of 14 WTG of 2 MW)

● Council demanded participation

– 24,9% municipality

– Rest: citizens through REScoop Emissions Zero

● Result

● 2 windturbines owned by

'project coop'

Context of Crises

In the context of crises:

- financial crisis

- economical crisis/system crisis

- environmental crisis/energy crisis

- social crisis

Energy is one of the major issues of the coming decades (2000€/pp/y).

We are facing an energy transition from

- fossil/nuclear fuels towards renewable energy

- centralised to decentralised production (right time/place/amount)

- spoiling energy to rational energy use

Opportunity for citizens

Citizens and communities have now the opportunity to take up an active role in their future energy production, distribution and supply

They will do so anyway as:

- consumer

- taxpayer

- money-saver

Renewable Energy Sources Cooperatives are the ideal enterprise for citizens to take an active role in the energy transition. Also because RES are common goods.

Citizens have the choice...

REScoop.eu

Federation of groups and cooperatives of citizens for Renewable Energy

in Europe

- Practical application of the 7 cooperative principles

- Supporting local communities

- Clean, affordable energy for all

- Citizens: role in production, distribution and supply

- Sharing of experience

- Mutual practical and organisational support

- Creation of cooperative investment fund?

- Creation of pan-European sustainable energy balancing agent?

- Advocacy local, regional, national, European and international

authorities

REScoop 20-20-20 IEE projectProject partners support groups and cooperatives of citizens to go

together for renewable energy

Over 2000 REScoops in Europe?

Project summary REScoop 20-20-20

● renewable energy cooperatives

● federations of REScoops and coops

● local energy agencies

● academical partners

● sustainability agencies

join forces for more RES-projects,

more REScoops, more citizens

involved in Europe, reaching its

20-20-20 targets

WP2Best practices &

Mentors

WP3REScoop

business models

WP4Investment

schemes

WP5New RES projects

WP6Leveraging

WP7 Communication

WP8 Dissemination Activities

WP1 Project management

Common understanding success and failure factors

Common understanding

(focus on financial schemes)

Group of Mentors

Models tobe applied

Toolbox for wide application

Investment schemes to be applied

Financial adviceand network

- Belgium: legislation/measures about participation of citizens through REScoops

- Walloon region: 25/25/50 %

- Province of Eastern Flanders: 10/10/80%

- Municipalities: Eeklo, Gent, Asse, Beersel, Bilzen,...

- Scotland:

- 500 MW community and locally owned RES target

- development risk insurance or guarantee (financial instrument)

- Denmark: 20% participation in each windproject

- South Tirol (nothern Italy):

- tax exemption for not for profit REScoops

- these REScoops don't have to unbundle (result: lower prices)

- EU: proposal to allow clustering of REScoop projects in order to be able to use

the tools of the EIB (financial instrument)

Could local and regional authorities in Belgium and in the EU support local cooperatives? YES!

1. Start up of REScoops is often problematic

- money for developing project is big risk (100/5)

- 20-30% own capital for getting bank finance

- 10% of 3 million euro for ordering windturbine e.g.

Solution?

- Role for European federation REScoop.eu and EIB?

- Role for regions: development risk insurance?

2. Quite a lot of established REScoops have money but no projects

Solution?

- Revolving cooperative fund? Guaranteed by cooperative banks (due

diligence)

3. authorities retreat (crisis), cooperatives take place in different sectors:

Solution? access of coops to Cohesion and structural funds?

Cofinancing could activate savings of citizens through co-ops

Could structural and cohesion funds co-finance such cooperatives?

- Not to my knowledge, but our inventory is far from complete

- Three European established REScoops

- De Windvogel (Netherlands)

- Somenergia (Catalonia)

- BeauVent (Belgium)

co-finance PV projects of starting Portuguese REScoop BoaEnergia

- Ecopower co-financed 13 WTG of 2MW of starting Walloon REScoops

Do you have any existing example?

More information on REScoop 20-20-20

For more information or contact have a look at

www.rescoop.eu

www.facebook.com/pages/REScoopeu/198522540221034

or subscribe to our news alert

Partners

www.ecopower.be/index.php/english

www.energy4all.co.uk/

www.middelgrunden.dk/middelgrunden/?q=en/node/35

REScoop 20-20-20 project partners support groups and

cooperatives of citizens for renewable energy.

Contact us for support! www.rescoop.eu

Thank you