Master's in Environmental and Energy Management Thesis
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University of Twente Master’s in Environmental and Energy Management Thesis Renewable Energy Communities as a tool for the Democratization of the Local Energy Transition in the Province of Fryslân, the Netherlands First supervisor: Dr. Gül Özerol Second supervisor: Dr. Frans Coenen Javier G. Chávez Hernández August 2021, The Netherlands Abstract The Paris agreement makes an urgent call to limit the temperature increase of the earth below 1.5-2°C respecting pre-industrial levels, combat climate change and pursue a sustainable low carbon future. Much importance has been given to the energy transition in the Netherlands. The National Climate Agreement, which was proposed as a follow up of the Paris Agreement, aims to reduce greenhouse gas emissions 49% by 2030 compared to levels in 1990 and achieve as other European countries, climate neutrality by 2050. The energy transition is the pathway to achieve these goals at European level, and therefore, the European Union has highlighted the importance of Renewable Energy Communities (RECs), as they mean a tool to advance the energy transition through the democratization of the energy sector. The Clean Energy for all Europeans Package (CEP) establishes the Renewable Energy Directive (RED) as the framework through which RECs are defined, framed, and receive a legal character at the European level. Citizens are considered drivers of the energy transition; therefore, the research objective comprises the assessment of democratic qualities in RECs and their contribution to the democratization of the local energy transition by carrying an in-depth study of three energy cooperatives in the province of Fryslân: Duurzaam Akkrum Nes, Grieneko and Wijnjewoude Energie Neutraal. The research uses the definition given by the RED, the principles of the International Cooperative Alliance and three main democratic qualities: participation, acceptance and right of members, which are based on an in-depth literature review, to assess democracy in RECs. In this research data was collected from documents and through interviews. The data was codified and analysed to investigate the contribution of RECs to the energy transition. The research concludes that although RECs present democratic qualities in their establishment and operation phases, different degrees of democracy prevail on each of the energy cooperatives. RECs contribute as well to the democratization of the local energy transition, however there are certain barriers and drivers that need to be considered, if the local energy transition is to be advanced. 2 Table of Contents 1. Introduction ................................................................................................................................... 8 1.1. Background .............................................................................................................................. 8 1.2. Problem Statement ................................................................................................................. 10 1.3. Research Objective ................................................................................................................. 11 1.4. Research Questions ................................................................................................................ 12 1.5. Thesis Outline ........................................................................................................................ 12 2. Research Design .......................................................................................................................... 13 2.1. Research Framework .............................................................................................................. 13 2.2. Research Strategy ................................................................................................................... 15 2.2.1 Case Selection .................................................................................................................. 15 2.2.2 Research Boundaries ........................................................................................................ 16 2.2.3 Data Sources and Data Collection Methods ..................................................................... 16 2.3. Data Analysis ......................................................................................................................... 19 2.3.1. Analytical Framework ..................................................................................................... 19 2.3.2. Validation and Data Analysis .......................................................................................... 19 2.4. Ethical Statement ................................................................................................................... 20 3. Theoretical Framework .............................................................................................................. 21 3.1. Definitions of RECs ............................................................................................................... 21 3.2. Factors and Motivations that affect RECs .............................................................................. 23 3.3. Energy Democracy and the Energy Transition ...................................................................... 25 3.4. Principles Governing Cooperatives ........................................................................................ 27 3.5. Democratic Qualities in RECs ............................................................................................... 28 3.5.1. Citizen Participation in RECs.......................................................................................... 29 3.5.2. Community Acceptance of RECs .................................................................................... 29 3.5.3. Rights of Members in RECs ............................................................................................ 31 4. Case Study Results ...................................................................................................................... 35 4.1. Duurzaam Akkrum Nes ....................................................................................................... 36 4.1.1. Participation .................................................................................................................... 38 4.1.2. Acceptance ...................................................................................................................... 39 4.1.3. Rights of Members .......................................................................................................... 39 4.2. Grieneko ................................................................................................................................ 40 4.2.1. Participation .................................................................................................................... 41 3 4.2.2. Acceptance ...................................................................................................................... 42 4.2.3. Rights of Members .......................................................................................................... 43 4.3. Wijnjewoude Energie Neutraal ........................................................................................... 44 4.3.1. Participation .................................................................................................................... 45 4.3.2. Acceptance ...................................................................................................................... 46 4.3.3. Rights of Members .......................................................................................................... 47 4.4 Comparative Analysis of the Three Cases .......................................................................... 47 5. Conclusions and Recommendations .......................................................................................... 55 5.1. Conclusions ........................................................................................................................... 55 5.2. Recommendations ................................................................................................................ 57 References ........................................................................................................................................ 58 Appendix A. Interview Design ....................................................................................................... 62 Appendix B. Informed Consent Form ........................................................................................... 64 4 List of Visuals Table 1. Data sources and data collection methods………………….…………………... 17 Table 2. Overview of interviewees……………………………………………………….. 18 Table 3. Relation of ICA principles to the democratic qualities………………………….. 33 Figure 1. Schematic presentation of the Research Framework…………………………… 14 Figure 2. The triangle of social acceptance of renewable energy innovation…….………. 31 Figure 3. A framework for Institutional Analysis…………………..…………………….. 32 Map 1. The Selected RECs in the Netherlands…………………………………………… 35 Map 2. The selected RECs in Fryslân, the Netherlands…………………………………... 36 5 List of Abbreviations and Acronyms CEP Clean Energy for all Europeans Package DAN Duurzaam Akkrum Nes EU European Union IRENA International Renewable Energy Agency NECPs National energy and climate plans NIMBY Not in my backyard REC Renewable Energy Community/