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Where Politics and Markets Meet TOP STORY Germany’s Little Energy Co-ops Make a Big Splash FOR PREMIUM NEW IN OUR FILES MEMBERS EERMONTHLY | JANUARY 2013 NATIONAL MARKETS 6 A complete monthly survey of our new publications ONLY FUTURE OF FOSSIL FUELS 7 NUCLEAR ENERGY 8 MARKET DYNAMICS AND TRADE 9 EU ENERGY POLICY 10 RENEWABLE ENERGY 11 NEW ADVENTURES IN ENERGY LAND By Karel Beckman - editor-in-chief One nice thing about an online medium is “Adventures in the European gas market” and For this month’s top story, we have selected And what, you may wonder, were 2012’s that you can follow exactly how many people Rudolf ten Hoedt’s fascinating account from a different article, namely Paul Hockenos’ best-read stories on EER? I will come back to visit your website and what articles they read. Tokyo of “Japan’s Energy Adventures” post- report on the growing number of energy that in our newsletter on 7 January, but I can This can be encouraging sometimes, but also Fukushima. co-operatives in Germany and their give away the number one: Robin Mills’ article disappointing. Sometimes as editor you want increasing impact on energy policy. It’s an Cheer up: the world has plenty of oil. Another to shout out to your readers: you should read They had the bad luck of being published the important story, I believe, because it may “Great Adventure in Energy Land”. We hope this article, it is really good! day before the Christmas holidays started, well indicate a trend for Europe. Energy to offer you many more in 2013. when I am sure people were very busy cooperatives have been around for some There were two articles in December that wrapping a lot of things up. So if you are one time, but they are rapidly becoming bigger so far have not gotten the attention that I of those who missed these stories because and more professionalised. This could have think they deserve, namely Alex Forbes’s you did not have enough time, now is your major consequences for incumbent energy seminal article on what you may call his chance to give them another try. suppliers. ▲ ▲ ▲ EER Monthly European Energy Review – January 2013 NATIONAL MARKETS When Germany’s environment minister Peter Altmaier addressed the first-ever congress of Germany’s Little energy cooperatives in Berlin on November 19, he knew he was looking out over one of the Energiewende’s core constituencies. “If all Germans were as engaged as you,” he said, “my job would be a lot easier. But we’re not that far yet,” he joked. Locally based co-ops Energy Co-ops Make have become hugely popular in recent years, their numbers tripling in size since 2010 to over 600. Every second day a new clean energy co-op is formed in Germany. Moreover, a Big Splash this tradition-imbued model is now entering a new phase, becoming professionalised as they grow in size, enter into onshore wind power production, and find adherents in big cities, including Berlin. From Germany’s capital, Paul Hockenos reports. | By Paul Hockenos, Berlin The astounding success of Germany's Energiewende. "If people on the ground energy co-ops, environment minister are involved like they are in the co-ops, Peter Altmaier said to more than 400 they are more likely to accept it," he co-op representatives in Berlin, is why said, referring to local opposition to the he wants to extend the model beyond planned high-tension cable system. renewable energy to sectors such as transportation, heating, energy efficiency, Energy co-operatives are a means for and transmission grids. The co-operative German citizens to engage directly in model (Genossenschaft) in general and the Energiewende. The Genossenschaft the modern-day clean energy co-ops model – dating from the 19th century – specifically, Altmaier said, inspired his is unique in that it provides a vehicle for idea of involving citizens directly in the locally organized people who don't own financing and planning of the country's property or have large capital to invest. grid expansion and modernization, a The co-op enables them to bundle their central and controversial element of the assets together with other like-minded 2 ▲ ▲ ▲ EER Monthly European Energy Review – January 2013 “It’s an empowerment from below, something novel in than the involvement of so many people. while the average total investment for a public facilities, and regional banks. This They're taking matters into their own member is €3,172. way roof space can be used – for example the energy industry” hands rather than waiting for politicians of municipal buildings like kindergartens to act. It's an empowerment from below, The financial crisis, says Graichen, has and schools – that private individuals something novel in the energy industry." contributed to the recent proliferation would otherwise not have access to." of co-ops. "A co-op is a good option for Potpourri someone to invest a small amount of Suits and ties Germany's 600 clean energy coops with savings rather than putting it in a bank A look around the participants of the people and invest in a commercial 80,000 active members are a potpourri of where interest rates are negligible. The energy co-op congress ("Energiewende – business operation that in some way self-organized enterprises, with anywhere whole financial system itself looks so dezentral und genossenschaftlich"), and serves the public good. Initial investment from five to more than 4000 members unstable at the moment. With a co-op you their name badges gives some indication in an energy co-op requires as little as 50 investing in PV, hydro, bioenergy, local can get a return of 4 or 5% and be involved of how disparate and heterogeneous euros. Another unique characteristic: the heating (Nahwärme), onshore wind, in something hands-on and close to your the DIY projects are. Some of the 400 minimum investment gives a member or power-heat cogeneration. A study own home." participants wore suits and ties, while one vote in the decision-making process; conducted earlier this year by the others sported thick beards and blue this vote carries the same weight as that German Cooperative and Raiffeisen Currently, the lion's share of the jeans. The mixed bag came largely from of someone who has invested much more. Confederation, or DGRV, an umbrella investments of energy co-ops goes into villages, towns, and small cities across The co-op's members are involved in organization for Germany's cooperatives, PV installations, the least expensive and the republic: from the Jagst Valley in the decision-making, planning, organization, found that in 2011 co-ops invested a total technologically basic of the clean energy Swabian Alb, Franconia in eastern-most and sometimes even the day-to-day of 260 million euros in energy-related possibilities. The average total investment Bavaria, the Mecklenburg lake region, the operation of the enterprise. projects. (At least 800 million euros since for an enterprise is €1.2 million and the Frisian islands off the North Sea coast, to 2009.) The average energy co-op has 160 average generation capacity is 440 kWp. the Holstein border with Denmark, just "What's so important about the co-ops members; two-thirds of the energy co-ops "Photovoltaic co-ops enable people to name a few. and their recent boom," says Patrick have between 50 and 200 members. More with limited financial contributions to Graichen of the Berlin-based NGO Agora than 90% of the members are private participate in the generation of renewable Moreover, co-op members span the Energiewende, "is less the quantity of persons (and 3.5% farmers, 4% private energy in their locality," explains the political spectrum. The Berlin congress, energy they generate, which up to now is sector players, 1.5% municipal actors.) The DGRV report. "The enterprises are often for example, was sponsored by the office of just one percent of the total of renewables, average initial investment is 714 euros, initiated together with municipal actors, a Christian democratic MP from Bavaria, 3 ▲ ▲ ▲ EER Monthly European Energy Review – January 2013 Some of the 400 participants wore suits and ties, while others Stromrebellen and have production facilities in different many of the PV co-ops find it challenging One co-op that went through this process parts of the country. This minimizes the to make the jump. "There's an investment sported thick beards and years ago is the Elektrizitätswerke risk," she says, something the small pv of tens of thousands of euros before one blue jeans Schönau. Perhaps the most famous clean co-ops don't have to worry about. But, even knows whether the project will be energy co-op in Germany, it is located underscores Sladek, the one-person, approved by the locality," he says. on the southern rim of the Black Forest one-vote principle of the Genossenschaft near the Swiss border. The Schönau and the co-op's decentralized structures Berlin's transmission grid Stromrebellen, as Germany has come to haven't changed. Minister Altmaier's idea to bring co-op-like Josef Göppel. "Co-operatives support know them, bought the local grid from structures and engagement to Germany's the notion of personal responsibility," the incumbent utility in the 1990s. It The addition of wind turbines to an expansion of Germany's transmission explains Göppel. "They strengthen the began offering non-nuclear renewable energy co-op's portfolio is the next grid is not entirely new. The first move middle classes and keep economic power energy – mostly hydropower -- to 1,700 logical step, explains Andreas Wieg of EW Schönau made was to buy the local in the regions.

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