A comparative analysis: Legal framework – from words to deeds 1 A comparative analysis: Legal framework – from words to deeds. Final version 2. February 2019. Activity / Deliverable Description Status Activity T2.1 Review of policies and legal framework affecting local public authorities and residents in 12/2017 their energy choices. Deliverable T2.1.1 A comparative analysis: Legal framework – from words to deeds. What benefits and what 02/2018 (version 1) hinders energy efficiency and the use of local renewable energy resources. Version 2 05/2018 Final version 02/2019 Lead author: Robert Fischer, Luleå University of Technology (LTU) Contributing authors and institutions in alphabetical order: Aisling Nic Aoidh Údarás na Gaeltachta Benjamin Dannemann Agentur für Erneuerbare Energien (AEE) Carl-Erik Grip Luleå University of Technology (LTU) Clara Good University of Tromsø (UiT) Erik Elfgren Luleå University of Technology (LTU) Fionnán Ó hOgáin Údarás na Gaeltachta Henna Ruuska Centria University of Applied Sciences Lasse Jansson Centria University of Applied Sciences Mikael Risberg Luleå University of Technology (LTU) Orla Nic Suibhne Western Development Commission (WDC) Pauline Leonard Western Development Commission (WDC) Pentti Etelämäki Lohtaja energy co-operative Ryotaro Kajimura Agentur für Erneuerbare Energien (AEE) Silva Herrmann Jokkmokk municipality Ulrich Müller Agentur für Erneuerbare Energien (AEE) Wolfgang Mehl Jokkmokk municipality 2 Contents 1 Introduction and Background ..................... 4 5.6 Municipal level ...........................................32 1.1 Clarification of terms ..................................4 5.7 Barriers, challenges, recommendations .....33 1.2 Community Energy ....................................4 5.8 Community energy in Norway 1.3 Local value creation ...................................6 – success stories ..............................................33 1.4 Municipal planning ....................................7 5.9. Norway summary .....................................35 1.5 Approach ...................................................7 5.10 References Norway ..................................35 2 Country Energy Indicators.......................... 8 6 Sweden .................................................... 37 3 Finland ..................................................... 9 6.1 Legislation .................................................38 3.1 Legislation .................................................9 6.2 Institutional overview ................................39 3.2 Institutional overview ................................9 6.3 National incentives for community 3.3 National incentives for community energy initiatives .............................................40 energy initiatives .............................................10 6.4 Regional level - Norrbotten .......................40 3.4 Regional and municipal levels ....................11 6.5 Barriers, challenges, recommendations .....42 3.5 Community energy in Finland – selected 6.6. Community energy in Sweden – success success stories ................................................13 stories .............................................................43 3.6 Interview results ........................................13 6.7 Interview results ........................................43 3.7 Finland – summary and recommendations .14 6.8 Sweden – summary and 3.8 References Finland ....................................14 recommendations ...........................................44 6.9 References Sweden ...................................44 4 Ireland ...................................................... 16 4.1 Legislation .................................................17 7 Germany .................................................. 46 4.2 Institutional overview ................................18 7.1 Current status of renewable energy in 4.3 National incentives for community Germany .........................................................47 energy initiatives .............................................18 7.2 Legislation .................................................50 4.4 Regional and municipal levels ....................20 7.3 Municipal Planning ....................................53 4.5 Community energy in Ireland – selected 7.4 Municipal Tax Regime ................................53 success stories ................................................22 7.5 Energy Co-operatives .................................53 4.6 Interview results ........................................23 7.6 National and regional incentives ................54 4.7 Ireland – summary and recommendations .23 7.7 Institutional overview .................................54 4.8 References Ireland .....................................24 7.8 Germany - Summary ..................................55 5 Norway .................................................... 27 7.9 References Germany..................................55 5.1 Renewable energy status ...........................27 8 Summary .................................................. 57 5.2 Legislation .................................................28 9 References ................................................ 58 5.3 Institutional overview ................................30 5.4 National incentives for community 10 Appendix .................................................. 59 energy projects ...............................................31 5.5. Regional level ...........................................32 3 1 INTRODUCTION AND BACKGROUND energy initiatives, but also for municipal energy activities. Interview results and recommendations are included in the The project LECo – Local Energy Communities - supports country specific sections. A summary section concludes this small municipalities and communities in the partner regions report. of Finland, Ireland, Norway and Sweden to benefit from each other’s experiences with energy initiatives. LECo also seeks to integrate experiences from Germany. The partner regions 1.1 Clarification of terms of LECo include the following counties, project results are Energy initiatives in small municipalities, villages and commu- expected to be applicable in the entire NPA-program area: nities are in the focus of LECo and this report. For briefness and clarity in this report, we chose the term “community ener- • Finland: Central Ostrobothnia gy”, which intends to include both energy initiatives imple- • Ireland: Western Region (Donegal, Sligo, Leitrim, mented by the local authority governing the small municipal- Roscommon, Mayo, Galway, Clare) for the Western ity, the village or the community and initiatives from citizens, Development Commission and the Gaeltacht Region for corporates and cooperatives. Údarás na Gaeltachta. The term “small municipality” has not been defined, but the • Norway: Finnmark and Troms majority of municipalities in the LECo region have populations • Sweden: Norrbotten below 10,000. These small municipalities, villages and com- munities within such municipalities are the main beneficiaries Costs of energy - electricity, heat and transport fuels - are of LECo. significant expenditures for households and institutions in municipalities and communities, where most of the spent money leaves the community boundaries. LECo aims to 1.2 Community Energy contribute to retain a significant share of these outflowing Community energy has its roots in the vision of small and financial resources within a local community, by enabling locally driven generation and distribution of renewable energy communities to develop local energy initiatives and to invest and energy efficiency projects, which are economically useful, in local community and cooperative energy projects. while contributing to national climate and renewable energy Part of the planned outcomes of LECo´s work package T2 targets. Local ownership and control are preferred and addi- (WP T2) is an analysis and comparison of existing policies tional advantages include raised awareness, reduced energy and legal frameworks in the LECo partner regions, which af- consumption and increase in local value creation. The concern fect municipalities and communities in their decision making for the community and the notion of creating something to- on energy projects. Another activity in WP T2 is to interview gether are also part of the driving factors behind community stakeholders on the effectiveness of policy. This report, energy initiatives (Spear 2000; Warren 2008; Yildiz 2014, Yildiz including interview summaries, is a delivery to WP T2. 2015). Section 2 presents key energy indicators of the LECo Energy initiatives as presented in Table 1 can include infor- partner countries, Section 3 to 7 provide country specific mation campaigns and awareness-raising activities, solutions accounts on legislation, institutions, incentives and other aiming to reduce energy consumption, projects for renewable support structures as relevant for cooperative community electricity and heat generation and bioenergy supply. 4 Table 1: Projects for energy efficiency, renewable electricity and heat generation and bioenergy supply Renewable electricity Renewable heating/cooling Renewable fuels Energy efficiency Wind energy (onshore) Domestic solar thermal heat Biodiesel Improving building (hot water and heating) envelopes Wave and tidal energy Large solar thermal heat Bioethanol Applying advanced integrated with DH building standards Small (domestic rooftop) solar Solar thermal cooling Plant oil Street lighting PV or small ground-mounted.