Public innovation and Energy Communities towards participatory democracies

Energy communities are opening up new ways for people and local actors to collectively engage in the energy system. With public purpose and support, they can go beyond sustainability: strengthening local cooperation, tackling energy poverty and building shared ownership and trust.

Why does public innovation matter, and what can it unlock?

Involving the public sector in the creation and promotion of energy communities can unlock a range of social, economic and environmental benefits that go beyond renewable energy production and sharing, and that connect the energy transition with cross-sectoral priorities. For example, it can be crucial for alleviating energy poverty by providing access to affordable energy. It can also be particularly important in rural areas, where it can create local employment opportunities and stimulate economic activity.
Just as importantly, by creating spaces for collaboration around energy, public authorities can enable new forms of cooperation among different, and perhaps distant and diverse, actors: residents, local businesses and public institutions. New forms of public-civic-private governance can help foster a sense of collective ownership, belonging and cooperation at a time of increasing social division.

The LIFE-PUBLINK project, funded under the LIFE Programme, proposes a framework to categorise diverse forms in which Local and Regional Authorities can promote Energy Communities, based on case studies across Europe. 

Figure 1: PUBLINK General Assembly in Bremen. Photo by: Traza Consultoría

We know the benefits, now: How can the public sector better support energy communities?

There are multiple ways in which public authorities can support Energy Communities. Their level of involvement can vary according to local needs, capacities and resources, and approaches can be combined over time. From lower to higher levels of involvement, four approaches stand out.

Firstly, public authorities can provide social, economic, technical or legal support, and even though it is the lowest level of involvement, it can be crucial in some contexts (e.g.: support through favourable legislation, advice, or financial assistance). Secondly, public authorities can make underutilised spaces available for energy communities, such as public rooftops, as in the case of Manza Energía in Madrid, Spain.

Thirdly, municipalities can sell or share energy with an energy community, connecting energy policy with wider social priorities; helping provide renewable and affordable energy to lower-income households. Lastly, the highest level of involvement, and yet not too explored across Europe, a municipality can become a member of an energy community, opening up new forms of democratic engagement. 

In Energia del Prat, the city council founded the CEC as a non-profit company, later transferring part of its shares to a citizen association. In Groß-Gerau, the municipality joined the BERMeG cooperative to support local heat planning.
Cooperation can also extend across borders. In Spain and Portugal, municipalities established Efiduero SCEL, a European energy cooperative open to municipalities, residents and other local actors.

Figure 2: Civic participation in a Workshop led by Traza. Photo by: Traza Consultoría

From supporting innovation to innovating from within

Yet creating these collaborations is not always easy. Public authorities can face limited funding, silo dynamics between municipal/regional departments, complex administrative procedures and shortages of technical or human resources. Supporting energy communities therefore requires not only new policies and instruments, but also inter-departmental teams of civil servants that are able to learn, adapt and experiment.

The Public Sector Capabilities Index, developed by UCL’s Institute for Innovation and Public Purpose, offers a useful lens assess and reflect on the extent to which Local and Regional Authorities have the dynamic capabilities needed to tackle cross-sectoral challenges. In the context of energy communities, this means engaging learning-by-doing processes with Environmental or Energy Departments, but also Legal, Social Services, Urbanism and Communication teams.

Because the energy transition is not only a technological challenge, Energy Communities also call for new ways of looking at and approaching challenges. Understanding how institutions learn, collaborate and respond to local needs can open the door to new forms of public innovation,  and to a more inclusive and locally rooted energy transition.
 

Relevant links

1. LIFE-PUBLINK project
2. Assessing Dynamic Capabilities in City Governments (UCL Institute for Innovation and Public Purpose)
3. The role of public authorities in promoting Energy Communities
4. Skill gaps analysis in LRAs to introduce Energy Communities in policy making
5. Governance Models: Roles of Local and Regional Authorities in Promoting Energy Communities

Authors 

Lucía Torres Panadero: LinkedIn

Lucía Torres is a communication, engagement, and social research officer at Traza

Penélope López: LinkedIn

Penélope López is a European project Manager at Traza

Paula Jiménez: LinkedIn

Paula Jiménez is a partner and heads the Social Research department at Traza