Potential of Renewable Energy Sources Cooperatives towards Sustainable Degrowth in Spain

Iñigo Capellán-Pérez, Álvaro Campos-Celador, Jon Terés-Zubiaga

What is a Renewable Energy Sources Cooperative (REScoop)?

• Social enterprises where citizens jointly own and participate in renewable energy and energy efficiency projects.• Many definitions exist. Main principles from REScoop.eu:

oVoluntary and open membership oDemocratic member controlo Economic participation and direct ownershipoAutonomy and independenceo Education, training and informationoCooperation among cooperativesoConcern for community

2http://www.rescoop.euIn accordance with Degrowth proposals!

Motivation & Objectives

• Personal experience: work in Academia + volunteering in REScoops:oREScoop model in Spain is unfrequent and little research has been directed to

investigate it.oDominant perceived assumption that RES can subtitute fossil fuels without

challenging the system.

• Our objective: to contribute to (succesful) REScoop development! (co-production of knowledge)

3

Outline

1. Energy & Degrowth

2. REScoops & Degrowth

3. Methodology

4. Spanish context & REScoops

5. Spanish REScoops as a potential instrument towards Degrowth

4

Energy & Degrowth

5

(White 1943; Cottrell 1955; Tainter 1990)

(e.g. Bithas & Kalimeris 2013)

Advanced capitalistic economies

Rest of the world

(Ayres 2008, Capellán-Pérez et al 2015)

→ Reduction of energy use!

(1990↔100%)

• Link between energy use & social complexity/type of development (cultural)• Link between energy use and GDP/economic activity• Level of energy use of advanced capitalistic economies is unsustainable (based on non-

renewable resources & social inequalities, producing environmental damages):

Energy & Degrowth

• Link between energy use & social complexity/type of development (cultural)• Link between energy use and GDP/economic activity• Level of energy use of advanced capitalistic economies is unsustainable (based on non-

renewable resources & social inequalities, producing environmental damages):

• This reduction will have implications at societal/economic level!• Future energy supply based on renewable energies. In comparison to fossil fuels:

• Worse/lower biophysical potential vs. better “political” potential! 6

(White 1943; Cottrell 1955; Tainter 1990)

(e.g. Bithas & Kalimeris 2013)

(Ayres 2008, Capellán-Pérez et al 2015)

(e.g. Sorman & Giampietro 2013)

Overview of REScoops in Europe• 2,400 REScoops• Geographical distribution:• Mostly in Western Europe (Denmark, the Netherlands, Belgium, Germany, Austria, northern Italy,

Sweden, the UK and France), and to a lesser extent in South Italy and Spain. • Little progress in Central and Eastern Europe.

• Energy produced:• Electricity (wind, solar PV, biomass, etc.)• Thermal (district heating)• Biogas

• Economic activities:• Production of energy• Distribution• Retailing

7http://www.rescoop.eu

Review: (Kunze & Becker 2014)

REScoops & Degrowth

8

• Analysis of 4 representative cases from Wales, Italy, Spain & Germany:

→ REScoops have a great potential to contribute for a turn towards Degrowth:

o Focus on satisfying needs, not creating new ones.oNot-for-profit companies: profits are directed to cover

operating costs and required investments.oHigh level of social & environmental awareness of the

members.oRe-localization of the energy production, relocalizing impacts

but also economic activity (e.g. jobs).oDescentralized functioning + democratic decisions.

(Kunze & Becker 2015)

This potential is strongly limited due to the need to operate in a “growth system”:o Profit motive,o Growth imperative.

Methodology

1. Review of RESCoops in Spain (members from REScoop.eu)

2. Analysis of their evolution in the Spanish context (MLP in paper)

3. Assessment of the potential towards Sustainable Degrowth:o StrenghtsoBarriersoOpportunities

9

Spanish context (electric system)

10

• No tradition of collective ownership of RES until recently.• Competition exists only in generation and retailing.

(Romero-Rubio & de Andrés-Díaz 2015)

Spanish context (electric system)

11

2012

Hostile legal/political context towards RESFavourable legal/political context towards RES

1997

Reduction of energy demand: RES is seen as a competitor vs. Fossil fuels from traditional retailers: Demonization campaign against RES + oligopolistic market (political influence)

Economic crisis

• No tradition of collective ownership of RES until recently.• Competition exists only in generation and retailing.

(Romero-Rubio & de Andrés-Díaz 2015)

Spanish context (electric system)

12

2012

Hostile legal/political context towards RESFavourable legal/political context towards RES

1997

• No tradition of collective ownership of RES until recently.• Competition exists only in generation and retailing.

Cooperatives allowed to retail electricity

20102004(Feed-in-tariff)

Most RES promoted by traditional utilities!

(Romero-Rubio & de Andrés-Díaz 2015)

Spanish REScoops

13

REScoop* Creation Members

(july 2015)

Contracts

(july 2015)

Energy retailed

GWh

(2014)

Own generation

%

(2014)Som Energia 2010 20,700 26,100 45 ≈ 6%Zencer 2011 850** 1,010** 3.3 -GoiEner 2012 3,350 3.235 3 -Solabria 2013 60 30 0 -Nosa Enerxía 2014 123 36 0 -EnergÉtica 2014 146 - 0 -5 traditional companies (UNESA)

- - 27,700,000 (dec. 2013)

182,000 (2013)

112% (2013)

*members of the European Federation REScoop.eu; **data for May 2015.

Spanish REScoops as a potential instrument towards Degrowth

14

Strengths for Degrowth

15

“General” strengths mentioned earlier + specific from Spain:oHybrid organization: enterprise and social movement (e.g. volunteers, local action

groups, etc.)oAdaptative at different scales (territory, temporal) and eventualities (e.g. “Recupera

el sol”, GenerationkWh –energetic interest rates-).oGreat capacity of spreading new ideas at social and political level (e.g. collaboration

of Som Energia with towns for the creation of municipal energy companies). oWeak but increasing collaboration between Spanish REScoops:

o Collaboration agreements.o Creation of the Spanish Federation of REScoops (May 2016).

Barriers & opportunities for Degrowth (1)

16

↑ membershipDifficult

participation!

SOLUTIONS / OPPORTUNITIES• Update/improve participation methods• After certain level of growth of each REScoop, mutation

toward more simple interrelated structuresREScoop model unfrequent Spread the

model!

Main focus in electricity + hostile legal/political

context

• Promotion of the electrification of final demand• Diversification of energy generation

Not all renewable technologies are

sustainable/compatible with Degrowth!

• Sustainable design and fabrication of the systems: types of materials, recyclability, location of the manufacture industries.

• Give priority to “simple” technologies that can be manufactured with local materials locally.

Requires system change!

(co-evolution)

Barriers & opportunities for Degrowth (2)

17

↑ efficiency improvements

↑ expenses in other goods & services!

(rebound!)

↓energy expenses↓energy consumption

↑ RES generation(e.g. cover

membership consumption)

It will just add more generation!

SOLUTIONS / OPPORTUNITIES

Most RES generation is

owned by traditional utilities

Conclusions

• Energy generation, property and management is a key element of designing a Degrowth society.• REScoops have contributed to bring the “energy case” to the social debate

in Spain.• As degrowth scholar/activists we have to make an effort to bring the

“Degrowth case” to the REScoops!oPromote debates between the members of the REScoops about the

growth/Degrowth paradigms, the RES potential, the sustainability of RES technologies, etc.

oPromotion of related alternative, independent research.oObjective: to contribute to (succesful) REScoop development! (co-production of

knowledge)18

19

Thanks!

inigocapelll@gmail.comalvaro.campos@ehu.esjon.teres@ehu.es

Acknowledgements:

ReferencesAyres, Robert U. “Sustainability Economics: Where Do We Stand?” Ecological Economics 67, no. 2 (Setiembre 2008): 281–310. doi:10.1016/j.ecolecon.2007.12.009.

Bithas, K., and P. Kalimeris. “Re-Estimating the Decoupling Effect: Is There an Actual Transition towards a Less Energy-Intensive Economy?” Energy 51 (March 1, 2013): 78–84. doi:10.1016/j.energy.2012.11.033.

Capellán-Pérez, Iñigo, Margarita Mediavilla, Carlos de Castro, Óscar Carpintero, and Luis Javier Miguel. “More Growth? An Unfeasible Option to Overcome Critical Energy Constraints and Climate Change.” Sustainability Science, April 25, 2015, 1–15. doi:10.1007/s11625-015-0299-3.

Cottrell, Fred. Energy and Society: The Relation Between Energy, Social Change, and Economic Development. AuthorHouse, 2009.

Huybrechts, Benjamin. “Social Enterprise, Social Innovation and Alternative Economies: Insights from Fair Trade and Renewable Energy.” Alternative Economies and Spaces. New Perspectives for a Sustainable Economy, 2013, 113–130.

Kunze, Conrad, and Sören Becker. “Energy Democracy in Europe: A Survey and Outlook.” Rosa Luxemburg Stiftung, 2014.

Kunze, Conrad, and Sören Becker. “Collective Ownership in Renewable Energy and Opportunities for Sustainable Degrowth.” Sustainability Science, May 27, 2015, 1–13. doi:10.1007/s11625-015-0301-0.

Romero-Rubio, Carmen, and José Ramón de Andrés Díaz. “Sustainable Energy Communities: A Study Contrasting Spain and Germany.” Energy Policy 85 (October 2015): 397–409. doi:10.1016/j.enpol.2015.06.012.

Sorman, Alevgul H., and Mario Giampietro. “The Energetic Metabolism of Societies and the Degrowth Paradigm: Analyzing Biophysical Constraints and Realities.” Journal of Cleaner Production 38 (Enero 2013): 80–93. doi:10.1016/j.jclepro.2011.11.059.

Tainter, Joseph A. The Collapse of Complex Societies. Reprint edition. Cambridge, Cambridgeshire; New York: Cambridge University Press, 1990.

White, Leslie A. “Energy and the Evolution of Culture.” American Anthropologist, 1943, 335–356.20

Annexes

21

Agrarian & industrial sociometabolic regimes

• Link between energy use & social complexity/type of development (cultural)• Link between energy use and GDP/economic activity• Level of energy use of industrialized economies is unsustainable: (environmental damages,

based on non-renewable resources & inequalities)

22

(White 1943; Cottrell 1955; Tainter 1990)

(Krausmann et al 2008)

Spanish REScoops as a potential instrument towards Degrowth

• Strengths, barriers & opportunities derived from:oBeing social enterprises (e.g. (Johanisova et al., 2013))oBeing REScoops (e.g. (Kunze and Becker, 2015))oOperating in the particular context of Spain

23

KEY: No Spanish REScoop explicitely aims towards Degrowth

Barriers & opportunities for Degrowth (3)

24

• ↓ “economically” competitivity• Potential denaturation of the

intended change

• Innovation & participation towards adaptation• Work social & environmental awareness of members• Public image that transmits the benefits of the REScoop

e.g. Som Energia:• Sustainability criteria for the construction of renewable-based facilities • But hostile legal framework hinders the construction of new facilities• GenerationkWh (energetic interest rates – i.e. “power share”)• But solar plant on the ground contradicting the sustainability criteria of the

REScoop!

(Huybrechts 2013)

Operation in for-profit/growth (hostile) environment creates

contradictions

SOLUTIONS / OPPORTUNITIES

Further work

• Improve selection criteria for indentifying REScoops• Create a network of Spanish researchers to monitorize the evolution

of the REScoops in the country• Make useful our work for them!

25