Local Energy Coalitions

Background

The 2ISECAP project explored and developed the concept of Local Energy Coalitions (LECs). If you are involved with energy transition, it is likely that you know of a LEC or are even involved in one. LECS can help to improve structural, cross-sectoral cooperation between diverse actors and organizations within energy transition contexts and help implement plans in practice. This article will explain in more detail what LECs are and the important role they perform as catalysts in energy transition.

WHAT ARE LOCAL ENERGY COALITIONS?

The 2ISECAP project defines Local Energy Coalitions (LECs) as:

“a structural collaboration or cooperation by a diverse group of autonomous actors (organizations or individuals) that are organized around shared interests where local energy transition is a key element and that engage in activities to pursue these interests to address the needs of local actors in specific areas.”

To qualify as an LEC, an initiative must meet five criteria – SEE INFOBOX:

criteria to qualify for an LEC:

It is a structural collaboration with a long-term commitment to future durability.
It is composed of a diverse group of autonomous actors who share resources and can influence the direction and decision-making of the coalition to some degree;
It is organized around shared interests with energy transition being a key element;
It is engaged in (the explicit preparation of) activities to pursue this shared interest; and
It addresses the needs of local actors in (various) specific areas.

What are characteristics of Local Energy Coalitions?

TERRITORIAL DIMENSION

LECs are mostly active on the regional level. There are some important LECs that are operating on the national level with branches in various localities, and a few on the urban level.

scope

LECs engage in multiple activities. Often this includes, at least, renewable energy generation, educating and knowledge exchange, and facilitating other parties in energy transition.

stakeholders

Partners that cooperate in LECs often included citizens and/or individual renewable energy cooperatives, local governments, and local companies. However, a wide range of 20 different types of organizations were identified as potential partners in LECs. This shows how LECs can fulfill the role of a platform for easy access to a wide range of stakeholders.

LEGAL STATUS

LECs often have the legal form of a cooperative. A number of informal LECs were identified, and these appear to play an important role but are more difficult to identify. When thinking about LECs in your area, don’t forget to consider the more informal networks within which parties cooperate!

decision making

Formal LECs tend to use majority voting (often in combination with a board for the daily running of affairs) to make decisions, and sometimes they aim for consensus.

Ambition:

Most LECs aim to provide benefits for society with profits flowing to the region. There are some LECs that aim for both on societal and private benefits, and/or where profits flow to both the region and (inter)national arenas.

What are barriers and drivers of Local Energy Coalitions

The lack of support to Renewable Energies (REs) in national and regional policies, slow authorization processes, excessive bureaucracy for REs installations are important barriers to LECs Moreover, national legislation on energy market and energy distribution can limit the distribution of energy produced by energy communities and LECs. Additionally, there can be internal barriers in the form of a lack of skills and resources within the LEC.

Policies, legislations, and regulations are also important drivers of LECs and local energy transition. The involvement of (local) authorities is also an important factor contributing to successful LECs. A number of internal factors were also important, such as joining forces among members with different skills and knowledge, the effective communication and engagement of members.

Are Local Energy Coalitions the same as renewable energy communities or initiatives?

You probably know the term local energy community or initiatives. There is overlap between these concepts, but they are not the same. There are certainly energy communities that meet all the criteria of a LEC mentioned above. An example is èNostra in Italy. However, in other cases energy communities can be members of LECs (for example in the energy community of Grunneger power is part of the informal energy Community Energy Coalition North Netherlands).

Why are LECs important and why should municipalities identify and support them?

LECs can have an important impact on energy transition and can be important catalysts of integrated energy plans such as SECAPs. It is therefore also in the interest of local governments to support and encourage LECs in their activities. Municipalities can draw on the capacities (expertise, knowledge, connections) available in these coalitions to help plan and implement energy transition with a wide range of local parties. Local energy coalitions often already exist, and can be important partners and platforms in making energy transition reality.