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Renewable Energy Cooperatives: A Review of Demonstrated Impacts and Limitations

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  • Mumtaz Derya Tarhan

    (Ontario Institute for Studies in Education (OISE) University of Toronto)

Abstract

Energy sectors of most industrialized countries are marked by a long history of state and corporate-owned and highly centralized energy generation (mostly from fossil-based sources) and distribution. Although technological developments and pressures from social/ecological movements resulted in an increased uptake of renewable energy (RE) technologies since the early 1990s, the application of these technologies have since predominantly taken place through largescale projects owned by corporate actors. In response, an increasing number of individuals and community groups have been forming renewable energy cooperatives (RE co-ops) in recent years to provide bottom-up and collective solutions to their local needs and global environmental issues. The goal of this literature review is to summarize the demonstrated impacts of RE co-ops in the economic, social and environmental realms. Thereby, their impact on community development and role in accelerating the transition towards a sustainable energy sector is assessed. Findings of this review show that successful RE co-ops generated positive outcomes for their members and the wider community while accelerating the social and perceptual dimensions of the global energy transition. However, it has also been revealed that RE co-ops’ success in generating positive impacts is often limited by various community-specific factors and by financial and perceptual barriers to their emergence and development.

Suggested Citation

  • Mumtaz Derya Tarhan, 2015. "Renewable Energy Cooperatives: A Review of Demonstrated Impacts and Limitations," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 4(1), pages 104-120, August.
    • Handle: RePEc:trn:csnjrn:v:4:i:1:p:104-120
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    References listed on IDEAS

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    Cited by:

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    3. Antonia Proka & Derk Loorbach & Matthijs Hisschemöller, 2018. "Leading from the Niche: Insights from a Strategic Dialogue of Renewable Energy Cooperatives in The Netherlands," Sustainability, MDPI, vol. 10(11), pages 1-21, November.
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    5. Brummer, Vasco, 2018. "Community energy – benefits and barriers: A comparative literature review of Community Energy in the UK, Germany and the USA, the benefits it provides for society and the barriers it faces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 187-196.
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    7. Dick Magnusson & Jenny Palm, 2019. "Come Together—The Development of Swedish Energy Communities," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    8. Heras-Saizarbitoria, Iñaki & Sáez, Lucía & Allur, Erlantz & Morandeira, Jon, 2018. "The emergence of renewable energy cooperatives in Spain: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 1036-1043.
    9. Natalia Magnani & Valentina-Miriam Cittati, 2022. "Combining the Multilevel Perspective and Socio-Technical Imaginaries in the Study of Community Energy," Energies, MDPI, vol. 15(5), pages 1-12, February.
    10. August Wierling & Valeria Jana Schwanitz & Jan Pedro Zeiß & Celine Bout & Chiara Candelise & Winston Gilcrease & Jay Sterling Gregg, 2018. "Statistical Evidence on the Role of Energy Cooperatives for the Energy Transition in European Countries," Sustainability, MDPI, vol. 10(9), pages 1-25, September.
    11. Julie L. MacArthur, 2017. "Trade, Tarsands and Treaties: The Political Economy Context of Community Energy in Canada," Sustainability, MDPI, vol. 9(3), pages 1-20, March.

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    More about this item

    Keywords

    cooperatives; community development; renewable energy; community energy; sustainability;
    All these keywords.

    JEL classification:

    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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