IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i12p7007-d833884.html
   My bibliography  Save this article

Collaborative Renewable Energy Generation among Industries: The Role of Social Identity, Awareness and Institutional Design

Author

Listed:
  • Sina Eslamizadeh

    (Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands)

  • Amineh Ghorbani

    (Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands)

  • Yashar Araghi

    (Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands)

  • Margot Weijnen

    (Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands)

Abstract

Like many other sectors, climate change strategies have put various restrictions on industry, the most prominent one being caps on CO 2 and other energy-related emissions. At the same time, and especially in many developing economies, the industry struggles with an increasing gap between the fast development of the sector and lagging energy supply capacity. Collective generation of renewable energy is seen as a promising means of transition, next to other forms of renewable energy generation (centralised, individual). The aim of this research is to investigate factors influencing willingness to participate in Industrial Community Energy Systems (InCES). Using existing literature on Industrial Symbiosis and Community Energy Systems, we formulate plausible hypotheses on the most relevant factors for the willingness of industries to join such initiatives. As one of the largest and most diversified industrial clusters in Iran, Arak industrial park is selected as the case study. Data were collected from the CEOs of 96 companies through survey research. Our results highlight the crucial role of awareness about the benefits of renewable power generation in an InCES. Social identity among industries and trust between them are also determining factors for their willingness to join InCES. Finally, proper institutional design for overcoming the partnership complexities (e.g., conflict resolution) was highlighted as a crucial factor for industries. It can be concluded from the results of this study that policymakers should avoid one-size-fits-all incentive design approaches and reach out to larger companies with targeted incentives, introduce specially designed bank loans for different target groups, and make use of consulting companies as intermediaries to increase the awareness of the industries regarding the benefits of investing in an InCES.

Suggested Citation

  • Sina Eslamizadeh & Amineh Ghorbani & Yashar Araghi & Margot Weijnen, 2022. "Collaborative Renewable Energy Generation among Industries: The Role of Social Identity, Awareness and Institutional Design," Sustainability, MDPI, vol. 14(12), pages 1-25, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:12:p:7007-:d:833884
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/12/7007/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/12/7007/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nima Norouzi & Alireza Bozorgian & Mohammad Ali Dehghani, 2020. "Best Option of Investment in Renewable Energy: A Multicriteria Decision-Making Analysis for Iranian Energy Industry," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 22(01n02), pages 1-35, June.
    2. Walker, Gordon & Devine-Wright, Patrick, 2008. "Community renewable energy: What should it mean," Energy Policy, Elsevier, vol. 36(2), pages 497-500, February.
    3. Forman, Alister, 2017. "Energy justice at the end of the wire: Enacting community energy and equity in Wales," Energy Policy, Elsevier, vol. 107(C), pages 649-657.
    4. Pepermans, G. & Driesen, J. & Haeseldonckx, D. & Belmans, R. & D'haeseleer, W., 2005. "Distributed generation: definition, benefits and issues," Energy Policy, Elsevier, vol. 33(6), pages 787-798, April.
    5. Walker, Gordon & Devine-Wright, Patrick & Hunter, Sue & High, Helen & Evans, Bob, 2010. "Trust and community: Exploring the meanings, contexts and dynamics of community renewable energy," Energy Policy, Elsevier, vol. 38(6), pages 2655-2663, June.
    6. Raven, R.P.J.M. & Mourik, R.M. & Feenstra, C.F.J. & Heiskanen, E., 2009. "Modulating societal acceptance in new energy projects: Towards a toolkit methodology for project managers," Energy, Elsevier, vol. 34(5), pages 564-574.
    7. Tudor, Terry & Adam, Emma & Bates, Margaret, 2007. "Drivers and limitations for the successful development and functioning of EIPs (eco-industrial parks): A literature review," Ecological Economics, Elsevier, vol. 61(2-3), pages 199-207, March.
    8. Walker, Gordon, 2008. "What are the barriers and incentives for community-owned means of energy production and use?," Energy Policy, Elsevier, vol. 36(12), pages 4401-4405, December.
    9. Bomberg, Elizabeth & McEwen, Nicola, 2012. "Mobilizing community energy," Energy Policy, Elsevier, vol. 51(C), pages 435-444.
    10. 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.
    11. Misaghian, M.S. & Saffari, M. & Kia, M. & Heidari, A. & Shafie-khah, M. & Catalão, J.P.S., 2018. "Tri-level optimization of industrial microgrids considering renewable energy sources, combined heat and power units, thermal and electrical storage systems," Energy, Elsevier, vol. 161(C), pages 396-411.
    12. Clausen, Laura Tolnov & Rudolph, David, 2020. "Renewable energy for sustainable rural development: Synergies and mismatches," Energy Policy, Elsevier, vol. 138(C).
    13. Berka, Anna L. & Creamer, Emily, 2018. "Taking stock of the local impacts of community owned renewable energy: A review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3400-3419.
    14. Yousefi, G.Reza & Kaviri, Sajjad Makhdoomi & Latify, Mohammad Amin & Rahmati, Iman, 2017. "Electricity industry restructuring in Iran," Energy Policy, Elsevier, vol. 108(C), pages 212-226.
    15. Gan, Lin & Yu, Juan, 2008. "Bioenergy transition in rural China: Policy options and co-benefits," Energy Policy, Elsevier, vol. 36(2), pages 531-540, February.
    16. Fang, Xinli & Yang, Qiang & Dong, Wei, 2018. "Fuzzy decision based energy dispatch in offshore industrial microgrid with desalination process and multi-type DGs," Energy, Elsevier, vol. 148(C), pages 744-755.
    17. Artem Golev & Glen D. Corder & Damien P. Giurco, 2015. "Barriers to Industrial Symbiosis: Insights from the Use of a Maturity Grid," Journal of Industrial Ecology, Yale University, vol. 19(1), pages 141-153, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Margherita Povolato & Alessandro Prada & Sara Verones & Silvia Debiasi & Paolo Baggio, 2023. "The Impact of Energy Community Composition on Its Technical and Economic Performance," Energies, MDPI, vol. 16(14), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bauwens, Thomas, 2019. "Analyzing the determinants of the size of investments by community renewable energy members: Findings and policy implications from Flanders," Energy Policy, Elsevier, vol. 129(C), pages 841-852.
    2. Busch, Henner & Ruggiero, Salvatore & Isakovic, Aljosa & Hansen, Teis, 2021. "Policy challenges to community energy in the EU: A systematic review of the scientific literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    3. Haji Bashi, Mazaher & De Tommasi, Luciano & Le Cam, Andreea & Relaño, Lorena Sánchez & Lyons, Padraig & Mundó, Joana & Pandelieva-Dimova, Ivanka & Schapp, Henrik & Loth-Babut, Karolina & Egger, Christ, 2023. "A review and mapping exercise of energy community regulatory challenges in European member states based on a survey of collective energy actors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 172(C).
    4. 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.
    5. van der Schoor, Tineke & Scholtens, Bert, 2015. "Power to the people: Local community initiatives and the transition to sustainable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 666-675.
    6. Beau Warbroek & Thomas Hoppe & Frans Coenen & Hans Bressers, 2018. "The Role of Intermediaries in Supporting Local Low-Carbon Energy Initiatives," Sustainability, MDPI, vol. 10(7), pages 1-28, July.
    7. Ruggiero, S. & Busch, H. & Hansen, T. & Isakovic, A., 2021. "Context and agency in urban community energy initiatives: An analysis of six case studies from the Baltic Sea Region," Energy Policy, Elsevier, vol. 148(PA).
    8. Koirala, Binod Prasad & Koliou, Elta & Friege, Jonas & Hakvoort, Rudi A. & Herder, Paulien M., 2016. "Energetic communities for community energy: A review of key issues and trends shaping integrated community energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 722-744.
    9. Klein, Sharon J.W. & Coffey, Stephanie, 2016. "Building a sustainable energy future, one community at a time," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 867-880.
    10. Pons-Seres de Brauwer, C. & Cohen, J.J., 2020. "Analysing the potential of citizen-financed community renewable energy to drive Europe's low-carbon energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    11. Fouladvand, Javanshir & Aranguren Rojas, Maria & Hoppe, Thomas & Ghorbani, Amineh, 2022. "Simulating thermal energy community formation: Institutional enablers outplaying technological choice," Applied Energy, Elsevier, vol. 306(PA).
    12. Salm, Sarah & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2016. "What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany," Energy Policy, Elsevier, vol. 97(C), pages 310-320.
    13. Chiara Candelise & Gianluca Ruggieri, 2017. "Community Energy in Italy: Heterogeneous institutional characteristics and citizens engagement," IEFE Working Papers 93, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    14. Berka, Anna L. & Creamer, Emily, 2018. "Taking stock of the local impacts of community owned renewable energy: A review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3400-3419.
    15. Dalia Streimikiene & Tomas Baležentis & Artiom Volkov & Mangirdas Morkūnas & Agnė Žičkienė & Justas Streimikis, 2021. "Barriers and Drivers of Renewable Energy Penetration in Rural Areas," Energies, MDPI, vol. 14(20), pages 1-28, October.
    16. Radtke, Jörg & Ohlhorst, Dörte, 2021. "Community Energy in Germany – Bowling Alone in Elite Clubs?," Utilities Policy, Elsevier, vol. 72(C).
    17. Rydin, Yvonne & Turcu, Catalina, 2019. "Revisiting urban energy initiatives in the UK: Declining local capacity in a shifting policy context," Energy Policy, Elsevier, vol. 129(C), pages 653-660.
    18. Grashof, Katherina, 2019. "Are auctions likely to deter community wind projects? And would this be problematic?," Energy Policy, Elsevier, vol. 125(C), pages 20-32.
    19. Holstenkamp, Lars & Kahla, Franziska, 2016. "What are community energy companies trying to accomplish? An empirical investigation of investment motives in the German case," Energy Policy, Elsevier, vol. 97(C), pages 112-122.
    20. Fuentes González, Fabián & van der Weijde, Adriaan Hendrik & Sauma, Enzo, 2020. "The promotion of community energy projects in Chile and Scotland: An economic approach using biform games," Energy Economics, Elsevier, vol. 86(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:12:p:7007-:d:833884. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.