Community-owned renewable energy is a movement that is gaining momentum around the world. It is in response to the challenges of the centralized energy systems that resulted from neo-liberal philosophies. Benefits in many aspects have been noticed the world over.
Social Benefits
- Community owned renewable energy lets communities contribute meaningfully to climate change efforts (Boucher, 2007).
- Bringing revenues back into the community facilitates other sustainable developments (Doukas, 2006)
- Adding diversity to income to rural landowners and farmers provides stability (OSEA, 2009)
- Community renewable energy businesses provide a socially responsible investment alternative (OSEA, 2009)
“Community wind power creates a relationship between the people who live in a local community and the citizens who live outside that community” (Maruyama, 2007)
Efficiency Benefits
- Being involved with the generating of electricity results in a more aware consumer who makes energy efficient lifestyle choices
- Smaller generation facilities located closer to the electricity demand reduces transmission losses and expensive transmission equipment, which can result in a 30% savings overall (International Energy Agency, 2002)
- Consumers pay 2.2 times the generation cost of energy due to the transmission costs
Economic Benefits
- The value of the renewable resources are 10 times more valuable to the local economy under a community-ownership model because of the “ripple effects” (Lovins et al., 2002; Maruyama, 2007)
- Smaller generation systems can be built based on demand, more quickly, face fewer permitting regulations, and have a lower financial risk for financers (Dourkas, 2006)
- By 2010, community renewable electricity in Canada has the potential to create 13,000 jobs and $10 billion revenue (OSEA, 2009, Ontario Green Energy Act)
Environmental Benefits
- Involving communities in renewable electricity encourages more generation because people are benefiting from the resources. More renewable electricity reduces fossil fuel consumption, which decreases carbon emissions
- Many small generation facilities impact on the ecosystem far less than a few large facilities (Doukas, 2006)
Decreased Opposition
- Democratic ownership, community involvement, and member education increases acceptance (OSEA, 2009)
“active participation from various sectors and interact[ion] continuously throughout the process is most effective in eliciting social acceptance of renewable energy innovations” (Wustenhagen, 2007)