A renewable energy cooperative (aka RE co-op; REC) is a decentralized, non-governmental initiative of local communities and citizens to promote the production and consumption of renewable energy. It is formed by a group of community members that share a common long-term goal for a sustainable future of energy and work to advance the transition through active citizenship involvement. In this way, the citizens are prosumers: they act as both producers and consumers in an attempt to democratize energy supplies by shifting away from relying on large companies. Like other cooperatives, RE co-ops follow the basic principles set by the International Cooperative Alliance (ICA): voluntary and open membership, democratic member control, economic participation by members, autonomy and independence, education and training, cooperation among cooperatives, and concern for the community. Among RE co-ops, there are subgroups categorized by the type of energy source (e.g. biomass energy, wind energy, solar energy, etc.), added value (e.g. consumption, production, distribution, trading, etc.), and the type of business model (e.g. local group, regional, fully integrated, network, etc.). Renewable energy cooperatives are currently most popular in the U.S., Canada, the U.K., and northern European countries such as Germany, Denmark, and the Netherlands.
Purpose As climate change accelerates and people become more aware of the impacts of greenhouse gas emissions on environmental and human health, attention turns to the energy sector. Transitioning from traditional fossil fuel energy sources such as coal and oil to renewable energy sources like wind and solar energy has arisen as a possible method to mitigate climate change. RECs provide a bottom-up approach to this by allowing citizens to invest in renewable energy and work to decentralize control from a handful of companies to several local sources. The purpose of establishing renewable energy cooperatives touches upon environmental, economic, and social issues. They first work to encourage a shift in the energy system to a cleaner and more sustainable line of renewable energy sources, helping to reduce the impacts of climate change. They also disseminate renewable energy technologies by serving as an alternative to the current system of state or corporate-owned and highly centralized energy generation. Doing so democratizes the system so that energy generation is controlled by many local movements rather than by a few companies; for example, five companies in the case of Spain. By spreading out energy generation, local economies benefit and generate employment opportunities. The increased competition also helps stabilize energy prices, supporting equal access to energy. Local producers can even profit by selling energy back to the centralized grid. Many times, the revenue generated by a cooperative is reinvested back into developing new facilities or improving current technology. RE co-ops give more power and control to citizens so that they are less dependent on their energy supply and can have more influence on and engagement with their energy sourcing.
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