Cooperative case - ECOPOWER

How do REScoops collaborate with local municipalities on EE?

REScoop is short for renewable energy cooperative and refers to a business model where citizens jointly own and participate in renewable energy or energy efficiency projects. We also refer to REScoops as community power or community energy initiatives. REScoops and local municipalities typically serve the same stakeholder: citizens. REScoops do not necessarily have the legal statute of a cooperative, but rather distinguish themselves by the way they do business. They typically respect 7 principles that have been duly outlined by the International Cooperative Alliance:

1. Voluntary and Open Membership
2. Democratic Member Control
3. Economic Participation through Direct Ownership
4. Autonomy and Independence
5. Education, Training and Information
6. Cooperation among Cooperatives.
7. Concern for Community

All citizens are eligible to join a REScoop. After purchasing a cooperative share and becoming a member or co-owner of local RES and EE projects, members share in the profits and often are given the opportunity to buy the electricity at a fair price. In addition, Members can actively participate in the cooperative: they can decide in what and where the REScoop should invest, and are consulted when setting the energy price.

REScoops are leading the energy transition to energy democracy, and make it possible for citizens to actively participate in renewable energy and energy efficiency projects. The REScoop model has many advantages for both the climate, citizens and local authorities:

REScoops foster social acceptance for renewable energy

Local opposition to renewable energy projects (typically wind turbines) decreases when citizens are given the opportunity to invest in and co-own the production installations in their neighbourhood. This is especially true when local citizens are involved from the very start of the project. Stakeholder involvement and direct citizen participation foster social acceptance for renewable energy. Local citizens do not only share in the profits, they also have access to clean energy at a fair price.

REScoops keep the individual investment affordable

Not everyone has a roof suitable for solar panels, nor does everyone have the financial capacity to make such a considerable investment. REScoop production installations are typically owned by a large group of citizens, keeping the individual investment affordable.

REScoops benefit the local community

REScoops have a clear concern for the community. They usually share part of the profits with their members and use the rest to develop new projects or benefit the local community as a whole.Some REScoops for example have financed the construction of a local sustainable concert hall, while others constructed a charging point for electric bicycles. Thus, all citizens benefit from the projects and the profits that they generate.

REScoops keep money in the local economy

REScoops use local energy sources and include local citizens. Thus they keep money within the local community that would otherwise be lost. In addition, REScoops stimulate local employment and boost the local economy. REScoops take action on energy efficiency. The revenues that result from renewable energy projects are often used to finance energy efficiency measures in public buildings. Some REScoops have paid for insulation material for public buildings, while others have constructed a sustainable concert hall.

How does Ecopower collaborate with local municipalities on EE?

Ecopower was founded back in 1992 as a Belgian cooperative with three main objectives.

1. To invest in renewable energy production installations. Ecopower gathers financial resources from local citizens (members) and uses these funds to invest in renewable energy projects. In an ideal scenario the decisions about these investments and the cooperative involve as many people as possible. Not only because they have a financial stake in the cooperative, but also because they have a personal interest in the development of a sustainable future. Members can buy one or more shares but there is a limit of 20 shares per person. One share costs 250 euro and is fixed for a period of 6 years. That’s because they want to avoid sudden fluctuations in their capital. The cooperative is democratically owned so that each member has one vote in the general assembly, regardless of the number of shares he/she owns. Since Ecopower is a registered cooperative under Belgian law, it is obligated to limit the annual dividend to a maximum of 6% per share. The financial surplus can then be used to finance less profitable projects. Today Ecopower now owns 20 wind turbines (Eeklo, Gent, Gistel,Doornik/Dour, Waimes, Mesnil, Essen-Kalmthout, Asse), 3 hydro power installations (Overijse,Rotselaar, Schoonhoven), 1 cogeneration installation (Eeklo) and 322 decentralised PV installation on roof tops of local schools and private houses. These installations produce about 73 million kWh per year. In 2014 Ecopower also constructed a factory that produces wood pellets for residential heating. This production facility has a production capacity of 40.000 tonnes/year.
2. To supply clean energy from local renewable sources to the members. In 2003 Ecopower obtained a license to supply energy in Flanders, the Dutch speaking region of Belgium. Members thus have the opportunity to buy clean energy from their jointly owned production installations and use it in their private houses. The same applies to the wood pellets.Ecopower does not make a profit on these activities. The electricity is sold at cost price. In 2015 Ecopower supplied 94 million kWh to 41.000 customers.
3. To promote energy efficiency and REScoop business model. Ecopower promotes energy efficiency and strongly believes that the greenest kWh is the one that can be saved. If members use energy in a more efficient and rational way, it simply allows the cooperative to serve more citizens with the same amount of energy. Ecopower recently noticed that the average consumption of their members is decreasing year after year. Over the past 8 years the average consumption went down with about 40%. Other European REScoops have found a similar trend. In REScoop Plus - a Horizon 2020 project (Grant Agreement 696084 under H2020-EE-2015-3 Market Uptake) – the REScoops are now analysing this trend with support from two universities.

Ecopower is now reaching out for local municipalities in Flanders (Belgium). Many local authorities have signed the Covenant of Mayors (CoM) and are currently writing their Sustainable Energy Action Plans (SEAP). However, lack of expertise, time and resources often make it hard for them to initiate real RES or EE projects in their local communities. Ecopower therefor offers help to keep the energy transition in the hands of the local citizens. In Eeklo, Asse and Beersel – three municipalities in the Flemish region – this approach resulted in successful collaborations with the municipality. Ecopower insisted on bringing a wide range of stakeholders (e.g., citizens, environmental organisations, advisory committees, the local municipality council, etc.) to the table to design the local SEAP. Cooperative wind turbines that allow direct participation by local citizens have been included therein. All citizens are eligible to join Ecopower by means of purchasing one or more cooperative shares. This way they co-own the projects and share in the profits. Ecopower also uses part of the revenues to pay the wages of a (part-time) SEAP expert. He or she works on behalf of the local municipality to initiate other RES projects or EE measures in public buildings and private houses.