Shielding consumers from energy price volatility with citizen energy cooperatives
Ross Hastie
Posted on: 21 November 2023
The surge in energy prices has highlighted the need for more resilient and equitable energy systems and %the benefits of energy communities.
The surge in energy prices in recent years has thrown into sharp focus the need for more resilient and equitable energy systems and highlighted the benefits of energy communities.
In this interview at European Sustainable Energy Week, Dirk Vansintjan from REScoop.eu, the European federation of citizen energy cooperatives, discusses how these community-owned energy initiatives can play a crucial role in protecting consumers from the volatility of energy prices while accelerating the transition to a renewable energy future.
The resilience of citizen energy cooperatives
The energy crisis has revealed the inherent vulnerability of traditional energy markets, leaving consumers exposed to the whims of global price fluctuations. Citizen energy cooperatives, on the other hand, have demonstrated remarkable resilience during this period. By generating and supplying their renewable energy, these cooperatives have been able to shield their members from the volatile prices of the wholesale market.
Vansintjan cites the example of his cooperative in Flanders.
“In 2022, we shielded the 55,000 households that are members of our cooperative [from price fluctuations]. For an average household, it was 500 euros in a year,” he explained.
“This is more than the money that was handed out by the Federal Belgian government to ease the pain of the high prices.”
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Empowering citizens through ownership
The success of citizen energy communities lies in their ability to empower citizens through ownership of the energy production facilities. By taking control of their energy supply, communities can not only insulate themselves from price volatility but also actively contribute to the development of a more sustainable and equitable energy system.
Vansintjan emphasizes the importance of increasing citizen ownership in renewable energy projects, particularly for large-scale wind and solar farms. He points to examples in the Netherlands and Wallonia in Belgium, where policies are being implemented to ensure that a significant portion of new renewable energy capacity is owned by citizens and municipalities.
A call for policy change
Vansintjan advocates for policy changes that foster the growth and development of citizen energy cooperatives, recognizing their potential to protect consumers, promote energy democracy, and accelerate the transition to a renewable energy future.
He calls for the allocation of at least 25% of new renewable energy capacity to citizen ownership, enabling communities to take charge of their energy future and reap the benefits of a more resilient and sustainable energy system.
