Table Of ContentContributions to Economics
Sarah Debor
Multiplying
Mighty
Davids?
The Infl uence of Energy Cooperatives on
Germany’s Energy Transition
Contributions to Economics
Moreinformationaboutthisseriesathttp://www.springer.com/series/1262
Sarah Debor
Multiplying Mighty Davids?
fl
The In uence of Energy Cooperatives
’
on Germany s Energy Transition
SarahDebor
WuppertalInstituteforClimate
EnvironmentandEnergy
Wuppertal,Germany
Dissertation University of Wuppertal, Germany
ISSN1431-1933 ISSN2197-7178 (electronic)
ContributionstoEconomics
ISBN978-3-319-77627-9 ISBN978-3-319-77628-6 (eBook)
https://doi.org/10.1007/978-3-319-77628-6
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Foreword
Energy cooperatives have been playing a central role within the ongoing German
energytransition,knownasdieEnergiewende,towardslow-carbonandenvironmen-
tallysustainableenergyusage.Asaspecificformoforganisation,theyhavecontrib-
uted decisively towards promoting and supporting this energy transition “from
below”. Nevertheless, hardly any systematic analysis of the possibilities for and
limits of the influence of energy cooperatives on the energy transition has been
undertaken. This is where the present work of Sarah Debor comes in, as she seeks
tosystematicallydescribe andevaluatetheinfluenceofenergy cooperativesonthe
changing German energy system. With its conceptual and empirical treatment of
thetopic,thisworkisaimedatdevelopingadifferentiatedunderstandingofoneofthe
most important and still-ongoing socio-economic transformation projects in
Germany as well as highlighting the role of a specific type of organisation within
thisprocessofchange.Thereaderisthusofferedanexplorationofahighlyrelevant
topic,setwithintheintersectionbetween(transition)managementandorganisational
theory.
Theauthorfirstbuildsabridgefromtheglobalclimateandenergypolicydebate
tothespecialroleofGermanyandtheenergycooperativeasaspecificorganisational
actorwithinthecountry’spresentenergytransition.Takingacomprehensivelookat
theexistinginternationalliterature,sheilluminatescurrentscientificdiscussionand
existing empirical findings on energy cooperatives. On this basis, Debor pinpoints
two important research gaps in the field: (a) very limited empirical research
concerning the effects of energy cooperatives on the current energy transition and
(b) underdeveloped embedding of the phenomenon of energy cooperatives within
conceptualresearchintocomplextransformationprocesses.
The book contains a description of the historical, political, institutional and
technical dimensions of the transformational space in which energy cooperatives
operate. This frame of reference then becomes the basis for assessing the actual
impactsofenergycooperativesonthetransition,withtheoreticalexaminationofthe
phenomenon of energy cooperative in Germany forming the work’s conceptual
heart. Debor combines the approaches of transitions to sustainable development
v
vi Foreword
andtransitionmanagementwithworkonstructurationtheoryanddevelops,onthis
basis, an independent frame of reference which she calls interactions between
agencyandstructureintransitions(IBAST).
Focusingontheroleofnichesandnicheplayersindiffusionandtransformation
processeslays afoundationfor gaining theoreticalunderstanding oftheimpacts of
energycooperatives,whereinaspecialroleisplayedbyadifferentiatedspatialreach
concept.Thisapproachiscombinedwithstructuralapproachestobusinessbasedon
Giddens’ structuration theory. The IBAST framework synthesised by Debor not
onlycreatesabasisforunderstandingenergycooperativesintermsoftheirstructural
impacts but also for distinguishing among different structural dimensions. Mean-
while, it also marks an important, independent conceptual contribution towards a
transformation-andstructural-policyenlightenedmanagementtheoryanddecisively
developsfurtherthestructural-policyworkoftheSt.GallenSchool.
AcomprehensivesurveycarriedoutbytheauthoramongGermanenergycoop-
eratives during the study period provides an instructive overview of the overall
dimensions and scope of energy cooperatives in Germany. In particular, Debor
focuses on the resources mobilised by energy cooperatives (mobilised capital,
number and structure of members), as they are central to the structural analysis
built upon them. With this quantitative survey of the German energy cooperative
landscape, the author makes a valuable empirical contribution to contemporary
researchontheenergycooperativeanditscurrenteffectsinGermany.
Withthreecontemporarycasestudies,Deborprovidesacomprehensivereviewof
the history, structure and concrete investment projects of German energy coopera-
tivestoday.Particularlynoteworthyhereareherconceptualisationofenergycoop-
erativesasanumbrellaforlocalactorconstellationsandhowtheymobiliseresources
fortheenergytransitionaswellassystematisationofthedifferentformsofpossible
participation in energy cooperatives. The structural policy contribution of energy
cooperatives in local contexts is fundamental and extends far beyond the material
resources they mobilise. Especially of central importance here are the new value
concepts, guiding principles and legitimisation paths that are mobilised by energy
cooperativestowardstheEnergiewendeproject.
In sum, these are highly relevant results for both further energy-cooperative
research and the practical design of future energy-cooperative strategies and poli-
cies—precisely because recent changes in the German Renewable Energy Act are
significantly impacting the incentives and scope of energy cooperatives as well as
endangeringtheirpotentialforsocialinnovation.Thisworkis,therefore,dedicated
toexaminingaquitetimelyandimportantissueattheintersectionofmanagement,
innovationandsocialtransformation.Itisanimportantcontributiontowardsmaking
German experience with energy cooperatives available to international scientific
discussion.
WuppertalInstituteforClimate UweSchneidewind
EnvironmentandEnergy
Wuppertal,Germany
Abstract
German energy cooperatives have experienced a renaissance over the last decade.
Due to their strong growth, concentration on renewable energy and very special
businesslogic,membersofthisyoungandinnovativeenterprisegrouphavereceived
widespread public attention indiscussions concerningGermany’s ongoing energy-
system transition. Energy cooperatives are strongly considered to be a key driving
force in this transition, being pioneers in the establishment of a sustainability-
oriented energy sector. However, very little is known about the real influence of
energycooperativeswithinGermany’sso-calledEnergiewende.Asystematic,holis-
tic and theory-grounded exploration of the contribution and limitations of this
organisational group with regard to developing energy system change has been
missing. Thus, the question addressed in this book is: How can we reflect—in a
systematic and holistic sense—upon the influence of energy cooperatives on
Germany’s energy transition? A theoretical framework is developed here for
assessing the impacts of innovative rising-actor groups within socio-technical sys-
tem change, based upon interrelations between interaction and structure at three
spatiallevels:thelocal,trans-localandwidersystem.Thisframeworkthenguidesa
comprehensive empirical assessment of German energy cooperatives. The mixed-
method research design employed here includes a far-reaching quantitative data
assessment and a detailed qualitative case study analysis of three cases. It is
demonstratedthatenergycooperativesstandforadecentralised,regionallyembed-
ded and democratically legitimised renewable energy production set-up,
representing a completely new combination of technology, values and guiding
principles in Germany’s energy sector. The structuring potential of energy cooper-
atives lies in their creation and multiplication of very particular collaborative
interaction models across time and space, potentially leading to diffusion of a new
concrete pattern of rules and resources throughout Germany’s energy system. In
manyplaces,energycooperativesfunctionasorganisationalumbrellas,underwhich
local citizens as well as key local decision takers from civil society, politics and
business can commit themselves to new symbiotic relationships, with the concrete
intention of developing renewable energy in self-defined regions. Energy
vii
viii Abstract
cooperatives are, therefore, more than citizenship energy. More importantly, they
can unify key actors from diverse fields and professions in their focus regions in
elaborating renewable energy projects. Energy cooperatives literally function as a
proofofconcept,demonstratinghowdecentralisedrenewableenergycanbeembed-
dedandworkwithinsocietyacrosstimeandspace,despitebeingradicallydifferent
compared to conventional energy system structures. It is their shared and well-
defined collective identity as well as their shared resource base which has turned
themintoimportantstructuringactorswithinGermany’senergysystem,despiteonly
representing a minority of very small to medium-sized organisations. They have
created high regard for their way of thinking and acting beyond the boundaries of
theirowncommunities,totheextentthatthegovernmenthasexplicitlypraisedand
valuedtheiractionsintheGermanRenewableEnergyAct2016.Theabilitytocreate
suchalevelofreciprocitybetweencommunityinsidersandoutsiderscanbecomea
basis for institutionalisation. Energy cooperatives also demonstrate well that struc-
turalchangecanemergethroughsmallsocialgroupsinsociety.
Further,thisworkshowsthatimplementationofsimilarinteractionmodelsisnot
onlythegreateststrengthofthecommunitybutalsoitsgreatestweakness.Besides
intendedactions,alsounintendedconsequencesandunacknowledgedconditionsof
their own activities are manifested across time and space. The overwhelming
majority of energy cooperatives have a risk-averse business approach, due to their
sense of responsibility for citizens’ capital, prevailing economic principles that
remain unquestioned and a lack of internal professionalisation of management
structures. Thus, energy cooperatives primarily focus on implementation of small
to medium-sized renewable-energy production units, preferably photovoltaic and
biomassplants,whichreceiveasecuredreturnoninvestmentthroughfeed-intariffs
under the German Renewable Energy Act. Even though most energy cooperatives
aimatrealisingdiversebusinessactivities,aminorityofthemhasbecomeengaged
inotherareas.Asaconsequence,energycooperativeshave,thusfar,beenlimitedin
transferringtheirpotentialforstructuringchange—combiningtechnologicalenergy
infrastructureswithnewsocietalrulesandguidelines—intootherrenewableenergy-
related activity areas, such as the mobility sector, being important for achieving a
fully renewable energy system. The community of cooperatives has also lost its
stronggrowthdynamicoverthelastyears,becausemostofthemhavenotmanaged
to develop business models that are robust enough to cope with external changes,
such as the strong changes prompted by the German Renewable Energy Act.
Foremost,energycooperativesarehavingproblemsfacingthenewcost-reduction-
drivenpoliticaldirectionwithinGermany’senergytransition,revealingthatpolitics
can have a strong influence on actor-driven socio-technical change processes. A
conclusion here is that politicians need to understand that the German Renewable
EnergyActhasnotonlybeenthecornerstoneforthedevelopmentanddiffusionof
energy technologies but has also provided the fundamental conditions for societal
innovation.
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 ResearchQuestions. .. . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. 4
1.2 ResearchApproachandContribution. . . . . . . . . . . . . . . . . . . . . . 5
1.2.1 ResearchApproach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2.2 ContributionsofThisWork. . . . . . . . . . . . . . . . . . . . . . . 7
1.3 StructureoftheWork. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2 EnergyCooperatives:A‘New’PhenomenoninGermany. . . . . . . . . 13
2.1 DefiningGermanEnergyCooperatives. . . . . . . . . . . . . . . . . . . . 15
2.2 CurrentStateofResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.3 ResearchGaps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3 Germany’sEnergiewende. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.1 ATransitionintheMaking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.2 EnergySystemGoals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.3 DecentralisedVersusCentralisedRenewableEnergySystems. . . . 27
3.4 SystemChallenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.4.1 TechnicalChallenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.4.2 MarketChallenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.4.3 SocietalChallenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.4.4 PoliticalChallenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4 OrganisationsintheContextofSocio-technicalTransitions. . . . . . . 37
4.1 UnderstandingSocio-technicalTransitions. . . . . . . . . . . . . . . . . . 37
4.1.1 Socio-technicalTransitionsTowardsSustainability:
ANewDistinctResearchField. . . . . . . . . . . . . . . . . . . . . 37
4.1.2 DefiningSocio-technicalTransitions. . . . . . . . . . . . . . . . . 38
4.1.3 PrevailingConceptsforStudyingTransitions. . . . . . . . . . . 41
4.1.4 TheMulti-LevelPerspectiveonSustainability
Transitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.1.5 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
ix
