Energy Transition and Bottom-Up Decision-Making Process

I have been told this week about an interesting location in the Netherlands that has done a great job in the field of energy savings and transition.

After quick research I found that the touristic island of Texel has implemented a bottom-up decision-making process that has benefited residents and tourists alike.

Texel Energy is a small company that supplies energy from renewable sources to electricity consumers of Texel Island. Under the slogan “RESHARE”, individuals, non-profit, and private companies are committed to foster and move forward a steady energy transition process which benefits Texel islanders primarily.

This cooperative taps into a community fund to finance its activities. Externally, the government provides subsidies and tax credits; however, it is internally that Texel strikes out. In order to mitigate resistance and maximize benefits, this cooperative of voluntary participation has created smart mechanisms to address common issues arising from likely conflicts between foreigners and locals.

Besides the community funds where all participants contribute and manage it along with the municipality, the cooperative enjoys other instruments to ensure that Texel people are in control of the positive effects of this venture:

. Local ownership: energy developers offer shares of the projects to the local community;

. Compensation: developer compensates financially the community for ecological and property damage;

. Benefits-in-kind: developer invests in improvements in community infrastructure;

. Local employment: incremental jobs are offered to the community;

. Local contracting: local business are awarded contracts and actively participate in the development of energy projects;

. Energy price reduction: the community is granted the opportunity to consume energy at a lower price;

. Indirect Social Benefits: the community also benefits from not easy quantifiable indicators like ecotourism, prestige, and knowledge.

These “resharing” mechanisms to support the energy transition process in Texel has effectively addressed three of the main concerns of the community: i) environmental impacts – pollution and damages on local flora and fauna ii) NIMBY “Not in my backyard” – preservation of one’s surroundings iii) opportunism – extracting the highest possible additional benefits for personal benefits.

In a global context where energy transition has been led by governments and top-down decisions are the rule, the case of Texel serves as a laboratory of a decision-making process where the government is an important partner of a local committee that has the responsibility to decide upon how they wish to conduct this process and benefit from it.

http://www.reshare.nu/athena/site/file_database/REShare_Outline_Final_Report.pdf