POWERSHIFTS · Shifting political power: the nature and consequences of distributed renewable energy transitions

Shifting political power: the nature and consequences of distributed renewable energy transitions

Decentralisation of energy is progressing rapidly. However, shifting ownership of energy is highly political. Firms in centralised systems have actively opposed policies that facilitate increased decentralisation as they seek to protect their market shares and profits. As communities of decentralised generators grow, they have developed capacity to intervene in political systems. The result is a highly contested political arena. The implications of shifting ownership in electricity systems are profound. Incumbent generators wield significant influence over energy policy processes. An electricity model where ownership is more decentralised implies a decentralisation of political influence and disruption of established power balances. Where incumbent firms aim to maximise profits, many decentralised generators operate under business models that limit profits, or that have explicit social impact imperatives. A redistribution of political power in favour of decentralised interests has the potential to shift the operating logic of electricity systems. There is a hope that decentralisation will make it more possible to realise the social and environmental objectives needed to address existential threats imposed by both climate change and increasing global wealth inequality. However, there is no research on the extent to which these changes are occurring. The Powershifts project examined the growing impact of decentrally-owned renewable electricity projects on political decision-making systems across the OECD through 3 objectives. To: (1) examine the conditions leading to shifts in political power; (2) assess the mechanisms by which political power shifts are occurring; and, (3) identify the consequences of political power shifts for energy systems and outcomes. These objectives were explored through 3 in-depth case studies in The Netherlands, England, and the Canadian province of Ontario. An OECD-wide survey of policy makers that expands upon the case study findings is still in progress. In brief, political power is shifting. This is largely visible through an increase in the capacity of decentralised actors, an increased ability to build political coalitions, and a rescaling of action on energy from the national to the local or regional level. These trends can be expected to continue and will result in a substantial reorganisation of political power relationships in energy policy arenas.

Data: CORDIS, © European Union