EU

POSITION PAPER

TOWARDS A NEW ENERGY STRATEGY FOR EUROPE 2011-2020

COOPERATIVES EUROPE – the European region of the

International Co-operative Alliance – is the biggest membership
organization in Europe promoting the co-operative model of
enterprise for sustainable economic progress with social
objectives. It represents a force for economic growth and social
change of 123 million member co-operators owning 160.000 co-
operative enterprises and giving jobs to 5,4 million European
citizens.

INTRODUCTORY REMARKS

COOPERATIVES EUROPE welcomes the consultation on a new Energy Strategy for Europe 2011-2020,
whose overall goal is to ensure safe, secure, sustainable and affordable energy for all.
A co-operative is an autonomous association of persons united voluntarily to meet their common
economic, social, and cultural needs and aspirations through a jointly-owned and democratically-
controlled enterprise. Co-operatives put people at the heart of all their business.
Energy is a natural resource, whose smooth and equal management can only be guaranteed by a
model of enterprise defending the collective interest without renouncing to the efficiency of the
private form or enterprise. Co-operatives are owned and managed by their members; they are close
to their members and can therefore deeply influence their behaviour: co-ops are a powerful
instrument to improve a rational use of energy among citizens. Co-operatives are deeply anchored in
their local community. This connection often allows them to create partnerships with local
administrators and other stakeholders for the creation of a decentralized model of energy production-
distribution-consumption.
As underlined at page 6 of the stock tacking document, ‘Public awareness-raising and acceptance
have perhaps been underestimated for their impact on delivering energy policy”. Through collective
action, the co-operative model supports people to work together to change their behaviour and
become more environmentally friendly in a way that private enterprise cannot.
Co-operatives have been defending citizens’ interest for more than one century: they have been
providing services in areas where neither public nor private entities could act. Co-operatives have
shown that they are able to adapt to the context evolutions and to provide state of the art solutions
to citizens’ needs.
Co-operatives can therefore play a key role in the Energy Strategy for Europe 2011-2020.

COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA 1

CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
SPECIFIC REMARKS ON THE CONSULTATION

- Modern Integrated grids. COOPERATIVES EUROPE shares the EUROPEAN COMMISSION’s point of view
that energy infrastructures will be a key issue in the coming years. Co-operatives believe that the
EUROPEAN UNION should invest in a sustainable economic development plan based on a hydrogen
infrastructure and a continent-wide intelligent intergrid. In fact, the same design principles and smart
technologies that made the Internet possible could be used to reconfigure the EU’s power grids so
that people can produce renewable energy and share it peer-to-peer. This process, which would lead
to a democratisation of the energy ownership through the creation of a decentralised form of energy
use, could then be effectively managed though a co-operative structure.
As for authorisation procedures, which are often delayed by local communities showing resistance to
energy infrastructures in their neighbourhood, COOPERATIVES EUROPE highlights that co-operatives work
at local level, in strict collaboration with local authorities and the local community, which is the owner
of the business. The fact that citizens are the managers and owners of the business project sensibly
reduces the resistance of local communities. Co-operatives are used to democratic practices, which
they spread among their partners.

- Making progress towards a low-carbon energy system. COOPERATIVES EUROPE is convinced

that a reduction of emissions from energy production and use needs to be achieved. Co-operatives
have demonstrated that they can largely contribute to this objective by:

* REDUCING EMISSIONS. Concern for the community is the seventh co-operative principle: co-
operatives work for the sustainable development of their communities. By their very nature they
are therefore committed to the respect of the environment and the combat against climate
change. There are many examples of co-operative businesses which have spontaneously
committed to reduce their own energy consumption and carbon emissions.
The consumer co-operative COOP DENMARK, for instance, has calculated the carbon footprint for all
its shops and it is now on track with the plan to reduce energy consumption by 10% in 2012 in all
of them.
Agriculture co-operatives as well are working on this issue: for example all French ALFALFA co-
operatives have been working together to reduce their CO2 emissions, focussing on the de-
hydration process (substitution of coal by biomass, on-field pre-drying...). In the framework of the
EU ETS they were even able to sell carbon credits.
As for housing co-operatives we will quote the example of SANDFORD WALS, a housing co-operative
of 14 shared houses and 6 self-contained flat. SANDFORD’S residents act as collective landlord and
therefore own, control and manage the estate. When refurbishment works were required in 2002
they committed to cut their CO2 emissions by 60%. Consultation with residents was central to the
project: regular meetings and information provision were held and all major decisions had to pass
majority vote, including the need to increase rents to fund work, which was approved by 87% of
residents.
SANDFORD has reduced its carbon emissions from 228 tons in 2003 to 91 tons in 2008, achieving
the 60% target. The overall awareness of energy and environmental issues has increased yielding
behavioural changes inside and out of the home.

* REDUCING ENERGY NEEDS. Co-operatives have strict relations with their members, who are the
owners of the business. They have privileged communication channels with them and can thus
significantly influence their behaviour and let them adopt a low-carbon life style.
For example ANCC/COOP, the structure which gathers together Italian consumer co-operatives,
has carried out an educational campaign called ‘Risparmia le Energie’ (‘Save Energies’), which
involved 1.500 consumer-member families all over Italy with the aim of informing and raising
awareness about the topics of climate change and energy efficiency. The final objective of the

COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA 2

CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
 campaign was to change daily habits and consumption patterns of this community and of all the 7
million members and to educate them to a responsible consumption1.
Italian consumer co-operatives have also set up a large energy programme involving their stores
and business partners: firstly, they have adopted several energy saving technologies in the stores
and fostered this policy within their business partners; secondly, they have installed photovoltaic
panels on the roofs of their stores. Finally, they are considering the possibility to use the member
loans to finance the installation of pv panels and create the largest Italian consumer co-operative
in solar energy production.
Several housing co-operatives are already applying innovative technologies and investing on net
zero buildings. Other co-operatives are planning to build renewable energy installations for their
members, which will also be used, for example, to re-charge their electric cars.
Agriculture co-operatives as well are tremendously sensitive to a rise in energy costs as they are a
relevant item costs in their budget. They therefore advice their member co-operators on best
practice and equipments to reduce energy consumption. They jointly organise trainings to put into
practice various programs for progress (such as the French Energy Performance Plan).

* INCREASING THE PRODUCTION AND USE OF CARBON-FREE ENERGY. Co-operatives producing and/or
distributing renewable energy are spread all over Europe.
On the one hand there are co-operatives producing green energy as a side activity, for example
by using biomass residues or putting pv panels on the roofs of their buildings. It is the case of
Italian consumer co-operatives which were mentioned before. It is also the case of agri-co-
operatives, which boast a true know-how on providing biomass. Their collective approach, often
through co-operative unions closely linked to territories, enables them to create effective and
stable relationships between sellers and buyers.
On the other hand there are co-operatives having the production/distribution of green energy as
their core activity: as members are the owners of the production plants, they can enjoy a 100%
green energy supply with transparent tariffs; furthermore, profits are (partly) re-distributed
among the members.
ECOPOWER is a Belgian co-operative producing and distributing renewable energy. ECOPOWER
currently ensures 100% green energy supply to 25.000 household in the Flanders region. Or again,
BIOENERGIEDORF JÜNDE eG, a ‘Bio Energy Village’ under the legal form of co-operative which
manages a Heat and Power Generator converting biological materials into electricity and heating
power. This is then distributed to the inhabitants/members (70% of the population). In Jünde, not
only the co-operative provides a technical connection to the energy network of the village, but it
also fosters business as well as human connections: the farmers of the village, for example, are
directly involved in the project as they provide the biological materials to the HPG.
Another example is the electric CO-OPERATIVE “SAN FRANCISCO DE ASÍS” (Enercoop Group), which has
recently launched “The Realengo”, the project to build one of the largest photovoltaic solar
orchards in Europe. This installation is located in Crevillente (Alicante, Spain) and generates an
annual output of more than 9 million kWh, thereby avoiding the emission of 8.500 tonnes of CO2
per year, 196 tons of sulphur and 29 tons of oxygen from nitrogen.

- Leadership in technological innovation. COOPERATIVES EUROPE agrees with the EUROPEAN

COMMISSION that technological innovation will be pivotal for Europe to achieve its 20-20-20 climate
action targets and to complete the 2020 Agenda for smart, sustainable and inclusive growth. However,

1
The information has been delivered through an ad hoc website (www.reisparmialeenergie.e-
coop).

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CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP
innovation cannot be limited to energy ‘technology’, but should also focus on the development of new
or sparsely used business forms to manage energy production and distribution.
In France, for example, new territorial business forms were created, such as the SCIC (Collective
Interest Co-operative Enterprise), which can perfectly deal with energy production in a sustainable
and fair way. The SCIC involves consumers, producers and local authorities: in the SCIC Bois Bocage
Energie, for instance, the co-operative buys woodchips from the farmers, dries them in specific
buildings owned by local authorities and sell them to consumers. This scheme ensures advantages for
all the stakeholders: the farmers can sell woodchips of their hedges, which otherwise would remain
unused; local authorities indirectly protect the environment, as unused hedges would otherwise risk to
be eliminated; consumers can enjoy 100% green energy. .

- Protecting EU citizens. COOPERATIVES EUROPE agrees with the EUROPEAN COMMISSION that the
internal energy market legislation has to provide consumers with high quality services at competitive
prices and that the internal market should ensure that consumers do not pay more than what is really
necessary for their energy consumption. However, in the current market context, the presence of few
huge market players makes it hard to create a level playing field with other smaller energy producers
and to guarantee that the citizens’ interest is really put forward.
Co-operatives represent a valid alternative to large private investors: firstly, they are linked to the
community where they are active, which ensures that their activity respects its specificities and needs;
secondly, they are owned and managed by their members: this makes sure that tariffs are
transparent and fair. Thirdly, co-operatives put people at the centre of their business and not capital;
profit is not the final objective of co-operatives’ activities and it can be redistributed only partially: it is
for this reason that in many areas with specific geographical features, where for-profit companies
have not seen any interest in investing, co-operatives have installed their services which otherwise
would not be available, preventing these regions from isolation.
For example, there are 40 electricity users co-operatives which were created at the end of the 19th
century in remote regions in the Alps, which were not served by energy supply networks created in
urban areas. Nowadays they provide 100% renewable energy to more than 110 villages in 60
municipalities, with 51.000 users (20.000 of which are members), for a total of more than 300.000
citizens. They have an annual production of 300 million kWh and 400 gWh of power and they are able
to offer rates which are 30% cheaper than the national average.
They are now working on the creation of a consortium to sell energy produced in excess on the
market and to enable communities to share electricity in case of need.
Co-operatives are often small entities, and they are not always in the position to compete with large
investors. However, their direct link to the community, the high quality level of the services that they
provide and the fact that they are close to their members and customers reinforce their competitive
advantage.

COOPERATIVES EUROPE welcomes the EUROPEAN COMMISSION’s public consultation; we are convinced that
co-operatives can play a key role in the Energy Strategy for Europe 2011-2020 and we wish to take
part in any further reflection on this issue.

Brussels, 2nd July 2010

END

COOPERATIVES EUROPE ASBL – EUROPEAN REGION OF ICA 4

CO-OPERATIVE HOUSE EUROPE – AVENUE MILCAMPS 105 – 1030 BRUSSELS
TEL. (32/2) 743 10 33 – OFFICE@COOPSEUROPE.COOP