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COMMUNITYENERGYBENEFITS
POWERINGUNIVERSALWELLBEING
?IRENA2024
Unlessotherwisestated,materialinthispublicationmaybefreelyused,shared,copied,reproduced,printedand/orstored,providedthatappropriateacknowledgementisgivenofIRENAasthesourceandcopyrightholder.Materialinthispublicationthatisattributedtothirdpartiesmaybesubjecttoseparatetermsofuseandrestrictions,andappropriatepermissionsfromthesethirdpartiesmayneedtobesecuredbeforeanyuseofsuchmaterial.
ISBN:978-92-9260-638-1
Citation:IRENACoalitionforAction(2024),Communityenergybenefits:Poweringuniversalwellbeing,InternationalRenewableEnergyAgency,AbuDhabi.
AbouttheCoalition
TheIRENACoalitionforActionbringstogetherleadingrenewableenergyplayersfromaroundtheworldwiththecommongoalofadvancingtheuptakeofrenewableenergy.TheCoalitionfacilitatesglobaldialoguesbetweenpublicandprivatesectorstodevelopactionstoincreasetheshareofrenewablesintheglobalenergymixandacceleratetheenergytransition.
Aboutthispublication
ThiswhitepaperhasbeendevelopedjointlybymembersoftheCoalition’sWorkingGrouponCommunityEnergy.TheCommunityEnergyWorkingGroupbringstogetheradiverserangeofstakeholdersunitedbythegoalofempoweringcommunitiesandcitizenstoparticipateintheenergytransition.Thiswhitepaperdetailshowcommunity-ledrenewableenergyprojectscanunlockmultiplebenefitsacrosseconomic,socialandenvironmentaldimensions.
Acknowledgements
Contributingauthors:AyuAbdullah,SoniaLuhongWan(COMET);SebastianHelgenberger(formerIASS);KanakGokarn,DavidJacome-Polit(ICLEI);NamizMusafer(IntegratedDevelopmentAssociationKandy);ShotaFuruya(InstituteforSustainableEnergyPolicies);KellyTrumbull,IgorVejnovic(TheNatureConservancy);EmanAdel,AkramAlmohamadi,MagedMahmoud(RCREEE);AlexandrosFakasKakouris(RGI);NamrataGinoya,VanditaSahay(WRI);StefanGs?nger(WorldWindEnergyAssociation);andGiedreViskantaiteundertheguidanceofRaúlAlfaro-Pelico(IRENA)
Furtheracknowledgements:ValuablereviewandfeedbackwereprovidedbyJanetMilongo(CANInternational),MonicaOliphant(ISES),AndreaWainer(REN21),IraShefer,AndrzejCeglarz(RGI),UteCollier,CeliaGarcía-Ba?os,JarredMcCarthy,IlinaRadoslavovaStefanova,MirjamReiner,MichaelRenner,NtseboSephelane,andKamranSiddiqui(IRENA)
ThereportwaseditedbyJustinFrench-Brooks.PublicationsandeditorialsupportwereprovidedbyFrancisFieldandStephanieClarke.DesignwasprovidedbyMyrtoPetrou.
Disclaimer
Thispublicationandthematerialhereinareprovided“asis”.AllreasonableprecautionshavebeentakenbyIRENAandtheIRENACoalitionforActiontoverifythereliabilityofthematerialinthispublication.However,neitherIRENA,theIRENACoalitionforAction,noranyofitsofficials,agents,dataorotherthird-partycontentprovidersprovidesawarrantyofanykind,eitherexpressedorimplied,andtheyacceptnoresponsibilityorliabilityforanyconsequenceofuseofthepublicationormaterialherein.
TheinformationcontainedhereindoesnotnecessarilyrepresenttheviewsofallMembersofIRENAorMembersoftheIRENACoalitionforAction.Mentionsofspecificcompanies,projectsorproductsdonotimplyanyendorsementorrecommendation.ThedesignationsemployedandthepresentationofmaterialhereindonotimplytheexpressionofanyopiniononthepartofIRENAortheIRENACoalitionforActionconcerningthelegalstatusofanyregion,country,territory,cityorareaorofitsauthorities,orconcerningthedelimitationoffrontiersorboundaries.
POWERINGUNIVERSALWELLBEING3
Contents
EXECUTIVESUMMARY 6
INTRODUCTION 8
1SOCIALBENEFITS:ADVANCINGJUSTICETOGETHER 10
1.1BUILDINGPUBLICACCEPTANCE 10
1.2MAXIMISINGWELLBEINGANDSOCIALBENEFITS 12
1.3EMPOWERINGCITIZENSANDENHANCINGSOCIALCOHESION 14
1.4IMPROVINGGENDEREQUALITY 17
2ECONOMICBENEFITS:SHARINGPROSPERITYWIDELY 20
2.1ENABLINGENERGYACCESSANDLOCALDEVELOPMENT 20
2.2PROVIDINGENERGYINFRAGILEANDCONFLICT-AFFECTEDAREAS 23
2.3ACHIEVINGLOCALENERGYSECURITY 24
3ENVIRONMENTALBENEFITS:CO-EXISTINGWITHNATURE 26
3.1ENHANCINGCLIMATEADAPTATIONANDRESILIENCEOFENERGYSYSTEMS 26
3.2PROTECTINGNATUREANDBIODIVERSITY 28
4INCREASINGFINANCINGFORCOMMUNITYENERGY 32
4.1COMMUNITYENERGYFINANCINGOPTIONS 32
4.2CHALLENGESANDOPPORTUNITIES 34
5GAININGCOMMUNITYSUPPORTFORTHEENERGYTRANSITIONINFRASTRUCTURE 36
6COMMUNITYENERGY:BARRIERSANDENABLERS 39
6.1HOWTOIMPLEMENTAPARTICIPATORYANDINCLUSIVEAPPROACHINPRACTICE? 40
7POLICYRECOMMENDATIONS 41
REFERENCES 43
4COMMUNITYENERGYBENEFITS
Figures
FIGURE1Elementsofcommunityenergyinitiative 8
FIGURE2Communityenergybenefitsacrosssocial,economic,andenvironmentaldimensions 9
FIGURE3Processofperformingacommunity-centredsocialperformanceassessment 9
FIGURE4Barriersandenablerstocommunityenergy 13
Tables
TABLE1OptionsforconsumerstosupportcommunitygoalsinJapan 16
TABLE2Communityenergyfinancingoptions 34
Boxes
BOX1HepburnEnergycommunitygrantsprogrammeinAustralia 15
BOX2ShonanPowerinitiativesenhancingsocialcohesioninJapan 16
BOX3SosaiRenewableEnergiesempoweringwomeninNigeria 17
BOX4Youthengagementinmicro-hydroinMalaysia 22
BOX5Solarmini-gridstrengtheningthelocaleconomyinMataRedi,Indonesia 22
BOX6SolarpowerimprovinglivelihoodsintheruralcommunityinMozambique 22
BOX7Women-ledsolarcommunityinYemen 24
BOX8CommunityenergysecurityinIndia 25
BOX9Communityenergyinitiatives:Enhancingclimateresilience 27
BOX10TheEnergyGarden:ImprovingurbanbiodiversityintheUnitedKingdom 29
BOX11Micro-hydro:FosteringenvironmentalawarenessinthePhilippines 31
BOX12Pay-As-you-SavemodelofBrightonandHoveEnergyServices,UK 33
BOX13Community-owneddistributiongridinNicaragua 36
BOX14EirGridCommunityBenefitSchemefortransmissioninfrastructureinIreland 38
POWERINGUNIVERSALWELLBEING5
Abbreviations
DREdecentralisedrenewableenergy
DSOdistributionsystemoperator
SDGSustainableDevelopmentGoals
TSOtransmissionsystemoperator
WWEAWorldWindEnergyAssociation
6COMMUNITYENERGYBENEFITS
Executivesummary
Astheworldgrappleswiththeinterrelatedchallengesofclimatechange,inequalityandgeopoliticaltensions,itisimperativetorethinkthewayoursocietalandeconomicstructureswork.Complexproblemsdemandholisticsolutions.Futureenergysystemsmustnotonlyberenewables-based,butalsoinclusiveandresilient.Thisrequiresactivecitizenparticipationinadditiontouniversalaccesstoaffordableandreliableenergyservices(IRENA,2023a).Communityenergy,definedastheeconomicandoperationalparticipationinand/orownershipofenergyprojectsbycitizens,emergesasavitalcomponentoffutureenergysystemsdesignedtotacklethesechallenges.
Thispaperhighlightswhycountriesshouldpursuecommunityenergytoachievetheirgoalsoftriplingrenewableenergycapacityby2030inajustandinclusivemanner.Communityownershipandinvolvementfromprojectinceptiontooperationcandelivermultiplebenefitsacrosssocial,economicandenvironmentaldimensions.Inaddition,citizenownershipensuresthatthesebenefitsaresharedmorewidelyandequitably.Activemeasuresandpoliciesareessentialtoensurethatthesebenefitsarefullyrealised.
Widespreadcitizensupportiscentraltoarapidenergytransition.
Communityenergybasedupontheparticipationoflocalstakeholdersisnotonlyinherentlymoreaccepted,butalsofostersactivecitizenshipandsocialcohesion.Suchinitiativesarewellplacedtoensurefairrepresentationinownershipanddecision-making.Fairness,transparencyandequitabledistributionofcostsandbenefitsmustguidedecision-makingprocessestogainstakeholders'trustandengagement.Thisrequirestailoredstrategiesdevelopedwithconsiderationforgender,low-incomehouseholdsandmarginalisedcommunities.
Nationalenergyplansandpoliciesshouldprioritisecommunityownershipandcitizeninvolvement.
Supportiveregulatoryframeworksarenecessarytoremovebarrierstocommunityenergyinitiatives.Auctionschemesthattendtoexcludesmallerinvestorsshouldincorporatenon-financialcriteriatocreatealevelplayingfieldforcommunityenergyinitiatives.Simplifiedandflexibleregulationsforownership,permitting,licensing,tariffsettingandsellingexcesselectricityareessential.Additionally,communitiesshouldbeabletobenefitfromlocalprojects,suchasbyowningastakeinthem.
POWERINGUNIVERSALWELLBEING7
Itshouldbecomestandardpracticeforenergyprojectstoprioritise
advancingcommunitywell-beingandmaximisesocio-economicbenefits.
Theenergyprojectassessmentshouldgobeyondtechnicalandfinancialparameters,takingintoaccountlocalsocialperformance,andcommunityneedsandpreferences.Thisincludesfosteringlocaleconomicvaluecreationandemployment,promotingcommunitycohesion,andmaintainingahealthynaturalenvironment.Facilitatingcommunityownershipofenergyprojectsandassociatedinfrastructureiscrucial.Itnotonlyfosterspublicsupport,butalsocreatesoptimalincentivesforintegratingrenewableenergygeneration,energyefficiencyandaffordabilityobjectives.
Asecureandaffordableenergysupplyisapreconditionfordevelopmentandwell-being.
Decentralisedrenewableenergyprojectsownedbycommunitiescandeliveraffordableandreliableenergyservicesinremoteareas.Communityenergycancontributetoachievinguniversalenergyaccessandincreaselocalenergysecuritybyreducingrelianceonimportedenergywithfluctuatingcosts.Giventheirdecentralisednatureandlocalmanagement,communityenergyinitiativescanalsoreachthosemostinneedinconflict-affectedareas.
Theenergysystem’sresilienceandcapacitytoadapttoclimatechangeisincreasinglyimportant.
Withever-increasingclimatechangepressures,involvingcommunitiesmoreactivelyintheenergysystemearlyonensuresthatadaptationmeasuresfunctioneffectivelyandarebettersuitedtolocalneeds.Decentralisedrenewablesolutionsthatcanbeoperatedindependentlyfromthecentralsystemstrengthenresilienceandfacilitateamorerapidrecoveryinthefaceofanysuchshocks.
Renewableenergydevelopmentsmustprioritisetheprotectionofnature,biodiversityandlocalculturetoachievetruelong-termsustainabilityandclimategoals.
Bysitingrenewableenergyinamannerthatsupportsecosystemconservationandalignswithlocalvaluesandpreferences,negativeenvironmentalimpactscanbeminimisedandlandconflictsmitigated.Localcommunitiesarethemosteffectivestewardsoftheenvironmentbecausetheypossessaknowledgeoftheirecosystemsandthemotivationtopreservethemforthemselvesandfuturegenerations.Community-ownedrenewableenergyprojectsarewellplacedtoincorporatethislocalknowledge,leadingtotheidentificationofsustainableapproaches.
Recognisingthesocialvalueofcommunityenergy,itiscrucialtofacilitateaccesstofinance.
Innovativefinancingoptionscanderiskprojectsandallowmarginalisedcommunitiestoparticipate.Leveragingdigitaltoolscanstreamlinethepoolingofcitizenfunds,whilerisk-sharingmechanismsandpublic–privatepartnershipscanincreasefundingandlowerthecostofcapital.Aggregatingsmallerprojectscanreduceoverallcostsandmakethemmoreattractivetolargerinvestors.
Introduction
Whiletheeffectsofclimatechangeareincreasinglyevident,theworldisnotontracktoachieveglobalclimategoalsanddeliveranenergytransitionthatensuresaffordable,reliable,sustainableandmodernenergyforallinlinewithSustainableDevelopmentGoal7.Boldactionisneedednotonlytotackletheclimatecrisis,butalsotoaddresswidespreadinjusticeswithintheworld’senergysystems.Overaquarteroftheglobalpopulationlacksaccesstocleancookingand8%stilllivewithoutelectricity(IEAetal.,2024).Numeroushouseholdsinbothdevelopedanddevelopingeconomiesarestrugglingwiththeirenergybills.Communityenergycanplayanimportantroleinacceleratingthedeploymentofrenewableswhilegeneratinglocalsocio-economicbenefits,givingmoredecision-makingpowertocitizensandthusincreasingpublicsupportforlocalenergytransitions.
Climate-resilientdevelopmentisachievedwhengovernments,civilsocietyandtheprivatesectormakeinclusivedecisionsprioritisingriskreduction,equityandjustice(IPCC,2022).Thisrequiresbuildingpartnershipswithtraditionallymarginalisedgroups,includingwomen,youth,indigenouspeoples,localcommunitiesandethnicminorities.Forthesuccessfuldeploymentofrenewableenergy,itisnecessarytogivedueconsiderationtoitsinterconnectionswithsocio-economicandenvironmentalsystems.
Communityenergyisdefinedastheeconomicandoperationalparticipationinand/orownershipofanenergyprojectbycitizensormembersofadefinedcommunity,inotherwordsasalocallyownedand/orcontrolledproject(IRENACoalitionforAction,2018).AcommunityenergyinitiativeincorporatesatleasttwooftheelementsinFigure1.
Figure1
Elementsofcommunityenergyinitiative
Localstakeholders
ownamajorityorall
ofarenewableenergy
project
Votingcontrol
restswitha
community-based
organisation
$
Themajorityof
socialandeconomic
bene?tsaredistributed
locally
Source:(IRENACoalitionforAction,2018).
POWERINGUNIVERSALWELLBEING9
Communityenergyprovidesanalternativeorasupportivemodeltothetraditionallydominantstate-ownedorprivateenergyutilities.Itcanplayasubstantialroleintheenergysystembyallowingcitizenstoownaconsiderableshareofrenewableenergyprojectsandsupportinginfrastructure.Beyondincreasingrenewable
energysupply,itcanprovidemultiplesocial,economicandenvironmentalbenefitsandensurethatthese
benefitsaresharedmorewidely.Asdescribedinthispaper,thesepotentialbenefitsrangefrombroaderpublicsupportandtheinclusionoftraditionallymarginalisedgroups,torevitalisedeconomies,improvedenergysecurityandincreasedresilience.
ThispaperdetailsthesebenefitsandhowtheycanbeachievedbypoolingtheIRENACoalitionforActionCommunityEnergyWorkingGroup’sknowledgeandon-the-groundexpertise.Thelistofbenefitspresentedisbynomeansexhaustive.Thebenefitsofcommunityownershipandengagementhighlightedinthispaperwereselectedtoaddresscurrentkeychallenges,setagainstthebackdropoftheclimateemergency,energycrisisandpoliticalinstability.Eachsectioncanbereadasastandalonearticle,articulatinghowcommunityinvolvementandownershipcanserveasfoundationalpillarsforachievingjustandinclusiveenergytransitions.Numerouscasestudiesinthispaperillustratethatthebenefitsareofteninterrelated,creatingpositivefeedbackloops.
Thetools,insightsandexamplesbuildthecaseforamoreprominentroleforcommunityenergyinenergysystems.Thispaperprovidesrecommendationsforpolicymakersonhowtopursuethesebenefitswhilechoosingenergytransitionpathwaysthatmeetthespecificneedsofcitizensandcommunities.
Thefirstsectiondelvesmoredeeplyintothesocialaspectsofcommunityenergy,includingpublicacceptanceandsupport,well-being,citizenempowermentandgenderaspects.Followingthis,thesecondsectionexaminestheeconomicbenefitsofcommunityenergy,suchasprovidingenergyaccess,includinginconflict-affectedareas,enablinglocaldevelopmentandenhancinglocalenergysecurity.Thethirdsectionanalysestheintricateconnectionbetweencommunityenergyandtheenvironment,highlightinghowthecapacityforadaptationandresiliencecanbeenhancedwhiledevelopingrenewableenergyinlinewithenvironmentalandbiodiversityprotectiongoals.Thefourthsectionoutlinesapproachestoincreasingfinancingforcommunityenergy,whilethefifthsectionexaminescommunitysupportfortheenergytransitioninfrastructure.Thesixthsectionenumeratesbarrierstoandenablersofcommunityenergyandaparticipatoryandinclusiveapproach.Figure2summarisestheselectedbenefitsacrosssocial,economicandenvironmentaldimensions.
Figure2
Communityenergybenefitsacrosssocial,economicandenvironmentaldimensions
?Buildingpublicacceptance
?Maximisingwell-being
Socialbene?ts
Advancingjusticetogether
?Empoweringcitizensandenhancingsocialcohesion
?Improvinggenderequality
COMMUNITYENERGY
Economicbene?ts
Sharing
Environmentalbene?ts
Coexistingwithnature
?Enhancingclimateadaptationand
resilienceof
energysystems
?Protectingnatureandbiodiversity
prosperitywidely
?Enablingenergyaccessandlocaldevelopment
?Providingenergyinfragileand
con?ict-afectedareas
?Achievinglocalenergysecurity
Socialbenefits:Advancingjusticetogether
01
Thissectionunderscoresthetransformativepotentialofcommunityenergyinitiativestoempowercitizensbygivingthemavoiceandastakeintheenergytransition.Thefirstpartdetailshowactivecommunityinvolvementbuildsacceptanceandsupport.Section1.2buildsthecaseforenergyprojectstoprioritiseholisticwell-beinginadditiontofinancialandtechnologicalobjectives.Section1.3elaboratesonhowcommunityenergyempowersindividualsandimprovessocialcohesion.Finally,theimportanceofgenderequalityishighlighted,outliningbarriersandpotentialsolutionsinSection1.4.Together,theseaspectsunderscorethevitalroleofcommunityenergyincreatingamoresustainableandinclusiveenergyfuture.
1.1Buildingpublicacceptance
Publicacceptancereferstothelevelofapprovalorsupportthatacommunitydemonstratestowardsaparticularprojectorpolicy.Withoutpublicacceptance,renewableenergyprojectsfaceoppositionandresistance,whichcanhindertheirprogressandsuccessfuldeployment.Forinstance,publicoppositiontonuclearenergyinGermanyhasplayedasignificantroleinshapingnationalenergypolicy,whilecommunityoppositionisconsideredoneoftheleadingcausesoflarge-scalewindorsolarprojectcancellationsintheUnitedStates(BerkeleyLab,2024).
Inunderstandingpublicacceptance,threedimensionshaveoftenbeenreferredto:socio-politicalacceptance,marketacceptanceandcommunityacceptance(RolfWüstenhagenetal.,2007).Whilesocio-politicalacceptancereferstobroadapprovalforenergytechnologiesandpolicies,communityacceptanceisconcernedwiththedirectimpactsofenergydevelopments.Althoughthesethreedimensionsareinterconnected,communityacceptanceofaparticularenergyprojectemphasisestheimportanceofproceduraljustice,distributionaljusticeandtrustasfundamentalelementsforgarneringsupport.
Proceduraljusticeimpliesfairnessandimpartialityintheplanninganddecision-makingprocesses(Subotickietal.,2023).Peoplearemorelikelytoaccepttheoutcomeofaprocesswhentheyfeelthattheyhavebeentreatedfairlyandwithrespectandthatdecisionsweremadeinatransparent,inclusiveandunbiasedmanner.Conversely,whenpeoplefeelthatplanninganddecision-makingprocedureswereunfairandtheywerenotabletoinfluencetheformationoftheproject,theymaynotsupporttheoutcome,orevenopposetheprojectactively.
Distributionaljusticereferstotheideathatresources,opportunities,risks,costsandbenefitsshouldbedistributedequitablyamongstakeholders.Whilesuccessfulcommunityenergyprojectscangenerateavarietyofsocialandeconomicbenefits,itisimportanttodiscuss,defineandimplementdistributionarrangementsproactivelysothatstakeholderscantaketheriskandenjoythebenefitsasappropriatetothelocalcontext(KarytsasandTheodoropoulou,2022).
POWERINGUNIVERSALWELLBEING11
Photocredit:ISEP
CommunitydialogueinHokkaido,Japan
Anessentialprerequisitefortherealisationofthesetwotypesofjusticeinaconcreteprojectistheestablishmentoftrustamongstakeholders(GoedkoopandDevine-Wright,2016).Trustinfluencespublicacceptanceacrossallaspects,andrequirescommunicatingwithawiderangeoflocalstakeholdersfromtheinitialplanningstagesoftheproject,givingdueconsiderationtotheuniquelocalcontextwhenselectingtechnology,locationandscale,andemphasisingfinancingbylocalstakeholdersand/orlocalfinancialinstitutions.
Communityenergyprojectsformedwiththeactiveparticipationoflocalstakeholderscreatetheconditionstoachievejustproceduralanddistributionaloutcomes,therebybuildingtrustandachievinghighlevelsofpublicacceptance.Whenpeoplehaveastakeinaproject,theyaremorelikelytosupportandpromoteittoothersandinvesttheirtimeandresources.
Therearemanyexamplesofcommunityenergythatareactivelysupportedbybroaderstakeholders.CasestudiesinpreviousreportspublishedbytheIRENACoalitionforActionCommunityEnergyWorkingGroup(forexample,IRENA,2021)haveshownthatthecombinationoflocalproblem-solvingeffortsandcommunityenergyinitiativeshasresultedinactivesupportfromlocalpeopleforrenewableenergyprojects.Theseprojectshavebeencontinuouslysupportedwithcontributionsfrompeoplewhoseektofosterclimatesolutions,orbythosewhovaluebeinginvolvedindecentralisedanddemocraticdecision-makingprocessestoachievetheenergytransitionbyparticipatinginenergyco-operatives.AsurveyinScotlandthatcompareddifferentownershipstructuressuggeststhatcommunityenergyachievesgreaterpublicacceptancethanprivatelyownedprojectsbecauseparticipantshavemoreopportunitiesforfairinvolvement(Hogan,2024).Communityenergyisthereforemorethanacceptance:itisalsoaboutownership,controlandsharingbenefits.
12COMMUNITYENERGYBENEFITS
1.2Maximisingwell-beingandsocialbenefits
Beyondensuringbroadpublicacceptance,governmentsshouldaimforamoresystematicapproachtoassessinghowanenergyprojectcanmaximisevaluetothecommunityinwhichitoperates.Aparticipatoryapproachandlocalownershipcanaddresstheuniqueneeds,valuesandaspirationsofdiversesocialgroups,andincorporatetheirviewsindecision-making.Thiscanhelptotapintothesocialopportunitiesofswitchingtorenewableenergyandacceleratingthedecarbonisationoftheenergysector.
TheParisClimateAgreementandthe2030AgendaforSustainableDevelopment,withitsSustainableDevelopmentGoals(SDGs),areimportantglobalframeworksforimprovinglivelihoodsandincreasingopportunitiesforcurrentandfuturegenerations.However,theylackthecommunityownershipandinclusivityelementsthatareessentialtoachieveajustenergytransitionandpreventglobalclimatebreakdown.
Transitionintheenergysectorisstillmostlyseenthroughatechnologicallens,focusingoninnovationandashiftinsupplysources(Rennetal.,2020;Setton,2020).Often,thesocialdimensionoftheenergytransitionislimitedtothequestionofwhethercommunitieswouldacceptrenewableenergydevelopments.Thisperspectiveoverlookstheneedtogeneratebroadagency–theabilitytoactandinfluencedecisions.Forinstance,Denmarkhasacceleratedthedevelopmentofwindpower,meetingoverhalfofitselectricitydemandthroughpoliciesthatenablecitizenstohaveafinancialstakeintheseprojects.ThePromotionofRenewableEnergyAct,whichenteredintoforcein2009,requiresthatrenewableprojectsmustofferatleast20%ownershiptolocalresidents(DanishMinistryofClimate,EnergyandSupply,2008).
Asocialperformanceapproachreferstosocialimpactsonthewell-beingofcommunitiesduringthedevelopmentandimplementationofenergyprojectsandtheusageoflocallygeneratedenergy,inbothmonetaryandnon-monetaryways.Broadpoliticalandeconomicownershipmaximisessocialopportunitiesandpreventsconflictsandcommunityunrest.Thissocialsustainabilityapproachrequiresco-operationandpublicsupportforanintervention(Setton,2020),preservingspecificvalues,suchasintra-andinter-generationalequityandhumanrights(Widok,2009).
Understandingthesocialperformanceofclimateactionhighlightstheopportunityforsocio-economicco-benefits,allowingpolicymakerstosimultaneouslymeetseveralobjectivessuchascreatingemploymentandachievinghealthcostsavingswhilereducinggreenhousegasemissions(Helgenbergeretal.,2019).Whileclimatedebateshavecentreddiscussiononfairlydistributingsocio-economiccostswithinandacrossgenerationsandregions,theco-benefitsdiscoursechangesthenarrative“fromburden-sharingtoopportunity-sharing”(HelgenbergerandJ?nicke,2017).
Jobnumbersorhealthcostsavingshavebeenexaminedinnumerousstudies,whichfacilitatestheirconnectiontospecificpoliticalagendasandsocio-economicinterests(IASSandTERI,2019;IASSetal.,2020;IRENAandILO,2023).Inlinewiththeco-benefitsnarrative,thesocialperformanceapproachentailsmakingquantifiableandpolicy-directedassessmentstoreconcilesocio-economicprioritieswithclimateaction,therebyrequiringactivecommunityparticipation(MbunguandHelgenberger,2021).
1.2.1Operationalisingthesocialperformanceofenergyprojects
Thesocialperformanceapproachprovidestoolstocomparehowdifferentenergyoptions(e.g.awindfarm,decentralisedenergyservices,suchassolarmini-gridsoracoalminingsite)performforlocalcommunities,allowingtheidentificationoftheoptionthatmaximisespositiveou
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