Democratising the energy sector

Marine Cornelis?? Founder & Executive Director at Next Energy Consumer ?? Consultant, boundary spanner, & policy-shaker passionate about energy justice ???? #EUClimatePact Ambassador

Today, almost three-quarters of greenhouse gases, those causing climate change, come from the energy sector (heat, electricity, and transport). This is why it is essential to decarbonise this sector, i.e., to make it no longer rely on the combustion of fossil fuels, such as oil, gas, and coal. On the contrary, decarbonisation is based on energy from renewable sources, such as electricity produced by photovoltaic panels or wind turbines. Electricity is still difficult to store, so it must be consumed when it is available in abundance. Our grids and networks are the backbones of our energy systems, and they do need to become more resilient to make space for renewables, absorb structural shocks and implement energy efficiency at a much faster pace.

Thus, to allow renewable energies to reach their full potential and for networks to function properly, decarbonisation needs to be accompanied by three other Ds: digitalisation, decentralisation, and the democratisation of networks and production.?

Thus, to allow renewable energies to reach their full potential and for networks to function properly, decarbonisation needs to be accompanied by three other Ds: digitalisation, decentralisation, and the democratisation of networks and production.?

Digitalisation makes it possible to monitor the flow and production of renewable energies and to enable industries and energy-consuming appliances to adapt the time of consumption to the time of production. This is what is called demand-side management or flexibility. Flexibility can be implemented automatically (as in industry or with aggregators, or manually (for example, by starting a washing machine or charging an electric vehicle when the solar panels are working at full capacity). Recent research showed that EU consumers could save more than €71 billion on their electricity bills annually if demand-side response and flexibility were fully implemented.

Decentralisation is essential to developing renewable energies and corresponds to the situation where production is as close as possible to the consumers. This avoids the need to transport electricity over very long distances with all the associated costs and risks of losses. To enable this, transmission and distribution system operators, the entities responsible for transporting, distributing, and managing energy from the generation sources to the final consumers, are key players. They are engaged in constant dialogues with regulators, policymakers, suppliers, and energy service providers.

Finally, democratisation concerns consumer engagement and the willingness to actively become part of the winning equation. It can increase the capacity for action of individuals, especially those belonging to traditionally marginalised groups, such as women, indigenous communities, and vulnerable communities. When democratised, the energy sector can fulfil its role as a human right that goes beyond the commodity relationship.?

With the Clean Energy for All package, the European Union recognised the right of consumers to be active (Article 15, Internal market for electricity Directive 2019/944): they become “prosumers” who can store, sell and consume the electricity they produce either individually or collectively, and their flexibility may be valued, for example through demand response or energy efficiency programmes.?

Many prosumer models have emerged throughout the years. Collective self-consumption via citizens and renewable energy communities, i.e. groups of users that jointly create, use, and manage the energy produced in local community-owned facilities, is one of the hottest options. Recent research has assessed that nearly 98 million EU people might join one by 2050.

If built with empathy and fairness, energy communities are a way to build trust, mend distorted social bonds, and perhaps overcome isolation and vulnerability. Hence, technical project leaders should work at building this transition not only for but WITH the people. The benefits of well-functioning prosumerism and energy community-enabling tools should trickle down to everyday people. It is now more important than ever that the most vulnerable reap the benefits of the energy transition and do not end up locked into expensive fossil energy and paying a ‘poverty premium’. The first step should therefore listen to the lived experience of users, for instance, through focus groups. It also means getting where people are and engaging with as many people and organisations as possible, including municipal social services, charities, and ombudsmen… and technology cannot replace that.

It also means getting where people are and engaging with as many people and organisations as possible, including municipal social services, charities, and ombudsmen… and technology cannot replace that.

Democratising energy systems is a complex and fascinating subject. As Europe experiences a cost-of-living crisis combining record inflation and energy prices, it is critical that democratising energy becomes a priority and tools such as energy communities become mainstream and not another instrument for a handful of healthy, wealthy, and witty individuals. Alongside the three other Ds, decarbonisation, digitalisation and decentralisation, democratisation is today an essential ingredient for creating a true energy justice recipe, which is essential to ensure peace and prosperity while reconciling climate and social objectives.