The political aspect of the energy democratization
Author: Prof. Predrag N. Cvetkovic, LL.D.
The political aspect of energy democratization refers to the ways of distributing political power to individuals or collectives - that power should be used in the processes of defining, implementing, and controlling energy policy in local governments.
The democratization of the energy sector is connected and intertwined with the decentralization of energy systems. The gradual transition of energy production from centralized plants based on fossil fuels to decentralized and distributed systems based on renewable energy sources is likely to make electricity production “business as usual“ for an increasing number of people. An additional result of the transition is that the power of management is transferred to individuals and collectives who manage in such systems. An example of such decentralization is the promotion of the concept of prosumer (producer/consumer of energy) and forms of organization such as communities of renewable energy sources and energy communities.
Key shareholders in centralized systems (large state/private companies) do not favor decentralization carried out in the way mentioned above (participation of consumers, promotion of energy communities). This is particularly visible in a situation where citizens operate and manage (alone or participatory) infrastructure systems such as transmission networks or district heating systems. However, the objection that the energy policy, especially the energy transition policy, will not automatically be implemented more effectively by being brought down to the level of local self-government is not without grounds: the assumption of the advantage of local over centralized management in the circumstances of the specific case does not have to be an irrefutably correct fact.
Decentralization in the context of the democratization of energy is viewed through the so-called "material perspective" of participation in the management of processes from the field of energy. The described participation is achieved by individuals (and not public companies or public administration bodies) assuming the role of actors in the processes of application of renewable energy sources. They assume this role through direct interaction with new technologies that require energy transition (electric vehicles, smart meters, solar panels). The motivation for participating in these processes is primarily economic: there are certainly other, proactive and socially based motives. They cannot, however, be considered primary ones. It is about something called "non-mediated", a direct experience that contributes to the fact that an individual is considered an "energy citizen" who participates in energy democracy.
Solar panels on roofs or using electric vehicles are not a sufficient condition for the existence of an "energy citizen": direct experience is needed to encourage "energy literacy" that contributes to a deeper and more comprehensive understanding of the problem of energy transition (beyond a narrow, economically oriented framework). From that position and with that knowledge, it is possible to influence the issues important for the energy transition: urbanism, transport, energy supply, etc. Strengthening the individual as an actor in the energy transition also strengthens the “collective participants” (housing communities, energy cooperatives, consumer associations, etc.).
Decentralization in the form of prosumerism and renewable energy communities/energy communities can contribute to overcoming citizen skepticism (not uncommon in EU countries) reflected in the perception that they have no real influence on decisions regarding energy use. Therefore, it is important to clearly present to them that prosumerism and energy efficiency are not only tools for the energy transition. In addition, they are also drivers for the economic progress of individuals and groups, including marginal ones.
When it comes to countries that were formerly members of the (also former) Eastern Bloc, it has been noted that “structural and cultural conditions do not favor rapid progress towards energy democracy”. The reason for this is the inadequate legal framework of renewable energy communities, the lack of incentives for establishing joint projects for prosumers, risks for lower-income families, high costs, etc. These are institutional, cultural, and economic obstacles to the democratization of energy that can be overcome through education and training.