Energy Cooperatives in Spain Lead in Solar Energy Utilization

The initiatives of local communities in Spain have gained momentum after the government announced a policy shift that favored small-scale renewable energy distribution, as opposed to large tenders that only major energy corporations could afford to participate in.

 

The burgeoning movement of energy cooperatives in Spain received a boost when the government revealed that some of the latest allocations of renewable energy quotas would be distributed in small batches, rather than through large tenders dominated by major energy companies.

 

This move signifies a shift in the energy sector. Previously, successive governments had largely acquiesced to the demands of energy giants.

 

Cooperatives in both rural and urban areas are now striving to free themselves from the grip of major electricity providers, who took advantage of high demand during the recent heatwave and raised prices to record levels.

 

The installation of solar systems saw a rapid acceleration after the repeal of the so-called "sun tax" in 2018. The previous government imposed a tax on electricity generated by small solar power stations with a capacity of 10 kW and above, including the portion used for personal consumption. Additionally, according to legislation in force since 2015, unused solar energy had to be fed into the grid for free.

 

With limited reserves of oil, gas, and only minor coal reserves, Spain's largest energy resource is the sun. However, the vast potential of solar energy is underutilized. According to the main energy operator of the "Spanish Electrical Network," in 2020, 43.6% of electricity production came from renewable sources, of which only 6.1% was from solar energy. Wind energy accounted for 21.7%, and nuclear power plants contributed 22.2%.

 

In countries where most people live in private family homes, anyone can decide to install solar panels. But in Spain, 66.5% of the population lives in apartment buildings. These include both owners and renters, which adds complexity.

 

Attempts to obtain the consent of all residents to invest in renewable energy for a multi-apartment building can be laborious and not always successful. An alternative solution may be to install solar panels on the roofs of non-residential buildings such as schools, factories, or warehouses. Electricity can then be supplied from there to neighboring homes and businesses.

 

The non-governmental organization "Sustainability Observatory" has proposed a campaign to install solar systems on rooftops, resulting in the generation of 15,400 GWh of green electricity - enough to meet the energy needs of 7.5 million people. According to a representative of the organization, the investment will pay off within six years.

 

Meanwhile, the football club "Athletic Bilbao" already offers energy services to its neighbors. When the club built a new stadium in 2013, 300 solar panels were installed on it. Now, through its subsidiary "Tekathletic," the club supplies electricity to 200 homes and offices within a radius of 500 meters, at prices 25% lower than the current rates.

 

Something similar is happening in Zaragoza, where the non-governmental organization "Ecodes," together with the energy company EDP and local authorities, initiated the "Solar Neighborhood" project. EDP installed solar panels on the roofs of two municipal sports centers. Each system generates 50 kW, enough to power 200 nearby homes and businesses.

 

Cesilia Foronda, head of the energy department at "Ecodes," explains that those wishing to join such a energy production and distribution scheme do not pay an upfront installation fee. "We understand that people who are not homeowners are not interested in investing in this," she says.

 

Instead, participants pay a monthly fee of 6.90 euros, which covers the cost of installing the panels. Along with this, consumers get electricity at prices approximately 30% below market rates. For financially vulnerable groups of residents, this fee may be waived. Currently, "Ecodes" is trying to secure funding from EU programs to replicate this scheme in six other districts of Zaragoza.

 

Meanwhile, the energy cooperative "Som Energia," founded in Girona in northeastern Spain in 2010 and claiming to be the oldest in Europe, now has about 70,000 members.

 

"Som Energia" acts as an umbrella for smaller cooperatives across the country," says its president Albert Banal-Estanol. Members pay an entrance fee of 100 euros, which is later refunded.

 

When people want to install solar panels in their homes, "Som Energia" encourages them to create local cooperatives, and then buys energy from them wholesale - it's cheaper and creates local groups that, in turn, help spread information about energy self-sufficiency.

 

"Last year we had a project worth about 5 million euros. We asked participants to contribute (which is later reimbursed from the proceeds of selling excess electricity to the grid) within 15 days. But the required amount was collected within one day," says Albert Banal-Estanol.

 

"We want to expand this business model, but at the same time, we are not fixated on growth," he says. "We just want to see the development of renewable energy sources."

 

Now that large energy companies can no longer rely on the government to slow down the spread of the cooperative movement, they are starting to offer financial support for the installation of solar panels on community rooftops to retain their customers.

 

According to Cristina Alonso, spokesperson for the "Friends of the Earth" organization on energy matters, a genuine energy community pursues not only economic goals but also social and environmental ones. All the big players in global business such as online casinos, offering no deposit bonuses trying to contribute in all the green projects.