Energy Democracy

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Theory explained

Energy
democracy

Who owns the energy? · Citizenship · Commons

A system can be local without being democratic. It can be democratic without being just. Three frameworks help you tell the difference, and help you design who owns, who decides and who benefits.

Three concepts ↓Ownership models ↓Your governance proposition ↓
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Start with a question

Same panels, different owners

Imagine a municipality replaces a fossil-fuelled energy system with solar panels, wind turbines, batteries and a local heat network. The system is now renewable and decentralised. But who owns it? Who decides where the turbines go? Who receives the revenue, who carries the financial risk, and who can afford the energy it produces? Watch the same neighbourhood under four owners.

Same panels, different ownersA neighbourhood with solar homes, a battery and heat network, and wind turbines. Four ownership models appear in turn: an investment fund, the municipality, an energy cooperative and a commons. For each, euro coins flow to a different destination: shareholders elsewhere, the public budget, cooperative members, or all users by agreed rules.battery andheat networkhomes with solar panelslocal wind turbinesOwned by: AN INVESTMENT FUNDProfits leave the neighbourhood. Residents are consulted, then buy the energy.€ revenue to shareholders elsewhereOwned by: THE MUNICIPALITYRevenue goes to the public budget. Residents vote for the council that decides.€ revenue to the public budgetOwned by: AN ENERGY COOPERATIVEMembers own shares, vote, and share the revenue. Tenants without capital may be left out.€ revenue to cooperative membersOwned by: A COMMONS WITH SHARED RULESUsers set the rules for access, use and conflict, including for those who cannot invest.€ revenue to all users, by agreed rules

Figure 1. Same panels, different owners.

The point. Decentralisation is a technical and spatial feature, not a democratic achievement. A neighbourhood energy system may still be controlled by an investor, exclude tenants, shift costs to low-income households, or depend on extractive supply chains elsewhere.

Three concepts

Democracy, citizenship, commons

The three frameworks overlap but are not synonyms. Each asks a different question about power in an energy system. A review of the field found that energy citizenship research tends to focus on individuals and behaviour change, while energy democracy research focuses on collective actors and new forms of participatory governance (Wahlund & Palm, 2022).

Three overlapping concepts, one shared questionThree circles, energy democracy about collective control, energy citizenship about rights, roles and agency, and energy commons about shared rules for shared resources, move in from outside and overlap in the centre. Where all three overlap, a yellow circle appears with the shared question: who owns, who decides, who benefits?DEMOCRACYcollective controlCITIZENSHIPrights, roles, agencyCOMMONSshared rules forshared resourceswho owns?who decides?who benefits?

Figure 2. Three overlapping concepts, one shared question.

Energy democracy

How can collective control over energy systems be strengthened? It goes beyond consultation to ask who owns the infrastructure, who controls investment, who makes binding decisions and to whom energy institutions are accountable.

Energy citizenship

What roles can people play, and what roles are they expected to play: voter, consumer, producer, cooperative member, tenant, worker, activist? It links rights with responsibilities. It becomes too individualistic when the transition is reduced to buying solar panels or being a well-behaved “prosumer”. Many people own no roof, do not control their heating and lack the money and time to take part.

Energy commons

How can energy resources and infrastructures be governed collectively? A commons is not just a resource several people use, and not every community energy project is a commons. It combines a resource, a community and rules for access, use, responsibility, monitoring and conflict (Bauwens et al., 2024).

Which concept is it?

Read each situation, decide, then open the card.

Residents of a city vote in a referendum to bring the electricity grid back into public ownership.
Think first, then open +
Energy democracy
Collective, binding control over who owns and runs the infrastructure.
A tenant asks whether she has the right to share in the solar panels on her landlord’s roof.
Think first, then open +
Energy citizenship
It is about her rights, responsibilities and agency as a person in the energy system.
A village sets its own rules for who may draw heat from a shared well, how much, and how disputes are settled.
Think first, then open +
Energy commons
A shared resource, a community and rules for access, use, monitoring and conflict.
A city runs a campaign asking households to install smart meters and shift their washing to sunny afternoons.
Think first, then open +
Energy citizenship (narrow version)
It treats people as individual consumers whose behaviour should change. Useful, but it can load responsibility onto households.
A developer holds three consultation evenings, then builds the wind farm as planned.
Think first, then open +
Participation, not democracy
Residents were heard but had no binding say, no ownership and no way to hold the developer to account.
Consultation is not control

How much power do people really have?

These frameworks distinguish being consulted from having substantive control. Arnstein’s (1969) ladder of citizen participation made the same point for urban planning: much of what is called participation leaves power where it was. The version below adapts her idea to energy.

From consultation to controlA ladder with five rungs: inform, consult, co-decide, co-own and self-govern. A yellow marker climbs the ladder. A note says energy democracy concerns the upper rungs, while participation can stop at the lower ones. Adapted from Arnstein (1969).INFORMyou are told what will happenCONSULTyour views are asked, others decideCO-DECIDEyou share binding decisionsCO-OWNyou hold a share of the assets and revenueSELF-GOVERNusers make, monitor and change the rulesENERGY DEMOCRACYis about the upper rungs:binding decisions,ownership and accountabilityPARTICIPATIONcan stop at the lower rungs:being heard without power

Figure 3. From consultation to control. Adapted from Arnstein (1969).

Three different tests

Local, democratic, just

Democracy concerns how collective decisions are made. Justice also asks what those decisions do, to whom, and across which territories and generations. A locally supported project can still harm another community or ecosystem. One critical review argues that energy democracy, as usually framed, is too narrow to deliver justice: it focuses on local communities and overlooks extraction and Indigenous communities (Droubi et al., 2022).

Local, democratic and just are three different testsFive energy projects, shown as dots, travel towards three walls with openings at different heights: decentralised, democratic and just. The openings do not line up. A central plant is stopped at the first wall; an investor-owned project and one that excludes tenants pass the first but stop at the second; one that harms another community stops at the third. Only one project passes all three.DECENTRALISEDa technical and spatial featureDEMOCRATICwho decides, who owns, who answersJUSTwhat decisions do, to whom, whereenergy projectsinvestor-ownedlocal, democraticand justexcludes tenantsharms another communitya central plant

Figure 4. Three different tests whose openings do not line up. Not every decentralised project is democratic, and not every democratic project is just.

Energy commons · five paradoxes

A commons can still exclude

Bauwens et al. (2024) reviewed 85 studies and distinguish material, institutional and cultural dimensions of energy commons. They identify five paradoxes that any commons-based proposal has to face.

1

Inclusive, yet exclusive

A commons includes its members and can exclude everyone else.

2

Western focus

Most research comes from Western contexts, while energy is governed in many other ways around the world.

3

Local, yet coordinated

Decentralised governance still needs coordination at higher scales: grids, markets and regulation.

4

Only part of the chain

Research looks at generation and distribution, less at mining, land, waste and decommissioning.

5

Alternative, yet absorbed

Commons offer an alternative to markets but can be absorbed by them. A solar cooperative does not leave capitalism merely because its members hold meetings.

Ownership models

Five ways to own an energy system

Ownership decides who gets the revenue, who carries the risk and who can change the rules. None of these models is automatically democratic or just. Each needs to be designed. The table is an overview to start your thinking, not a ranking.

ModelWho ownsWho decidesWhere the revenue goesWatch out for
Cooperativemembers who buy sharesmembers, often one member one votemembers, sometimes a local fundpeople without savings, tenants and newcomers may be excluded
Municipalthe municipality or a municipal companyelected council; accountability through electionspublic budget, tariffs, reinvestmentdistance from residents; financial risk for the public budget
Public–community partnershipshared between a public body and a cooperative or communitya joint board with agreed rightssplit by agreementunequal power between partners; complex contracts
Common-property institutiona defined group of users holding the resource in commonusers, by rules they make, monitor and changeto the commons, by its own ruleswho counts as a member; coordination with grids and regulation
Regulated private provisiona private companythe company, within rules set by a regulatorshareholders, within regulated limitsprofit drains out; democracy limited to regulation and licensing

Three real examples

Hamburg, Germany

On 22 September 2013, 50.9% of voters in a referendum backed bringing Hamburg’s energy networks back into public ownership. The city then took over the electricity grid, the gas grid in 2018 and the district heating network in 2019 (BUND Hamburg, n.d.).

Middelgrunden, Copenhagen

An offshore wind farm of 20 turbines (40 MW) completed around 2000, owned half by a cooperative of about 10,000 members and half by the municipal utility (Middelgrunden wind farm, n.d.). A public–community model.

Netherlands

The 2019 Dutch Climate Agreement sets the aim that, by 2030, 50% of onshore wind and solar generation is owned by the local community: residents and local businesses. It is an aim, not a binding rule (HIER, n.d.).

For your Q3 report

Design the governance too

When energy is central to your regional strategy, design an ownership and governance proposition alongside your spatial proposal. A map of solar fields and heat networks is only half a strategy. Answer seven questions.

1

What is governed?

Generation, networks, storage, data, land, raw materials, waste, or a combination?

2

Who owns and finances it?

A cooperative, municipality, public–community partnership, common-property institution or regulated private provider?

3

Who decides?

Which groups have voting rights, representation, agenda-setting power or vetoes?

4

Who benefits and who carries risk?

How are revenues, savings, costs, liabilities and spatial burdens distributed?

5

Who can gain access?

Can tenants, low-income households, migrants and people without capital take part and benefit?

6

How is accountability organised?

Who monitors performance, resolves conflicts and can change the rules?

7

What lies beyond the locality?

Which workers, territories, ecosystems and supply chains make the local system possible?

Suggestion: a table of propositions and their consequences

One possible way to organise your answers. Adapt it, extend it or use another format that suits your project.

QuestionOur propositionWhy (theory and evidence)Spatial consequence
1. What is governed?[your answer][sources, data, interviews][where on the map?]
2. Who owns and finances it?[your answer][sources, data, interviews][where on the map?]
3. Who decides?[your answer][sources, data, interviews][where on the map?]
4. Who benefits and who carries risk?[your answer][sources, data, interviews][where on the map?]
5. Who can gain access?[your answer][sources, data, interviews][where on the map?]
6. How is accountability organised?[your answer][sources, data, interviews][where on the map?]
7. What lies beyond the locality?[your answer][sources, data, interviews][where on the map?]

The hard question. Not simply whether your strategy gives communities a voice, but whether people have the rights, resources and institutional capacity to shape the energy system, and whether using that power produces a transition that is also just.

References

The texts behind this page

Arnstein, S. R. (1969). A ladder of citizen participation. Journal of the American Institute of Planners, 35(4), 216–224. https://doi.org/10.1080/01944366908977225

Bauwens, T., Wade, R., & Burke, M. (2024). The energy commons: A systematic review, paradoxes, and ways forward. Energy Research & Social Science, 118, 103776. https://doi.org/10.1016/j.erss.2024.103776

BUND Hamburg. (n.d.). Volksentscheid Energienetze. https://www.bund-hamburg.de/themen/umweltpolitik/energie/volksentscheid-energienetze/ Accessed on: 10 October 2026.

Droubi, S., Heffron, R. J., & McCauley, D. (2022). A critical review of energy democracy: A failure to deliver justice? Energy Research & Social Science, 86, 102444. https://doi.org/10.1016/j.erss.2021.102444

HIER. (n.d.). Klimaatakkoord: Participatie en 50% eigendom van de lokale omgeving. https://www.hier.nu/regionale-energiestrategie/klimaatakkoord-participatie-en-50-eigendom-van-lokale-omgeving Accessed on: 10 October 2026.

Middelgrunden wind farm. (n.d.). In Wikipedia. https://en.wikipedia.org/wiki/Middelgrunden_wind_farm Accessed on: 10 October 2026.

Wahlund, M., & Palm, J. (2022). The role of energy democracy and energy citizenship for participatory energy transitions: A comprehensive review. Energy Research & Social Science, 87, 102482. https://doi.org/10.1016/j.erss.2021.102482

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