Explaining the founding of renewable energy cooperatives: The effect of social capital in Dutch municipalities

Abstract

The development of renewable energy cooperatives (RECs) can play a pivotal role in the energy transition and local ownership of energy sources. This research aimed to investigate the role of social capital in the initiation and development of RECs in Dutch municipalities. The secondary aim of this research was to explore the institutional factors that affect the development of RECs. A regression analysis was performed to investigate the influence of social capital on the founding rate of RECs. Additionally, interviews were conducted with board members from RECs to further investigate the role of social capital and to explore institutional factors influencing the development of RECs. The results showed a positive relationship between the founding rate of RECs and the level of social capital present in municipalities. Furthermore, a variety of institutional factors played an important role in the development of RECs in the Netherlands. National and local governments can use the drivers and tackle the barriers explored in this research to implement appropriate policy. Governmental bodies can play a key role in supporting the development of RECs both organizationally and financially. This would contribute to the energy transition and the goal of 50 percent local ownership over energy sources. Future research should focus on the scaling of renewable energy cooperatives and other cooperative initiatives to stimulate local involvement and bottom-up solutions.