Community Power
What is Community Power?
Community Power is a class of sustainable energy projects that are owned, developed and controlled in full or in part (50% or more) by residents of the community in which the project is located.
At this time, of OSEA’s Full and Associate Members, most own and control 100% of their projects. In some cases, OSEA’s Members have Joint Ventured with other Members, municipalities or utilities. Members’ projects that retain 50% control and equity still qualify as Community Power Projects regardless of who the partner is.
For OSEA, Community Power involves collectives of farmers, First Nations and local citizens working to develop a local renewable energy project. To qualify as a Community Power Project according to OSEA’s Membership Criteria, groups must be First Nations, or be incorporated as a non-profit or co-operative.
Where did Community Power Originate?
OSEA’s inspiration for the development of the Community Power sector in Ontario stems from German and Danish experiences. In Germany for example, farmers interested in owning local energy projects often incorporate as limited liability for-profit corporations that adhere explicitly to co-operative principles.
The preference of OSEA’s full members is to incorporate as co-operatives, due in part to the principles of the co-op model, and also due to the ease of incorporation and raising of local equity to finance the capital costs of projects.
As the Community Power sector evolves in Ontario, alternate definitions and models are likely to arise, however, OSEA’s membership committee, governance committee and Board of Directors will assess models on the basis of their adherence to the co-operative values and benefits to the local community.
What are the benefits of Community Power?
According to the Rocky Mountain Institute and the Federation of Canadian Municipalities, in conventional energy systems, like that of Ontario, at least 75 cents of each energy dollar leaves the local economy.
Community green power developments provide an excellent opportunity to help keep energy dollars in the community while at the same time helping the environment by providing green power.
According to the Iowa Policy Project, locally owned Renewable Energy Projects generate 5-10 times the local economic benefits than do conventional ownership models. For OSEA, Community Power projects have economic, social and environmental benefits.
