The main squeeze: How localized energy can chart a new course for energy equity

Localism, the emphasis on valuing and prioritizing local and small-scale phenomena, is growing globally and domestically. There has been recent growth of localist movements, in both high- and low-income countries, that has occurred against the backdrop of an increasingly globalized economy that is widely experienced as distant, “corporate,” exploitative, extractive, depersonalized, inequitable, and beyond local influence. There have been several localist movements across industries and sectors that challenge this economic paradigm. We will uncover energy production's contribution to this growing movement in the context of the climate crisis. 

We truly believe that change can happen on a local scale, and that communities should have control over what happens in their area. As the climate crisis intensifies, there is a desperate urgency to shut off fossil fuel production - both in the energy sector and production (i.e these 6,000 commonplace products). What can everyday people do to help mitigate the climate crisis? By now, most environmentalists have heard the famous maxim “think global, act local,” essentially that local action can affect global change. This article takes a deep dive into the rise of local stewardship and ownership of environmental resources, in particular energy production, as a means to consciously conserve, produce and consume renewable energy that can support local economies. 

Local and decentralized energy initiatives increasingly contribute to decarbonising energy systems. This trend is facilitated by the emergence of new stakeholders- community members whose ownership models, business practices and values systems drastically stray from status quo profit seeking. The participation and ownership in a renewable energy project by citizens creates local socio-economic value, conscious and culturally aware stewardship of natural resources: meaningful public participation fosters positive attitudes towards renewables. This, in turn, increases citizen support for the energy transition, which further contributes to accelerating a just and inclusive transition that goes beyond producing electricity and has various socio-economic benefits to communities and societies as a whole. 

What does this look like in practice? Below, we have examples of localized energy systems from around world:

Africa: Increased access to water brought about community solar-powered irrigation in Africa, increased agricultural productivity and supported municipal responses to COVID-19. The electricity is generated through a cooperative partnership between a Malian village and German co-op named Afrika-Stark 1. As harvesting and economic activities in the village have increased, community members have seen their livelihoods improve.

France: Job creation is also one of the socio-economic benefits generated by Enercoop, France’s largest co-operative renewable energy supplier that seeks to decentralize its organization as much as possible to deal with energy issues on a local level.  As its network continues to grow across France, this company can now employ 235 people and diversify its activities to bring more benefits to communities, through a solidarity fund that finances energy poverty alleviation projects. 

Japan: Through the Hotoku Energy and Shonan Power community energy partnership, benefits are extended to social causes in the community. Shonan Power’s customers are contributing 1% of their bills to support community initiatives, such as the revitalisation of local industries, environmental activities, disaster prevention efforts, culture and arts, as well as the provision of meals for children in need.

United States: Since 2010, GRID Alternatives’ National Tribal Program has  utilized a community-centric approach, partnering with Tribes to identify, develop, finance and implement solar power projects that meet community needs. Tribes have a long history of energy exploitation, particularly from extractive industries. Locally sited and controlled renewable energy offers Tribes the opportunity to take control of their energy resources, keep local dollars in the community, and reap the long-term environmental and economic benefits of renewable energy investments.

In the true spirit of localism, we uplift the efforts to localize Hawaiʻi’s energy production and opportunities for community ownership which will provide the same economic and long term benefits mentioned above. 

Solarize County Initiatives: Solarize O‘ahu is an initiative supported by the Resilience Office and Hawai‘i Energy to expand access to rooftop solar to those who have been left behind in our transition to a renewable energy economy: low to moderate income households, Native Hawaiian communities and POC communities. A similar program was active from 2012-2016- Solarize Kekaha that distributed grant funds that assisted 180 families to install a solar photovoltaic (PV) or solar hot water system, thus providing energy burden relief for LMI households. 

Community-Based Renewable Energy (CBRE): Also known as “shared solar,” CBRE increases accessibility for individuals to benefit from solar despite not being able to on their own, such as homeowners or income constrained households. Although a program provided by Hawaiian Electric, as directed by the Public Utilities Commission to increase solar access, CBRE is one of our favorite ways for communities to exercise their self-determination in the size and benefits of an energy project to support localized economies. There is no better  example than Hoʻāhu Energy Cooperative Molokaʻi which has pioneered grassroots ownership of an energy facility whose mission is to provide local jobs and decrease outrageous electricity bills. From the beginning, they have held transparent and welcoming conversations with residents to decide what the true needs are for their CBRE project which continues today. Many of the cooperative's leaders have mentioned that their success is made through trust and partnership with community and Shake Energy Collaborative which co-designs and provides expertise on renewable energy development from the community level up.

Battery Bonus Program for Rooftop solar: On Oʻahu and Maui, Hawaiian Electric is accepting applications for Battery Bonus, a new program that will pay a one-time cash incentive and monthly bill credits for residential and commercial customers to add energy storage (a battery) to an existing or new rooftop solar system. The total program term is 10 years. Through the program, Hawaiian Electric is able to tap rooftops solar energy to supply the energy grid, especially during peak evening hours. In many ways it is a win-win since fossil fuel plants, like Oʻahu’s coal plant, are phasing out and we are getting closer to our 2045 100% renewable energy target date. The program is also a way for more individual households who otherwise not be able to pay for the upfront cost of rooftop solar to participate and economically benefit. 

Localized solar grids are a proven, climate-resilient solution. We need more programs that capitalize distributed energy that supports socio-economic benefits of individual communities. Localism in this context means local voices, needs, and participation are prioritized in the energy transition. We hope you will continue to think about how we can work together to improve the development process and energy grid to decentralize and localize Hawaiʻi’s energy system.