In Germany and Taiwan, "economy, efficiency, and scale" appear to be the primary drivers of green energy development policies. Large renewable energy companies are significantly limiting the scope for citizen power plants. In addition to continuously cultivating citizen participation in the energy transition, the government's provision of more institutional safeguards for citizen power plants, such as more flexible regulations for their establishment and streamlined subsidy application procedures, will be crucial for their continued development.
Compared with traditional fossil fuels, renewable energy offers greater opportunities to integrate with public interests such as community development, local economies, and citizen participation. The energy cooperatives that have gradually developed in Taiwan in recent years are one example.
So-called "power plants" are actually more like energy-focused citizen cooperatives. Community residents jointly invest in renewable energy equipment (such as solar panels and small wind turbines), sharing profits or using the energy for their own benefit. All participants, regardless of stake, have equal decision-making power. Therefore, citizen power plants are often considered a form of democratic economic organization. When discussing the development of citizen power plants, Germany is often cited as a success story. However, citizen energy in Germany has also encountered numerous challenges and bottlenecks.
Citizen power plants are encouraged by the legal system and fostered by long-term social context.
Data from Trend:Research indicates that as much as 30% to 40% of Germany's renewable energy comes from private solar panels. The German Renewable Energy Agency also notes that citizen-installed renewable energy has long been a key driver of Germany's energy transition. This surge in citizen-generated green energy can be attributed in part to decades of social and institutional evolution in Germany.
Since World War II, community-based food cooperatives have flourished across Germany[1]. Food cooperatives are based on the spirit of mutual assistance among community members, jointly purchasing high-quality food at reasonable prices and providing it to members. This spirit of community mutual assistance and self-sufficiency is also considered to be the main cornerstone for the development of German citizen power plants.
In the 1990s, EU legislative amendments opened up opportunities for the liberalization and diversification of energy production. German media outlet Clean Energy Wire reported that after the passage of Germany's Renewable Energy Act in 2000, a 20-year feed-in tariff system (FIT) was established. This system allowed green energy producers to earn stable, high profits (at a fixed, high purchase price for 20 years), making it a low-risk investment.
In addition to many private households installing rooftop solar panels, a large number of private power plants and companies have been established, forming joint ventures to invest in larger green energy projects. However, German media outlet Clean Energy Wire also noted that the early establishment of private power plants was not solely driven by profit but also by the desire of many local residents to contribute to the environment and participate in their communities.
There are two common types of citizen power plants in Germany: energy communes (Energiegenossenschaften) and mixed partnerships. The latter often collaborate with green power companies to invest in large, cross-regional projects.
Source: Environmental Information Center (https://e-info.org.tw/node/234964)
