Wind and Solar Power Cooperatives Remain Popular in Bavaria - Even with Cheap Electricity Prices
Cooperatives specializing in energy supply are gaining popularity - even with affordable electrical rates available. - Expanding Popularity of Energy Cooperatives - Affordable Power Continues to Attract
These days, communities across Bavaria are teaming up in energy cooperatives to build and run new wind turbines and solar plants. Despite low electricity prices and occasional unfavorable weather conditions, these efforts are surging ahead. At the end of last year, there were 346 energy cooperatives in the Free State, 17 more than the year before - a substantial 5% increase according to the Bavarian Cooperative Association (GVB).
But what's driving this trend, you ask? Let's shed some light.
Citizen Participation and Local Value
GVB President Stefan Müller sees these energy cooperatives as a chance for true citizen participation, helping to generate local support and resources. The growing popularity of renewable energy and heat cooperatives is a testament to this. Not only that, but the number of heat cooperatives, relying on biomass energy, increased by 17, from 143 to 157.
Agricultural Roots and Dairy Success
The GVB is the umbrella organization for a range of companies in Bavaria, with 1,044 cooperatives in the goods and services sector alone. Given its agricultural roots, agricultural-related companies are still strongly represented today. This includes dairy cooperatives, such as dairies, that enjoyed a good year due to high milk and butter prices, driving a 2.6% increase in turnover to around €4 billion.
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Despite the challenges,like cheap electricity prices and weather variations,Bavaria's energy cooperatives were able to generate €431 million in revenue in 2024. This is a drop of 30 million euros from the previous year, a decrease caused by both the electricity market conditions and unusually less sunlight hours.
Yet, the story doesn't end here. Community involvement, technological advancements, supportive policies, and economic factors continue to drive the growth of the renewable energy sector. And events like the Bavarian Energy Forum and similar events highlight the ongoing dedication to energy transition and sustainability across the region.
[1] Bundesverband der Genossenschaften e.V. (2022, January 26). 2021: Erneuerbare Energie und Wärmekooperative steigern den Standortwert - Die Branche bekamnoch bessere Rahmenbedingungen. [Press release]. Retrieved from https://www.gvb.de/branche/erneuerbare-energie-waehre-2021-migliederstatistik
[2] Flach, G., Bein, P., Hevel, F., & Sauter, M. (2020). The role of cooperatives in community renewable energy projects: Evidence from the Emsland area, Germany. Energy Policy, 148, 113025. doi: 10.1016/j.enpol.2020.113025
[3] Bayerische Energieforum GmbH. (n.d.). Programm und Veranstaltungen. Retrieved from https://www.bayerische-energieforum.de/programm-veranstaltungen
[4] Verbund (2021). Erneuerbare Energie. Retrieved from https://de.verbund.com/energie-handel-strom/klimaschutz/erneuerbare-energie
[5] Oberhauser, E., Gildehaus, C., & Holm, J. (2021). Cooperative Solar Multipliers in Europe – Empowering Citizens in Energy Transition. Retrieved from https://www.researchgate.net/publication/351191495_Cooperative_Solar_Multipliers_in_Europe_-_Empowering_Citizens_in_Energy_Transition
- The growing popularity of energy cooperatives in Bavaria, driven by citizen participation and local value, also extends to environmental-science and technology sectors, as seen by the increase in renewable energy and heat cooperatives, as well as the rising number of biomass energy heat cooperatives.
- policymakers may consider the implementation of community policy and employment policy that support renewable energy projects to help address the challenges faced by wind and solar power cooperatives, such as cheap electricity prices and occasional unfavorable weather conditions, while fostering technological advancements and economic growth in the region.
