Shifting Power: The Impact of Decentralising Ownership of Electricity on Political Systems and their Outcomes

Decentralized individual, community and co-operative renewable energy (CE) producers are capturing a growing share of electricity markets. As this share increases, CE producers are becoming increasingly effective political actors. The traditional political privilege enjoyed by incumbent electricity producers is challenged by CE actors as they begin to shift control over energy supplies and associated jobs and growth. Political struggles between competing interests are increasing around the globe. However, the nature and extent of these power shifts (e.g., different policy outputs, changing political discourse), and their consequences for energy governance processes and outcomes (e.g., democratic quality of policy processes, climate action) are still poorly understood. This paper presents results from a 36 country OECD-wide survey of public servants. It examines changing political power and energy transitions in the context of electricity grid access and use. Building upon three previous case studies in Canada, the Netherlands and the U.K., the survey examines a) if shifts in political power are indeed occurring with the decentralization of electricity, b) through which mechanisms any power shifts are occurring, and c) what the implications of these shifts are for policy systems writ large. The study uses theory on power, transitions, institutions and policy processes to develop an analytical approach to draw out findings and implications. Survey results are still being developed, but initial evidence reveals important findings with implications for energy governance across scales. In particular, research is revealing that political power is indeed beginning to shift, although the nature and extent varies by jurisdiction. Research into mechanisms is revealing, amongst other findings, a) patterns of subversion of existing regime-level governance and regulatory systems in jurisdictions unsupportive of CE; b) sometimes unlikely coalition building between non-commercial actors to match existing regime-level political leverage with the legitimacy and social and technical benefits of CE, and; c) important insights into the strategic discursive strategies that CE interests are using to successfully influence policies and regulation. Finally, the implications of these potentially significant shifts in electricity market ownership are still developing with significant changes in regional, national and global energy governance expected in the next several years. The paper will present evidence-informed projections of where the trajectory of current change dynamics is leading. With analytical boundaries that examine the consolidating impact of largely local energy initiatives on regional, national and international scales, the research and its findings contribute strongly to the session theme.