Scaling renewable energy cooperatives for a net-zero Canada: Challenges and opportunities for accelerating the energy transition

Abstract

Employing a niche-management framework, we conduct a census of renewable energy cooperatives (RECs) to study their potential role in helping Canada achieve its net-zero greenhouse gas emission targets. Based on a review of more than 250 websites as well as 27 semi-structured interviews with representatives from RECs and cooperative associations across Canada, we find that Canada's REC sector is struggling to break out of its niche, with inconsistent and often unavailable data on energy production making it difficult to tally the sector's contribution. Nevertheless, based on the available data, we estimate that the sector contributed at most 73 MW, or less than 0.05 % to Canada's total installed capacity in 2021. We also find that the number of RECs declined by 44 % ( n = 40) between 2016 and 2021. While we found evidence of REC merger activity, the overwhelming picture is of a sector where volunteers are stretched and often forced to wind-up their cooperative. Drawing on cooperative scholarship and a scan of other jurisdictions, we note that RECs could follow the path of other cooperative sectors and become an important part of the regime by forming a second-tier cooperative association. • The number of active Renewable Energy Cooperatives (RECs) in Canada has decreased, with nearly half becoming inactive since 2015, and Ontario being the central hub of activity. • The energy production of active RECs is dominated by solar, followed by wind and biofuels, with a small focus on energy efficiency through home retrofits. • REC membership is primarily composed of investors, with a significant investment co-operative model in Ontario due to the feed-in-tariff program, while retail and employee ownership models are more common in British Columbia and Quebec. • RECs face substantial barriers including economic and operational challenges, policy restrictions, and social obstacles, with internal factors like board expertise and external factors like government funding and policy support identified as key enablers for success. • Despite the decline and challenges, there have been efforts to scale up RECs through second-tier organizations, but success requires overcoming significant barriers such as funding, expertise, and volunteer burnout, along with supportive government policies.

Topics & Concepts