There are various concerns that have emerged from research with stakeholders and community about ownership. We have summarised these here.
Network businesses – the concern with networks owning neighbourhood batteries is that this technology will contribute to the ‘gold plating’ or over-building of the electricity grid. Networks are incentivised to install new infrastructure if they can include it in their Regulatory Asset Base (RAB) and pass the costs on to users. They need to justify this infrastructure in terms of providing a stable, efficient grid, but not in terms of other environmental or social benefits. The concern is that a range of benefits that neighbourhood batteries could deliver will be missed if neighbourhood batteries become just another component of the electricity system alongside poles and wires.
Retailers & Gentailers – the concern with retailers owning neighbourhood batteries is that they will use them to access residential solar for commercial activities, with potential savings for customers, but profits going to shareholders, not solar households. The public are particularly concerned when ownership and shareholding are overseas. The privatisation of the electricity system was intended to increase competition and the efficiency of the system, but the NEM continues to be dominated by large multinational companies, many of whom are still invested in fossil fuel generation. While there have been new entrants to the market, including small, community-based, environmentally focused companies, many have struggled to remain competitive. Community members are concerned that big energy companies will not prioritise environmental or social values, and they have very low levels of trust in these companies.
Community ownership – the concern with community ownership is that it’s hard work and fraught with uncertainty and risk. Some members of the public don’t think community ownership models are practical. However, other people don’t think the current market-based system is working well to meet the public interest. Local, non-profit organisations are generally better positioned to be responsive to local needs and concerns, and to put environmental benefits ahead of financial ones. A caveat to this is that community energy groups, and neighbourhoods who have them, are not, in every case, necessarily representative of the broader community. Diversity and equity are ongoing issues. That said, community energy initiatives are potentially a way to engage citizens in the energy transition, improving its legitimacy in a context of low trust. For some, community initiatives such as community owned neighbourhood batteries are part of a broader social transformation that is needed to set us on a more environmentally and socially sustainable path.