The green shoots of Crowdfunding – The London Economic

By Ryan Carter @rwscarter

There is a beautiful bottom-up revolution underway in the energy market, but like all revolutions there is hurdles the question is can the state facilitate the green revolution, I think it should. This requires putting into reverse how the state has been seen in market interventions as a monolithic agent ‘crowding-out’ competition. I believe that the state can and should act smart and counter to popular opinion ‘crowd-in’ the market, breaking the hegemonic cartel of the ‘Big Six’. As of 2013 renewable energy provides a mere 21.7% of all electricity generated across the globe, so it is time to harness the ‘green revolution’ going on in the energy market and push for a sustainable future not turn our backs on it.

Despite government attacks on ‘Feed in tariffs’ there is still a green light on sustainable energy solutions in this race against time and despite being the new tool in the arsenal crowdfunding seems to be meeting the demand for these solutions. Crowdfunding allows substantial sums to be made up from small contributions. Now with a boom in crowdfunding it is time the new far lower barriers to participation so everyone can make a difference no matter how large or small their contribution. The most significant barrier to participation to-date has been regulation and patents, but ideas do not need the support of the ‘Big Six’ to make it to market any longer as the crowd can facilitate the struggle towards a democratic and dynamic market model.

In the past, we have seen a number of promising ideas surrounding tackling the energy crisis being bought by large multinational corporations and never seen again such as the original design for electric car batteries. This cycle cannot be allowed to continue. Crowdfunding has the potential to empower groups of people who feel a responsibility towards the planet and allows them collectively wield their power, to take a moral stance fostering a sustainable difference. The short-term or short-sighted moves on energy pursued by governments and corporations, such as the controversial plans for fracking, or rip off nuclear plants run by China, can, if we want it to be a part of the past not the future. For this and many other reasons, green crowdfunding and a municipalisation and publicity owned and conscious energy market is not going anywhere but up. Evidence suggests that the really big challenges facing society, such as energy and climate change, cannot be met by the state, large companies, well-intentioned individuals or any other agent acting alone, so putting the values of co-operation into our heads, hearts and policy is now surely non-negotiable.

There is serious scope for intervention and municipalisation in the energy market, councils have socialised consumers to bargain a better price going someway towards helping ease fuel poverty. This proves that when society pulls together then there can be a real drive towards significant change. Crowdfunding, community funds and co-operative solutions offer the possibility of a seismic change; this is never truer than in sectors of strategic and societal significance such as renewable energy and financing innovative solutions. Large scale ‘crowd-led’ projects have taken place in Norway and Denmark for example which has contributed towards reducing carbon emissions while this stronger form of energy security has allowed these countries to continue without worry to expanding their business and industrial bases. Cooperatives and collaborative finance tend to play a much larger role in the energy markets of these countries; one of the largest wind turbine Cooperatives in the world is in Denmark, where 50% is owned by a ‘crowd’ of 10,000 investors and 50% by a municipal utility company.

Co-operatives across the country following examples of other co-operatives across Europe have begun issuing community-based shares a form of online crowdfunding with voting rights to tackle this sort of problem. There have also been Housing Association schemes aiming to tackle fuel poverty by installing solar cells on residents’ roofs to lower the cost of energy this had success with Leeds Housing Association using Abundance a green energy crowdfunding platform. There is no reason as to why the councils could not build their own solar farms, wind turbines or perhaps invest in any other form of clean or renewable energy independently using their pension funds or council budget. Nottingham Council have done just that setting up Robin Hood Energy as a municipal not-for-profit enterprise.

Going forward these green shoots from the crowd, municipal authorities and cooperatives will be put under real strain, but together tackling fuel poverty, sustainability and an un-equitable market will be enough to ride the wave. This hegemony will not last forever in its place will be a truly public interest, democratic and dynamic energy market with people not profits at its core. There is many ways to get involved in crowdfunding for renewable energy and local community cooperatives, you won’t be alone in doing so.

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