Community Ownership of Renewable Energy: How it Works in Nine Countries

The challenges and opportunities for local and indigenous ownership of renewable energy are manifold. But if we are to avoid the situation that arose with local communities being marginalised and excluded from the benefits of locally sourced fossil fuels, we must ensure a just transition into the low carbon economy. This means giving agency to local and indigenous communities - both through Free, Prior and Informed Consent, and through financial equity and partnership. Here we spotlight the issue of indigenous and local community partnership in renewable energy in nine countries (Canada, Chile, Colombia, Honduras, Mexico, Norway, Scotland, Sweden, US).

Climate ambition

• Canada aims to reach net zero in its activities by 2050, and by 2035, it intends its electrical system to be entirely emission-free.

• The country also aims to reduce its emissions by 40-45% below 2005 levels by 2030.

• At present, around 18.9% of Canada's electricity production comes from renewable sources.

“[I] see wind energy as a good investment that can provide jobs, business opportunities and other important benefits to (my) community” – Dean Jacobs, Walpole Island First Nation

Indigenous People & Culture

Around 4.3% of Canada’s overall population is Indigenous. Indians (First Nations), Métis, and Inuit are the three groups of Indigenous peoples acknowledged under the Canadian Constitution. The First Nations peoples inhabit areas south of the Arctic whilst the Inuit are mainly found far north in the Arctic. Métis people mainly inhabit Ontario and the Prairie provinces. There are around 617 First Nations or Indian bands representing more than 50 cultural groups across the country.

"It just goes to show that collectively, working together, recognizing the efforts of all people that live in Atlantic Canada — and the Mi'kmaq in particular — we are contributors to the economy." – Steve Parsons, vice-president of Beaubassin Mi'kmaq Wind Management, a company owned by the 13 band councils in Nova Scotia. (Source)

The impacts of colonisation on Indigenous peoples through forced assimilation, banning of Indigenous culture, the exclusion of Indigenous peoples from civic activities and the imposition of governance institutions were all done through the Indian Act. These historic actions have had a hugely detrimental impact on the socioeconomic status and health of Indigenous peoples, a situation exacerbated by racism, segregationist practices, land loss, and dwindling access to food supplies and public benefits. The legacy of the Indian Act continue to be felt in the relations between the Canadian state and Indigenous peoples. For example, despite Indigenous persons only representing 4% of the Canadian population, they account for 25% of the prison population in a justice system that disproportionately incarcerates Indigenous individuals.

Challenges and opportunities for Indigenous ownership of renewable energy

Canada is considered the leading country with regards to indigenous participation in renewable energy projects. There is a growing consensus that it is imperative to engage Indigenous People at all stages of energy projects that affect them in any way. The trend towards Indigenous co-ownership is part of the broader political and legal developments since 2004, including the two court decisions mentioned in the section above. In its Nationally Determined Contribution (NDC), Canada explicitly makes reference to Indigenous climate leadership. The NDC discusses co-developing solutions with Indigenous Peoples and supporting self-determined climate action to advance the country’s reconciliation with Indigenous peoples.

Indigenous communities in Canada have access to various federal, provincial, and utility-based financing schemes to provide equity and capacity for renewable energy projects. There is a trend towards consortia of Indigenous groups combining their funds to acquire equity in high-value projects.  In the non-renewable resource extraction sector, First Nations groups have purchased up to $1 billion equity in certain projects (such as the controversial Keystone XL pipeline), suggesting that co-ownership arrangements are sophisticated and high-value.

After the Crown and private utilities, Indigenous communities control the greatest number of renewable energy assets and are participating in over 197 green energy initiatives. But not all forms of involvement meet the criteria for reconciliation and self-determination, whether they involve full ownership, co-ownership, financial benefits, royalty agreements, Indigenous funding, revenue-sharing agreements, leasing agreements, impact benefit agreements, or partnership schemes. It is only in 41 of these initiatives that Indigenous people have full or majority ownership (at least 51% or more of equity). Only six of the renewable energy projects are co-owned with Inuit communities, while the rest are with First Nations communities. The co-ownership structures have also come under criticism in some instances such as in the province of Saskatchewan where the provincial government is against direct revenue-sharing with First Nations on the basis that the resources are for all residents of Saskatchewan.

“When other Nations ask us what our key to success is, our advice is always: start small. It’s fundamental to have these big ideas but in order to get there, it’s always better to start with a smaller project and once complete, take that feeling of accomplishment and the lessons learned to continue on the path.” – Daphne Kay, Cowessess First Nation. (Source)

Projects are most successfully aligned with the principles of UNDRIP when planned using approaches that allow for full Indigenous consultation and equal decision-making authority. More specifically, there are five general classifications of ownership arrangements that can contribute to reconciliation:

1. Indigenous Ownership: Fully Indigenous-owned projects are enabled through access to developers and favourable financing arrangements. This model offers Indigenous communities full decision-making power and control over a project's planning, management, jobs, profits and revenues and can strengthen the goals of reconciliation and self-determination.

2. General Partnership: Indigenous Coalition. In this model, ownership is equally split between or among partners. For example, Three Nations Energy Inc. is a partnership between two local First Nations and a Metis association in Alberta for solar energy. These types of partnerships can be beneficial to pool funds for larger investments.

3. General Partnership: Indigenous-Developer. Ownership is shared equally between an Indigenous community and a renewable energy developer with shared decision-making and equally distributed earnings. The division of responsibility regarding construction, operations, and maintenance are addressed depending on the individual circumstances., The generated energy is sold to a utility through a power purchase agreement. With this model, Indigenous peoples can exercise some autonomy while utilising the energy companies' resources, technical expertise and financing.

4. Limited Partnership: Formed between utility partners and indigenous communities or as coalitions of Indigenous and First Nations communities. The terms of such co-ownership are usually agreed upon prior to the project and are highly flexible models that can distribute liability and risks.

5. Equity Ownership: This is the simplest model where Indigenous communities purchase equity in a project and act as shareholders. The Indigenous communities may not actively participate in the project's planning or administration. It is similar to limited partnerships, but the Indigenous partner often controls 25% or less of the project.

Examples of Funding Programs & Initiatives

BC First Nations Clean Energy Business Fund (FNCEBF)

Created by the Clean Energy Act. Designed to promote increased Indigenous participation in the clean energy sector through (1) revenue-sharing directly with First Nations impacted by a clean energy project, and (2) grants available to British Columbia First Nations to support capacity and equity investment in clean energy projects.

British Columbia Indigenous Clean Energy Initiative (BCICEI)

Administered by The New Relationship Trust, funded by the Federal Government’s Strategic Partnerships Initiative (SPI) and the Province of BC’s CleanBC plan. It aims to provide support and capacity-building funds to Indigenous communities working on the development of clean energy projects, creating benefits including ownership, revenue sharing, business development, and local employment.

Northern Responsible Energy Approach for Community Heat & Electricity program (REACHE)

Administered by Crown-Indigenous Relations and Northern Affairs. Funds renewable energy projects, and related capacity building and planning. Supporting northern and Indigenous communities in their transition to sustainable energy sources to support energy security, reconciliation and self-determination for Indigenous peoples.

The Indigenous Clean Energy Social Enterprise

Administered by Indigenous Clean Energy and involves multiple initiatives:

1. Catalysts Program: Indigenous clean energy capacity-building program. Provides learning about renewable energy projects, energy planning, energy efficiency, conservation, and business management. In addition, participants are supported to move clean energy projects forward on the ground.

2. The ICE Network: An opportunity for people working on Indigenous clean energy projects to collaborate to maximise the impact of their initiatives.

3. Global Hub: The Global Hub focuses on building international relationships and fostering knowledge sharing around Indigenous clean energy efforts.

Natural Resources Canada (NRCan)

1. Clean Energy for Rural and Remote Communities Program (CERRC). A $220-million program to deploy renewable energy technologies, encourage energy efficiency and build local capacity in Indigenous communities. Provides funding for renewable energy and capacity-building projects. Helps build energy security, reconciliation, self-determination, and economic development for Indigenous People.

2. The Indigenous Off-Diesel Initiative. The initiative is delivered in collaboration with the Indigenous Clean Energy Social Enterprise and the Pembina Institute. Impact Canada Initiative involves $75M over 4 years.

Profile Cases

Sukunka Wind Energy Project

• Region: BC
• Model: Indigenous ownership

Partnership between Saulteau First Nation (majority ownership) and the renewable energy company Natural Forces. Natural Forces is a private renewable energy company that works with local communities in Canada and Ireland to ensure economic growth in vulnerable communities. The project represents the largest majority-owned Indigenous green energy project in B.C. and generates energy that is sold to BC Hydro and Power Authority under separate 40-year energy-purchase agreements.

Zonnebeke Wind Project

• Region: BC
• Model: Limited partnership

Partnership between West Moberly First Nation (minority ownership) and Natural Forces. Generates energy that is sold to BC Hydro and Power Authority under separate 40-year energy-purchase agreements.

Cowessess Wind Development

• Region: BC
• Model: Limited partnership

Partnership between Cowessess First Nation (CFN) and the Saskatchewan Research Council. The project secured a 20-year SaskPower Power Purchase Agreement and project funding. Through the Treaty Land Entitlement process, CFN purchased land holdings in Southern Saskatchewan with the objective of future development and economic return. Funding partners include CFN capital investment, Saskatchewan Research Council, CERRC, AANDC and Saskatchewan’s Go Green Program.

Burchill Wind Energy Project & Wocawson Wind Project

• Region: Nova Scotia
• Model: Indigenous ownership

Partnership between the First Nation in Neqotkuk (majority ownership) and Natural Forces for investment in two wind energy projects. The main motivation is to make Neqotkuk self-sufficient. No government funding was used, but the partnership came out of the government's Locally-Owned Renewable Energy Small Scale (LORESS) program.

Truro-Millbrook Wind Project

• Region: Nova Scotia
• Model: Indigenous ownership

Partnership between the Millbrook First Nation and Juwi Wind Canada Ltd. to build Truro-Millbrook Wind Limited, utilising Community Wind Farms Inc. for local development services. The Project is co-located with another wind project, Truro Heights Community Wind, which will be majority-owned by Eskasoni First Nation. The wind projects are developed under Nova Scotia's Community Feed-In-Tariff Program (COMFIT). The wind farm shares economic opportunities with the local community and the Millbrook First Nation, providing them with a revenue stream enabling economic development.

Glooscap Energy Projects

• Region: Nova Scotia
• Model: Indigenous ownership

100% owned entity of Glooscap First Nation to implement renewable energy projects on behalf of the community. Glooscap First Nation is a net exporter of renewable energy. They own Amherst Wind Farm together with the other 12 Mi'kmaq communities (majority ownership) in partnership with Natural Forces. Moreover, they own Whynotts Wind Farm Glooscap together with the other 12 Mi'kmaq communities (majority ownership) in partnership with Potentia Renewables.

Mesgi’g Ugju’s’n Wind Farm

• Region: Quebec
• Model: General Partnership: Indigenous Coalition

50-50 partnership between the Mi’gmawei Mawiomi Business Corporation (collaboration between three Mi’kmaq communities) and Innergex Renewable Energy. About 110 workers from the Mi’kmaq communities were employed in the wind farm construction, and the estimated profits from the project are $200 mn for the Mi’kmaq over 20 years.

Apuiat Wind Farm

• Region: Quebec
• Model: General Partnership: Indigenous Developer

50-50 partnership between Innu Nation and Boralex. Profits are divided evenly, and all decisions are made collectively. The access road was built with significant involvement from the Innu to minimise disruptions to the local ecology. The project location was chosen for its ideal producing capacity.

Rivière-du-Moulin wind farm

• Region: Quebec
• Model: Equity Ownership

Majority-owned by EDF Renewables. Local municipalities, Huron Wendat Nation, the Innu of Mashteuiatsh and Essipit First Nations all have an equity ownership stake in the project, totalling 15%.

Climate ambition

• In accordance with the Paris Agreement, Chile has made ambitious pledges such as generating 70% of its energy mix from renewable energy.

• The Chilean Climate Change Framework law of 2022 sets a binding goal of net zero emissions by 2050.

• The law also introduces the maximum amount of GHG emissions which can be emitted in each sector in a given period as well as mitigation plans.

Renewable energy sources

• Chile is also a strategic actor on the global stage due to the wealth of minerals  in the Atacama Desert.

• Chile’s environment presents several opportunities for solar, hydrogen, and wind power projects such as in the Atacama Desert (solar) and Patagonia Mountains (wind). The solar potential in Chile is particularly remarkable and the best in the world.

• To realise its targets, Chile's government is heavily investing in renewable energy, with equity from foreign investors and one-third of Chile's energy mix is already made up of hydrogen.

Indigenous People & Culture

In 2021, approximately 2.2 million Chileans identified as belonging to one of the ten recognised indigenous groups under state law: Mapuche, Aymara, Rapanui, Atacameño or Likan Antai, Quechua, Colla, Chango, Diaguita, Kawésqar, and Yagán. The indigenous population constitutes approximately 10% of Chile's total population. The indigenous groups are spread across the country, however, urbanisation has led to approximately 80% indigenous Chileans living in cities. Of the total population, the indigenous population remains the most vulnerable and poorest groups. While the Mapuche possessed their own territory under the Spanish rule, after independence in 1818, the Chilean state colonized c. 23 million acres of Mapuche land. Systemic discrimination and historical dispossession in legal and political institutions have led to minimal land rights, poverty, limited access to social services, and limited means to reproduce indigenous culture.

Challenges for indigenous ownership of renewable energy

Perhaps the greatest challenge to indigenous ownership of renewable projects in Chile is the absence of a robust legal framework that recognises indigenous ancestral lands and sovereignty. Due to the limited grant of title to Indigenous groups over their ancestral lands, the territorial sovereignty of such groups are not being respected. For example, there are six mining companies currently prospecting within the Colla’s ancestral territory in the Atacama region. In their environmental impact reports, these companies only assess the territories that have been recognised by the government under land law which only constitutes a tenth of Colla territory.

The lack of consultation with indigenous communities whose lands, environment and rights are affected by mining projects is another huge challenge. Furthermore, the profits have not benefitted the communities who bear the costs of environmental destruction. In the lithium mining sector, companies have not only extracted large profits through mining in the Atacama region, they have failed to consult indigenous communities and have worked with local authorities to silence or intimidate any indigenous people who speak out about the environmental harms.

Climate ambition

• Colombia has made a commitment to reduce greenhouse gases by 51% and black carbon emissions by 40% in 2030 compared to 2014 levels.

• It aims to achieve carbon neutrality by 2050.

• In 2021, the country's energy mix was dominated by hydropower (c. 70%), followed by fossil fuels (c. 29%), and alternative renewable energy sources (c. 1%). It is a country well on its way to a green transition.

Renewable energy sources

• Colombia is a source of renewable minerals such as copper, nickel, lithium, lead, iron, and zinc.

• There is significant wind power in the La Guajira region. The government has recently released a roadmap for offshore wind farms near the cost of Barranquilla.

• Parts of Colombia along the Caribbean have higher solar radiation speeds than global averages.

• Colombia’s installed variable renewable energy is projected to increase by 12% by the end of 2022, and well over 17% by 2030.

Indigenous People & Culture

In 2018, 3.4% of Colombia's population identified as indigenous. While the National Administrative Department of Statistics (DANE) recognises 87 indigenous groups, other estimates are significantly greater: the National Indigenous Organization of Colombia (ONIC) recognizes 102 indigenous peoples. The indigenous population has a claim to a third of Colombia's territory but due to armed conflicts since 1964, they have experienced forced displacement and loss of lands. Following the 2018 election of President Duque and the subsequent armed unrest, violence towards indigenous communities and land grabs have increased.

Climate ambition

• In the past two decades, Honduras improved its citizens' access to electricity. Yet, in 2022, 7.2% of the country's population remains without access to the energy grid.

• In addition to its increased industrial activity, this has led to a higher demand for energy. 51% of this demand is currently fulfilled by imported oil which the country imports.

• In 2021, President Castro made an ambitious promise that 70% of Honduras' energy demand would be met by the country's own renewable energy production.

Renewable energy resources

• Honduras' environment provides ample opportunity for setting up projects that would lend to its ambitions.

• In 2010, 40 contracts were approved for hydroelectric projects of which over half would affect indigenous communities (who had not been consulted).

• The financial feasibility of the country’s renewable energy goals has been questioned particularly since the bankruptcy of the National Electricity Company (Honduras' key energy provider) in 2021 as a key example of this.

• Most funding for renewable energy projects has therefore come from foreign investors and this trend is expected to continue.

Indigenous People in Honduras

In 2013, approximately 9% of Honduras' population self-identified as indigenous. Aside from Afro-descendant indigenous peoples, the Lenca, Pech, Tawahka, Xicaque, Maya Ch’ortí, Misquito, and Garífuna are seven culturally distinct indigenous groups. Of these groups, the Lenca and Garífuna are the most numerous. Honduran indigenous people are spread across the country and claim the right to 17.8% of the country's territory. While some indigenous peoples had communal property rights during the colonial era, it was not until the 1990s, that indigenous movements began around the country to reclaim traditional lands. Around 505 titles were issued to indigenous communities between 1993 and 2015, covering over 1 million hectares. This led to indigenous municipalities being created in San Marcos de Caiquin (Lenca), San Francisco de Opalaca (Lenca), Juan Francisco Bulnes (Garifuna), and in the Misquita, Villeda Morales, Ahuas and Wampusirpi area.

Indigenous communities face systemic problems such as multidimensional poverty, violence, insecurity of land rights, lack of access to basic social services and very little access to justice.

Legal and institutional framework

At the domestic level: Since 1982, the Honduran Constitution has recognised the cultural and historical heritage of indigenous peoples and declares the state will protect their rights. There are some institutions such as the Office of the Special prosecutor for Ethnic Groups and Cultural Heritage (which handles complaints of violations of indigenous peoples’ rights) and the Directorate of Indigenous and Afro-Honduran Peoples (which implements policies regarding social and economic development in indigenous communities). However, these institutions are under-resourced and need to be strengthened. While there are legal instruments for the protection of Indigenous lands such as the Property Act (2004) which provides for the registration of indigenous lands, the Act contains several loopholes which permit third parties to take legal possession of such lands without Indigenous consent.

At the international level: The Honduran Constitution provides that international treaties automatically form part of domestic law (article 15). Honduras ratified ILO 169 in 1995 and, adopted the United Nations Declaration on the Rights of Indigenous Peoples in 2007. In 2016, the Inter-American Court of Human Rights declared that Honduras was violating collective ownership rights and failed to provide judicial protection to indigenous communities. The Court ordered that consultation and consent must be obtained prior to any exploration project which affects the traditional lands of the indigenous and tribal communities across the country. The UN, Amnesty International, and other international bodies have criticised Honduras' treatment of human right defenders in the Garifuna indigenous communities, such as the use of unlawful incarceration and bringing harm to activists.

Challenges and opportunities for indigenous ownership of renewable energy

The situation for indigenous peoples in Honduras with respect to their land rights and rights over natural resources is increasingly critical. The Special Rapporteur for the Rights of Indigenous Peoples observed that for all the wind and hydroelectric contracts approved in 2010 which affected indigenous communities, none of the communities were consulted. In some instances, development companies persuaded indigenous individuals to sign leasing documents under duress by claiming that if their signature was not provided, the land would be expropriated.

Another key challenge is that human rights defenders from indigenous communities affected by renewable energy projects have been characterised as violent agitators and opposition has been met with unlawful arrests, deaths and criminalisation. There are very few avenues for indigenous peoples to enforce their rights, particularly due to the politicisation of the legal system and judiciaries as well as the lack of institutional capacity to investigate cases. In 2021, the Inter-American Commission on Human Rights denounced the impunity for crimes against human rights defenders in the country, noting that perpetrators are not held accountable in almost 90% of cases.

The case below illustrates how the rights of the Lenca are currently being violated.

Profile case - Cerro de Hula wind farm

Cerro de Hula is the first grid-connecting, on-shore wind farm in Honduras that electrifies neighbouring (indigenous) communities. In partnership with several other private entities, Energía Eólica de Honduras has operated the project in the Santa Anna municipality since 2011 and has gained a 50-year concession. It is marketed as a sustainable venture that benefits the region. To that end, the UNFCCC accepted the projects as part of the Clean Development Mechanism (CDM) and approved it in 2020. Another international institute involved is the World Bank which provided a “multilateral investment guarantee” (a risk insurance tool for foreign investors) to those involved in this project and insures the project against risks such as civil disturbances.

The Lenca community, however, voiced its opposition in the early stages of the project citing a number of human rights violations related to the nature of the project and its location:

• First, the neighboring community was not properly consulted, and no environmental assessments were made public as required under ILO 169. The company sought signatures from indigenous individuals for lease agreements with a warning that if they did not provide their agreement, the land would be expropriated.
• Second, communities were forcibly expropriated by the government who cited the areas’ new “public” purpose and social benefits. However, the project is privately owned, and profits go to private entities.
• Third, the project encroaches on key historical Mesoamerica agricultural terraces which are of cultural and historical importance to Central America. The Hula hill itself is furthermore located in between the Hierba Buena Biosphere Reserve and the Uyuca Biological Reserve. The project consequently disturbs water and land reserves and leads to biodiversity loss. In short, the Lenca claim that the Cerro de Hula wind farm violates ancestral, land, and water rights.

Despite indigenous organisations and other civil society groups pushing for the project to cease due to its social and environmental impacts, the project is still ongoing. Additionally, the historical treatment of Lenca Indigenous activists, such as the 2016 killing of Caceres, a Lenca indigenous leader, highlights the dangers faced by those who seek to defend their lands and the environment.

Climate ambition

• Mexico aims to have 35% renewable energy by 2025 and 50% by 2050, with a carbon neutrality pledge by 2050.

• Mexico’s energy mix is heavily dominated by gas and oil, however, renewable sources are increasing significantly as the country is working to live up to their Paris climate commitments and support the green transition.

• In 2019, around 24% of energy was generated by renewable sources. The renewable energy capacity has grown since the mid-1990s and expanded significantly in the latter half of the 2010s due to a national energy reform aimed at stimulating investment in the sector.

• Mexico’s ambitious reform in the electricity sector includes a quota system for clean energy certificates, the introduction of auctions for long-term energy contracts and subsidies for household electricity consumption.

Renewable energy sources

• Mexico has large untapped wind and solar resources, and the electricity generated by wind and solar power combined almost tripled between 2015 and 2019.

• Mexico has good conditions for renewable energy production and the number and scale of renewable energy projects have risen significantly during the last decades.  

Indigenous Peoples of Mexico

Mexico has a large indigenous population, estimated to be between 8% and 11% of the national population. Over half of the indigenous populace live in four of Mexico’s 32 states in the south and south-central regions. The different indigenous peoples living in Mexico have developed and maintained different cultures, customs and languages but all the groups share a cultural and historic connection to their land. Activities such as fishing, farming and livestock breeding are both vital economic activities and also central to the way of life and the culture of indigenous peoples.

Much like other indigenous populations across the Americas, colonisation has left a legacy of discrimination, inequality and exploitation in Mexico for indigenous communities. Despite legal developments to formally recognise indigenous rights, indigenous resistance to land exploitation has been met with gross human rights violations such as “disappearances” at the hands of government forces that often collude with private interests. In recent years, a large proportion of Indigenous people have in recent years been subject to forced internal displacement due to land conflicts. Over the past decade, around 60% of the indigenous population have been internally displaced as a result of land disputes with extractives companies who often work with organised crime groups in the country.

Challenges and opportunities for indigenous ownership of renewable energy

One major challenge for Indigenous communities in Mexico has been conflict with developers of renewable energy projects who often use repressive techniques against opposition to construction.

Mexico’s ambitious energy sector reforms since 2013 have led to growth in wind energy developments. This has led to rapid constructions of wind parks in places like Oaxaca with very little consultation with or concern for the human rights of indigenous communities. Due to extremely favourable wind conditions, the Isthmus of Tehuantepec region of Oaxaca has been increasingly targeted by international companies seeking to build large wind farm projects over the past 25 years. Much of the land where companies are looking to construct their wind project is ancestral land communally owned by indigenous peoples and the construction would impact the livelihoods, resources, health and cultures of the indigenous communities. Wind developers have been accused of using unethical or illegal methods for obtaining the land for their projects. There have been reports of bribery, manipulation, violence and intimidation toward the local indigenous communities.  The use of military and paramilitary actors in the pursuit of the construction of wind parks has been widely recorded as a frequent tool used against indigenous resistance.

The construction and operation of wind farms have also harmed indigenous peoples in the area. For example, there have been reports from local fishermen of the mass-killing of fish resulting from the construction of wind farms. Further, as land rented by companies is forbidden for framers and fishermen to access without permission, some fishermen can no longer access the coast. This not only limits their economic opportunities but also restricts how they can enjoy their ancestral culture.

Climate ambition

• Norway aims to reduce GHG emissions by 40% by 2030 and to become a low-emission society by 2050, meaning levels about 90% lower than in 1990.

• Norway has a power sector that is almost entirely renewables-based. Due to the extensive use of hydropower, renewable energy sources currently account for 98% of electricity production.

• Nevertheless, Norway has a lot of work ahead to meet its low-emissions target of 2050. Norway’s emission reductions are primarily concerned with sectors such as gas and oil production, industry and transport.

Renewable energy sources

• Although wind power currently accounts for only a small part of the total power production in Norway it has become an increasingly important source of renewable energy and the number of turbines has risen tenfold during the last decade.

• Between 2019 and April 2022, the government ceased providing new licenses for wind projects but it has now resumed.

• Norway also has one of the largest offshore wind potential in the world and has aims to majorly expand its offshore wind by 2040. The zones that are planned for offshore wind are all along the coast of the entire country.

Indigenous Sami and Reindeer Husbandry

The northern part of Norway is a part of the Sápmi area, which spans Norway, Sweden, Finland and the Russian Kola Peninsula. The Sápmi area is the traditional land of the Sami people, an indigenous people that have inhabited the area since time immemorial. It is estimated that the Sami population is approximately 70 000 – 100,000 people, with a majority, around 50 000, living in the northern parts of Norway.

The Sami have maintained their culture and traditional livelihood, including reindeer husbandry, which has been a crucial part of the Sami culture for thousands of years. Today, there are around 200 000 reindeer in Norway and the average number of reindeer per owner is 70. The reindeer herding area comprises approximately 40% of Norway’s surface area.

Challenges for Indigenous rights and renewables

Reindeer herding requires vast areas of land for grazing purposes and the Sami have used the Sápmi area for reindeer husbandry since time immemorial. With the number and scale of wind power projects increasing in the Sápmi area in the last decade, the rights of the Sami to their culture, identity, lands, resources and livelihoods are threatened. Some proponents of wind energy have argued that there is a possible co-existence between wind farms and reindeer herding. However, several recent studies have found that reindeer herding is adversely affected by the construction and operation of wind farms. Migration, grazing and calving can be disturbed, and reindeer herders can face increased costs and workload. Consequently, wind power expansion has intensified the conflict over the exploitation of natural resources in Norway. Wind power companies argue that the expansion is crucial for the green transition required to save the environment whereas the Sami argue that this is nothing but green colonialism—a form of exploitation and threats to indigenous ways of life under the banner of a green transition.

Climate ambition

• Scotland aims to produce 50% of its energy consumption (specified as heat, transport, and electricity consumption) using renewable sources by 2030.

• To that end, Scotland has taken several steps, including establishing the Energy Investment Fund, promoting onshore wind development, partnering with third parties to develop offshore wind projects, and making it more attractive to invest in local and small-scale renewable energy projects.

Renewable energy sources

• Scotland’s ambitious target is made feasible by the abundance of renewable resources, i.e., high wind speeds and a geology suited for carbon capture.

• The winds, the tides, and the area in Orkney, Shetland and the Western Isles could in theory generate 50% of the UK's energy needs.

• However, the Scottish Government’s claims on Scotland’s wind energy potential have been disputed by the UK Statistics Authority.

Green transition and Community ownership

The Scottish government has set ambitious goals for shared ownership of onshore wind and renewable energy projects supported by a sound legal framework, a financing scheme (CARES), and certain guiding principles. For instance, by 2020, the government aimed to have at least 50% of newly consented renewable energy projects with an element of community-ownership. In addition, by 2030, Scotland aims to produce 2 GW of community and locally owned energy. Most community or locally owned wind energy projects are located in Aberdeenshire and the Highlands, and are owned by farms and estates, local authorities, and local businesses.

On official announcements, the government states that the aim is to ensure that “Scottish communities benefit from local projects in a manner that is appropriate for the current and future context in which renewable energy projects are developed”. Offshore wind projects have brought little national or community benefit, however. Although nearby communities are compensated, this sum is minute compared to the profits that energy companies reap from such projects.

Climate ambition

• Sweden is one of the leading countries in the transition to green energy. In 2019, 56% of the energy used came from renewable sources.

• Sweden has a net-zero target of 2045, and aims to have 100% renewable electricity generation by 2040.

• As per the EU-wide NDC, Sweden is committed to reducing at least 40% of its GHG emissions by 2030 compared to 1990.

Renewable energy sources

• Currently, hydropower and bioenergy are the two largest renewable sources with wind power only accounting for a fraction of the total energy supply in Sweden.

• However, during the last decade, the number of wind turbines has increased significantly.

• The expansion of wind energy in Sweden is primarily planned to occur in the northern regions. Within a few years, it is estimated that the installed wind capacity in the north of Sweden will exceed the capacity in the rest of the country.

Indigenous Sami and Reindeer Husbandry

The northern part of Sweden is part of the larger traditional lands of the indigenous Sami which spans across the formal boundaries of several countries. Known as the Sápmi area, this territory traverses Norway, Sweden, Finland and the Russian Kola Peninsula. The Sami exist as one people with a common cultural identity, and their languages and cultures long pre-date the current countries in that region. The total Sami population is estimated between 70,000 to 100,000 with the majority of them residing in Norway.

Reindeer herding is central to the Sami culture and way of life. While only about 10 per cent of Sami are occupied as reindeer herders, the relationships with these animals constitute a vital part of Sami culture. There are about 260 000 reindeer in Sweden and the reindeer grazing area stretches over half of the total country surface.

Climate ambition

• The current administration has established the goal of 100% clean electricity by 2035 and net-zero greenhouse gas (GHG) emissions no later than 2050.

• It also announced a 2030 aim of reducing net GHG emissions by 50-52% from 2005 levels.

• The United States (US) has committed to deploying 30 gigawatts of offshore wind by 2030 and a target goal of permitting at least 25 gigawatts of onshore renewable energy by 2025.

• Renewable energy has seen rapid growth in recent years due to low costs and policy support.

• The International Renewable Energy Agency (IRENA) notes that the US has the technical potential to increase its share of renewables in the US energy mix to 27% by 2030. By way of illustration, about 20.1% of the nation's utility-scale electricity production in 2021 came from renewable energy sources.

Renewable sources

• Wind power offers the greatest potential for renewables growth in the US and is currently the largest renewable energy generator, accounting for around 43% of all renewable energy in 2020. Texas has the highest installed wind power potential, followed by Iowa and Oklahoma.

• Wind energy is predicted to increase from 63 GW (in 2014) to 314 GW by 2030.

• Hydropower is the largest source of renewable power generation in the US, but IRENA predicts limited potential for large-scale developments.

• Solar power resources vary across regions in the US, but IRENA predicts that the total installed capacity of solar photovoltaics (PV) could reach 135 GW by 2030.

• Biomass and biogas technologies also have significant potential in the US, with a possible 84 GW by 2030.

Indigenous People & Culture

There are around 5.2 million Native Americans (including American Indians and Alaska Natives) making up 2 percent of the U.S. population. Of this number, 78% reside in small towns or rural regions outside reservations, primarily in California, Arizona, and Oklahoma. There are presently 574 federally recognised Nations and the largest are the Navajo Nation and Cherokee Nation.

Since the United States was founded, Native Americans have faced atrocities and dispossession as part of settler colonialism. It forcibly drove them away from their native homelands, and they encountered unfair agreements and government actions that later centred on forced assimilation. Although Native Nations have long been acknowledged as sovereign, they continue to face barriers in obtaining political and legal autonomy to define and enforce institutions such as property law in Indian country.

Challenges and opportunities for indigenous ownership of renewable energy

Indian tribes rely on the development of the reservation’s natural resources as one of the primary means of economic development. Despite this importance and the extensive mineral resource base on tribal lands, tribal control over the development and use of such resources has historically been limited. While decision-making power for tribes has increased in recent decades, tribal sovereignty (both practical and political) remains fragile.

At the policy level, the United States Department of Energy (DOE) Office of Indian Energy supports indigenous energy and economic infrastructure through policies and programs by offering funding through grants, technical support, training, and capacity building. DOE has contributed over $114 million since 2010 to approximately 200 indigenous energy projects spread across the United States. The Obama administration made many pledges to indigenous clean energy through financial and technical support programs and capacity-building training for Native Alaskan and American Indian communities.

At the legal level, the Indian Tribal Energy and Self-Determination Act (ITEDSA) of 2008 offers Native Nations the power to make the ultimate decision about specific development activities, including the development of renewable energy sources such as wind. While this is a positive development, ITEDSA does not address tribal concerns such as enhancing their access to financial, technical and scientific resources to ensure that tribes approach negotiations with businesses on an equal footing. Furthermore, Native Nations are still required to engage in a public consultation process with government officials, which dilutes and contradicts the sovereignty of the Nations. From a practical perspective, energy development in the native territory has also been hampered by government departments’ poor administration, long review periods and other bureaucratic hurdles. Such issues lengthen the development process and result in missed opportunities and income.  Tribes also do not have access to the financial resources and incentives currently accessible to private companies and local governments.

Other interesting cases

• Cherokee Nation and PNE in Oklahoma
• Kodiak Island Wind Project in Alaska

These spotlights have been prepared by students on the 2022 CEMS Academic Placement programme.