3.1 Keep money spent on energy near to home
Rethink financing solutions
The problem at handWhere can we find the resources for financing the territories’ energy transition? This issue is on all local authorities’ agendas in a context of drastic cuts in public spending. Facing ever increasing social emergencies, local authorities may feel tempted to let it go and wait for better days.
This would mean misunderstanding the relationship between the energy transition and the stimulation of territorial economies. In a city with 250,000 inhabitants, the annual energy bill for supplying heating, domestic hot water and electricity to house-holds, tertiary activities and SME amounts to roughly 250 million euros. It is a considerable, steadily increasing amount of money that generates a financial flow. Will this flow go to Qatar, Russia or major industrial groups? Or will this money stay “at home” in the territory? In what proportions? What for? And who cares about where it goes? To find a way out, local authorities must take a hard look at their territories.
ProposalThe energy balance of a territory should also include a financial transcription.
This would give the amount of money that is being annually spent on energy, how much is kept in the territory, and how much goes elsewhere. Medium to long-term targets must then be set to “capture” this financial flow and use it to finance energy retrofitting works, energy networks and local renewable energy use. Local medium, small and very small-sized companies would benefit from this capture.
Conditions for success
Cities and towns that show the way
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Energy Cities, Local authorities in energy transition.