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Exploring Electricity Grid Remunicipalisation: A Comparative Study of Dynamics at the Local-Level in Germany

Local Government
Policy Analysis
Public Administration
Public Policy
Energy
Energy Policy
Thorsten Reppert
University of Bamberg
Thorsten Reppert
University of Bamberg

Abstract

Electricity grids are crucial for energy transition. They represent the sector of local public provision most significantly affected by shifts between public and private ownership. The literature has identified a changing trend from privatisation toward remunicipalisation in the 2010s. However, the dynamics that lead to or hinder remunicipalisation in individual municipalities are understudied. This study aims to improve our understanding of electricity grid remunicipalisation at the local level. It investigates the conditions that facilitate the transition from non-municipal to municipal distribution system operators (DSOs). Using a veto-based approach and comparing contextually similar cases with different outcomes, this study inves-tigates the dynamics in local politics that favour remunicipalisation of formerly pri-vatised public services. Using official documents, press releases, and interview data, the influence of different actors such as political parties, private energy companies, local authorities, and civil actors throughout the political process is examined. With the help of a qualitative content analysis, this data provides information on how the different ac-tors shape the process of remunicipalisation in the individual communities. So far, policy analysis scholars have focused on prominent cases of electricity grid remunicipalisation like Berlin and Hamburg, which are atypical in the broader German context. Furthermore, they often focus on specific actors such as specific organisations in civil society or local administration. Smaller communities and lesser-known cases are largely neglected. To address this gap, the study compares contextually similar cases, looking at municipalities that have tried to remunicipalize their electricity grids but have had different outcomes. It deals with the medium-sized and small cities of Böblingen, Bingen and Schenfeld. While they share favourable conditions for the public ownership of electricity grids such as an above average Green election results in local elections and a comparatively strong local economy, discussions about remunici-palisation resulted in different outcomes. By applying the veto points approach to local politics, the study sheds light on the relationship between local parties, mayors, energy companies and civil actors as well as their influence on the decision-making processes, instead of focusing on one factor alone. A strongly preliminary look at the cases shows that local authorities and private companies have the strongest veto positions. In addition, a cross-party consensus is a prerequisite for successful remunicipalisation. The study thus shows that majoritarian decision-making is not sufficient, but that a broad alliance with all actors involved is crucial for a remunicipalisation of electricity grids. Overall, the study aims to contribute to a better understanding of local energy policy and the transition between private and municipal ownership of public services. By simultaneously highlighting the dynamics of local-level policy making, it provides a view of local politics that goes beyond purely technocratic considerations.