Eno Energy cooperative is an internationally acknowledged example of heat entrepreneurship based on a cooperative model. Substituting fossil fuel oil with locally produced woodchips in community heating since the year 2000 has resulted in significant socio-economic benefits. Latest research by GREBE partners Karelia UAS and LUKE outlines these through a time-series analysis.
The Eno Energy Cooperative operates and owns three district heating plants producing 15,500 MWh of heat annually and uses approximately 27,000 loose cubic metres of locally produced woodchips. The impacts of the Eno Energy Cooperative were modelled by using an input-output model of North-Karelia, including 33 sectors. The impacts presented are total impacts including construction of heating plants in 2000-2004, production of heat by using locally produced woodchips, and impacts of reduced heating costs (savings) in both public and private sectors. Induced impacts are captured by including household consumption as a sector in the I-O model, and re-investing public sector savings to the social services.
According to the I-O modelling, total employment impacts of the Eno Energy Cooperative in 2000-2015 were approximately 160 FTE’s and total income impact in same period were approximately 6.6 MEUR. During the period of highest oil prices, over 50% of the benefits resulted from heating cost savings of both private households and public sector.
The results indicate that socio-economic impacts may be generated by using different types of strategies, such as utilising business models of social enterprises with re-investment strategies, or cooperatives providing use for the local resources and reducing the energy costs both in private and public sectors.
Currently, Eno Energy Cooperative are participating in the GREBE Entrepreneurship Enabler Scheme (EES) roll-out in North Karelia. They are investigating future business and cooperation opportunities together with business a mentor from Spiralia Ltd., Lahti.
Figure1: Employment impacts (FTE jobs) of Eno Energy Cooperative in 2000-2015, including impacts of construction, heat production and heating cost savings (when re-invested).
Figure2: Income impacts of Eno Energy Cooperative in 2000-2015, including impacts of construction, heat production and heating cost savings (when re-invested).