The contribution of wind farms to sustainably developing local communities

University essay from Lunds universitet/Ekonomisk-historiska institutionen

Abstract: While renewable energy output in the World increases, Russia shows an opposite trend, consisting of a highly engrained fossil fuel-driven economy with very little State priority towards diversifying its energy supply. Accordingly, although wind energy represents only a niche market, it is more economically viable to electrifying Northern peripheral communities than connecting them to the national grid; providing more efficient, reliable, cheaper, and cleaner energy supply to the end-consumer. Thus although Arctic communities continue to be powered by unreliable diesel generators, three main players in Russia’s energy market: Enel Russia, Fortum, and Novawind, are grasping market opportunities and installing wind farms in the Arctic’s unique harsh environment, with a large concentration in the Northwestern region of Murmansk. This research provides insights on how energy companies conceptualize their wind farm’s regional presence, and uncovers the degree of importance they place on a collaborative development with their stakeholders, to ensure a mutual sustainable and profitable growth. Data collection included discussions and interviews with experts, as well as examining Russia’s State policy about its aspirations for the Arctic’s development. Findings show that more importance should be placed on establishing trustworthy relationships with local stakeholders, both during and after the decision-making process of wind farm developments to ensure community acceptance. This would provide information and tools to allow local stakeholders to enjoy their wind farm’s outcomes if they want to. Further, results suggest that companies can greatly benefit from integrating into the regional cultural and leisure sector. This would provide more demand for their wind farms by inciting a population inflow, and create a better business and social environment to lay the foundation for all actors to profit from wind farm presence. This engenders a mutual reinforcing relationship between local business and societal conditions, and represents the basis of community acceptance, without which companies would not contribute to the sustainable development of the Arctic and its communities. Further research may include addressing this issue from the perspective of local communities on site.

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