The socioeconomic impacts of local energy programmes: a case study of Avrig, Romania

Purpose – The purpose of this paper is to investigate the expected economic and social effects of the “Local Energy Plan” – a programme of the local administration that aims to transform the Romanian town Avrig until 2020 into an energy independent town relying exclusively on renewable energy resources. Design/methodology/approach – The study uses a mixed-method approach to investigate the effects of a small town's transition to renewable energy. This approach consists of a series of in-depth interviews with the local authorities, investors, other representatives of the business sector and citizens of Avrig and economic modelling to determine the direct effects generated by the implementation of different renewable energy projects. Findings – The results of this study show that transitioning to renewable energy could have a significant positive impact on the town's economy, however, improvements of the Local Energy Plan are needed especially regarding the planned capacities and the involvement of the local community. Practical implications – While investigating, through in-depth interviews, the overall perceptions and attitudes of the different stakeholders regarding the transition of the town to renewable energy a communication gap has been observed. The study may represent a turning point for the local administrations strategy towards its energy goals. Originality/value – Combining economic modelling and quantitative research methods this paper provides a holistic image of the socioeconomic impacts of the Local Energy Plan in the small town Avrig. The results and suggestions could contribute to the successful transition to renewable energy of Avrig.