Collectively owned distributed energy resources and private property law: embedded networks in high-density and master-planned housing

Abstract

Distributed energy resources (DER) will increasingly supply citizens with power. As fixtures on privately owned land, DER are governed by private property law which presents challenges for collective ownership. Strata/condominium titles, along with homeowner associations (HOAs), provide solutions, allowing DER to be co-owned, managed and maintained. However, owners in multi-owned housing have long been vulnerable to developer abuse, and the provision of sustainability infrastructure is no exception. Using the strata title (condominium) legislation in New South Wales, Australia–which has been the model for legislation in multiple jurisdictions worldwide–this article explores the incorporation of DER in ‘embedded networks’. These theoretically provide residents with discounted, renewable energy (like a microgrid), but in practice are trapping homeowners in exploitative contracts. The article argues that sound understanding of property law is essential if governments are going to facilitate the emergence of citizen-driven renewable energy communities.