Clear governance structure is crucial for the success of a Local Energy Community (LEG). It regulates how decisions are made, who has responsibility, and how the community is organized.
In this comprehensive guide, you'll learn how to develop an effective governance structure for your LEG and establish democratic decision-making processes.
What is Governance?
Definition
Governance includes:
- Organizational structure
- Decision-making processes
- Responsibilities
- Rules and procedures
Why Important?
Benefits of Clear Governance:
- ✅ Efficient decisions
- ✅ Clear responsibilities
- ✅ Transparency
- ✅ Trust
- ✅ Conflict prevention
Organizational Structures
Typical Structure: Cooperative
Bodies:
1. General Assembly:
- Highest body
- All members
- Important decisions
- Annually (minimum)
2. Board of Directors:
- Daily management
- 3-7 members
- Elected by general assembly
- Responsibilities clearly defined
3. Audit Office:
- Financial control
- External or internal review
- Annual audit
4. Working Groups (optional):
- Specific topics
- Technology, communication, etc.
- Advise board
Decision-Making
Democratic Principles
Principles:
- One vote per member
- Majority decisions
- Transparent processes
- Minority protection
Decision Levels
1. Strategic Decisions:
- Fundamental direction
- Investments >10,000 CHF
- Price changes
- Quorum: Usually 50%+ of members
2. Operational Decisions:
- Daily business
- Board decides
- Delegated by members
3. Administrative Decisions:
- Routine matters
- Administration
- Often delegated
Roles and Responsibilities
Board
Tasks:
- Strategic planning
- Daily management
- Communication with members
- Coordination of working groups
- Financial management
Requirements:
- Time commitment: 5-10 hours/month
- Engagement
- Responsibility
- Communication skills
Communication and Transparency
Regular Communication
1. Newsletter:
- Monthly or quarterly
- Energy data
- Decisions
- Events
2. Member Meetings:
- At least annually
- Reports
- Discussions
- Decisions
3. Digital Platform:
- Upgrid for communication
- Documents
- Discussion forums
- Updates
Frequently Asked Questions (FAQ)
How often do member meetings take place?
Minimum:
- Annually: General assembly
- As needed: Extraordinary meetings
Recommended:
- Quarterly: Regular updates
How are board members elected?
Procedure:
- Proposal by members
- Election by general assembly
- Term: Usually 2-3 years
- Re-election possible
Best Practices
Successful Governance
1. Clear Structure:
- Roles defined
- Responsibilities clear
- Processes documented
2. Transparency:
- All information available
- Regular communication
- Open decisions
3. Participation:
- Include everyone
- Allow different opinions
- Community solutions
Next Steps
Improve governance?
- Review structure: Evaluate your governance
- Improve communication: Regular updates
- Use Upgrid: For governance tools
- Implement best practices: Learn from successful LEGs
Clear governance = successful LEG!
Related Articles:
- Success Factors for Energy Communities: Lessons Learned
- LEG Community Building: How to Attract and Retain Members
- Case Study: Successful LEG Projects in Switzerland
- Legal Framework for LEG in Switzerland 2025
About Upgrid: Upgrid supports LEGs with governance tools and best practices. Visit Upgrid.ch for more information.