Energy communities enable collective and citizen-driven energy actions to support the clean energy transition.
They can contribute to increasing public acceptance of renewable energy projects and make it easier to attract private investments in the clean energy transition. Energy communities can be an effective means of re-structuring our energy systems, by empowering citizens to drive the energy transition locally and directly benefit from better energy efficiency, lower bills, reduced energy poverty and more local green job opportunities.
Recognising the potential contribution of energy communities in achieving a more secure, affordable and cleaner energy system for Europe, the REPowerEU Plan put forward the shared political objective of achieving 1 energy community per municipality with a population of more than 10 000 by 2025.
Energy communities allow local communities to join forces and invest in clean energy. Acting as a single entity means energy communities can access all suitable energy markets on a level-playing field with other market actors. Under EU law, energy communities can take the form of any legal entity including an association, a cooperative, a partnership, a non-profit organisation or a limited liability company.
Backed by EU Legislation
Through the Clean energy for all Europeans package, adopted in 2019, the EU introduced the concept of energy communities in its legislation for the first time, notably as citizen energy communities and renewable energy communities.
Since then, legislation on energy communities has been further strengthened by new or revised EU rules.
Adopted in 2023, the amending Renewable Energy Directive (EU) 2023/2413 enables EU countries to promote energy communities in offshore wind and district heating and cooling networks. To mainstream renewable energies in buildings, countries may also decide to promote cooperation with local authorities through public procurement. These rules build on those already established in 2018 under the revised Renewable Energy Directive (EU) 2018/2001.
Energy communities also benefit from simplified registration processes and reduced registration fees for guarantees of origin. In May 2024, the Commission adopted recommendations and guidance documents on renewables permitting and support schemes, calling on national governments to ease permitting procedures and requirements (including for grid connections) for energy communities.
In addition to introducing policy measures to achieve energy saving obligations, the recast Energy Efficiency Directive (EU) 2023/1791 requires local heating plans to assess the potential of energy communities to develop renewable energy-based heating projects.
Meanwhile, the recast Energy Performance of Buildings Directive (EU) 2024/1275 requires that building renovation plans report on the role of energy communities. It also recognises renewable energy produced by an energy community as a possible energy source for zero-emission buildings and requires EU countries to put measures in place to ensure adequate information and training for all relevant market actors including energy communities.
EU countries may target vulnerable households, micro-enterprises, and transport users through energy communities under the Social Climate Fund Regulation (EU) 2023/955.
Initiatives for energy communities
The European Parliament provided funding for 3 projects that have contributed to the promotion of best practices and provided technical assistance for the development of concrete energy community initiatives across the EU.
Support Service for Citizen-led renovation
The support service for Citizen-led renovation is a Commission initiative aiming to empower energy communities and put citizens in the driver’s seat for energy-saving renovation projects.
Through its support service, selected pilot projects will be assisted to overcome financial, legal, technical and information barriers and deliver future-proof residential buildings. 4 pilots projects in Belgium (Energent), Portugal (Cooperinico), Ireland (Triple SEC) and Bulgaria (Izgrei) were selected in 2023. Another call was launched in 2024, offering energy communities to participate as a ‘Pilot, Learner or Follower’ with various levels of support, combining one-on-one sessions, webinars, workshops, peer-to-peer learning and events.
The support service is implemented by a consortium consisting of Th!nk E, Steinbeis Europa Zentrum, Eworx, Goparity, RICARDO, Th!nk Europe, VITO, Stefan Scheuer Consulting and Joanneum Research.
Energy Communities Repository
Launched in April 2022, the Energy Communities Repository was active until the end of January 2024. Its objective was to assist local actors and citizens willing to set up a Citizens Energy Community or a Renewable Energy Community in an urban area, through technical and administrative advice, to encourage their development.
The initiative identified enabling and supporting frameworks for renewable energy communities and citizen energy communities, as defined in the Renewable Energy Directive and in the Internal Electricity Market Directive. It also conducted analysis and impact assessments of energy communities, as well as best practices and know-how for local authorities, businesses, citizens and citizen organisations that wished to set up energy communities, in particular in EU countries that did not yet have a strong tradition of such initiatives.
The projects that benefitted from this initiative were primarily urban energy communities in eastern European countries, such as Latvijas Energokopiena (Latvia), Energetska zadruga Drenova (Croatia) and izgrei bg (Bulgaria).
The Energy Communities Repository conducted a mapping of legal frameworks for energy communities in EU countries and by consulting their policy map, you can find out what rules apply to energy communities in your country.
Rural Energy Community Advisory Hub
The Rural Energy Community Advisory Hub was launched in June 2022 and ended in March 2024.
The initiative focused on assisting citizens, rural actors and local authorities in setting up a Citizen Energy Community or Renewable Energy Community in rural areas through technical and administrative advice and encouraging their development. Its key activities included
- the identification of best practices concerning support frameworks for rural energy community projects, with close involvement of local authorities
- providing technical assistance to selected rural energy communities
- providing networking opportunities to local stakeholders
The advisory hub can be seen as an extension of the Energy Communities Repository and the Covenant of Mayors, with a special focus on accelerating the development of energy communities in close collaboration with local authorities in rural areas.
The data collected through this initiative constitutes a very important source of information for the European institutions and national, regional and local authorities and relevant stakeholders as it contributes to the identification and dissemination of best practices and know-how for local authorities in particular, as well as businesses, farmers and citizens that wish to set up rural energy communities.