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.
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, notably as citizen energy communities and renewable energy communities.
More specifically, the Directive on common rules for the internal electricity market (EU/2019/944) aims to support the uptake of energy communities. It introduced new rules to enable active consumer participation, individually or through citizen energy communities, in all markets, by generating, consuming, sharing or selling electricity, or by providing flexibility services through demand-response and storage.
The revised Renewable energy directive (2018/2001/EU) strengthens the role of renewables self-consumers and renewable energy communities. EU countries should enable this through available support schemes, ensuring energy communities can participate on equal footing with larger participants.
Energy communities initiatives
The European Parliament provided funding for 3 different projects that contributed to the promotion of best practices and provide technical assistance for the development of concrete energy community initiatives across the EU. They include
- the Support Service for Citizen-Led Renovation
- the Energy Communities Repository
- the Rural Energy Community Advisory Hub
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, the selected pilot projects will overcome financial, legal, technical and information barriers and deliver future-proof residential buildings.
Launched in April 2023, the call for pilots targets established or planned energy communities that seek support in developing citizen-led initiatives to deliver additional energy renovations and renewable installations in buildings.
Energy Communities Repository
Launched in April 2022, the objective of the Energy Communities Repository is 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 Energy Communities Repository identifies 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 conducts analysis and impact assessments of energy communities, as well as best practices and know-how for local authorities, businesses, citizens and citizen organisations that wish to set up energy communities, in particular in EU countries that do not yet have a strong tradition of such initiatives.
The projects that receive targeted technical assistance under this initiative are primarily urban energy communities in eastern European countries, such as Latvijas Energokopiena in Latvia, Energetska zadruga Drenova in Croatia and izgrei bg in Bulgaria, which serve as examples of positive local actions to inspire widespread efforts for citizen-driven initiatives through the development of energy communities.
The repository has been implemented by a consortium made by Energy Cities, REScoop, FEDARENE, akaryon and the European University Institute/Florence School of Regulation, and it will run until the end of January 2024.
The Energy Communities Repository conducted a mapping of legal frameworks for energy communities in the EU Member States.
Curious what rules apply to energy communities in your Member State?
Rural Energy Community Advisory Hub
The Rural Energy Community Advisory Hub was launched in June 2022. It focuses 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 include
- 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 collected data 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.
The advisory hub has been implemented on behalf of the Commission by a consortium consisting of RICARDO, Ecorys and Elard, and it will run until the end of March 2024.