Energy for change: what is happening in Europe around energy communities?

“This is the ideal moment to talk about energy communities. They have proven to be resilient to the energy crisis, which has hit Europe particularly hard,” said Achille Hannoset from the European Commission’s Directorate-General for Energy during the opening panel of the European Energy Communities Forum. “We see a large increase in interest in the topic of citizen energy and a dynamic development of communities, for example in Austria and Greece. On the other hand, there are many challenges, such as the limitations of transmission networks and the lack of funds for the establishment and development of energy communities,” Hannoset added. “The European Commission is responding to these problems and is determined to support civic energy. We will provide funding both for research on this topic and for scaling the process,” he declared. 

We are building energy democracy 

This year’s European Energy Communities Forum took place in Prague from 13 to 15 May. Representatives of energy communities, members of non-governmental organisations and experts specialising in the subject of citizen energy met in the Czech capital. The thematic focus of the forum was the construction of building blocks for energy democracy.

“Inspired by the city’s famous Charles Bridge, connecting East and West, and its rich history of crafts and inventions, we explore energy communities as catalysts for change and as a bridging factor between people of different backgrounds and communities. Against growing polarisation and climate and energy injustices, collective, democratically governed local projects can ignite new hope and mutual trust, and build a sustainable future.” This is how the conference’s organisers, REScoop – the European federation of citizen energy communities, describe the main idea of the forum.

The agenda of the three-day event was filled with workshops and sessions on topics such as legislation in the European Union, inclusive communication, online tools, and financing methods. 

“We wish to strengthen our efforts to transform the rules of the energy game by offering an alternative to one winner taking it all,” we read on the website of the European Energy Communities Forum. “This means helping citizens who might still be struggling to get their projects off the ground, offering insights and support for effectively advocating for stronger policy recognition and enabling frameworks, but also diving deeper into how the community energy movement can become more inclusive towards people who have remained underrepresented in climate and energy decision making,” the organisers explain. 

Czech road to citizen energy 

“I must admit that the Czech energy sector has been dormant for many years and we were only ‘woken up’ by the energy crisis,” said Jozef Síkela, Czech Minister of Industry and Trade. “Sharing electricity within energy communities is the first significant step towards modernising the energy sector. This will enable us to reduce energy costs, strengthen energy self-sufficiency and better protect the environment,” the minister explained during his speech at the European Energy Communities Forum. 

When describing the objectives of the reform, Síkela admitted positive examples from countries that focus on citizen energy, such as Austria, France and Germany, had provided inspiration. “It is obvious to us that the future of the energy sector will be completely different from the solutions we are dealing with now. Times are over when a system could be centred around a few large operators,” stressed Minister Síkela. 

Vladimír Sochor, advisor to the Czech Ministry of the Environment, also visited the Forum. He spoke about the first government programme for energy communities. Its aim is to support citizen energy in the Czech Republic and to develop model forms of communities. Under a grant scheme, new communities can count on various forms of assistance, including co-financing of infrastructure, technical documentation, legal advice, training for coordinators and promotional activities. 76 projects applied for government support, and 57 went on to the second – currently ongoing – stage. The Ministry of the Environment intends to award funding with a total value of 3.9 million euro, and project implementation is planned to start in autumn 2024. 

Funding for energy communities 

An important question raised during this year’s forum was where to obtain funds for energy communities. Experts advised both beginner initiatives and experienced cooperatives who want to develop their activity. During one of the panels, participants had the opportunity to visit stands where various forms of financial support were presented, such as EU funds, bank loans and grants awarded by non-governmental organisations. Workshops in the world café format allowed participants to learn about the advantages and disadvantages of each path, as well as to ask questions to experts.

We keep an eye on EU money

Krzysztof Mrozek, director of the European Funds for Climate programme at the Polish Green Network, talked about the EU funds available to energy communities. “The European Union provides countries with funds for green transformation, but it is at the national and regional level that decisions are made on what exactly the funds will be used for. That is why it is so important for cooperatives and non-governmental organisations to exert pressure on governments and regional authorities, making sure that citizen energy is their priority,” Mrozek explained.

Mrozek also encouraged using NGO assistance when applying for EU funds. He cited the civic criteria for energy communities developed by the Polish Green Network. “Although the process of applying for EU funds seems complicated and time-consuming, and can be quite a challenge for start-up initiatives, these funds have great potential to accelerate the development of dispersed citizen energy,” he added.

We educate, persuade and change attitudes

The world café table representing philanthropic organisations was run by representatives of the Heinrich Böll Foundation. “Our goal is to convince citizens and decision-makers to believe in energy transition, and to see why energy communities are important. That is why we are happy to support advocacy, as well as social and educational activities,” explained Beata Cymerman, head of the Energy and Climate Programme at the Heinrich Böll Foundation’s Warsaw office. “The Foundation provides support for research on citizen energy and reports focusing on legal solutions concerning energy communities in various countries,” she added. 

Crowdlending, national fund and cooperatives

Workshop participants could also take a close look at interesting forms of financing from the Netherlands, Great Britain and Portugal. The Dutch government has decided to support energy communities in the process of applying for loans. To this end, it has established a special fund that will secure the liabilities incurred by energy communities.

Energy initiatives from the United Kingdom can benefit from a completely different form of support. For several years now, the Energy4All cooperative has been very successful in helping to raise funds and provide assistance at every stage of the creation and development of a community. “We work with communities to develop innovative renewable energy projects, we then raise the funds those projects need to go forward, we bring high-quality project managers to support the construction process and finally we work with directors to help them manage the projects over the long-term,” we read on the Energy4All website. The cooperative already has 33 communities with 17,308 members.

During the workshops, the topic of crowdlending, i.e. community financing, was also discussed. It is a formula in which the bank is replaced by a group of founders focused around a common goal. A platform based on this principle to support energy cooperatives was established in Portugal and is now available to energy initiatives from all over Europe.

European elections: yes to citizen energy 

What future awaits energy communities in Europe? What does the future hold for energy communities in Europe? The new term of the European Parliament heralds many unknowns for them. Previous agreements and coalitions are partially gone, which means that in the coming months, energy community advocates will have to build new contacts in Parliament and the Commission to ensure that their concerns remain at the center of the Commission's work. 

Will the European Union maintain its course towards citizen energy or will it make a strong turn towards large energy operators? One thing is certain: cooperatives and NGOs will make sure that Europe does not deviate from the path and continues towards energy independence and security.

 The views and opinions in this article do not necessarily reflect those of the Heinrich-Böll-Stiftung.