Challenges Persist for Local Energy Initiatives Despite Recent EU Regulations
Europe is witnessing a significant shift towards community-led renewable energy projects, as highlighted in a new report by the European Commission's Joint Research Centre (JRC). These projects, often referred to as 'community renewables' or 'citizen energy,' involve citizens and communities partnering in clean energy initiatives.
According to the JRC report, 'Energy Communities: An Overview of Energy and Social Innovation,' the number of community energy projects has increased rapidly due to renewable energy support schemes that provide incentives. The long-term sustainability of these projects will depend on the development of viable business models, innovative financing and remuneration schemes, the use of smart technologies, national regulatory support, and the degree of citizen participation.
The report found 3,500 renewable energy cooperatives, mostly based in nine North Western European countries. By 2030, these communities could own 17% of installed wind capacity and 21% of solar capacity Europe-wide. By 2050, almost half of EU households are expected to produce clean energy.
Andreas Wieg of DGRV, the federation for German cooperatives, emphasizes the importance of energy sharing to link production and consumption in citizen energy projects. Energy sharing and peer-to-peer energy, such as German Mieterstrom, are means by which renewable energy producers distribute energy to local end-users interested in cheaper and cleaner energy.
However, the pace of adoption varies across Europe. While Germany has been slow to adopt laws that make energy sharing easier, as noted by Wieg, countries like Spain, Germany, and the Netherlands are expected to benefit the most from the development of energy communities in the near future, according to the current European Commission report.
In contrast, independent, decentralized producers are still denied access to the grid in countries across eastern Europe, and France is equally guilty of this, according to Couture, Director of E3 Analytics. The EU directives aim to level the playing field for collectives to compete on the energy markets, but the extent to which this must happen and the Member States' urgency to implement the legislation are unclear.
The RESCOOP report, the progress of community energy projects across the EU, shows both progress and heterogeneity in organizational forms. It highlights the need for national energy regulators to monitor the removal of unjustified obstacles and restrictions on the development of collective energy communities. Legislation, such as obliging utilities and grid owners to buy self-generated energy from collectives, as is the case in Germany, is crucial, according to Couture.
Community renewables are not just a means to produce clean energy; they are a way to put the global Energiewende in the hands of the citizenry, those most keen to make it happen. Small-scale, decentralized energy production facilities like schools, farm roofs equipped with solar panels, and wind parks built by rural communities are common examples of citizen-energy enterprises.
As Europe moves towards a more sustainable energy future, the role of community energy projects becomes increasingly important. The challenges ahead include creating an enabling regulatory environment, fostering innovation, and ensuring broad citizen participation. The success of these projects will be key to achieving the EU's goal of a clean energy future for all.
