CEES experience shows that more effective policy could unlock the potential of ECs to tackle energy poverty.
Across all pilots, CEES Partners found that national institutional and regulatory environments deeply influence the success of energy solidarity mechanisms.
The EU Clean Energy Package, which entered into force in 2019, is one example. The Package granted all citizens the right to join an energy community. It also obliged Member States to put in place enabling frameworks to ensure that energy communities (ECs) would have improved accessibility towards low-income and vulnerable households. While some Member States have integrated principles of energy solidarity into their national transposition, others still present obstacles that make it challenging for ECs to strengthen their outreach and social impact.
By identifying supportive and hindering aspects, the CEES Project aimed to pinpoint where policy makers could implement changes to better leverage the power of ECs to play an important role in a climate and energy transition that is both just and inclusive.
Policy recommendations for adoption or adaptation
Across Croatia, France, Portugal, and the UK, the experiences of the CEES Pilot Partners have led to several policy recommendations at both EU and national levels. The following recommendations reflect an iterative process involving discussions with policy makers and diverse stakeholders. The output is a refined and practical set of guidelines that can be tailored to the respective policy level.
National policy papers
Portugal
An estimated 1.9 to 3 million people in Portugal live in energy poverty. While the country recognises that ECs can play a role in reducing this figure, to date, it has not put in place any measures to support and promote that role. CEES Partner Coopérnico experienced this context as demanding and not sufficiently facilitating for smaller, citizen-led players in the energy market. This makes it hard to fulfill their social objectives.
Policy recommendations relevant to the Portuguese context were presented and discussed with policy makers, academics and other stakeholders on 15 February 2024 (Lisbon).
France
Compared to other EU Member States, France has been very active in advancing energy poverty research and policies. Despite such efforts, ‘energy precarity’ rates remain concerningly high. At present, no link is made between strategies to alleviate energy poverty and the social impact of ECs. This led to a number of challenges for CEES Partners Enercoop and Les 7 Vents when implementing energy solidarity schemes.
Policy recommendations relevant to France were presented and discussed at a policy roundtable on 28 February 2024 (Academie du Climat, Paris).
Croatia
Although several legislative and strategic documents use the term, to date Croatia lacks a clear national definition of energy poverty. In turn, general awareness and understanding are low. Additionally, ECs face significant challenges. This context of uncertainty and unclarity falls short of supporting exploration of alternative, citizen- and community-led measures to tackle energy poverty at structural levels. ZEZ, the Croatian partner in CEES, highlights that this has caused challenges with regards to setting up an EC, managing its operations, and taking action on energy poverty.
A first official draft of the Croatian policy paper was presented at the Good Energy Festival taking place in Zagreb on 25 April 2024. Discussions and insights from the event are reflected in the final version of the paper.
United Kingdom
The UK Community Energy Strategy (published in 2014) aimed to leverage EC projects to enhance energy security, tackle climate change, and address energy poverty. Despite mentions in subsequent policies, such as the 2020 Energy White Paper and 2021 Net Zero Strategy, actionable measures have been lacking. In turn, the EC sector continues to face significant obstacles. In parallel, rates of fuel poverty across the UK remain concerningly high, with many households burdened by high energy debts. Legal targets, such as England’s 2021 Sustainable Warmth Strategy, demonstrate important commitments, yet still fall short in active implementation. The new government (elected in June 2024) has set out a plan, Great British Energy, that aims to tackle fuel poverty on two fronts. Its Warm Homes retrofit scheme aims to improve the efficiency of homes while proposed energy market reform seeks to tackling prices challenges. If implemented quickly and effectively, the plan could be a game-changer. UK-based CEES partners, Repowering London and ALIenergy, highlight the urgent need for structural support schemes and broad energy system reforms.
A draft version of the UK policy recommendations was presented and discussed at a closed policy roundtable discussion with key stakeholders and policymakers on 22 July 2024. This final version of the policy brief reflects the discussion’s main takeaways.
EU-level advocacy efforts
Several relevant EU Directives have recently be revised to give greater prominence to ECs and place stronger obligations on Member States to tackle energy poverty.
Within the Fit for 55 legislative package, a key component is the extension of the European Emissions Trading System (ETS 2) to buildings and road transport. This creates economic incentives to reduce fossil fuel consumption and greenhouse gas emissions. Critics point out, however, that it will also trigger socio-economic challenges, particularly for vulnerable households and small businesses. To address this issue, the EU established the Social Climate Fund (SCF) to mitigate adverse impacts and support energy transition efforts.
Over the course of the project, CEES advocacy efforts at the EU level focused mainly on boosting recognition of the potential for ECs to deliver substantial social impact during negotiations associated with establishing the Social Climate Fund (SCF). While concerns about its scope and size persist, the Fund represents a commitment to inclusive climate action. It is relevant for ECs as it opens new doors for dedicated support for energy projects that foster social impact.
The full briefing on the SCF, including recommendations for the EU- and Member State level, is part of a comprehensive overview of new provisions relevant for ECs (Also been published on the website of REScoop.eu). It covers the revised Renewables Directive, Energy Efficiency Directive, Energy Performance of Buildings Directive, the Social Climate Fund and the revised Electricity Directive and Electricity Regulation. Implemented subsequent to the initial Clean Energy Package, these EU legislation developments can be considered as the second generation EU legislation for ECs.
Charting a new path forward
Overall, significant policy progress is evident in relation to both tackling energy poverty and boosting support for the EC movement. Still lacking are specific mechanisms to leverage the proven potential of ECs as a main actor in addressing energy poverty. The CEES project has highlighted the importance of supportive regulatory and institutional environments, innovative financing mechanisms, and strong community engagement. By advocating for policy makers to adopt the recommendations outlined in its policy papers, CEES aims to accelerate tangible progress to ensure the clean energy transition is both just and sustainable.
CEES invites policymakers, stakeholders and community leaders to use the documents provided above to harness the power of community energy for a brighter, more equitable future.
Blog prepared by Heleen Schockaert, REScoop.eu
Several blogs related to policy aspects of ECs and tackling energy poverty are also found the Energy Solidarity Toolkit section of this website and can be linked to directly.