Achieving a ‘just, clean energy transition’ in the European Union implies re-thinking how energy systems work. Importantly, the role of energy communities (ECs) in delivering energy solidarity is gaining recognition and traction.
Ensuring that the just transition is delivered – and that ECs can fulfill their roles – is closely linked to the policies and regulations that set the ‘rules of engagement’ for a vast array of actors.
In testing various energy solidarity mechanisms to tackle energy poverty, CEES Partners quickly discovered that local contexts can help or hinder their efforts. This includes the ways in which targets and directives set at the EU level are implemented by Member States – and whether national governments empower local administrations.
In a series of blogs, CEES highlights some barriers ECs have encountered and offers insights on how to turn them into opportunities.
Different activities raise different legal and regulatory challenges
One of the indicators by which CEES has assessed each mechanism in its Energy Solidarity Toolkit is ‘ease of replication’. Among other elements, this indicator reflects whether implementing a specific mechanism is likely ‘bump up’ against heavy regulation or be subject to a complex web of rules, laws and regulations (which may vary from country to country).
As is evident in the series of blogs under the ACT theme, some solidarity mechanisms are fairly easy to implement. Others will require ECs to develop a degree of expertise in laws and policies linked to planning permissions, financing, insurance, volunteering, safety and security (in office facilities or on construction sites)…the list goes on.
Developing the ability, which may include defining specific indicators, to evaluate an EC’s capacity to manage regulatory compliance is critical. It implies being able to understand complex aspects of the regulatory environment and to estimate the human and financial resources required to do so.
ECs operating in the EU context should not feel they are doing so in isolation or need to solve every challenge they encounter single-handedly. In the decades since the first ECs were established, a wealth of collective knowledge and experience has been built up. And all ECs recognise the value of practising solidarity among themselves.
Vigilance is warranted as policies evolve
The past two years have demonstrated how quickly the European Commission and its Member States can dramatically revise energy policy – for better or worse. As these frameworks are never set in stone, ECs should actively monitor their evolution.
As it takes a substantial amount of time to plan and develop both EC projects and energy solidarity mechanisms, uncertainty in policy and regulatory frameworks can diminish the ability of ECs to achieve their goals. In addition to keeping abreast of policy changes, ECs should actively advocate for regulatory stability. Still, as some degree of uncertainty must be expected, they need to build resilience strategies into their own planning.
The fact that EU-level directives, targets and obligations have been put in place and/or strengthened in recent times can help ECs lobby for stronger efforts to develop national and local strategies, regulations, policies and action plans.
Click through to learn more on ‘legal and regulatory’: