Supplying locally produced, clean energy is one of the most direct ways for energy communities (ECs) to help households that are struggling with high energy costs.
Several mechanisms now exist within EU energy markets through which ECs can practise energy solidarity in this way. However, the material costs and human resources requirements are heavy, and the processes are not easy to replicate.
According to EU law, ECs can engage in several activities relevant to energy solidarity, including production, self-consumption and/or supply of renewable energy. Among CEES Partners, Repowering London and ZEZ are energy producers, Enercoop is an energy supplier, and Coopérnico is active in both streams.
Such distinctions are critical to understand for EC operations generally and for engaging in energy solidarity mechanisms. Within the frameworks of relevant EU directives, national and local laws and regulations ultimately establish the conditions under which an EC can produce energy, and then share and/or sell it. Often, ECs need to acquire different permits or licences to be a generator and/or a supplier.
Options and considerations
Generally, ECs have three options for the energy produced. They can: a) sell it into the market; b) supply it directly to EC members, effectively combining production and supply activities; or c) use it for collective self-consumption and/or energy sharing.
Whether a certain activity is technically and financially possible – and the extent to which it will generate social benefits for vulnerable households – is closely linked to three main factors: a) local and/or national legal and regulatory frameworks; b) the business model of the EC; and c) the willingness of members to build energy solidarity into the EC’s vision and mission.
ECs need to carefully consider their options and pick the best fit, at the earliest possible stage of planning a new project. Not surprisingly, there are myriad technical details and potential hurdles to consider with regards to each activity, such as a lack of appropriate installation sites, difficulty obtaining planning permits, constrained options for grid connections, and difficult and complex administrative procedures.
Click through for more details
A series of blogs (see below) highlight existing business models for energy production, self-consumption and supply through which ECs can deliver social benefits to vulnerable households. Several include ‘Inspiring Practices’ that illustrate creative approaches for embedding energy solidarity into EC structures and operations.
As this is a rapidly evolving landscape, this blog series does not aim to describe all emerging possibilities.
Click through for more blogs related to ‘ACT’.
- Hosting Energy Cafés
- Distributing Energy Efficiency or Cosy Kits
- Energy Advice Home Visits
- Home Visits for advice and quick fixes
- Energy production to sell to grids or suppliers
- Production of renewable energy for self-consumption
- Energy sharing: an emerging approach to energy solidarity
- Retail supply of renewable energy
- Shared and Supported Self-Renovation
- CEES Partner highlights