On 26 March, we launched the European Energy Communities Facility at the European Parliament in Brussels with a very successful policy discussion. In front of a full room, five MEPs from five different political groups - representing together a large majority of the Parliament - expressed their support for energy communities, highlighting their contribution to the energy transition, renewables acceptance and affordable energy prices. Representatives of the European Commission reflected on the supporting initiatives that they have launched in the last years.
Energy communities play a key role in the energy transition, empowering citizens to take ownership of renewable energy production and share in its benefits. Their contribution towards a more democratic, sustainable, affordable and secure energy system brought together MEPs from EPP, S&D, Renew Europe, The Greens/EFA and The Left. The alignment among the five groups underscores the significance of the launch event, which attracted around 140 participants, some of whom travelled from different parts of Europe.
Considering the current unstable geopolitical landscape, MEP Paulo do Nascimento (EPP) highlighted the importance of a decentralised energy system for our security and the role of energy communities. He welcomed “everything we could do to democratise access to energy – clean, cheaper and affordable energy for all Europeans”.
Along the same lines, MEP Bruno Tobback (S&D) recalled how energy communities shielded their members from soaring electricity prices during the recent energy crisis. “Many citizens laid awake at night thinking about their energy bills, which were going up by the minute. I know a bunch of people who were sleeping very well - they were members of cooperatives that produce electricity and their bills didn’t move”, he noted.
Barriers and legal frameworks
Despite the broad political support, the reality on the ground for citizens trying to set up energy communities remains challenging. MEP Dario Tamburrano (The Left), outlined barriers at three levels (information, regulation and financing) and called for a complete transposition of the provisions for energy communities introduced in the Clean Energy Package in 2019. “If given the opportunity, citizens will be the frontrunners of the energy transition”, he concluded.
The implementation of existing EU legislation for energy communities was also mentioned by European Commission representatives, MEP Anna Stürgkh (Renew Europe), and MEP Michael Bloss (The Greens/EFA). “Citizens are acting in an environment of entrenched interests with big fossil fuel companies, so they need to be empowered to be able to make full use of the potential of energy communities. If we don’t implement what we have in place now, they will always be in the weak position”, Bloss summarised. He also stressed the need for financial support for energy communities in the next Multiannual Financial Framework - the EU budget which is now under discussion in Brussels – and the importance of providing space for energy communities in the public procurement and competition laws.
The upcoming European Parliament's Own Initiative Report on Grids, in which most of the MEPs participating in the event are involved, presents another opportunity to address the administrative and procedural barriers energy communities face getting their projects connected.
How to make EU funds better support energy communities
In the second panel of the launch event, representatives from energy communities shared their views on how to improve their access to capital. While support programmes exist at different levels, public funds don’t always reach the ground. This happens for different reasons: lack of knowledge from managing authorities, complex application procedures, lack of information, among others.
Siward Zomer, president of Energie Samen, the Dutch federation of energy cooperatives, said that public funding works best when developed in partnership with organisations representing the beneficiaries. “Governments have money but lack direct access to the ground. Networks have access to the ground but don’t have the money. Connecting both you create the best scenario to ensure the money gets to the ground”, he explained.
This is the approach followed by the European Energy Communities Facility, which leverages a network of national experts who act as local ambassadors of the project. Their knowledge of the local context puts them in a privileged position to disseminate the Facility calls, provide advice and support applicants.
MEP Anna Stürgkh also endorsed the programmes’s design: “With the European Energy Communities Facility, we just don’t throw money at a problem, we take people by the hand and give them capacity and support to use that money”. She further noted that “by financing the early stages of energy communities we are mobilising private capital, setting a great example for future initiatives in other sectors.”
The ambition of the European Energy Communities Facility is substantial. It aims to support at least 140 energy communities in developing solid business plans through lump sum grants and a tailored capacity-building programme. Tadhg O’Briain, Deputy Head of Unit in DG ENER, articulated this ambition: “We hope that this initiative will bring forward projects on the ground that otherwise would not have happened”. He also highlighted the potential multiplier effect of the project through knowledge sharing.
The expectations are high, but the Facility consortium is ready to make the project a success, paving the way for national governments to replicate and scale similar funding programmes in the future.