Start with the basics

Community energy is about local ownership, democratic control and shared benefits. Discover what it means and why municipalities are natural allies.

• What is an energy community? More info

  An energy community is about local ownership and democratic control. It’s not just about solar panels or wind turbines; it’s about a group of neighbours or a city council deciding together how to produce, consume, and manage their own energy.

  Under the Clean energy for all Europeans package, the EU legally defines energy communities into two distinct categories:

  • Renewable Energy Communities (RECs): Focused on renewable energy and energy sharing  (including heating and cooling, mobility, supply).
  • Citizen Energy Communities (CECs): Focused on broader electricity-related services, (including energy efficiency, aggregation, community network and energy sharing.)

  Energy communities are legal entities formed by citizens, local authorities and small businesses, who jointly own and democratically control an enterprise that works on renewable energy or energy efficiency projects. Energy communities distinguish themselves from traditional energy providers by the way they do business: they put environmental, economic or social community benefits over profit.

• Why should your municipality get involved? More info

  Municipalities are the “natural allies” of energy communities. By getting involved, your local authority can unlock significant social, economic, and environmental benefits:

  • Boost local economic resilience: Keep energy spending within the local economy. Instead of paying bills to a distant utility, profits are reinvested into local projects and public services. Projects owned by local community members can contribute 2 to 3 times more to local added value creation compared to private projects.
  • Improve energy efficiency and combat energy poverty. Use community-generated energy and dedicated schemes to provide lower-cost heat or power, and actively involve and support vulnerable consumers in your district.
  • Increased public acceptance: Energy projects often face local opposition. When citizens own the project and benefit from it directly, acceptance for infrastructure like wind farms or district heating increases.
  • Meeting climate targets: Accelerate your Sustainable Energy and Climate Action Plan (SECAP) to reduce emissions by mobilising private citizen capital and local expertise for public energy goals.
  • Social cohesion: Building a community-led project strengthens the social fabric, engaging residents in a common goal for a sustainable future.