Renewable Energy Communities: EU Framework & Facilitation

Insights from the POWER-E-COM Mentoring Session with Christiane Egger

In the first mentoring session of the POWER-E-COM project—co-financed by the LIFE programme of the European Union—Christiane Egger from Energiesparverband Oberösterreich explores the transformative role of renewable energy communities (RECs) in Europe’s energy transition.

What You Will Learn in This Video:

The Concept of Energy Communities

Renewable energy communities (RECs) redefine traditional energy systems through collective self-generation and consumption of renewable electricity and heat. They also offer a variety of services, such as grid services, energy efficiency improvements, energy poverty alleviation, and joint building renovations. RECs involve local citizens, municipalities, and small businesses, fostering inclusive participation in the energy transition.

EU Regulatory Framework: Key Changes Under RED II

The Renewable Energy Directive II (RED II) introduced groundbreaking regulations that enable direct sharing of excess renewable electricity without the need for a traditional electricity retailer. This framework breaks up the traditional roles of generation, transmission, distribution, and retail. Members of RECs can share electricity across short distances without relying on electricity retailers, depending on national regulations.

Key Aspects of RED II:

• RECs primarily serve environmental, economic, and social purposes rather than profit generation.
• Large energy companies are excluded from participation.
• Participation is based on proximity, often defined by geographic radius, municipal boundaries, or shared substations.
• Open and voluntary participation is essential, with legal independence from large market actors.

Benefits & Economic Incentives for Energy Communities

Renewable energy communities enjoy numerous benefits:

• Reduced grid tariffs (up to two-thirds reduction for local communities and one-third for regional communities).
• Exemption from renewable electricity levies and electricity taxes.
• Promotion of environmental sustainability, local economic growth, and social cohesion.

Technical & Operational Requirements

Smart metering and data exchange are vital for dynamic energy sharing and accurate billing. The data from smart meters, managed by Distribution System Operators (DSOs), enables energy communities to track generation and consumption. Without smart meters, dynamic sharing models are impossible.

In Austria, for example, DSOs provide online tools that allow citizens to determine proximity for forming energy communities based on local substations.

Practical Examples & Implementation in Austria

Austria has developed successful models for renewable energy communities:

• Joint PV Production in Buildings: Introduced in 2017, allowing multiple tenants in a building to share photovoltaic (PV) generation.
• Local & Regional Energy Communities: Introduced in 2021, allowing electricity sharing within local substations.
• Citizens’ Energy Communities: Introduced in 2023, enabling nationwide participation without proximity restrictions.

Austrian RECs typically operate as associations, which are cost-effective and easy to register. Cooperatives, while more complex, are suitable for larger projects.

Facilitation & Local Initiatives

Local facilitation is crucial for the success of RECs. Pioneering municipalities, citizens, and local organizations play essential roles in:

• Promoting REC concepts through events, publications, and campaigns.
• Providing technical, regulatory, and financial support.
• Engaging policymakers and regulators to create enabling frameworks.

The Energiesparverband Oberösterreich operates a successful one-stop shop, offering individual consultations, training sessions, and events. Their experience highlights the importance of local champions in driving REC initiatives.

Emerging Trends and Future Outlook

Austria now boasts:

• 800+ joint PV installations
• 400 renewable energy communities
• 80 citizens’ energy communities

These communities involve 10,000–20,000 members, showcasing diverse models:

• Neighborhood Initiatives: Small, local associations sharing excess PV energy.
• Municipality-Driven Projects: Municipalities sharing PV-generated electricity among their buildings.
• Civil Society-Led Communities: Large associations with several hundred members, demonstrating the scalability of RECs.

The dynamic growth in Austria suggests that citizen-led renewable energy communities will play an increasingly significant role in Europe’s sustainable energy future.

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Watch the Full Video:

Renewable Energy Communities: EU Framework & Facilitation

This session is essential viewing for energy professionals, policymakers, and anyone interested in establishing energy communities across Europe. Discover how RECs can empower citizens, reduce emissions, and build resilient local economies.