Policy Paper – Key Findings

Deliverable D7.2

Deliverable D7.2 presents the POWER-E-COM Policy Paper, summarising the key regulatory, financial and administrative factors that foster or hinder the development of Renewable Energy Communities (RECs), Citizen Energy Communities (CECs) and Thermal Energy Communities (TECs) across the six partner countries.

The document provides country-specific assessments and concrete policy recommendations to accelerate the growth of energy communities in Europe.

Objective of Deliverable 7.2

The main objective of the Policy Paper is to:

Analyse the current framework conditions for energy communities in Austria, Bulgaria, Germany, Ireland, Slovenia and Spain
Identify regulatory, financial and technical barriers
Highlight good practices and successful models
Provide targeted policy recommendations at national and EU level

The Policy Paper builds on previous project findings, including the Landscape Analysis (D2.1), and reflects the situation as of September 2025.

What Does the Policy Paper Cover?

The report includes:

A structured overview of barriers and market challenges in each country
Immediate needs for scaling up energy communities
Existing positive developments and working mechanisms
Concrete policy recommendations tailored to national contexts
A comparative conclusion highlighting cross-country lessons

Each country chapter is organised into:

Market challenges / barriers
Immediate needs
What works well
Policy needs
Recommended improvements

Key Findings Across Countries

Although the partner countries represent different stages of energy community development, several cross-cutting insights emerge:

1️⃣ Regulatory Clarity Is Crucial

Unclear or incomplete transposition of EU directives (e.g. RED II / Clean Energy Package) remains one of the main barriers. Simplified, stable and coherent legal frameworks are essential to reduce uncertainty for citizens and municipalities.

2️⃣ Grid Access and Infrastructure Are Bottlenecks

In several countries, grid connection procedures are slow, costly or opaque. Transparent grid data, faster connection timelines and improved cooperation with DSOs are critical for scaling energy communities.

3️⃣ Financial Instruments Need Improvement

Tailored financing mechanisms, stable subsidy schemes and risk-reduction tools are required to enable citizen-led initiatives. Access to green finance and long-term support schemes significantly increases implementation rates.

4️⃣ Municipalities Are Key Enablers

Local and regional authorities play a central role as initiators, facilitators and multipliers. Strengthening municipal capacities and providing clear mandates accelerates deployment.

5️⃣ Digitalisation and Smart Infrastructure Matter

Smart meters, digital management tools and data exchange platforms are foundational for energy sharing, flexibility and transparency.

Country Highlights

Austria stands out for its strong regulatory framework and support structures but needs improvements in storage integration and networking between communities.
Bulgaria shows strong pilot examples but requires regulatory clarification, financial instruments and a national one-stop-shop.
Germany has advanced financial mechanisms but faces legal complexity and grid bottlenecks.
Ireland must accelerate grid access and fully transpose EU legislation.
Slovenia has legal foundations in place but needs improved data exchange systems and subsidy alignment.
Spain benefits from improved collective self-consumption regulation but requires simplified procedures and stronger financial schemes.

Policy Message

The overall conclusion is clear:

The more supportive and stable the framework conditions, the more energy communities will emerge — strengthening citizen engagement, renewable deployment and public acceptance of the energy transition.

Policy makers are encouraged to:

Ensure full and consistent transposition of EU legislation
Reduce administrative complexity
Provide long-term financial stability
Integrate energy communities into national energy and climate strategies

About Deliverable D7.2

Project: EmPOWERing Renewable and Citizen Energy Communities (POWER-E-COM)
Grant Agreement: No. 101120998
Work Package: WP7
Responsible Partners: WIP Renewable Energies & all project partners
Delivery Date: September 2025
Status: Public Deliverable

The full deliverable is available for download here:

Deliverable D7.2 – Policy Paper Download

POWER-E-COM is co-funded by the European Union under Grant Agreement No. 101120998. Views and opinions expressed are however those of the authors only and do not necessarily reflect those of the European Union or CINEA.