An energy community is a legal entity where citizens, businesses, and local authorities can join to generate and distribute affordable renewable energy.
Energy community: uniting for sustainable power
As energy prices rise and ecological challenges intensify, innovative solutions become imperative. The European Commission has proposed the notion of an energy community - a nonprofit legal entity - as a component of the solution. According to the EU, energy communities can lower ecological footprints while simultaneously decreasing energy expenses.
What is an energy community?
Energy communities, innovative ideas for reducing energy costs, and ecological impacts, are defined by the European Commission as follows.
"Energy communities are legal entities that empower citizens, small businesses and local authorities to produce, manage, and consume their own energy. They can cover various parts of the energy value chain, including production, distribution, supply, consumption, and aggregation. Energy communities may vary depending on their location, involved actors, and providing energy services."
In short, an energy community is a non-profit legal entity where citizens, businesses, and local authorities can join to access affordable renewable energy, with members participating in every aspect of the energy value chain.
Who are the members of an energy community?
Producer members
Producer members receive subsidies from the renewable energy community (RECs) to facilitate the repayment of their investments in renewable energy systems.
Consumer members
Consumer members benefit from subsidies simply by consuming energy, without incurring additional costs.
Producer and consumer-members
Many members serve as both consumers and producers, enjoying the combined advantages of both roles within the community.
The benefits of renewable energy communities
Renewable energy communities offer numerous benefits as they exclusively rely on renewable energy sources. Let's explore the most significant advantages.
Lowering environmental impact
Energy communities, by implementing green technologies, can drastically lower the ecological footprint of energy production. Utilizing solar, wind, hydro, and other renewable energy sources locally can significantly reduce negative ecological impacts.
Affordable energy
Depending partially or entirely on locally generated renewable energy can also decrease energy costs. By offering affordable energy to community members, we can enhance social equality and empower each member.
Building communities
Furthermore, at a local level, energy communities can improve social cohesion through group meetings and local activities. Energy communities can also create jobs, potentially boosting the local economy.
Lowering energy loss
Local generation and distribution of energy can mitigate energy loss, which commonly happens when energy is transmitted over long distances. Minimizing energy loss is not only environmentally friendly but also aids in reducing energy costs.
Sharing knowledge
Members of an energy community can learn from each other, sharing their knowledge about eco-friendly energy production and management.
What obstacles hinder the establishment and operation of energy communities?
While energy communities offer numerous benefits, several obstacles can hinder their establishment. Let's explore the most common ones.
- Costs: Initial costs, such as investments in infrastructure, can often be high, which can hinder the initiation of initiatives.
- Regulatory environment: The complexity of local and national regulations, and the lengthy and costly permitting processes, can also be obstacles.
- Market barriers: Competition with traditional energy providers and restrictions on market access can also obstruct the development of energy communities.
- Technological challenges: The lack of appropriate technological infrastructure and expert knowledge can also hinder the effective operation of energy communities.
- Community barriers: The lack of community cohesion and cooperation, as well as differing interests and objectives among members, can also prevent the success of initiatives.
Overcoming these barriers is just as crucial for the successful operation and efficiency enhancement of energy communities as efficiency-enhancing methods and tools.
Conclusion
Global energy consumption has skyrocketed since the Industrial Revolution and is still growing at around 1-2% per year. While renewable energy sources are becoming widely adopted, we need other innovative solutions as well. Energy communities can help reduce the ecological footprint and energy expenditures of businesses and civilians.
Natural gas, the cleanest fossil fuel, can also play a role in this transition. It can expedite and facilitate the shift toward green technologies while ensuring safety and reliability.