Energy communities are emerging as an innovative and sustainable solution to address contemporary energy challenges. These initiatives bring together energy producers and consumers, enabling a collaborative sharing of energy resources. By promoting the use of renewable energy, these communities aim not only to reduce their members’ carbon footprint but also to foster a more circular and supportive economy. In essence, they embody a committed approach that goes beyond mere energy production, integrating strong social and environmental values.
In this article, we will explore the specificities of energy communities by distinguishing the three main categories: Citizen Energy Community (CEC), Renewable Energy Community (REC), and Local Energy Community (LEC). Each of these structures has unique characteristics in terms of participants, the types of energy shared, and ownership models. We will also highlight the numerous benefits that these communities bring, both to their members and to the territories in which they operate, demonstrating the growing importance of such initiatives in our energy transition.
What is an energy community and how does it work?
An energy community is defined as a group of individuals, local authorities, or entities that come together to produce, consume, and share energy. At the core of this initiative, there is typically at least one energy producer generating a sufficient amount of energy to be shared with other community members. These members can be individuals, businesses, or local governments. The primary objective of an energy community is to provide environmental, social, and economic benefits to participants while minimizing the environmental impact of their energy consumption. Ultimately, this approach aims to foster a collaborative response to the energy transition.
The operating model is based on solidarity and sharing. Members can pool resources to invest in energy production facilities such as solar panels or wind turbines. Through this collective effort, they not only gain access to renewable energy at often reduced costs but also take an active role in managing their energy consumption. This system facilitates the integration of renewable energy into the power grid while strengthening the social and economic fabric of the regions involved. Energy communities thus align with a dynamic of sustainability and eco-citizenship, enhancing local resilience against future energy challenges.
The different types of energy communities: CEC, REC, and LEC
There are three main types of energy communities, distinguished by their participants, the type of energy shared, and the ownership of installations.
Citizen Energy Community (CEC) is characterized by its openness to all individuals and entities, including large companies. CECs can include various electricity sources, including those from gas cogeneration. As a legal entity, a CEC must own the production facility to ensure the effective sharing of the generated electricity.
Renewable Energy Community (REC) focuses exclusively on renewable energy sources. Large companies are excluded from participation, and small and medium-sized enterprises (SMEs) can only take part if their primary activities are non-commercial. Individuals and local authorities are allowed to participate. Like CECs, RECs must own their production facilities.
Local Energy Community (LEC) is a unique initiative in Brussels, offering flexible financing options for production projects. An LEC can involve a third-party investor and allow multiple members to own or have usage rights over the production installation, while strictly limiting itself to renewable energies.
The benefits of energy communities for members and territories
Energy communities provide significant advantages to their members. Firstly, they allow consumers to access a source of energy that is often more sustainable and locally produced. By joining forces, members can lower their energy bills while actively contributing to the energy transition. The direct exchange of energy between producers and consumers also fosters energy autonomy, strengthening resilience against fluctuations in market energy prices. Furthermore, participating in an energy community fosters a sense of belonging and solidarity, as members share a common vision for a responsible energy future.
By promoting renewable energy, energy communities play a key role in reducing greenhouse gas emissions and protecting the environment. Moreover, these initiatives often encourage innovation and collaboration between various local stakeholders, such as municipalities, businesses, and civil society. In this way, energy communities do more than just generate benefits for their members—they also contribute to the economic and social well-being of the territories in which they are established.