Maximising the potential of energy communities: insights from a Court of Auditors report
A European Court of Auditors (ECA) report calls for clearer rules on energy communities, stronger incentives for citizens and vulnerable households, and more support for energy storage solutions to help citizen-led initiatives fulfil their promise.
Image by Chokniti Khongchum from ckstockphoto on Canva
The ECA report highlights that community-owned renewable energy initiatives are essential to accelerate the energy transition, make it affordable for all and increase citizen involvement. Such initiatives play a crucial role in rural areas by enabling renewable energy to be used in the same place it is produced, leading to greater energy independence.
The report sets out several recommendations for the Commission:
-
Publishing guidelines on accessing the production, sharing and selling of renewable energy in apartments;
-
Designing SMART (specific, measurable, achievable, relevant and time-bound) objectives for energy communities and considering proposing an obligation to include them in national energy and climate plans;
-
Providing guidance for Member States to improve the registration and monitoring of energy communities;
-
Reporting on the barriers to and the potential for developing renewable energy communities;
-
Communicating the role of citizens and vulnerable households;
-
Encouraging Member States to develop energy storage solutions.
Energy communities are legal entities that empower citizens, small businesses and local authorities to produce, manage, share and consume their own energy, resulting in greater energy efficiency, lower bills and reduced energy poverty. The EU’s solar energy strategy set an objective of having at least one energy community per municipality with more than 10 000 inhabitants by the end of 2025.
The report assesses whether the European Commission and four Member States (the Netherlands, Poland, Italy and Romania) have achieved this goal and effectively engaged energy communities to deliver their expected benefits. According to the ECA report, as of January 2025, the EU had only reached 27% of its target.
Although the EU’s objective is ambitious, its design as well as support and monitoring mechanisms could be strengthened, the report notes. The rules for establishing and joining energy communities remain broadly unclear, it is considered by the ECA, while greater national endorsement, measurability and structured monitoring could help to achieve the EU’s goal.
Additionally, Member States still need to put in place the necessary conditions for implementing energy communities, including incentives for energy storage.
Explore the latest Rural Pact resources on energy and join the dedicated Community Group.