An energy community is a legal entity, formed by members or partners, who join forces to leverage renewable resources or carry out activities related to the energy sector, ensuring that the environmental or socioeconomic benefits generated are reinvested in the community itself or in the local area where the entity is based.
Energy communities can engage in all kinds of activities related to the energy sector, particularly the energy transition, such as photovoltaic self-consumption. They can also focus on mobility initiatives, building retrofits, energy efficiency improvements, energy storage, demand management, or dissemination and communication activities.
Thus, energy communities are ecosystems of the ecological transition, as they encompass all the activities involved in this process.
The key criteria for a legal entity to be defined as an energy community are:
More information: La Tribuna de UNEF – Propuesta normativa para las comunidades energéticas – pv magazine España
Energy communities are included in the Electricity Sector Law through Royal Decree-Law 5/2023, which defines two categories:
The Royal Decree-Law establishes a facilitating framework for these communities. However, a comprehensive regulatory framework is still needed to ensure members’ effective control and the local nature of RECs.
Energy communities enable citizens and non-traditional actors in the energy sector to participate in and make decisions about the energy they consume and the renewable resources available in their territory. These entities promote a democratic and participatory energy model.
Moreover, energy communities can undertake all activities related to the energy transition, positioning themselves as key tools for fostering distributed ecosystems.
Given the nature of their projects, energy communities lead to savings on electricity bills, reduced dependency on the grid, better utilization of renewable resources, decreased greenhouse gas emissions, improved energy efficiency, and combating energy poverty.
Beyond technical value, energy communities also have social value, fostering networks across various sectors. They ensure the benefits of these projects remain within the local area and are developed by and for the citizens.
Most energy communities start with a collective self-consumption project and later expand to other energy transition-related activities, such as energy efficiency, sustainable mobility, or behind-the-meter storage systems.
However, collective self-consumption should not be confused with an energy community.
In collective self-consumption, there is a photovoltaic installation whose generated energy is consumed by the participants, providing benefits in terms of saved energy and discounts on electricity bills. This setup lacks legal entity status and does not engage in additional activities beyond energy self-consumption.
An energy community goes further. It is a legal entity that can carry out various activities such as retrofitting, mobility projects, and storage. Members not only self-consume energy but also benefit from many additional activities. Moreover, an energy community is owned by its members, who make decisions about all aspects of the entity.
UNEF promotes and supports the concept of energy communities by explaining their importance and benefits to its members and the sector.
UNEF ensures that energy communities are active agents in the electrical system by providing information on legislative updates, state, regional, and local aid, as well as technological and financial innovations. UNEF also proposes measures to ensure the evolution and participation of these entities in the system.
In April 2024, UNEF hosted the first Energy Communities Summit, during which a manifesto to promote energy communities was signed by various entities.
Due to the lack of a regulatory framework for energy communities, UNEF has developed a document outlining essential legislative proposals to ensure participation and consolidation of these projects.
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