Energy Communities

How does it work?

Energy communities allow consumers to produce energy for their own use, or to share with neighbours. It is estimated that over 8 000 energy communities are already active in Europe. However, the untapped potential remains huge, particularly in rural areas. Energy communities have the potential to increase their installed renewable energy capacity of communities of households by up to 90 GW renewable energy by 2030. 

Individual households producing and consuming their own solar energy can achieve savings of €260-550 per year. For communities of households with a mix of wind and solar energy, it could be €440-930 per year for each individual household member. 

How many energy communities exist?

The fundamental starting point for collecting data on the social economy is creating a statistical representation of the social economy’s size, characteristics, and economic contributions. The most common methodological approaches used for this purpose are outlined below. The last column lists countries which during the workshop identified themselves as using a specific tool.

Following the establishment of the EU legal and policy framework for energy communities, notably through Directive (EU) 2018/2001 (Renewable Energy Directive, RED II), which introduced Renewable Energy Communities (Article 22), Directive (EU) 2019/944 (Electricity Market Directive), which established Citizen Energy Communities (Article 16), and the Governance Regulation (EU) 2018/1999, which provides the framework for implementing the Energy Union and National Energy and Climate Plans, a large number of energy communities have been created across the EU. Tens of thousands people collaborate on advancing the energy resilience in Europe. According to the 10th  State of the Energy Union report, published in November 2025, more than 8 000 energy communities exist across the EU . 

No comprehensive estimate is currently available for the total amount of energy supplied by all energy communities across the EU. However, an assessment carried out in 2023 under the Energy Communities Repository analysed a sample of 107 energy communities from across the EU and highlighted their significant contribution. Together, these communities accounted for:

• 12,022 MW of total installed renewable energy capacity;
• more than €34.3 million in total investment value;
• approximately 3.5 million tonnes of CO₂-equivalent greenhouse gas (GHG) emissions avoided.

A more comprehensive assessment of the impacts of energy communities is currently being developed through the Citizen Energy Advisory Hub.

Key Facts
 

What kind of energy?

Energy communities can be set up around a single power plant (for example solar power, small hydro-power, biogas, wind turbine(s)) or heat generating facility, but they can also take the shape of a larger network of energy infrastructure (incl. energy storage). Even as complex projects such as offshore wind energy and district heating are pursued by energy communities. Energy communities typically complement the existing energy supply infrastructure and function in combination with them. Some organisations with participation of local authorities also work towards independent energy supply for a city or region. 

What are the advantages of participating in an energy community?

As energy prices can be high and volatile, participating in this grassroots solution for a greener, fairer and affordable energy system can prove very beneficial.

Participating in an energy community offers multiple benefits, such as

• stable access to renewable energy
• independence from fossil fuels
• energy autonomy and control over bills
• reduced costs and improved resilience to price shocks
• profits from energy sales

Energy communities allow local communities to join forces and invest in clean energy. Acting as a single entity means energy communities can access all suitable energy markets on a level-playing field with other market actors.

EU Citizens Energy Package

To further support citizens in creating and joining an energy community, action 5 of the Citizens Energy Package focuses  on boosting energy self-production and energy sharing among citizens, with a strong emphasis on energy communities.  

On 30 April 2026, the European Commission published a set of recommendations and accompanying documents to protect citizens and help speed up the transition to a more inclusive, resilient and sustainable energy system. This package of recommendations was announced in the Accelerate EU communication. 

One package recommendation aims at supporting the development of energy communities and maximising the potential of self-consumption, including through energy sharing to ensure that energy consumers are empowered to actively contribute to the EU’s clean energy transition.

To facilitate the implementation of this recommendation, It is accompanied by an annex containing an Energy Communities Action Plan, which covers a series of measures the Commission will take across 5 areas

• effective enabling frameworks
• access to financing
• awareness-raising and capacity building
• social inclusion and public participation
• digital innovation and system integration

Want to learn more?

Watch the CLR Webinar on Energy Communities and EU Policy Updates, where European Commission experts and practitioners explain the EU policy framework, legal basis, financing opportunities and practical examples of energy communities.