Development of citizens' energy lagging far behind EU targets – auditors
Clean Energy Wire
The EU’s vision of citizens' energy projects as an important pillar of the energy transition has not yet materialised, a report by the European Court of Auditors has shown. Both the number of citizens’ energy initiatives and their contribution to renewable energy generation are lagging behind EU policy targets, due to legal and technical obstacles.
“As the EU races to meet its climate and energy goals, citizen-led energy remains a compelling idea - ideal in theory, but challenging in practice,” auditor João Leão said in a press release. “The EU now needs to sweep away legal hurdles and technical roadblocks to make it work effectively on the ground.”
As part of Europe's energy transition, the EU has sought to promote energy production and consumption at a local level, in so-called “energy communities”. The idea is that local initiatives of citizens would come together as legal entities to effectively manage their own energy needs, for example by installing solar panels on shared rooftops.
The EU aimed to have 17 percent of all wind power and 21 percent of solar power produced in energy communities by 2030, and to establish at least one renewables-based energy community in every municipality of over 10,000 inhabitants by 2025. However, the ECA report said the union is unlikely to meet these targets, as only 27 percent of these municipalities hosted an energy community at the beginning of that year.
The auditors showed that expansion of these projects is mostly hindered by legal and technical complications. Unclear legal definitions of what constitutes an energy community and how it should be structured create “legal fog” that can discourage citizens from starting their own initiatives, they said. The auditors emphasised that these legal and administrative challenges are particularly difficult for people living in apartment buildings that already have complex ownership structures for the buildings’ management.
Technical issues around connecting energy communities to the electricity network pose another serious obstacle, as grid congestion can lead to delays and refusals to connect projects, the report stated. In addition, there is an imbalance between energy production and consumption, as solar panels often produce more energy around midday, whereas household energy consumption is usually higher in the early morning and evening, the auditors pointed out. Therefore, there is a need for more storage capacity in these communities that allows for more flexible energy use, the report stated.
Germany is one of Europe’s early adopters of citizens’ energy. Millions of Germans have installed solar panels on their roofs or come together to form renewable energy cooperatives, meaning they have a direct stake in their country’s transition to a low-carbon economy.
The European Commission is expected to present its so-called "Citizens Energy Package" on 11 March. The package will include a framework for making citizens' energy in the EU more affordable and easier to implement.