Ever wondered how energy communities work? If so, this article has got you covered. Read on to find out what energy communities are, the benefits they bring, and why creating or joining one could help you make a difference in your local community.
What is an energy community?
An energy community is a group of people who work together to manage the energy systems in their local area.
Anyone can start an energy community. You can team up with other like-minded people, local authorities and businesses to finance, own, govern and manage local energy-related activities.
Energy communities can take many different forms, from associations, cooperatives or partnerships to non-profit organisations or even companies.
How do they work?
Energy communities are changing how we manage energy. They belong to the people and organisations who team up to manage them, putting the power in their hands. They also prioritise environmental and social benefits over profit, driving the clean energy transition.
These communities can get involved in producing, consuming, distributing, storing, sharing and buying renewable energy. They can also provide other energy services, such as energy efficiency measures or even charging points for electric cars.
One example comes from the Telheiras Renewable Energy Community in Lisbon, coordinated by Pact Ambassador Miguel Macias Sequeira. In this community – one of the first of its kind in Portugal – residents have teamed up to buy solar panels to produce their own solar energy.
This initiative has helped to reduce electricity bills for local businesses and families living in energy poverty. By using renewable energy sources, they are also doing their bit to support climate goals and the energy transition.
Why should I get involved?
Starting or joining an energy community could bring you many possible benefits, such as:
- giving you more control and independence, as you will no longer be reliant on the big players in the energy market;
- keeping money in your own community and supporting the development of your local area;
- lowering your energy bills by producing your own renewable energy;
- building a stronger sense of community as you work with and support others (e.g. by helping reduce energy poverty, bringing more local green job opportunities);
- doing your part to support the clean energy transition and wider climate goals in the journey to net zero.
Sound good? If so, the European Climate Pact is here to help you on your journey.
Getting involved in the Pact could help you connect with Pact Ambassadors and Partners and others who might be interested in starting or joining an energy community. This could be within in your local area, or even across borders.
You can join our events to connect with the Pact community, expand your knowledge, and meet other like-minded people who are interested in this topic. You can also learn from a wealth of resources on our EU Climate Action Academy, for example:
- Handbook on Cross-Border Energy Communities
- Community Energy: A Practical Guide to Reclaiming Power
- Energy communities – examples from Hungary and Germany
More about energy communities
If you’re interested in learning more about the potential of energy communities, you might want to catch up on the European Climate Pact’s session at European Sustainable Energy Week 2025.
The session took a closer look at how energy communities work and their role in the energy transition. It shared updates on relevant EU policy, including initiatives like the Citizen Energy Advisory Hub, funding opportunities such as the European Energy Communities Facility, and a wealth of experience shared by Pact Ambassadors, including:
- Marine Cornelis (France), who is the founder of Next Energy Consumer and the Energ’ Ethic podcast;
- Ana Belén Cristobal López (Spain), who shared her experience of coordinating the Jalon Project;
- Miguel Macias Sequeira (Portugal), coordinator of the Telheiras Renewable Energy Community;
- Aurore Dudka (Italy), who spoke about inclusivity in energy communities.
To catch up on the session, watch the recording on the European Sustainable Energy Week 2025 website or download the slides via the link below.
Details
- Publication date
- 5 June 2025
- Author
- Directorate-General for Climate Action