The expansion of energy communities across the European Union is advancing at a slower pace than expected, despite their strong potential to boost renewable energy production and encourage citizen participation in the energy transition.
A recent report by the European Court of Auditors finds that the EU’s target of establishing at least one energy community in every municipality with more than 10,000 residents by 2025 is highly ambitious and unlikely to be fully met under current conditions. By early 2025, progress is estimated to have reached only around 27% of the overall goal, highlighting the practical challenges member states face in turning the policy into reality.
Energy communities are legal entities that enable citizens, small businesses and local authorities to jointly produce, manage and consume their own energy, mainly from renewable sources. The European Union considers them an important tool for achieving its long-term energy transition and climate neutrality objectives by 2050, as they can stimulate investment in renewable energy, help tackle energy poverty and increase public acceptance of local energy projects.
However, the implementation of the framework continues to face several obstacles. The report notes that EU-level definitions of energy communities are not always sufficiently clear, leading to different interpretations and regulatory approaches among member states. In addition, several countries have yet to create the conditions needed for these initiatives to grow, either because European legislation has not been fully incorporated into national law or because projects encounter long delays when seeking connection to electricity grids.
Against this backdrop, Greece stands out with a relatively strong presence of energy communities compared with many other European countries. According to the report, about 19.1% of municipalities with more than 10,000 residents have at least one energy community based on renewable energy sources. Despite continuing challenges related to licensing procedures, financing and grid access, the country has managed to establish a notable number of such initiatives at the local level, supporting the development of decentralized energy production and encouraging participation by citizens, municipalities and small businesses in the energy transition.
