Energy communities promise to transform Europe’s energy system, but regulatory hurdles, interoperability issues and limited tools still stand in the way. How to help scale their impact and drive a democratic, renewable-powered future? The answers and legacy of the European project eNeuron

As Europe races toward ambitious climate and energy goals, the concept of energy communities has emerged as a cornerstone for achieving a sustainable, democratic, and resilient energy future. Recognised by the European Union as a vital pillar of the energy transition, renewable energy communities offer a dual promise: accelerating the adoption of clean energy while empowering citizens to take ownership of their energy choices.

But how can these communities truly drive energy democracy and foster a more inclusive energy system? What are the practical tools, strategies, and innovations needed to scale their impact? Experts agree that their development is hampered by regulatory hurdles, limited business models and a lack of advanced digital tools, restricting their ability to compete with larger commercial players and to optimise renewable energy use.

Over the past five years, the EU-funded eNeuron project has addressed these challenges and developed innovative tools to optimise the planning and management of energy communities. What lasting impact will it leave behind? And how can its insights and solutions help unlock the potential of a truly renewable-powered Europe? As the project draws to a close, Maria Valenti, its coordinator and head of ENEA’s Smart Grid Laboratory, reflects on its achievements, legacy and the lessons learned along the way.

The European Union presents energy communities as both a "pillar of the energy transition" and a fundamental tool for "empowerment and democracy." How and to what extent can they contribute to the energy transition and energy democracy?

Energy communities are a crucial tool for driving the energy transition, especially when based on renewable sources. For instance, the fact that one user within an energy community can utilize the excess energy produced by another inherently boosts self-consumption of renewable energy and contributes to the transition by reducing reliance on fossil fuels. Even if not renewable based, energy communities can play a decisive role in participatory energy management. Whereas today, individual citizens often struggle to make their voices heard in dealings with local authorities, within an energy community, they will have greater influence, participating not only in energy policies but also in the democratic life of the community itself. Finally, energy communities could reinvest savings into the purchase of services for the community. By reducing energy costs through shared resources and economies of scale, the money saved could be used to fund local projects, improve community infrastructure, or provide additional services that benefit all members. This reinvestment could enhance the overall well-being of the community, support sustainable development, and promote social cohesion.

And the benefits would extend not only to consumers but also to the community as a whole and even to the electricity grid. How exactly?

Due to climate warming, electricity grids are under increasing stress, which could lead to critical situations if they also have to carry significant amounts of renewable energy. To understand how energy communities can help, we need to imagine a future of renewable energy communities capable of consuming locally produced energy, minimising exports to the grid, and so reducing possible stress. By operating as essentially closed communities, they would allow for increased production and penetration of renewables, significantly reducing the load on the grid. And this would further contribute to accelerating the energy transition.

With economic advantages for consumers as well…

Absolutely. Multiple studies show that the primary motivation for participating in energy communities is not environmental but economic. This goal becomes easier to achieve by optimising energy use, both in terms of load management and the use of energy produced from renewable sources. Furthermore, energy communities can benefit from reduced installation and maintenance costs due to economies of scale. By pooling resources, they can achieve significant cost savings compared to individual installations. This collective approach is further complemented by the benefits of improved efficiency and sustainability of energy production and consumption within the community.

As of early 2024, there were over 9,000 energy communities in Europe involving around 1.5 million citizens. The numbers are growing, but several environmental organisations point out that there could be many more. What is hindering their development, and to what extent has the eNeuron project worked to overcome these obstacles?

Tools for managing energy communities already exist, but they are still quite rigid. Business models are also too few and limited. And developing new ones requires new management and IT tools that optimise management of renewable energy communities. eNeuron has taken up both these challenges by proposing innovative use cases and business models that can serve as a starting point for creating new market strategies. It has also developed new software to manage ‘integrated energy communities’ – communities that rely on different sources, including renewables, to achieve the optimal use of energy.

Your project’s solution is the “eNeuron toolbox.” How does it work, and what concrete solutions does it aim to provide?

Our toolbox aims to optimise the functioning of energy communities on two levels: one related to their planning and design and the other to their concrete operation. During the design phase, it determines the optimal energy mix the community should adopt to meet its needs while maximising the use of renewable energy. Knowing the energy demand to be met, the toolbox, for instance, might suggest installing X kW of solar energy, Y of wind energy, and so on. Then, during the operational phase, thanks to predictive software, it allows for near real-time adjustments to the energy mix based on the number of users and fluctuations in production and consumption, thus also maximising savings for users. Finally, the eNeuron toolbox enables the simulation of peer-to-peer energy trading to investigate the feasibility and convenience of optimised scheduling strategies from the prosumers point of view in a local real time market.

The end of you project marks a long journey. What’s left for the future?

The project ends but leaves a significant legacy. Firstly, our analysis of market use cases, which can be utilised by commercial aggregators, institutions, or other entities looking to establish an energy community. Additionally, we leave behind a valuable body of studies on the diversity of their markets and regulations in Europe, along with lessons learned from adapting our solutions to the different contexts presented by the pilots. Overall, what we leave is a solid foundation from which to customise the product and develop appropriate business models based on national specifics.

What are the main challenges that still need to be addressed?

To increase the number of energy communities, we need to overcome interoperability issues between devices. Ensuring seamless communication and data exchange across diverse systems and technologies is crucial for implementing energy communities in existing contexts. Consider the mobile phone market: in recent years, the European Union has worked to introduce common standards for electronic device chargers, particularly for smartphones. In a similar way, we need standardisation in the energy sector.

To conclude, a call to industry and research: what needs to be done to unlock the potential of energy communities?

The number one priority is to define common standards that allow for immediate interoperability. Additionally, it is crucial to develop software tools that facilitate the inclusion of users with varying participation profiles within energy communities. For example, utilising artificial intelligence solutions (such as chatbots) can enhance user engagement and make it easier for individuals to participate in the community.

Contacts:
Coordinator:
Maria Valenti, ENEA and Christina Papadimitriou, Technical University of Eindhoven, coordinator@eneuron.eu
Communication Manager:
Chiara Serio, ICONS, info@eneuron.eu

Project website: Homepage - eNeuron
Twitter: @eNeuronproject
LinkedIn: eNeuron
YouTube: eNeuron