10th Thematic Group meeting: Smart Villages and Renewable Energy

The tenth meeting of the Thematic Group (TG) brought together Event Information
49 stakeholders from 20 Member States (MS) to consider how Date: 22 January 2020
Smart Villages can support a transition to a low carbon economy Location: Brussels, Belgium.
in rural areas. Participants heard how the revised European Participants: 49 participants - including EU institutions,
Renewable Energy Directive requires Member States to create an Managing Authorities, National Rural Networks, European
enabling environment for Renewable Energy Communities (RECs) organisations, Local Action Groups (LAGs), local
to help meet Europe’s targets for climate change. authorities, stakeholder organisations and researchers.
Outcomes: Insights on policy solutions to support the
The presentations showed that many RECs across Europe are
emergence of Renewable Energy Communities around
already generating benefits for people and the environment.
Europe.
Many others would be interested – if the conditions were right.
Website: https://enrd.ec.europa.eu/news-
Future CAP and Cohesion policy can play a major role in
events/events/10th-thematic-group-meeting-smart-
supporting rural communities on their green journey if the needs
villages_en
of RECs are taken into account during the programming process.

EU policies supporting Renewable Energy Communities

Jan Steinkohl (DG ENERGY) Benoit Esmanne (DG Mathieu Fichter (DG
introduced the Clean AGRI) highlighted that REGIO) described the
Energy Package that the CAP Strategic Plans opportunities for using
provides an enabling (CSP) can play a key role future Cohesion Policy to
policy framework for in the European Green support an energy
Renewable Energy Communities as ‘a Deal and contribute to achieving the transition in rural areas. RECs can
social concept which aims to empower ambitious targets set for becoming contribute to and be programmed under
citizens’, increase the acceptance of climate-neutral by 2050 and providing several Policy Objectives
renewable energy projects, mobilise affordable EU energy, based on renewable
He also said that compliance with the new
private capital and increase flexibility in sources. In particular, the CSPs can support
Renewable Energy Directive and targets is
the market. specific elements of the European Green
an enabling condition for Cohesion policy
Deal such as Clean Energy in rural areas,
This legislation has to be transposed in all (compliance with 2020 targets and with
Resource efficient buildings, the Farm-to-
Member States by 30 June 2021 together this baseline up to 2030; increase in share
Fork Strategy and zero pollution.
with a supportive framework that of RES in heating & cooling by 1% per year
promotes and facilitates the emergence of The CSPs offer a broad menu of up to 2030). DG REGIO will check this in all
RECs, ensures participation is open to all interventions such as i) Cooperation – the programmes submitted by the MS.
consumers and provides the tools to including LEADER, ii) knowledge and
He argued that rural communities need to
facilitate access to finance and information, iii) Young farmers & rural
act now as there is a window of
information. The legislation creates business, iv) Investments that can be
opportunity to design 10 years of
opportunities for rural communities to designed by MS to channel support to
investments of ERDF and the Cohesion
make a major contribution to the rural communities to support RECs
Fund.
European Green Deal. through Smart Villages.
Panorama of Renewable Energy Communities across Europe
Dirk Vansintjan (REScoop.eu) explained that Renewable Energy Cooperatives can
REC members in REScoop
fulfil many roles such as energy production, supply, distribution, providing services,
sharing electrical vehicles, and financing. Although they have a long history, most of
the 3500+ RECs can be found in the NW of Europe and are relatively new and small
in size. But when the right conditions are in place, Renewable Energy Communities
can develop very quickly. For example, in Denmark the cooperative movement is very active with
2.100 wind cooperatives and around 340 district heating cooperatives directly owned by the
consumers.
Scotland has already established an enabling framework for RECs. Ireland has also recently created a
system for providing financial support for the early phases of development for community-led
projects, defined a separate ‘community’ category in Ireland’s auction scheme (up to 10 %), made
mandatory investment by communities in all projects seeking State support and provides technical
support (e.g. financial, legal, technical advice – public & private). MS should ensure that RECs are not
excluded from future support schemes by providing information, technical and financial support,
reducing administrative requirements and including community-based bidding criteria.

Esbeek village cooperative The Bioenergy Village Energies Citoyennes en

Wiet van Meel explained how the people Oberrosphe Pays de Villaine
in village of Esbeek initially came together Ulrich Pfeiffer described the steps taken Nicolas Desruelles explained the timeline
in response to the closure of a local café. by this village that “got rid of oil and gas”. for setting up their network of citizen-led
They formed a cooperative with a The idea for the project emerged in 2006, energy initiatives. They have created a
revolving fund that reinvests any surplus in followed by a feasibility study which series of operating businesses and a
local projects with the aim of balancing confirmed the viability of the scheme with venture capital company backed up by
people, profit and the planet. They have at least 120 houses connected to a wood support structures. This has generated
implemented a wide range of initiatives chips fired heating plant, managed € 42m of investment in 13 large citizen-led
including a renewable energy cooperative. collectively. With € 700 000 of their own wind turbines with 26 MW of operational
The key success factors in Esbeek are trust, capital, they managed to invest € 3.8m in power. They themselves form part of a
involvement and sense of ownership (see the project, hence contributing to climate French network of 297 renewable energy
video). protection (reduction of 900 t CO2 per cooperatives. Nicolas identified the
year), reducing energy dependency, barriers and solutions for building
keeping the money locally and reducing awareness, effective governance, business
long term costs. models and translating the RED into citizen
friendly national legislation.

Opportunities for accelerating energy transition in rural areas

 Create awareness and build community and municipal buy-in for renewable energy projects. Animation, facilitation and
Project
transparent communication are key for involving local stakeholders in RECs (e.g. clear information about the local costs
Awareness
and savings of energy projects – for example see Enegest, the tool developed by 11 Spanish LAGs).
 Set up effective systems for providing technical assistance and capacity building for rural communities that want to
Project develop a REC. Support energy intermediaries (agencies), networks and brokers at different levels. For example, the
emergence & Community and Renewable Energy Scheme (CARES) managed by Local Energy Scotland provides communities, businesses
development
and other organisations advice and flexible funding packages for each stage of project development.

Project  Start small with seed funding that spreads risk and allows testing the business model of projects. The future CAP
Construction Cooperation intervention & LEADER CLLD can support the communities in the early stages of developing and testing a
and concept. If successful this can lever in financial resources for larger investments (e.g. from Banks, ELENA programme of
operation the EIB, ERDF, EU Invest or national sources).
 Set target indicators. Scotland has a target of 2 Giga Watts produced by RECs. Indicators can also be designed for specific
interventions such as technical assistance and investments.
Regulatory
environment  Ensure a stable regulatory framework that supports the long-term viability RECs. Monitor and control the
transposition of the Renewable Energy directive (as an enabling condition) through for example Feed-in Tariffs,
access to the grids or including provisions in State Aid Regulations for RECs, Follow REScoop.eu.

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