The moonshot moment for energy communities: expectations from the Citizens Energy Package

Authors: Chris Vrettos, Senior Policy Advisor, and Sara Tachelet, HR Director of REScoop, a EUSEW partner organisation

Yesterday, the European Commission published its long-awaited Citizens Energy Package (CEP). The Package includes 1) a widely ambitious European goal for community energy projects (90GW by 2030), and 2) the commitment that the Commission will deliver much-needed guidance to Member States on creating regulatory frameworks and financing tools for energy communities. But, without being legally binding, will the Package live up to expectations?

Connecting the legislative puzzle pieces

There is a huge potential for citizen participation in the energy transition: 1 in 2 EU citizens could be producing their own energy by 2050, covering 45% of the EU’s energy demand. Crucially, these lofty goals translate into immediate, tangible benefits for EU citizens and businesses: participation in an energy community can result in yearly savings of up to 1100 euros.

Yet, energy communities still struggle with the basics: an enabling regulatory framework, access to grids, and project finance.

The Citizens Energy Package does not need to reinvent the wheel. Rather, it should be the connecting glue of existing major legislative files, ensuring horizontal citizen participation in the energy transition:

Governance

Transposition of the Renewable Energy and the Internal Electricity Market Directives remains patchy among Member States. EU-level governance mechanisms are needed to bridge this gap:

• The Commission should mainstream energy communities in the European Semester. This way, the Country Specific Recommendations can be used as a horizontal and harmonized tool for Member States to create enabling legislation for energy communities.
• Through the revision of the Governance Regulation, DG CLIMA and ENER should set a legally binding target for community energy in the post-2030 framework.

Finance

• As part of the proposed new EU budget architecture for 2028-2034, every Member State is drafting a “National and Regional Partnership Plan (NRPP)” where it will outline a series of reforms and investments for major sectors of the economy, including energy. The NRPPs could thus be a key vehicle for national investments in energy communities (e.g., in community-led district heating projects, storage, citizen-led renovations), and reforms (e.g., simplifying permitting, creating national enabling frameworks). DG ENER should thus work closely with DG ECFIN and SG REFORM to ensure that the link between the next EU budget and the Citizens Energy Package is clear. For this reason, REScoop.eu and Friends of the Earth launched a major action linking energy communities with the NRPPs, including 18 Member State factsheets.
• Major EU funds are currently not reaching energy communities on the ground. The Cohesion 4 Transitions initiative has published dedicated guidance to national Managing Authorities on how to design (national) funding calls for energy communities. The forthcoming Commission guidance to Member States should build on this work, particularly emphasising how to support energy communities in rural, just transition, less developed, and outermost regions.

Grids

As part of the Grids Package, the Commission has advised Member States to abandon the first-come-first-served model and prioritise projects with clear climate and social value. The forthcoming Commission guidance to Member States should now build on this and instruct Member States to explicitly prioritise energy communities (e.g., by ringfencing grid capacity for community projects with proven social impact).

Warm Homes

The FitFor55 Package highlighted the role of energy communities in ‘second generation activities’ such as heating and cooling, and (citizen-led) building renovations. The forthcoming Commission guidance to Member States should guide Member States to include energy communities in their National Building Renovation Plans.

Connecting the dots – connecting with citizens’ lived realities

In a tumultuous era of geopolitical and economic uncertainty, energy communities can be the cohesive glue that connects EU values and objectives to people’s everyday bread and butter issues, such as affordability and security. The potential for citizens to drive the EU’s energy transition is enormous. The legislative files are also there. It’s now time to bring it all together.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week (EUSEW) – the biggest annual event dedicated to renewables and efficient energy use in Europe. #EUSEW2026 marks the 20th edition and will once again bring together the community of people who care about building a secure and clean energy future for the next generations.

Check the currently open calls to join.