Agrifood and Retail SMEs – renewable energy communities

Qualitative and quantitative indicators:

• number of SMEs in the energy communities;
• total energy needs of those SMEs, and the proportion which will be covered by the renewable energy obtained via the energy communities.

This action will support the establishment of Renewable Energy Communities by groups of agrifood and retail SMEs, to reduce their exposure to energy costs.

Energy communities are one of the key elements for achieving the EU’s energy transition: by 2050, half of Europe’s citizens could be producing up to half of the EU’s renewable energy. Recognising the important role of local actors in the energy transition process the EU’s Clean Energy Package since 2019 includes provisions to help local communities take ownership of the energy transition through the concept of energy communities.

The Renewable Energy Directive (EU) 2018/2001 defines in its article 22 Renewable energy communities. Participation must be open and voluntary, with participation and effective control by citizens, local authorities & smaller businesses whose primary economic activity is not the energy sector.

Energy communities can take any form of a legal entity, for instance, that of an association, a cooperative, a partnership, a non-profit organisation or a small/medium-sized enterprise. It makes it easier for its citizens, together with other market players, to team up and jointly invest in energy assets. This, in turn, helps contribute to a more decarbonised and flexible energy system, as the energy communities can act as one entity and access all suitable energy markets, on a level-playing field with other market actors.

The primary purpose of a REC is to provide environmental, economic or social community benefits for its shareholders or members or for the local areas where it operates, rather than financial profits. A REC can engage in activities based on renewable energy sources, including generation, energy efficiency, supply, aggregation, mobility, energy sharing, self-consumption, and district heating & cooling.