The Prospect of an Energy Community with a Consumer Cooperative

by Vasilis Taktikos, Institute for Studies of Social Economy

Energy communities are a catalytic example of social entrepreneurship.They represent a dynamic, grassroots institutional initiative that can provide free energy to municipalities, while at the same time offering practical experience in organizing cooperative models and the social economy across various sectors of local development.

A relatively small investment can ensure energy sufficiency for municipal buildings and schools, public lighting, as well as private households. It can also serve as a living example that encourages citizens to organize themselves in cooperative energy production, helping each household save significant financial resources.

Furthermore, synergies can be developed among civil society organizations environmentally, cultural, consumer, and humanitarian—within a process where they can play a crucial and decisive role in mobilizing citizens for broader local development initiatives, including social infrastructure and local culture.

The minimum number of consumers required to establish an energy community is 30 citizens. Once a network of associations adopts such a business idea, it is entirely feasible to gather more than 100 citizens to support the initiative, especially considering that the project will be largely subsidized.

For households, energy autonomy is currently one of the most beneficial investments. This means producing and consuming their own electricity through modern photovoltaic technology, organized via energy communities.This is a growing trend across Europe following the worsening energy crisis.

Through this approach, an investment estimated at around €5,000 can cover the energy needs of a household and achieve payback within approximately three years. By comparison, purchasing a house typically has an average return period of around 25 years, whereas energy autonomy can be achieved in just three to four years.

But why should someone invest in an energy community instead of installing a system on their own roof?

First, not everyone owns suitable rooftop space, especially those living in urban areas and apartment buildings.Second, economies of scale within a cooperative reduce installation costs.Third, energy communities often benefit from specific incentives and subsidies that can significantly lower the investment cost.

However, the main challenge with energy communities—essentially energy cooperatives—is their organizational and business complexity, which requires specialized know-how to implement successfully.

Beneficiaries must become members of the energy cooperative and participate in an organized collective structure, formalized through statutes approved by the Magistrate’s Court and registered in the General Commercial Registry (GEMI).

In addition, the following are required:

• A business plan

• An energy study

• Environmental and urban planning permits for installation

• Grid connection approval from the electricity distribution operator

• Preparation of an application dossier for investment subsidies

All these procedures require at least six months to complete.In practice, it is estimated that a full year is needed before installation and connection of households through the so-called “virtual net metering” system (self-production and consumption offsetting).

These prerequisites and procedures for establishing and operating an energy cooperative and a power generation installation are generally unknown to citizens without business experience in the sector.

They are, however, well known to industry entrepreneurs. This is why many of the energy communities established in our country so far are essentially nominal and controlled by business interests seeking profit.

Yet, energy communities were originally established to support household energy autonomy and to minimize electricity costs, contributing to the broader effort to address the energy crisis.