Green and Inclusive Competition: A Crucial Element for EU Cohesion

The future of EU cohesion is heavily reliant on green and inclusive competition, particularly through the recognition and support of energy communities. These citizen-led initiatives are proving transformative, offering multiple co-benefits that extend beyond mere energy production. Chris Vrettos, Philippe Awouters, Stephan C. Krabsen, and Luca Varotto argue that energy communities are essential to Europe’s green future.

The Rise of Citizen-Led Renewable Energy Projects

Across Europe, citizen-led renewable energy projects are gaining momentum. Examples include a Spanish cooperative supplier with tens of thousands of members, an Irish cooperative assisting citizens in renovating their homes, and a Portuguese cooperative e-car sharing scheme. Recent energy crises have partly driven this silent revolution, pushing millions of households towards energy independence solutions.

One in two EU citizens could produce electricity by 2050, potentially meeting 45% of the EU’s energy demand. This shift is fueled by growing concerns about climate change, strong economic returns from renewable energy, and the desire for direct democratic participation.

The Impact of Energy Communities

REScoop.eu, the European Federation of Citizen Energy Cooperatives, currently has over 2,250 members, representing more than 2 million EU citizens. Despite this, the broader narratives of economic competitiveness often exclude energy communities as “small” and “local.” However, these communities are key to a citizen-led re-industrialisation effort across Europe.

Moving Markets

A New Economic Paradigm

As global temperatures continue to rise and democracy faces challenges worldwide, economic instability and de-industrialisation are contributing to a political shift towards the far right. In response, major economies are implementing publicly-funded renewable re-industrialisation agendas, creating a new world economy centred on batteries, electric vehicles, and renewable energy manufacturing.

The EU is beginning to focus on industrial competitiveness, rejecting the false dichotomy that pits economic revitalisation against social and environmental sustainability. Europe’s industrial push includes renewable acceleration areas and net-zero acceleration valleys to expedite renewable energy and industrial projects.

Bridging the Funding Gap

The inclusion of local communities in planning and ensuring co-ownership and distribution of benefits could accelerate and simplify the rollout of renewables by reducing local opposition. REScoop.EU’s EU Election Manifesto calls for policymakers to guarantee meaningful participation and benefits for citizens and local communities in large-scale renewable projects.

Energy communities can leverage public funds to boost the local economy, providing significantly more benefits than private renewable projects. By 2030, EU citizens and energy communities have the potential to mobilise over €240 billion towards the energy transition. The Letta report on competitiveness emphasises the need to support cooperatives through dedicated financing and public procurement.

Real-World Examples

Across the EU, energy communities are driving large-scale renewable and re-industrialisation projects:

  • Denmark: Local citizens finance windmills that produce enough energy to make their island self-sufficient.
  • Belgium: Energy cooperatives successfully lobbied for citizen participation in offshore wind tenders, resulting in the formation of SeaCoop, which aims to supply electricity to Belgian households and SMEs.
  • Italy: Worker buyouts and cooperative re-industrialisation initiatives, such as those by former employees of EX-GKN in Florence, showcase how collective efforts can counteract delocalisation and enhance competitiveness.

Conclusion

The EU needs to triple its renewable energy capacity by 2030, and community buy-in is critical to achieving this goal. Energy communities should be recognised for their contributions to local economies and be given equal footing in the new green industrial boom. Green and inclusive competition will be the make-or-break element for the future of EU cohesion, and supporting energy communities is essential for a sustainable and prosperous future.

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