The Decentralized Dream: Energy Communities Scale Up Across Europe

May 22, 2025

James Powell

A picture of representatives of energy communities in europe

Walking into the Energy Communities Forum this week, hosted by REScoop.eu and CoopTech Hub, the first thing that struck visitors was the palpable buzz of energy. It was positively charged, full of entrepreneurs who are essentially building their own cooperative-run renewable energy companies. With participants representing 42 countries, including Orklys proudly flying the flag for Denmark, the gathering showcased the explosive growth of citizen-led renewable energy initiatives across Europe.

EU Commitment to Energy Communities Takes Shape

The European Commission's strong presence at the forum sent a clear message of institutional support. Through keynote speeches and dedicated funding sessions, commission representatives outlined how energy communities can tap into various European funding opportunities. The Commission's backing isn't just symbolic—they recognize the critical role citizens now play in producing, supplying, and sharing renewable energy at scale.

The strategic reasoning is compelling: decentralized energy markets enhance energy security - distributed networks are harder to attack, harder to take down - a lesson that has taken on new urgency in recent years.

Scale Surprises and Collaboration

One of the forum's most striking revelations was the impressive scale some energy communities have already achieved. In Belgium, single energy communities now encompass up to 70,000 participants. These established giants aren't just growing—they're actively mentoring newer communities, creating a knowledge-sharing ecosystem that accelerates the movement's expansion.

Heating: The Next Frontier

District heating emerged as a key growth area, particularly where energy communities can forge partnerships with municipalities. However, participants acknowledged a significant challenge: the current glut of cheap gas makes competition difficult. Yet the fundamentals remain strong—solar and wind already deliver lower levelized costs of energy (LCOE), even before factoring in the cost of the environmental damage caused by fossil fuels.

Storage: Searching for Solutions

Energy storage remains an evolving conversation within the community movement. Forum discussions centered on creating the right incentive structures to encourage energy communities to help relieve pressure on Europe's aging grid infrastructure—a challenge that will only intensify as renewable adoption accelerates. Being taxed with tariff fees for generating renewable energy that relieves the grid is one thing, being taxed on the same energy when it is discharged from storage is quite another - surely an area policy makers need to look at with a view to incentives over penalties.

Optimism for our future

Walking away from the forum, the Orklys team felt genuinely optimistic. What we witnessed wasn't just a movement gaining momentum - it was a glimpse of how energy communities are evolving from local efforts into vital infrastructure. The scale, the institutional backing, the shared purpose enshrined in values - it all pointed to a future where communities don't just participate in the green transition, they lead it.