Municipalities are key players in energy democracy

Local authorities must unlock their potential and support the creation of renewable energy communities

By Natasa Ioannou

Energy communities are cooperatives where residents, local authorities and other stakeholders actively participate in the production, distribution and consumption of renewable energy.

These communities emphasise decentralisation, self-sufficiency and sustainability, aiming to reduce carbon emissions and promote resilience against energy crises. Municipalities and other local authorities play a key role in supporting, creating and empowering energy communities that help lower energy bills, support vulnerable households and ensure a green energy transition.

Local authorities and residents’ energy cooperatives have been leading the change in the energy transition. Nevertheless, achieving a 100 per cent community-led renewable energy transition remains a challenging task. In Cyprus, community energy is not given adequate emphasis yet, mainly due to the lack of a regulatory framework by the Cyprus Energy Regulatory Authority (expected in June 2024).

Currently, municipalities and local authorities do not have the internal capacity or infrastructure to support renewable energy communities. However, they are key players and are uniquely positioned to do so. They have the authority, resources, and organising power to bring together different stakeholders and create an enabling environment for community energy initiatives. Energy communities will provide local advantages to local authorities in the following areas:

• Energy aspects: energy communities can help reduce energy consumption and increase energy efficiency in municipal buildings. They can implement projects to insulate homes and buildings, lowering the municipality’s energy bills and achieving climate or energy goals.
• Social aspects: providing green jobs, supporting low-income and vulnerable households, lowering energy bills for residents, and recording less energy poverty in the local area. Energy communities are a great space for education and community engagement.
• Environmental aspects: reducing resilience on fossil fuels, decreasing greenhouse gas emissions and supporting the transition to a low carbon economy.
• Economic aspects: keeping money in the local economy and contributing to a more circular economy

One way of increasing local authorities’ internal capacity is to receive financial, resource, or technical support from EU projects. One example is the Life Loop project, which has identified obstacles and opportunities faced by local authorities and is providing a space where local authorities can increase their capacity, maximise the benefits from the establishment of an energy community and receive technical guidance in every step.

More specifically, the Life Loop project has developed an online tool that provides a free and easy-to-use accreditation scheme for municipalities that are committed to supporting energy communities. The accreditation scheme helps municipalities to:

• Gain recognition for their commitment to community energy
• Build staff capacity in community energy matters
• Connect with potential community energy partners

The accreditation process involves completing a self-assessment, participating in online training modules, and listing municipal assets on a matchmaking tool. By participating in the scheme, municipalities can take a significant step forward in becoming leaders in community energy, and of course receive all the benefits of establishing an energy community in their local area. The process has been designed to require as little time as possible for participating local authority representatives, and it runs from April to November 2024.

Municipalities that complete all steps of the Life Loop accreditation scheme will be acknowledged for their demonstration of foresight in energy community matters by receiving an institutional certificate, being highlighted through blogs and social media, and being invited to an award ceremony.

Municipalities must be willing to take decisive action and embrace the principles of energy democracy. They must empower citizens to participate in local energy initiatives and collaborate with relevant stakeholders to build resilient, community-driven energy systems. They can serve as catalysts for change and champions of sustainability by seizing the opportunity to shape a more resilient, equitable, and sustainable energy future for Cyprus.

And in the end, municipalities will harness the collective power of energy communities to create a brighter, cleaner future for all.

Natasa Ioannou is a project manager and the Head of Environmental Unit at the Centre for Social Innovation.More information on the accreditation scheme here: https://energy-cities.eu/project/lifeloop-accreditation-scheme/

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