James Powell, CEO and Co-Founder of Orklys takes look at community energy from a European perspective
More than 2,500 renewable energy communities (RECs) across the EU are already in operation, powering more than one million homes and businesses. These locally organised groups prove that citizen-led energy works: the economics stack up, and now the technology exists.
Yet for every successful project, thousands more never launch. Despite EU mandates and analysis suggesting community energy could meet up to 70% of national electricity demand, only 2–5% of designated areas have established operational RECs. That gap matters more now than ever.
The European Commission has labelled 2026 Europe’s “independence moment” – the point where energy security and economic resilience must finally converge. An EU Citizen Energy Package and an Energy Security Package are both scheduled for release in March, and in 2025 renewable generation surpassed fossil fuels for the first time. Momentum is building, but momentum without execution changes nothing.
The infrastructure trap
Europe’s grid was built for a different era. Designed around centralised fossil fuel generation in the mid-20th century, it now routinely curtails the cheapest power source – renewables – while firing up expensive, import-dependent peaker plants. Member states can trade only around half of their desired cross-border capacity.
Security risks compound the economic problem. According to a 2024 report from Fortinet, there were 13 billion attempts to breach Europe’s energy systems last year alone. Denmark has reported facing up to 50,000 attacks in a single day, and Russia is targeting European infrastructure at a rate 13 times higher than comparable activity directed at the US. Centralised systems concentrate risk: a handful of critical assets become obvious targets, extending vulnerabilities beyond energy supply into national security.
Community-scale renewable projects flip this dynamic. Local generation and consumption reduce transmission demand, postponing billions in grid upgrade costs, while distributed assets spread risk across thousands of installations rather than concentrating it in a few large plants. Crucially, RECs deliver results this decade rather than a far-off distant future.
The economic case is already proven
IRENA’s 2024 data shows onshore wind at roughly €0.03/kWh and solar PV at around €0.04/kWh, both cheaper than fossil fuel generation. The Green Deal allocates €225 billion for clean investments through 2030 – a clear signal that substantial capital is available and should be accessible to drive action on the ground. Meanwhile, eighteen EU member states now offer feed-in tariffs and streamlined permitting, and community solar projects frequently achieve payback within six years.
Denmark demonstrates what happens when communities receive sustained support. The country now generates most of its electricity from renewables, building on a foundation laid in the 1970s when wind research was published openly rather than monetised. That transparency enabled local innovation and ownership.
The Thyborøn project exemplifies this model: a 15MW community wind turbine backed by around 20,000 investors who raised £17 million locally. Demand was so strong it could have funded two turbines, and recent participants earned returns of 15.7% – tangible proof that community energy works as both climate action and sound investment.
Research confirms what Thyborøn demonstrates: financial returns drive participation more than environmental concerns alone. When communities see neighbours earning returns alongside contributing to decarbonisation, adoption accelerates.
Complexity, not capability
If the economics work and demand exists, what’s blocking wider deployment? The problem largely comes down to knowledge. Setting up an REC means navigating more than 25 national laws, hundreds of local regulations, company structures, tax codes, and grid connection requirements.
An EU-funded pilot programme supporting communities in Spain, Poland and Italy identified “legal, administrative, financial, social and organisational barriers” as the primary obstacles – not technology, not policy opposition, but sheer complexity.
One county environment official told us directly: “We’re actively trying to support energy communities, but it’s hard for them because they have a knowledge gap. Your tools can help bridge that gap.” That expertise has historically lived inside large engineering firms, accessible only to major utilities with specialist teams. Communities didn’t lack capability – they lacked access.
Technology can enable action
Digital platforms are now helping to close that knowledge divide. Tools can translate complex regulatory frameworks into actionable guidance, making what once required teams of specialists accessible to any community group. This matters because communities can act now under current rules rather than waiting for regulatory reform.
The policy framework already exists: RED III mandates 42.5% renewable energy by 2030, REPowerEU requires member state support for RECs with progress reporting due, and new EU grid guidelines support discounted local tariffs for energy communities.
The dual approach
Two things need to happen simultaneously. Technology can enable immediate action: communities ready to build today can use platforms that make specialist knowledge accessible. When complexity becomes manageable, groups move from “this seems impossible” to “we can actually do this.”
Policy should accelerate what is already working. With the Citizens’ Energy Package and the 2026 Governance Regulation revision due in March, there’s a clear opportunity to streamline permitting, better align local frameworks, expand tax incentives, and remove barriers to grid connection and surplus power sales.
This is not a question of choosing one over the other. Communities need tools that work within today’s regulations while policymakers simplify those regulations for tomorrow. Technology provides the bridge; policy reform removes the need for it. Europe’s independence moment demands both: communities building renewable projects now, and policymakers removing the structural barriers that created the knowledge gap in the first place. Together, they deliver the decentralised, resilient energy infrastructure that Europe needs this decade, not in 2040.
