Energy Communities in Spain: Regulations, Funding, and Impact

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Spain has seen a growing interest in energy communities, supported by the Ministry of Ecological Transition and the Demographic Challenge. A proposal for a Royal Decree is being discussed to define the concept, the requirements, and the rights and obligations of these groups. The plan includes a standard quota in renewable tenders for energy communities and a 5% capacity reserve inside the electrical network to reserve access for these projects. Public claims can be submitted until 17 May.

Energy communities are groups of people who generate, consume, store, share, and sell renewable energy. Their main aim is to deliver environmental, economic, and social benefits to members and the wider community rather than pursuing simple financial profits. Their scope goes beyond electricity to include energy efficiency improvements and other uses such as transport, heating, and cooling sources, often supported by self-consumption with photovoltaic panels.

For illustration, a community could be a town equipped with solar installations for collective self-consumption, shared electric vehicles with charging points, a biomass and solar thermal central heating system that can also ventilate sports facilities, and an energy demand management system with a mobile app to keep participants informed.

There is a distinction between standard renewable energy communities and citizen energy communities. Both can adopt different legal structures—such as associations, cooperatives, companies, non-profit organizations, or SMEs—and participate in organized markets. A renewable energy community typically requires at least five members, which can include individuals, local authorities, or small businesses, with voting not exceeding 51%. A key difference is that members of renewable energy communities should be located in the region surrounding the facilities, within the municipality’s immediate area.

more than 50 communities

According to data from the Spain Institute for Energy Diversification and Saving (IDAE), there are currently around 50 energy communities in the country, a figure far from the hundreds seen in countries like Germany or Denmark due to a less-developed tradition of community ownership and social enterprises. Notable examples include Enercoop in the Valencia region and We Are Mobility, a Catalan non-profit cooperative since 2017 that offers car sharing to its partners through a platform.

A foundational demand has repeatedly emerged in Spain: a clear community-interest framework. The European Commission has identified this area in the so-called Winter Package, defining citizen energy communities within the Internal Electricity Market Directive and renewable energy communities within the Renewable Energy Directive revision. Spain was expected to implement both provisions by June 30, 2021, and the government aims to advance this regulatory project as soon as possible.

European funds

Among the support mechanisms for strategic projects (PERTE) relating to renewable energy, green hydrogen, and storage, a total of 100 million euros is allocated to back such initiatives. The government has already approved two of four calls, providing 40 million euros to benefit around 73 communities with more than 95,000 members. The response has been strong, with many small towns seeing the creation of local energy communities. Local mayors can help their communities access photovoltaic and wind energy and establish cooperatives to assist in reducing energy bills. This enthusiasm has been met with a high level of demand. In a recent interview, Teresa Ribera, the Vice President and Minister of Ecological Transition, spoke about notable progress and the growing interest in these programs (IDAE, 2024).

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