Identification of common strengths, weaknesses, opportunities, and threats for a successful energy transition in the hands of the citizens
One of the first activities undertaken in the HERCULES project was a comprehensive SWOT analysis for the establishment of Renewable Energy Communities (REC) in the Central European region. Its aim was to identify relevant bottlenecks and opportunities for further improving the establishment of RECs and their contribution to the energy transition. The situation of energy communities differs per country, but there are a number of common features. When combining the SWOT analyses of all the countries, and merging the most often mentioned topics, we can conclude the following:
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Strengths: In Central Europe, the potential for local electricity and heat production through Renewable Energy Communities offers significant benefits to communities, fostering a sense of unity among residents and organizations. Many of the countries have also introduced support for RECs through feasibility studies and financial assistance for renewable energy and storage system investments. The movement was started in Austria and Germany, recently followed by Italy, Poland and the Czech Republic.
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Weaknesses: Regulatory uncertainties and incomplete legislation for Renewable Energy Communities (RECs) are major weaknesses in the studied countries, along with complex and lengthy permitting processes, particularly for renewable energy plants and grid connections. Additionally, challenges include insufficient grid capacity (especially in rural areas), a lack of organizational and technical expertise for REC establishment, and high upfront costs that are not adequately covered by available funding, making some projects financially unviable.
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Opportunities: A key motivation for citizens, public organisations and SMEs to join energy communities is the potential to reduce reliance on centralized electricity and heating systems, with rural locations offering opportunities for local job creation and community-based financing. Local RECs can also help combat energy poverty by ensuring fair energy distribution and reducing grid reliance, while offering room for innovation in areas like heat generation, electricity storage, and electric vehicle charging.
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Threats: RECs can strengthen local ties, but financial decisions may lead to conflicts if costs and benefits are perceived as uneven. While the legal framework for RECs is expected to be finalized in most countries, uncertainties remain about their integration into the broader energy market, and large energy companies may view them as competitors. Additional challenges include limited grid capacity, the risk of grid congestion, and the uncertainty of long-term economic stability for RECs, with potential costs being passed onto network users unless grid operators innovate in response to these issues.