As countries worldwide pursue sustainable energy transitions, energy communities are emerging as a community-based innovative solution to meet local needs, reduce costs, and lower emissions. Defined by the European Union as groups of citizens, small businesses, and local authorities collaborating to produce, consume, and manage renewable energy, energy communities may create resilient, self-sufficient communities while accelerating the shift toward a low-carbon economy.

In this context, ideopsis Ltd participated in the 3rd Economic Forum on 30 October 2024 at the Hilton Nicosia, an event focused on advancing economic and sustainable development. Dr. Chryso Sotiriou, Supervisor and Senior Climate Change Expert at ideopsis, joined the panel discussion titled “Energy Transition and Cost Reduction for the Community,” where she presented on the critical role of energy communities in supporting a sustainable energy transition.

ideopsis highlighted how energy communities can transform the energy landscape by actively engaging its members in managing and producing renewable energy. By promoting local production and ownership of clean energy, these communities not only contribute to reduced carbon emissions but also foster a culture of shared responsibility and environmental stewardship. While energy communities hold great promise, challenges remain such as legislative frameworks, financing, and technical knowledge. With the right support, energy communities can facilitate local empowerment, sustainable development, and a greener, more resilient energy future.

For many, energy communities are a living example of social innovation and the ability of all citizens to participate in their country’s energy transition.

They are in fact a pure-purpose cooperative aimed at promoting the social economy and innovation in the energy sector. It is based on voluntary and open participation and is under the effective control of its members.

According to the EU Energy Community Map, there are around 9.200 EU Energy Communities. More than half of them are located in Germany, followed by the Netherlands and Denmark. There are hardly any Energy Communities in Eastern Europe. However, many Member States had already developed relevant legislation on energy communities before the introduction of EU legislative requirements. A very good example is Denmark, which understood the potential and importance of community wind energy projects very early on. But most Member States started regulating Energy Communities after the introduction of the legislative obligations – including Cyprus.

It is worth mentioning that a Draft Regulatory Decision under the responsibility of the RAEC was published in mid-May 2024 and the public consultation ended in July 2024.