Community Energy
Level 2: Intermediate
Let's go!
Introduction
In this course, we will analyze the more technological and organizational aspects that underpin the modern community energy systems which make them successful. The participants will begin with the basic community energy technologies including solar, wind, biomass, and micro hydro and their local applications. The course will focus on making community energy systems more reliable and efficient, paying special attention to the role of energy storage in community energy systems and various storage methods suited to different contexts. Learners will gain knowledge on community energy business models, tackling the questions concerning how ownership structures, financing, governance, citizen engagement, and long-term sustainability intersects. Lastly, these concepts will be illustrated with case studies from different parts of Europe, demonstrating the lessons learned and the impact of community-led if not, citizen initiatives on energy systems.
Start Course
Community Energy Level 2: Intermediate
Objectives
Modules
Exercises
Evaluation
Module 1: Introduction
Objectives
What will you learn?
- Get familiar with the main types of community energy initiatives
- Understand the strengths and challenges of each model
- Appreciate how these projects benefit society
- Interpret community energy case studies from practice
- Harness knowledge gained from the course to formulate or sustain a local community energy initiative
Modules
Module 3: Energy Storage in Community Energy Systems
Module 1: Introduction and objectives
Module 2: Technologies of Community Energies
Module 4: Community Energy Business Models
Module 5: Case studies
Module 6: Conclusion
Module 3: Technologies of Community Energies
In terms of ownership/development arrangements and technology employed, community energy can take many different forms. Although geothermal, combined heat and power (CHP), district heating and cooling, efficiency enhancements, and other technologies (like micro-grids) are also successfully implemented at the community level, small-scale wind, solar, biomass and hydropower systems are the most prevalent types of community energy technologies. Small-scale energy generation, when combined with storage, greatly increases community resilience and eliminates reliance on utilities for electricity.
Module 2: Technologies of Community Energies
Solar technology uses energy from the sun to create electricity or heat. In community energy projects, solar photovoltaic (PV) panels are regularly used to clean electricity that can be distributed to local residents, schools, or public buildings. Solar systems have an easy and low-cost installation followed by low maintenance which makes them the best for communities that want to reduce carbon footprint and energy bills.
Wind energy projects that a community either owns, operates, or benefits from directly, can be classified under the term community wind. These projects, which usually have one or more wind turbines, produce clean electricity and profit the community at the same time. Profits made can be utilized to reduce the energy costs and get back better public services or social initiatives. Such wind projects enable local job creation alongside sustainable income generation.
Module 2: Technologies of Community Energies
Energy from biomass comes from organic materials such as wood chips, agricultural residues, and even food waste—organically derived products that can be converted into either heat or electricity. Especially in rural or forested areas, biomass is frequently employed for district heating systems or small-scale power generation as part of community energy initiatives. As is the case with all renewable energy, this form of energy helps preserve local resource cycles, diminishes fossil fuel dependency, and has the potential to create employment opportunities in harvesting, processing, and system maintenance.
Hydro power, or hydroelectric energy, generates electricity through the movement of water, usually from rivers or streams. Community energy projects often employ micro hydro systems which require no large dams and generate power on a modest scale. These systems work best in rural or mountainous regions with dependable water supply. Hydro power is a consistent and everlasting source of energy that has low running costs and emissions.
Module 2: Technologies of Community Energies
Why does diversity on community energies is imporant?
The various forms of community energy systems is important because it enables each community to tailored ease of access to local resources, geography, and matters importantly identify regional specific needs. Certain regions may be favorable to strong winds while nadir regions may have access to flowing rivers along with abundant sunlight or access to organic wastes. Having a variety of technologies such as solar, wind, biomass, hydro and even hybrids allow community designers to work on projects that are not only energy effective but also socially, economically and environmentally sustainable. This adaptability improves the promise of enduring success in the transition to clean energy by fostering local ownership, augmenting energy resilience, and providing greater levels of adaptability.
Module 2: Technologies of Community Energies
Ownership and Governance Types
Energy Communities
Cooperatives
Hybrid or Public-Private Models
Municipality-led Projects
This classification focuses on who owns, manages, and benefits from the energy project—not just the technology used. Governance and ownership structures deeply influence how democratic, inclusive, and sustainable a community energy initiative can be.
Module 3: Energy Storage in Community Energy Systems
The technologies that store energy are definitive in community energy systems as they optimize use of solar and wind energies by balancing the gathering and utilization of energy, streamlining energy reliability, and using energies renewably come. The capturing and deploying of energy supersedes demand within the confines of community energy systems and storage technologies provide the required sustenance when demand arises. Aside from reducing dependence, this technology ensures enhancement in local energy supply that helps push communities closer to lowered central grid reliance cost.
Module 3: Energy Storage in Community Energy Systems
Types of Storage Used in Community Energy
Battery Storage (e.g., lithium-ion, flow batteries)
Thermal Storage
Mechanical Storage (e.g., pumped hydro, flywheels)
Module 3: Energy Storage in Community Energy Systems
Battery Storage (e.g., lithium-ion, flow batteries)
The most prevalent type of energy storage utilized by community energy projects of a small to medium scale is battery storage. It stores electricity generated from renewable sources like solar panels and wind turbines for periods of low electricity production, such as at night or during cloudy and windless days. These batteries provide energy automation and agile response deployment, making them optimal for energy demand streaming and stabilizing supply, especially for off-grid and connected systems. They can be deployed at various levels, ranging from individual households, shared apartments, and down to centralized community battery banks. Despite their high cost, battery systems are increasingly being viewed as fundamental to achieving energy independence due to their declining costs.
Module 3: Energy Storage in Community Energy Systems
Battery Storage (e.g., lithium-ion, flow batteries)
Thermal storage systems are capable of storing energy as heat, which can be utilized later for heating spaces or providing hot water. This is particularly advantageous for communities with established district heating systems or in projects using biomass or solar thermal technologies. Well-known examples are hot water tanks and certain phase-change materials which can store and release heat efficiently. Alongside cheaper and simpler heating solutions, thermal storage serves as an economic option in colder climates, as it reduces the amount of fossil fuels needed for heating. Although thermal storage does not store electricity, it is a vital component in integrated energy systems where the heating demand is a substantial portion of energy consumption within the region.
Source:https://www.calmac.com/how-energy-storage-works
Module 3: Energy Storage in Community Energy Systems
Mechanical Storage (e.g., pumped hydro, flywheels)
Pumped hydro and flywheel technologies represent forms of mechanical energy storage systems that use gravity and rotational motion to store energy. In pumped hydro systems, surplus electrical energy can be transformed into gravitational potential energy by elevating water which may be released later through turbines to generate electricity when required. Flywheels store energy in the form of rotating kinetic energy in a rotor which can subsequently be discharged as electrical power when needed. Pumped hydro and flywheel systems are extensively proven and streamlined; however, they are seldom integrated into community energy systems, because of the high financial investment, complexity, and stringent geographical prerequisites such as the presence of suitable water reservoirs or suitable terrain. Still, in certain situations, for example, in some mountain regions, these systems can significantly bolster the value of community energy resilience by providing long-term, high-capacity storage.
Module 3: Energy Storage in Community Energy Systems
How to Choose the Right Storage Solution?
- Evaluation of local demand: electricity versus heating requirements, daily load shape
- Locally available resources: solar radiation, biomass, elevation for hydro, physical space
- Project Scope: Single House, Multi-Family Building, Neighborhood, or Community Scale
- Cost limitations and profitability estimate
Practical TIP You can use a flowchart to guide you in selecting the appropriate energy storage for your community Find a template here
Module 4: Community Energy Business Models
A community energy business model is the economical approach within a community energy project regarding the financing, ownership, operation, and maintenance of the project. It describes the stakeholders involved such as the resource providers, system managers, and beneficiaries of the produced energy and its monetary returns. In contrast to community energy projects, traditional commercial energy companies focus almost entirely on profit-driven motives, community energy projects strive to achieve a greater social, environmental, and economic impact. Their business models focus on multi-stakeholder ownership, inclusive governance, community reinvestment, and sustainability. Every energy initiative relies on an all-inclusive and transparent business model to ensure community engagement.
Module 4: Community Energy Business Models
Core Principles of Community Energy Models Like many other community-centered energy models, community energy models have a foundational set of principles based on justice and local empowerment. The nucleus is community ownership, where residents fully possess and occasionally manage the energy system. Members’ participation is guaranteed through democratic governance using one-member-one vote systems. These models are designed for local benefits wherein the financial surplus is distributed among members or reinvested in community services, energy access, or sustainability initiatives. Guided by these ideas, community energy business models achieve social impact with financial self-sufficiency and cost-effective funding sources. Combining these principles enables community energy to transcend the boundaries of merely being regarded as an energy supply towards serving as a catalyst for social change.
✅ Community Ownership – Citizens collectively own the energy system or hold shares. ✅ Democratic Governance – Decisions made through voting or local representation. ✅ Local Benefit – Profits stay in the community: lower bills, reinvestment, or public services. ✅ Financial Sustainability – Models must balance ideals with long-term economic viability.
Module 4: Community Energy Business Models
Popular models in practice
Community Benefit Society / Social Enterprise
Public-Community Partnerships
Community-Private Hybrids
Energy-as-a-Service (EaaS)
Cooperative
Module 4: Community Energy Business Models
Cooperative model
This model is legally structured and mission-driven to achieve a public benefit and not an individual profit. A Community Benefit Society (CBS) or social entreprise reinvests all or most of its income toward reducing energy poverty and local education by socially or environmentally beneficial initiatives. How it works:
There are community and investor contributions, however, there is no individual profit for anyone, only surplus funds put to additional social use beyond community benefit payments. Governance may involve elected boards or advisory culcaels, or both.
Key Features:
Main focus is the collective community advantage
Community Initiative profit dedicated to local development projects
Community participation through governance systems oversight
Benefits:
Directly contributes to public interest goals
May pursue funding from philanthropies and the public
Funds directed to transparent purposes enhance trust
Risks:
Less financial incentive for individual investors
May be required to undergo additional reporting and scrutiny
Module 4: Community Energy Business Models
Community Benefit Society / Social Enterprise
This model is impact-oriented and legally structured as a mission driven community benefit society which delivers public value. A CBS or social enterprise seeks to reduce energy poverty, or improve education by reinvesting most if not all income towards social or environmental objectives. How it works:
Community members and investors can make financial contributions; however, profits cannot be distributed to individuals. Instead, surplus funds are allocated for the community’s welfare. Governance structures can include elected boards and advisory councils.
Key Features:
Focus on collective benefit, not private gain.
Funding directed towards local enterprises and initiatives.
Community oversight through governance structures.
Comparative Advantages:
Align most closely with goals of the public interest.
Allows for independent philanthropy and public funding sources.
Trust is enhanced through transparent use of funds.
Challenges:
Reduced financial appeal for participating individual investors.
Increased formality requiring additional reporting and regulatory documentation.
Module 4: Community Energy Business Models
Public-Community Partnership
This model integrates the capabilities of local governments and local civic organizations. Civil groups furnish local expertise and civic participation necessary for oversight, while municipalities may offer infrastructure, land, or even capital investment. How it works:
Control and ownership under this approach are governed by formal agreements which stipulate shared control and joint decision making on benefits. Each party may receive negotiated benefits, and even revenue sharing between the public authority and community is possible.
Key Features:
Joint ownership of civil public institutions and local citizens
Assumed shared risk and responsibility
All public interest objectives are met with active community participation
Advantages:
Access to public works and financing resources
Enhanced legitimacy and participation in large-scale projects
Active pluralism is fostered
Challenges:
Governance and legal frameworks are overly elaborate
Differing priorities from public and community stakeholders
Module 4: Community Energy Business Models
Community-Private Hybrid
Under this model, the community collaborates with a private contractor or firm to implement the energy project. While ownership, risks, and benefits are shared, the private partner usually contributes his or her expertise in the form of financing. How it Works:
The community may hold some ownership stake in the project or gain access to energy or financial dividends in the future. Contracts stipulate the scope of work for each party and how income will be generated and shared.
Key Features:
Collaborative business arrangement with the community and private investors.
Community ownership and/or benefit-sharing is encouraged, though limited to minority stake.
Access to outside financing as well as managed services.
Advantages:
Facilitates advanced and expanded project possibilities.
Alleviates financial and technical responsibilities placed on a community.
Translates into integration of diverse resources.
Challenges:
Risk of power dynamics skewing molds of governance becomes a factor.
Limited community governance.
Must possess sound knowledge of finance and the law.
Module 4: Community Energy Business Models
Energy-as-a-Service (EaaS)
With this new model, communities can now access renewable energy infrastructure without having to own it. A company (third-party) installs and maintains the system, while the community finances through a subscription, lease, or performance contract. How it Works:
The community benefits from renewable energy use such as solar, storage, or efficiency upgrades without needing to provide upfront capital or technical expertise. The provider owns and maintains the system.
Key Characteristics:
Service is paid for, not ownership
No or low upfront costs
Flexible terms and scaling
Benefits:
Low capacity resource communities are able to participate.
Reduces complexity and risk.
Supports energy efficiency and emissions objectives.
Concerns:
Limited operational and pricing control.
Community is unable to build long-term revenue or assets.
Module 5: Case studies
Minoan Energy in Crete, Greece
The Region of Crete and different municipalities support Minoan Energy, a cooperative system of private individuals and local enterprises. Minoan’s main aim is to produce, store, and sell green energy to its members. Families, enterprises, and municipalities are all encouraged to participate in the energy cost reduction through participation in investment returns, while having collaborative ownership on the energy development projects.
With more than 230 members which include public bodies, businesses or even individual households, Minoan Energy functions democratically. Every single member can participate in the General Assembly whereby the executive decisions are taken and strategic matters tackled. There is a Board of Directors which is elected each term and is responsible for daily management. The limited financial risk wherein members are only liable to the value of their shares Minoan Energy functions democratically proves beneficial.
Link
Module 5: Case studies
Link
Lithuania’s Prosumer Solar Community Model
The application of the "Saulės bendruomenė” or Solar Community program in Lithuania allows for innovative self-sustaining structures that enable inhabitants to become energy “prosumers”. The project is useful to people living in multi-storey homes, or regions where it is not feasible to install personal solar panels. Remote Solar Panel Purchases:
- Participants can buy or lease portions of solar power plants through existing online platforms. Participants do not need to be physically present at the site to reap the rewards of solar energy production.
- Government Backing: With public expenditure, the Lithuanian government offers additional Aids and subsidies aimed to participants which include integration assistance for renewable power sources into the national power grid.
- The project expands participation toward the green transition by actively allowing the previously neglected populations such as apartment occupants, promoting energy equity and inclusion expansion into the green transition.
Impact:
- Environmental: In supported projects aiming to diversify the energy mixture further increases the share of renewable energy aims to contribute towards fighting green house emissions in Lithuania.
- Economic: Participants in the solar community are also rewarded economically by reducing expenditures on purchase of electricity, and can earn back some money through solar investment.
- Social Empowerment: The program enables citizens’ participation in energy generation which increases the use of renewable resources and promotes public awareness to a higher degree.
Module 5: Case studies
Gabrovo Energy Community – Pioneering Municipal-Led Renewable Energy in Bulgaria
The Gabrovo Energy Community is one of the first electricity-consuming communities in Bulgaria which was established in 2022. It showcases the partnership of local governing bodies with the local population aimed at promoting the use of renewable energy sources and energy democracy.Key takeaways:
- Municipal Engagement: The Municipality of Gabrovo was the first to start the project, carrying out feasibility studies, legal reviews, and looking into financing options for the community’s energy project.
- Community Invitation: The energy community was legally constituted in November 2022 and incorporated citizens, business and civil organizations, and local small and medium enterprises. One of the first initiatives was the fundraising campaign to raise BGN 180,000 or €92,000 from the members for the first photovoltaic installation.
- Renewable Energy Initiatives: Through the community’s efforts, construction of the first solar power plant was completed.
Link
Module 5: Case studies
OurPower Cooperative – Vienna, Austria
Founded in 2018 in Vienna, Austria, OurPower is a citizen-owned energy cooperative. Its mission is to directly link renewable energy producers and consumers on a digital platform, thus decentralizing the electricity market. With OurPower, members no longer have to depend on big utility companies because they can now locally produce, buy, and sell green electricity, giving them more control over the source of their energy. Key Features:
- Member-Owned: All users of the platform create, buy and sell electricity; additionally, as cooperative members, have voting power and influence over the governance decisions.
- Transparent Pricing: As consumers have previously set prices, they know where their money is going.
- Digital Innovation: Real-time peer-to-peer and decentralized sharing of energy is made possible using smart meters and data analytics enabled by the platform.
- Decentralization: Local production and consumption of energy reduces grid dependency and transmission losses.
Link
Module 5: Case studies
Energy Community in Magliano Alpi, Piedmont, Italy
Magliano Alpi, located in the Piedmont region of Italy, is one of the Italian municipalities which created the first energy communities in the country. It brings together citizens, companies and the municipality for a common purpose – to generate and consume energy in a collaborative way, mainly through solar photovoltaic systems.Key Features:
- Community Engagement: Each public stakeholder as well as private partners such as households and local businesses make up the energy community and as such contribute to and share the management of energy.
- Renewable Energy Production: The aim of the community is to produce electricity from renewable energy sources. Solar panels located on public and private buildings generate renewable energy to be used locally.
- Energy Exchange: The community optimizes its consumption by sharing the generated energy with each other, doing away with the need for external energy suppliers.
- Environmental Effect: Using renewable energy significantly decreases the emission of greenhouse gasses and therefore contributes to Italy’s climate goals.
Link
Module 6: Conclusion
Upon completing this course, learners will be familiar with the core elements that comprise contemporary community energy systems. They reviewed various renewable energy technologies, including solar, wind, biomass, and micro-hydro, and learned their adaptations to local conditions. By studying energy storage systems, learners understand how community-controlled energy systems achieve reliability and flexibility. Furthermore, learners were exposed to various business models that enable supportive democratic governance and sustainable perpetuity coupled with pluralistic stewardship. Together with real-world case studies, this knowledge enables learners to assess, design, or take part in community energy projects that provide clean energy while advancing local social, economic, and environmental benefits.
Exercises
Exercise 2
Exercise 1
In this activity, learners will assess the energy profile of their community with regard to energy generation type, electricity vs heating requirements, grid interconnection, and seasonal demand as well as identify the most appropriate storage solution. They will make a decision based on the chosen energy technology and local conditions on battery, thermal, or mechanical storage. With guided reflection, learners will gain an understanding of how energy storage improves community energy systems and facilitates energy autonomy.
In this hands-on activity, learners will analyze the specific features of their own community—including natural resources, geography, and energy requirements—and determine which renewable energy technology would fit best. Considering options such as solar power, wind energy, biomass, and micro-hydro, learners will make a reasoned choice on which technology or combination of technologies would be most appropriate. This activity bridges the gap between technical knowledge and its application in the field and equips learners for practical approaches towards planning sustainable energy systems.
.
Practical Exercise: Most suitable community energy technology
Objective:
Learners will choose the most appropriate renewable energy technology for a community energy project
Steps::
1. Describe Your Community:Is it rural, urban, or semi-urban? What are the natural resources available? (sun, wind, water sources, organic/agricultural waste) What is the population size and density? What are the main energy uses (e.g., heating, electricity, industrial use)? 2. Review the Four Key Technologies (solar, wind, biomass, micro-hydro): 3. Choose the Most Appropriate Technology: Which one best matches the available resources and community needs? Are there any technical, financial, or regulatory barriers in your region? 4. Answer the Following Questions in Writing: What technology did you choose and why? What benefits would this technology bring to your community? What might be a challenge in implementing it? Could a combination of technologies (a hybrid) work better? Deliverable: 5-slide presentation.
Practical Exercise: Selecting the Right Energy Storage Solution
Objective:
Help learners determine which type of energy storage system best fits their community energy setup, based on their specific local energy profile.
Steps:
- Evaluate Your Community’s Energy Profile
- Review the Storage Options (batteries, thermal, mechanical)
- Make Your Choice and explain why
- Answer the following questions
What storage solution did you choose and why? How does it support your chosen renewable technology? What limitations or challenges might arise from using this type of storage? Would combining multiple storage methods make sense?Deliverable: A short written proposal (300–400 words) or 3-slide pitch.
Evaluation
Evaluation Quiz
1. This quiz consists of 8 multiple-choice questions related to energy sources, environmental impact, and energy transition.
2. Choose the correct answer for each question (only one per question).
3. The quiz helps reinforce key concepts covered in the course.
Quiz
Quiz
Quiz
Quiz
Quiz
Quiz
Quiz
Quiz
Sources
European Commission. (2019). Clean energy for all Europeans package. Retrieved from https://energy.ec.europa.eu/topics/energy-strategy/clean-energy-all-europeans_en
European Commission. (2021). Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources (RED II). Official Journal of the European Union. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018L2001
European Commission. (2019). Directive (EU) 2019/944 on common rules for the internal market for electricity. Official Journal of the European Union. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32019L0944
European Commission. (2022). State aid guidelines for climate, environmental protection and energy (CEEAG). Retrieved from https://ec.europa.eu/competition-policy/state-aid/environmental-protection-and-energy_en
LIFE-BECKON. (2023). Regulation highlights for energy communities – LIFE-BECKON. [YouTube Video]. Retrieved from https://www.youtube.com/watch?v=eXPwHjoPF7Q
Repowering London. (n.d.). Community energy in action. Retrieved from https://www.repowering.org.uk/
REScoop.eu. (n.d.). REScoop Flanders. Retrieved from https://www.rescoop.eu/
Som Energia. (n.d.). Who we are. Retrieved from https://www.somenergia.coop/en/who-we-are/
Triodos Bank. (n.d.). Financing the transition to sustainable energy. Retrieved from https://www.triodos.com/
Certificate
Congratulations!
Certificate of Completion
To receive an Open Badge for this course, please contact the local project partner: Kaunas University of Technology.
Level completed!
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the National Agency. Neither the European Union nor National Agency can be held responsible for them.
Ownership: Integrates stakeholders from the government, private sector and the community.
Strengths:
Draws from various resources and knowledge.
Facilitates larger or more complex projects of a technical nature.
Risks:
Uneven distribution of power - citizens' voices may be muted.
- Miscalibration of values (for example, profit versus serving the community).
Legal Reference: Identified in EU directives such as RED II and Electricity Market Directive.
Scope: Encompasses individuals, small and medium-sized businesses, and local authorities.
Emphasis: Environmental, economic, and social value above profit.
Strengths:
Access to funding and grid rights are available due to legal recognition.
Fosters greater collaboration and participation.
Challenges:
The national implementation is inconsistent and may be complicated to navigate.
This area is still developing as a policy and practical approach.
Ownership: Usually initiated by local governments and sometimes includes the community's contribution.
Strengths:
Takes advantage of existing public facilities and administrative systems.
Guarantees that services offered are consistent with local needs and policies.
Limitations:
Might deal with inflexible red tape and sluggish regulations.
- Danger of minimal direct public involvement unless collaboratively developed.
Core features: Democracy from the Bottom Up, One Person One Vote, and Participatory Ownership.Strengths:
- Excellent trustworthiness and engagement from the community.
- Profits are typically distributed or reinvested back to where they came from.
- Creates local trust with a longer-term orientation.
Limitations:
- May need a system of volunteers and organizational prowess that is too stringently defined.
- Relies heavily on the enthusiasm of some critical people.
4.2 Community Energy
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Transcript
Community Energy
Level 2: Intermediate
Let's go!
Introduction
In this course, we will analyze the more technological and organizational aspects that underpin the modern community energy systems which make them successful. The participants will begin with the basic community energy technologies including solar, wind, biomass, and micro hydro and their local applications. The course will focus on making community energy systems more reliable and efficient, paying special attention to the role of energy storage in community energy systems and various storage methods suited to different contexts. Learners will gain knowledge on community energy business models, tackling the questions concerning how ownership structures, financing, governance, citizen engagement, and long-term sustainability intersects. Lastly, these concepts will be illustrated with case studies from different parts of Europe, demonstrating the lessons learned and the impact of community-led if not, citizen initiatives on energy systems.
Start Course
Community Energy Level 2: Intermediate
Objectives
Modules
Exercises
Evaluation
Module 1: Introduction
Objectives
What will you learn?
Modules
Module 3: Energy Storage in Community Energy Systems
Module 1: Introduction and objectives
Module 2: Technologies of Community Energies
Module 4: Community Energy Business Models
Module 5: Case studies
Module 6: Conclusion
Module 3: Technologies of Community Energies
In terms of ownership/development arrangements and technology employed, community energy can take many different forms. Although geothermal, combined heat and power (CHP), district heating and cooling, efficiency enhancements, and other technologies (like micro-grids) are also successfully implemented at the community level, small-scale wind, solar, biomass and hydropower systems are the most prevalent types of community energy technologies. Small-scale energy generation, when combined with storage, greatly increases community resilience and eliminates reliance on utilities for electricity.
Module 2: Technologies of Community Energies
- Solar
Solar technology uses energy from the sun to create electricity or heat. In community energy projects, solar photovoltaic (PV) panels are regularly used to clean electricity that can be distributed to local residents, schools, or public buildings. Solar systems have an easy and low-cost installation followed by low maintenance which makes them the best for communities that want to reduce carbon footprint and energy bills.- Wind
Wind energy projects that a community either owns, operates, or benefits from directly, can be classified under the term community wind. These projects, which usually have one or more wind turbines, produce clean electricity and profit the community at the same time. Profits made can be utilized to reduce the energy costs and get back better public services or social initiatives. Such wind projects enable local job creation alongside sustainable income generation.Module 2: Technologies of Community Energies
- Biomass
Energy from biomass comes from organic materials such as wood chips, agricultural residues, and even food waste—organically derived products that can be converted into either heat or electricity. Especially in rural or forested areas, biomass is frequently employed for district heating systems or small-scale power generation as part of community energy initiatives. As is the case with all renewable energy, this form of energy helps preserve local resource cycles, diminishes fossil fuel dependency, and has the potential to create employment opportunities in harvesting, processing, and system maintenance.- Hydro Power
Hydro power, or hydroelectric energy, generates electricity through the movement of water, usually from rivers or streams. Community energy projects often employ micro hydro systems which require no large dams and generate power on a modest scale. These systems work best in rural or mountainous regions with dependable water supply. Hydro power is a consistent and everlasting source of energy that has low running costs and emissions.Module 2: Technologies of Community Energies
Why does diversity on community energies is imporant?
The various forms of community energy systems is important because it enables each community to tailored ease of access to local resources, geography, and matters importantly identify regional specific needs. Certain regions may be favorable to strong winds while nadir regions may have access to flowing rivers along with abundant sunlight or access to organic wastes. Having a variety of technologies such as solar, wind, biomass, hydro and even hybrids allow community designers to work on projects that are not only energy effective but also socially, economically and environmentally sustainable. This adaptability improves the promise of enduring success in the transition to clean energy by fostering local ownership, augmenting energy resilience, and providing greater levels of adaptability.
Module 2: Technologies of Community Energies
Ownership and Governance Types
Energy Communities
Cooperatives
Hybrid or Public-Private Models
Municipality-led Projects
This classification focuses on who owns, manages, and benefits from the energy project—not just the technology used. Governance and ownership structures deeply influence how democratic, inclusive, and sustainable a community energy initiative can be.
Module 3: Energy Storage in Community Energy Systems
The technologies that store energy are definitive in community energy systems as they optimize use of solar and wind energies by balancing the gathering and utilization of energy, streamlining energy reliability, and using energies renewably come. The capturing and deploying of energy supersedes demand within the confines of community energy systems and storage technologies provide the required sustenance when demand arises. Aside from reducing dependence, this technology ensures enhancement in local energy supply that helps push communities closer to lowered central grid reliance cost.
Module 3: Energy Storage in Community Energy Systems
Types of Storage Used in Community Energy
Battery Storage (e.g., lithium-ion, flow batteries)
Thermal Storage
Mechanical Storage (e.g., pumped hydro, flywheels)
Module 3: Energy Storage in Community Energy Systems
Battery Storage (e.g., lithium-ion, flow batteries)
The most prevalent type of energy storage utilized by community energy projects of a small to medium scale is battery storage. It stores electricity generated from renewable sources like solar panels and wind turbines for periods of low electricity production, such as at night or during cloudy and windless days. These batteries provide energy automation and agile response deployment, making them optimal for energy demand streaming and stabilizing supply, especially for off-grid and connected systems. They can be deployed at various levels, ranging from individual households, shared apartments, and down to centralized community battery banks. Despite their high cost, battery systems are increasingly being viewed as fundamental to achieving energy independence due to their declining costs.
Module 3: Energy Storage in Community Energy Systems
Battery Storage (e.g., lithium-ion, flow batteries)
Thermal storage systems are capable of storing energy as heat, which can be utilized later for heating spaces or providing hot water. This is particularly advantageous for communities with established district heating systems or in projects using biomass or solar thermal technologies. Well-known examples are hot water tanks and certain phase-change materials which can store and release heat efficiently. Alongside cheaper and simpler heating solutions, thermal storage serves as an economic option in colder climates, as it reduces the amount of fossil fuels needed for heating. Although thermal storage does not store electricity, it is a vital component in integrated energy systems where the heating demand is a substantial portion of energy consumption within the region.
Source:https://www.calmac.com/how-energy-storage-works
Module 3: Energy Storage in Community Energy Systems
Mechanical Storage (e.g., pumped hydro, flywheels)
Pumped hydro and flywheel technologies represent forms of mechanical energy storage systems that use gravity and rotational motion to store energy. In pumped hydro systems, surplus electrical energy can be transformed into gravitational potential energy by elevating water which may be released later through turbines to generate electricity when required. Flywheels store energy in the form of rotating kinetic energy in a rotor which can subsequently be discharged as electrical power when needed. Pumped hydro and flywheel systems are extensively proven and streamlined; however, they are seldom integrated into community energy systems, because of the high financial investment, complexity, and stringent geographical prerequisites such as the presence of suitable water reservoirs or suitable terrain. Still, in certain situations, for example, in some mountain regions, these systems can significantly bolster the value of community energy resilience by providing long-term, high-capacity storage.
Module 3: Energy Storage in Community Energy Systems
How to Choose the Right Storage Solution?
Practical TIP You can use a flowchart to guide you in selecting the appropriate energy storage for your community Find a template here
Module 4: Community Energy Business Models
A community energy business model is the economical approach within a community energy project regarding the financing, ownership, operation, and maintenance of the project. It describes the stakeholders involved such as the resource providers, system managers, and beneficiaries of the produced energy and its monetary returns. In contrast to community energy projects, traditional commercial energy companies focus almost entirely on profit-driven motives, community energy projects strive to achieve a greater social, environmental, and economic impact. Their business models focus on multi-stakeholder ownership, inclusive governance, community reinvestment, and sustainability. Every energy initiative relies on an all-inclusive and transparent business model to ensure community engagement.
Module 4: Community Energy Business Models
Core Principles of Community Energy Models Like many other community-centered energy models, community energy models have a foundational set of principles based on justice and local empowerment. The nucleus is community ownership, where residents fully possess and occasionally manage the energy system. Members’ participation is guaranteed through democratic governance using one-member-one vote systems. These models are designed for local benefits wherein the financial surplus is distributed among members or reinvested in community services, energy access, or sustainability initiatives. Guided by these ideas, community energy business models achieve social impact with financial self-sufficiency and cost-effective funding sources. Combining these principles enables community energy to transcend the boundaries of merely being regarded as an energy supply towards serving as a catalyst for social change.
✅ Community Ownership – Citizens collectively own the energy system or hold shares. ✅ Democratic Governance – Decisions made through voting or local representation. ✅ Local Benefit – Profits stay in the community: lower bills, reinvestment, or public services. ✅ Financial Sustainability – Models must balance ideals with long-term economic viability.
Module 4: Community Energy Business Models
Popular models in practice
Community Benefit Society / Social Enterprise
Public-Community Partnerships
Community-Private Hybrids
Energy-as-a-Service (EaaS)
Cooperative
Module 4: Community Energy Business Models
Cooperative model
This model is legally structured and mission-driven to achieve a public benefit and not an individual profit. A Community Benefit Society (CBS) or social entreprise reinvests all or most of its income toward reducing energy poverty and local education by socially or environmentally beneficial initiatives. How it works: There are community and investor contributions, however, there is no individual profit for anyone, only surplus funds put to additional social use beyond community benefit payments. Governance may involve elected boards or advisory culcaels, or both. Key Features: Main focus is the collective community advantage Community Initiative profit dedicated to local development projects Community participation through governance systems oversight Benefits: Directly contributes to public interest goals May pursue funding from philanthropies and the public Funds directed to transparent purposes enhance trust Risks: Less financial incentive for individual investors May be required to undergo additional reporting and scrutiny
Module 4: Community Energy Business Models
Community Benefit Society / Social Enterprise
This model is impact-oriented and legally structured as a mission driven community benefit society which delivers public value. A CBS or social enterprise seeks to reduce energy poverty, or improve education by reinvesting most if not all income towards social or environmental objectives. How it works: Community members and investors can make financial contributions; however, profits cannot be distributed to individuals. Instead, surplus funds are allocated for the community’s welfare. Governance structures can include elected boards and advisory councils. Key Features: Focus on collective benefit, not private gain. Funding directed towards local enterprises and initiatives. Community oversight through governance structures. Comparative Advantages: Align most closely with goals of the public interest. Allows for independent philanthropy and public funding sources. Trust is enhanced through transparent use of funds. Challenges: Reduced financial appeal for participating individual investors. Increased formality requiring additional reporting and regulatory documentation.
Module 4: Community Energy Business Models
Public-Community Partnership
This model integrates the capabilities of local governments and local civic organizations. Civil groups furnish local expertise and civic participation necessary for oversight, while municipalities may offer infrastructure, land, or even capital investment. How it works: Control and ownership under this approach are governed by formal agreements which stipulate shared control and joint decision making on benefits. Each party may receive negotiated benefits, and even revenue sharing between the public authority and community is possible. Key Features: Joint ownership of civil public institutions and local citizens Assumed shared risk and responsibility All public interest objectives are met with active community participation Advantages: Access to public works and financing resources Enhanced legitimacy and participation in large-scale projects Active pluralism is fostered Challenges: Governance and legal frameworks are overly elaborate Differing priorities from public and community stakeholders
Module 4: Community Energy Business Models
Community-Private Hybrid
Under this model, the community collaborates with a private contractor or firm to implement the energy project. While ownership, risks, and benefits are shared, the private partner usually contributes his or her expertise in the form of financing. How it Works: The community may hold some ownership stake in the project or gain access to energy or financial dividends in the future. Contracts stipulate the scope of work for each party and how income will be generated and shared. Key Features: Collaborative business arrangement with the community and private investors. Community ownership and/or benefit-sharing is encouraged, though limited to minority stake. Access to outside financing as well as managed services. Advantages: Facilitates advanced and expanded project possibilities. Alleviates financial and technical responsibilities placed on a community. Translates into integration of diverse resources. Challenges: Risk of power dynamics skewing molds of governance becomes a factor. Limited community governance. Must possess sound knowledge of finance and the law.
Module 4: Community Energy Business Models
Energy-as-a-Service (EaaS)
With this new model, communities can now access renewable energy infrastructure without having to own it. A company (third-party) installs and maintains the system, while the community finances through a subscription, lease, or performance contract. How it Works: The community benefits from renewable energy use such as solar, storage, or efficiency upgrades without needing to provide upfront capital or technical expertise. The provider owns and maintains the system. Key Characteristics: Service is paid for, not ownership No or low upfront costs Flexible terms and scaling Benefits: Low capacity resource communities are able to participate. Reduces complexity and risk. Supports energy efficiency and emissions objectives. Concerns: Limited operational and pricing control. Community is unable to build long-term revenue or assets.
Module 5: Case studies
Minoan Energy in Crete, Greece
The Region of Crete and different municipalities support Minoan Energy, a cooperative system of private individuals and local enterprises. Minoan’s main aim is to produce, store, and sell green energy to its members. Families, enterprises, and municipalities are all encouraged to participate in the energy cost reduction through participation in investment returns, while having collaborative ownership on the energy development projects. With more than 230 members which include public bodies, businesses or even individual households, Minoan Energy functions democratically. Every single member can participate in the General Assembly whereby the executive decisions are taken and strategic matters tackled. There is a Board of Directors which is elected each term and is responsible for daily management. The limited financial risk wherein members are only liable to the value of their shares Minoan Energy functions democratically proves beneficial.
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Module 5: Case studies
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Lithuania’s Prosumer Solar Community Model
The application of the "Saulės bendruomenė” or Solar Community program in Lithuania allows for innovative self-sustaining structures that enable inhabitants to become energy “prosumers”. The project is useful to people living in multi-storey homes, or regions where it is not feasible to install personal solar panels. Remote Solar Panel Purchases:
- The project expands participation toward the green transition by actively allowing the previously neglected populations such as apartment occupants, promoting energy equity and inclusion expansion into the green transition.
Impact:Module 5: Case studies
Gabrovo Energy Community – Pioneering Municipal-Led Renewable Energy in Bulgaria
The Gabrovo Energy Community is one of the first electricity-consuming communities in Bulgaria which was established in 2022. It showcases the partnership of local governing bodies with the local population aimed at promoting the use of renewable energy sources and energy democracy.Key takeaways:
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Module 5: Case studies
OurPower Cooperative – Vienna, Austria
Founded in 2018 in Vienna, Austria, OurPower is a citizen-owned energy cooperative. Its mission is to directly link renewable energy producers and consumers on a digital platform, thus decentralizing the electricity market. With OurPower, members no longer have to depend on big utility companies because they can now locally produce, buy, and sell green electricity, giving them more control over the source of their energy. Key Features:
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Module 5: Case studies
Energy Community in Magliano Alpi, Piedmont, Italy
Magliano Alpi, located in the Piedmont region of Italy, is one of the Italian municipalities which created the first energy communities in the country. It brings together citizens, companies and the municipality for a common purpose – to generate and consume energy in a collaborative way, mainly through solar photovoltaic systems.Key Features:
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Module 6: Conclusion
Upon completing this course, learners will be familiar with the core elements that comprise contemporary community energy systems. They reviewed various renewable energy technologies, including solar, wind, biomass, and micro-hydro, and learned their adaptations to local conditions. By studying energy storage systems, learners understand how community-controlled energy systems achieve reliability and flexibility. Furthermore, learners were exposed to various business models that enable supportive democratic governance and sustainable perpetuity coupled with pluralistic stewardship. Together with real-world case studies, this knowledge enables learners to assess, design, or take part in community energy projects that provide clean energy while advancing local social, economic, and environmental benefits.
Exercises
Exercise 2
Exercise 1
In this activity, learners will assess the energy profile of their community with regard to energy generation type, electricity vs heating requirements, grid interconnection, and seasonal demand as well as identify the most appropriate storage solution. They will make a decision based on the chosen energy technology and local conditions on battery, thermal, or mechanical storage. With guided reflection, learners will gain an understanding of how energy storage improves community energy systems and facilitates energy autonomy.
In this hands-on activity, learners will analyze the specific features of their own community—including natural resources, geography, and energy requirements—and determine which renewable energy technology would fit best. Considering options such as solar power, wind energy, biomass, and micro-hydro, learners will make a reasoned choice on which technology or combination of technologies would be most appropriate. This activity bridges the gap between technical knowledge and its application in the field and equips learners for practical approaches towards planning sustainable energy systems. .
Practical Exercise: Most suitable community energy technology
Objective:
Learners will choose the most appropriate renewable energy technology for a community energy project
Steps::
1. Describe Your Community:Is it rural, urban, or semi-urban? What are the natural resources available? (sun, wind, water sources, organic/agricultural waste) What is the population size and density? What are the main energy uses (e.g., heating, electricity, industrial use)? 2. Review the Four Key Technologies (solar, wind, biomass, micro-hydro): 3. Choose the Most Appropriate Technology: Which one best matches the available resources and community needs? Are there any technical, financial, or regulatory barriers in your region? 4. Answer the Following Questions in Writing: What technology did you choose and why? What benefits would this technology bring to your community? What might be a challenge in implementing it? Could a combination of technologies (a hybrid) work better? Deliverable: 5-slide presentation.
Practical Exercise: Selecting the Right Energy Storage Solution
Objective:
Help learners determine which type of energy storage system best fits their community energy setup, based on their specific local energy profile.
Steps:
- Review the Storage Options (batteries, thermal, mechanical)
- Make Your Choice and explain why
- Answer the following questions
What storage solution did you choose and why? How does it support your chosen renewable technology? What limitations or challenges might arise from using this type of storage? Would combining multiple storage methods make sense?Deliverable: A short written proposal (300–400 words) or 3-slide pitch.Evaluation
Evaluation Quiz
1. This quiz consists of 8 multiple-choice questions related to energy sources, environmental impact, and energy transition. 2. Choose the correct answer for each question (only one per question). 3. The quiz helps reinforce key concepts covered in the course.
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Sources
European Commission. (2019). Clean energy for all Europeans package. Retrieved from https://energy.ec.europa.eu/topics/energy-strategy/clean-energy-all-europeans_en European Commission. (2021). Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources (RED II). Official Journal of the European Union. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018L2001 European Commission. (2019). Directive (EU) 2019/944 on common rules for the internal market for electricity. Official Journal of the European Union. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32019L0944 European Commission. (2022). State aid guidelines for climate, environmental protection and energy (CEEAG). Retrieved from https://ec.europa.eu/competition-policy/state-aid/environmental-protection-and-energy_en LIFE-BECKON. (2023). Regulation highlights for energy communities – LIFE-BECKON. [YouTube Video]. Retrieved from https://www.youtube.com/watch?v=eXPwHjoPF7Q Repowering London. (n.d.). Community energy in action. Retrieved from https://www.repowering.org.uk/ REScoop.eu. (n.d.). REScoop Flanders. Retrieved from https://www.rescoop.eu/ Som Energia. (n.d.). Who we are. Retrieved from https://www.somenergia.coop/en/who-we-are/ Triodos Bank. (n.d.). Financing the transition to sustainable energy. Retrieved from https://www.triodos.com/
Certificate
Congratulations!
Certificate of Completion
To receive an Open Badge for this course, please contact the local project partner: Kaunas University of Technology.
Level completed!
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the National Agency. Neither the European Union nor National Agency can be held responsible for them.
Ownership: Integrates stakeholders from the government, private sector and the community. Strengths: Draws from various resources and knowledge. Facilitates larger or more complex projects of a technical nature. Risks: Uneven distribution of power - citizens' voices may be muted. - Miscalibration of values (for example, profit versus serving the community).
Legal Reference: Identified in EU directives such as RED II and Electricity Market Directive. Scope: Encompasses individuals, small and medium-sized businesses, and local authorities. Emphasis: Environmental, economic, and social value above profit. Strengths: Access to funding and grid rights are available due to legal recognition. Fosters greater collaboration and participation. Challenges: The national implementation is inconsistent and may be complicated to navigate. This area is still developing as a policy and practical approach.
Ownership: Usually initiated by local governments and sometimes includes the community's contribution. Strengths: Takes advantage of existing public facilities and administrative systems. Guarantees that services offered are consistent with local needs and policies. Limitations: Might deal with inflexible red tape and sluggish regulations. - Danger of minimal direct public involvement unless collaboratively developed.
Core features: Democracy from the Bottom Up, One Person One Vote, and Participatory Ownership.Strengths:
- Excellent trustworthiness and engagement from the community.
- Profits are typically distributed or reinvested back to where they came from.
- Creates local trust with a longer-term orientation.
Limitations: