How the Citizens Energy Package supports energy sharing in Europe
The European Commission has presented a recommendation and an action plan to strengthen renewable energy communities across Europe. The initiative, released on 30 April, forms part of the Citizens Energy Package, a broader effort designed to protect citizens. It provides practical guidance to Member States on how to shield vulnerable groups from high energy prices, ensure competitive retail markets, enable informed consumer choices and accelerate self-consumption and energy sharing in Europe.
Renewable energy communities: progress and limits
Europe had set an ambitious bottom-up target: to establish at least one renewable energy community in every municipality with more than 10,000 inhabitants by 2025. Reality, however, tells a different story. According to the tenth State of the Energy Union report, published in November 2025, there are now more than 8,000 energy communities across the EU. A solid starting point, but still far from transformational.
Despite EU-level frameworks such as the Electricity Market Directive and REPowerEU, designed to enable citizens to produce, store, consume, share or sell renewable energy, and despite national incentives and funding, many projects remain stalled.
Structural barriers slowing energy sharing in Europe
The core issue is structural. These models rely heavily on citizen engagement and voluntary work. As a result, communities often face constraints in technical capacity, time and financial resources, which directly affect project development and access to energy markets.
As Brussels notes, “It is particularly difficult for energy communities to mobilise financing in the early stages, manage complex administrative procedures, invest in technical infrastructure or operate in energy markets.”
Yet, in a context marked by two energy crises in just five years, self-consumption and energy sharing in Europe should represent a primary line of defence.
“The conflict in the Middle East and its impact on energy prices highlight how unstable global energy markets remain and how urgent it is for Europe to strengthen its energy resilience. This must be the moment to accelerate the transition towards a more sustainable, secure and consumer-centred energy system,” said Dan Jørgensen.
The EU strategy to scale renewable energy communities
The work ahead remains substantial, but the Commission is setting out a clear pathway to reach 90 GW of installed renewable capacity through renewable energy communities. The strategy is built around five pillars: regulatory, financial, communicative, social and technological.
Enabling regulatory frameworks
From a regulatory perspective, Brussels will assess the need to simplify and align EU definitions of energy communities, while monitoring national barriers and best practices through the Citizen Energy Advisory Hub (CEAH). It will also investigate potential unfair marketing practices related to energy sharing.
Improving access to finance
The Commission will promote the use of InvestEU guarantees to unlock concessional loans in cooperation with the European Investment Fund. A dedicated guide on financing models for energy sharing and flexibility services will be published this year, alongside a working group to strengthen the use of cohesion funds.
The European Energy Communities Facility will also be extended beyond 2027, providing early-stage funding to over 140 communities in the pre-development phase.
Awareness and technical assistance
Brussels plans to launch a communication campaign focused on consumer rights and opportunities for local authorities, farmers and small businesses.
It will also provide direct technical assistance through the Citizen Energy Advisory Hub, supporting projects in storage, energy efficiency and renewables, while mobilising LIFE CET funding to scale initiatives through peer learning.
Strengthening social inclusion
Social inclusion remains central to the concept of renewable energy communities. The Commission will support local authorities, through the Energy Poverty Advisory Hub (EPAH), in engaging vulnerable households and tackling energy poverty.
This will be reinforced by promoting social inclusion criteria in public procurement and concessions, and by establishing a “community of practice” within the Public Buyers’ Platform.
A practical guide on citizen participation will also be published this year to help policymakers identify and support inclusive, citizen-led energy communities.
Advancing technological innovation
On the technological front, the Commission will fund smart solutions such as neighbourhood batteries through LIFE CET, alongside support for microgrids and renewable heating networks under Horizon Europe.
In particular, €12 million will be allocated to develop artificial intelligence algorithms aimed at optimising energy sharing.
By next year, the Commission will also assess how local energy markets at distribution level can be integrated with wholesale markets in a standardised way, ensuring that small distributed energy systems operate efficiently while enabling scalable flexibility.