The Future of Energy Communities in Southeast Europe

Launched in December 2022, the SunSharing Project aims to transform the energy landscape of Southeast Europe by promoting photovoltaic (PV)-based energy communities and innovative crowdfunding initiatives. The project promotes the development of energy communities in countries like Greece, North Macedonia, Croatia, and Bulgaria. Initiatives in these countries are paving the way for a better, greener, and more sustainable future for all their citizens.

by Antun Pfeifer, University of Zagreb - Faculty of Mechanical Engineering and Naval Architecture (UNIZAG FSB)

Published: 24 February 2025
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The project puts focus on raising awareness and understanding of solar energy communities among citizens and public authorities. By introducing best practices from across the EU, SunSharing builds the capacity of local stakeholders to implement sustainable energy solutions. With better policies and expertise, participating countries are better equipped to embrace a decarbonised future.

SunSharing project presented best practice examples and guidebooks for supporting energy communities, available from the project website in all languages of the project implementation.

The following examples of good practice have been in the focus of the SunSharing project, and have been discussed with the aim of replication during the project’s events.

Building a sustainable future with energy communities

As the world moves toward a renewable future, the concept of energy communities has become a powerful tool for local empowerment, energy independence, and environmental sustainability. But what are they? Energy communities promote sustainable, democratic, and locally produced energy, which encourages active participation of citizens on a local level. Citizen energy communities (CEC) provide opportunities for local employment, helping the local economy but also reducing greenhouse gas emissions along the way. They are citizen initiatives developed in response to the need for more sustainable and decentralised energy systems. Their main purpose is to enable citizens, local communities, organisations, and others to produce, consume, and share renewable energy.

Bulgaria: Gabrovo’s innovative public-private partnership

Gabrovo, Bulgaria, provides an inspiring example of leveraging public-private partnerships for renewable energy. In 2023, the municipality initiated a crowdfunding campaign to finance a 99.55 kW solar installation at a regional landfill.

The campaign attracted 73 investors, primarily local citizens and small businesses, emphasising the importance of community engagement. Gabrovo’s local government played a pivotal role in mobilising support, demonstrating the value of using municipal platforms to promote renewable energy projects.

Strategic partnerships with NGOs like EnEffect further boosted the project’s visibility, showcasing how collaborations can amplify the impact of energy initiatives. By ensuring transparency and fostering a sense of collective ownership, Gabrovo has set a benchmark for other municipalities aiming to embrace renewable energy.

The SunSharing capacity building event held in Plovdiv, Bulgaria, on 14.03.2024 © Private Archive.

Croatia: ZEZ Sun’s community-driven success

Croatia’s ZEZ Sun projects demonstrate the power of collective action in advancing renewable energy. One of the first projects, located in Križevci, is a community-owned solar plant. With a capacity of 200 kW, it was funded through a 10-day crowdfunding campaign involving 127 investors.

ZEZ Sun highlights the potential for citizen-led renewable energy initiatives, offering financial returns to participants while reducing carbon footprints. However, regulatory and administrative barriers remain a challenge. Simplifying legislative processes and introducing targeted subsidies could enhance the scalability of such projects in the future.

Public-private alliances have played a crucial role in ZEZ Sun’s success. The involvement of local government and businesses underscores the importance of partnerships in fostering sustainable energy transitions. By streamlining procedures and enhancing financial incentives, Croatia could replicate ZEZ Sun’s model across the nation.

During the SunSharing project, various initiatives worked on establishing CEC, through which three CEC emerged and were registered in 2024: My Energy Community, DVD Spickovina and The Energy Community of Northern Adriatic. The engagement of those communites, acting together with the Forum of energy communities in Croatia, continues in order to help the Government in formulating a supporting and enabling legal framework for energy communities in Croatia.

Conference on the topic of energy communities in Croatia in 2023 © Private Archive.
A workshop for local governments in 2024 © Private Archive.

Greece: Minoan Energy’s social and economic impact

Energy community Minoan Energy was established in Crete in 2019 and it is a great example of how energy communities can transform local economies and societies. Starting with 38 members, it has grown to over 1,000 participants, including individuals, municipalities, and small businesses. The community operates two PV systems under virtual net metering, covering the energy needs of nearly 400 members.

Beyond providing renewable energy, Minoan Energy has championed social inclusion by covering electricity costs for vulnerable families, including those affected by natural disasters like earthquakes. The cooperative’s financial model encourages participation, allowing members to invest in shares starting at €100, fostering a sense of collective ownership.

The cooperative’s involvement in European research projects like „Clean Energy for EU Islands“ has propelled innovation in renewable energy technologies. Its collaboration with academic institutions, local governments, and international organisations showcases the potential of synergies in advancing sustainable energy solutions.

Great Forum for energy communities in Kozani-Greece in November 2023 © Private Archive.

North Macedonia: CDI Macedonia is showing the way

Despite legislative hurdles, North Macedonia has seen pioneering efforts in energy community development, led by CDI Macedonia in the municipality of Brvenica. Formed in 2023, this association installed a 12 kW rooftop PV system for self-consumption under a net-metering scheme.

Although not formally registered as an energy community (cooperative) due to the lack of legislation at the time, CDI Macedonia has laid the groundwork for future initiatives by creating a network of energy communities. This network facilitates knowledge sharing and supports the democratisation of energy production.

Key recommendations from CDI Macedonia include establishing a robust legal framework to define energy communities and simplify their registration. Additionally, fostering inclusivity through tailored co-investment schemes for underserved groups and promoting regional cooperation could accelerate the adoption of renewable energy across the country.

SunSharing capacity building event organised on 12.04.2024 at Panoramika Hotel © Private Archive.

Common themes and lessons for the region

1. Legal frameworks and simplified processes

A recurring barrier across these countries is the lack of comprehensive legal frameworks to support energy communities. Clear regulations that define their scope and simplify administrative procedures are crucial. North Macedonia and Croatia, for instance, need to align national laws with EU directives to unlock the full potential of energy communities.

2. Financial incentives and accessibility

Tailored financial mechanisms, such as subsidies, tax incentives, and crowdfunding platforms, are vital for engaging citizens and small businesses. Bulgaria’s Gabrovo project demonstrates the effectiveness of localised crowdfunding, while ZEZ Sun highlights the need for structured financial roadmaps.

3. Social inclusion and community engagement

Energy communities thrive when they address local needs and foster inclusivity. Minoan Energy’s support for vulnerable populations and Gabrovo’s focus on local investors illustrate how social impact can drive participation.

4. Knowledge sharing and regional cooperation

Sharing best practices and fostering collaboration across borders can accelerate the growth of energy communities. CDI Macedonia’s network model offers a blueprint for regional cooperation, promoting peer learning and joint advocacy.

Vision for the greener future

By addressing legislative gaps, enhancing financial accessibility, and fostering social inclusion, countries in Southern Europe can harness the power of renewable energy to build resilient and empowered communities.

This journey is not without its challenges, but the examples set by Greece, North Macedonia, Croatia, and Bulgaria offer a roadmap for success. As these nations continue to innovate and collaborate, they pave the way for a greener and more equitable energy future.

To learn more on the Lessons Learnt from the SunSharing project, download the SunSharing Lessons Learnt Report.

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