The Institutionalization of Energy Communities for a Just and Democratic Energy Transition

The institutionalization of energy communities is vital for deploying renewable energy sources at scale and empowering citizens globally. Energy communities address a democratic deficit in energy governance by enabling citizens to deploy renewable energy sources at the community level, thus devolving centralized authority, alleviating administrative burdens and reducing excessive corporate profits. The European Union has recognized the potential of energy communities, with approximately 2,000,000 citizens being serviced through such initiatives. While the main developments occur in the Global North, energy communities hold potential in the Global South for democratizing energy resources and contributing to poverty alleviation. Drawing on a 4-year research project, this science-policy brief synthesizes existing knowledge to delineate actionable strategies for policymakers, stakeholders, and practitioners. Policy recommendations include enhancing leadership capacities, formalizing initiatives, fostering learning capacity, and facilitating engagement platforms between communities and incumbents. Energy communities have the potential to shift towards inclusive energy governance, bridging local and global interests. Policy interventions must support cooperative principles, address power imbalances, and overcome regulatory mismatches to enable the success of these initiatives. The empirical examples of energy communities highlight the broader potential of cooperative governance models in fostering sustainability and social cohesion, offering resilient economic institutions grounded in alternative approaches to transitions.