We challenge Bulgaria and Croatia over rules holding back community energy

People are being held back from producing and sharing their own clean energy as Europe heads into winter with historically low gas stocks. We're challenging the rules, filing new complaints with the European Commission against Bulgaria and Croatia.

“We need to act now to protect those most in need”

Recent price shocks have put households and small businesses across Europe under severe pressure, turning energy bills into an existential question of whether people can keep homes warm, shops open, and local services running. In their October winter outlook, Europe’s gas network operators reported historically low gas stocks alongside high and volatile global gas prices.

European Commission President Ursula von der Leyen warned that pressure could intensify over winter, saying, “We need to act now to protect those most in need.”

Helping those most in need access affordable energy is one of the goals of energy communities.

Picture: ZEZ / Green Energy Cooperative (Croatia)

96%

of Europeans say it's important for Europe to invest more in its own energy infrastructure.

88%

of Europeans say Europe should produce its own energy, even if it requires additional effort and investment.

€930

maximum annual savings per household participating in an energy community.

30m

households could be powered by energy communities by 2030.

So what's the deal?

Energy communities allow residents, small businesses, and local institutions to produce and share renewable energy together – for example through an array of solar panels on a school or apartment building. They can help people lower bills, even if they have no suitable roof or cannot afford an installation of their own.

More renewable electricity can reduce reliance on imported gas and help cushion future price shocks. Combined with technology to balance supply and demand, locally generated energy can make national energy systems more resilient. Households participating in energy communities using a mix of solar and wind power could save up to €930 a year.

Bulgaria and Croatia join Hungary and Poland

We filed complaints with the European Commission against Bulgaria and Croatia, because we believe that both countries have failed to create conditions for renewable energy communities to thrive, despite obligations under EU law. The complaints follow those we filed against Poland and Hungary in July.

Around 130 members of Energy Community Burgas in Bulgaria have invested in solar panels that help power a public swimming pool. Elina Ilieva from Burgas Energy Office, who manages the energy community, says:

“Energy communities give citizens the chance to become producers, not just consumers. But extremely slow, complicated, and cumbersome procedures discourage people from taking part.”

In Croatia, the current rules make it hard for energy communities to stay afloat. Goran Čačić, president of Zagreb-based ZEZ Green Energy Cooperative, says:

“It’s a shell of a framework. Nice and glossy on the outside to check the EU boxes, but there’s almost nothing inside. We have three officially registered citizen energy communities in Croatia: one is most likely already out of commission, and two are struggling to make a living without a proper business model or support.”

What can the Commission do?

Our broad goal is for every EU Member State to create conditions that make it possible to establish and run renewable energy communities in practice.

EU countries were required to put the Renewable Energy Directive into practice by 30 June 2021, yet national rules continue to hold back community energy.

We’re asking the European Commission to examine whether Bulgaria and Croatia have met their EU obligations to create those conditions. The Commission might then discuss the issues with the national authorities, encourage Member States in question to address specific problems, or open an infringement procedure and eventually take the Member State to the EU Court of Justice.

Geopolitical instability can leave people feeling powerless. Community energy gives them a way to take back some control. It brings neighbours together to produce clean energy, including people who couldn’t do it on their own. We want a Europe where everyone has the chance to take part.

Laurène Provost, energy lawyer at ClientEarth, Photo: ZEZ / Green Energy Cooperative

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