A Novel Community Energy Projects Governance Model and Support Ecosystem Framework Based on Heating and Cooling Projects Enabled by Energy Communities

Abstract

The EU power market system has successfully maintained a centralized governance structure ensuring stable electricity supply and affordable prices for over two decades. However, the ongoing energy transition towards carbon neutrality has exposed critical governance limitations, leading to challenges in community projects implementation. Given that Heating and Cooling (H&C) accounts for more than 50% of the EU’s energy consumption, community H&C initiatives can drive local energy transitions and support renewable integration. This study analyzes the best practices from European community energy initiatives, supplemented by insights from the Energy Leap project. By employing a comparative analysis approach, the study proposes a technically sound and regulatory feasible governance model, alongside a robust ecosystem support framework. The proposed framework introduces new roles and new forms of partnerships between communities—private entities and consumers—taking advantage of the benefits offered by the operation of Energy Communities (ECs), enhancing community engagement and regulatory adaptability. These insights offer practical guidance and contribute to effective policymaking in support of the EU’s energy transition objectives.