Horizon Europe is the European Union (EU) funding programme for the period 2021 – 2027, which targets the sectors of research and innovation. The programme’s budget is around € 95.5 billion, of which € 5.4 billion is from NextGenerationEU to stimulate recovery and strengthen the EU’s resilience in the future, and € 4.5 billion is additional aid.
Individual energy communities encounter different challenges, such as developing a successful governance structure that is sufficiently inclusive and involves different types of actors, carrying out an effective business model and embedding activities within the structure and management of the European Commission to territorial regional and/or local plans (e.g., Just Transition Plans, Climate City Contracts, etc.).
By rewarding Energy Communities’ innovative governance structure and management of a RET, the prize aims to inspire other Energy Communities to improve their operations and implementation activities and to foster innovativeness in the compliance of climate goals. In addition, this prize will also serve as inspiration and example to other types of communities to become an energy one, accelerating the pace for the ones that are already being formed/developed.
The prize will showcase the best practices from the awarded communities to other ones experiencing similar challenges and issues, portraying a (replicable) framework on how to address these issues successfully. In this way, communities will feel incentivised to apply these practices, to improve their performance, management, etc., and so they can participate in future (similar) prize calls.
Since Energy Communities have encountered bottlenecks in terms of management, governance structure, provision of other services, etc., this prize will aid to portray the successful ones on how to develop/carry out a fruitful business model that includes and promotes different type of services, while including and improving social aspects within the community.
While showcasing governance innovativeness within the common barriers encountered to operate, the awarded communities will present a clear example that can serve as a replicable framework for other communities on how to overcome challenges and barriers, and address encountered common bottlenecks.
Furthermore, the prize is expected to contribute to the broader goals of the EU Mission on Climate-Neutral and Smart Cities by demonstrating how energy communities can play a pivotal role in achieving climate neutrality at the city level. By embedding their activities within existing strategic and systematic approaches towards climate neutrality, such as the Climate City Contracts, these communities will help cities transition to more sustainable and resilient urban environments.
The total money allocated to this prize is €1 million (EUR 1.000.000) to be awarded up to 10 winners as follows:
In order to be eligible, the applicants must:
− Be a “renewable energy community” as defined under Article 2(16) of Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources: a legal entity:
(a) which, in accordance with the applicable national law, is based on open and voluntary participation, is autonomous, and is effectively controlled by shareholders or members that are located in the proximity of the renewable energy projects that are owned and developed by that legal entity;
(b) the shareholders or members of which are natural persons, SMEs or local authorities, including municipalities;
(c) the primary purpose of which is to provide environmental, economic or social community benefits for its shareholders or members or for the local areas where it operates, rather than financial profits.
OR a “citizen energy community” as defined under Article 2 (11) of the Internal Market for Electricity Directive (EU) 2019/94412: a legal entity:
(a) is based on voluntary and open participation and is effectively controlled by members or shareholders that are natural persons, local authorities, including municipalities, or small enterprises;
(b) has for its primary purpose to provide environmental, economic or social community benefits to its members or shareholders or to the local areas where it operates rather than to generate financial profits; and
(c) may engage in generation, including from renewable sources, distribution, supply, consumption, aggregation, energy storage, energy efficiency services or charging services for electric vehicles or provide other energy services to its members or shareholders.
Natural persons are not eligible.