An Association of Energy Communities has been established in Hungary – a new era may be dawning for local energy production

The timing of the event is no coincidence: in March, the European Commission presented its new package of proposals, Citizen Energy Package, which aims to rapidly expand renewable energy generation.

According to plans, community-based renewable energy capacity in Europe could increase tenfold by 2030: from the current figure of around 9 gigawatts to as much as 90 gigawatts.

More than 16 million households, 630,000 small and medium-sized enterprises, and 300,000 public institutions could take part in the programme.

The growing role of community energy generation

The essence of energy communities is that the energy generated is used locally, and the resulting benefits remain within the community. In addition to jointly installed solar panels, energy storage systems and other renewable solutions, these partnerships can also encourage energy efficiency improvements and awareness-raising programmes.

Lower energy bills, greater control over energy supply

The model enables participants to reduce their energy bills whilst gaining greater control over their own energy supply. Community energy generation can also serve as a potential tool for tackling energy poverty, as locally produced energy can reduce external energy dependence and keep more economic resources within local communities.

A new advocacy group for domestic energy communities

The aim of the newly established Alliance of Energy Communities in Hungary is to bring together domestic energy communities and to strengthen their collective voice in dealings with decision-makers, market players and the public.

„Global uncertainties clearly demonstrate the need for greater independence in energy production. The European Commission’s current proposal indicates that community energy production could play an important role in this. We established the Alliance to support local energy communities and represent their interests to decision-makers”

– said Ákos Éger, the organisation’s president.

The Association is also involved in a European collaboration: REScoop.eu and its partners are approaching EU and national decision-makers in several countries simultaneously with similar initiatives.

Seeking opportunities for cooperation at home and across Europe

The Hungarian organisation will shortly be writing to the Minister for Energy, the Minister for European Union Affairs and the Minister for the National Economy. The aim is to ensure that energy communities receive greater professional and financial support within domestic energy policy and development programmes.
According to Márton Fabók, a member of the Association’s Executive Committee, the development of community energy is not only an energy issue but also an economic one. As he put it, the aim of the initiative is for domestic energy communities to become active participants in European cooperation as well.

A model operating within local communities

One of the greatest strengths of community energy generation is that it brings together local residents, local authorities and businesses. When the various stakeholders in a community work together to make better use of locally generated energy, this not only brings economic benefits but also strengthens community cooperation and local self-determination.

Szabolcs Gerendás, a member of the Association’s Executive Committee, highlighted – using the example of the Bábolna Energy Community – that practical collaborations can demonstrate how community-based energy generation can become a tool for the sustainable development of local communities.

The establishment of this organisation could be an important step towards making community-based energy generation a more widely available solution in Hungary, and towards seeing energy communities emerge in an increasing number of towns and villages, thereby strengthening both the local economy and the country’s energy security