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Energy communities as an important factor in achieving the ESG objectives

What is ESG?

Employees in corporations and large companies have probably already heard the abbreviation ESG (Enviromental, Social and Governance) referring to environmental, social and corporate business. This business involves planning and implementing activities and analyzing and reporting on how a company deals with climate change, how it treats employees, its customers and suppliers, and what the corporate culture and management of that company is in general.

ESG factors are those factors that make a company sustainable through its social, environmental and good governance obligations, without neglecting financial aspects. They are used to assess the impact of a company or entity in terms of sustainability and corporate responsibility, and are used by investors, analysts and other interested parties to assess the company's environmental, social and governance impact.

ESG reporting obligations from 1 January 2024 apply only to the largest business entities. From 1 January 2025 year obliged entities become all large companies, and from 1 January 2026 This obligation shall be extended to medium-sized and small undertakings (with the exception of micro-undertakings). You can read more details at the following link.

How do energy communities help companies achieve ESG goals?

As companies around the world struggle with increasing pressure to meet their environmental, social and governance (ESG) goals, an innovative solution emerges from local communities. Citizen Energy Communities (ECECs) have proven to be powerful tools to achieve sustainability objectives while creating lasting benefits for all actors. Let's go in order...

What are Energy Communities?

the Energy Community at its core is a new model of cooperation between businesses, citizens and public authorities. These partnerships focus on local production and sharing of renewable energy, creating a more sustainable and resilient energy system. Members are working together to manage energy consumption, store excess energy and even support charging infrastructure for electric vehicles, all while promoting greater energy efficiency.

ESG connection

The beauty of energy communities lies in their natural compatibility with the ESG Principles. From an environmental perspective, these communities significantly reduce their carbon footprint by switching to renewable energy sources and reducing dependence on fossil fuels. The social impact is equally impressive as communities benefit from lower energy costs and new employment opportunities in the renewable energy sector. The governance structure promotes transparency and democratic decision-making, ensuring that all members have a voice towards the community.

Success stories across Europe

The effectiveness of this approach is already visible across Europe. It is in Denmark Karise Permatopia Create an inspiring example of sustainability with its self-sufficient eco-village. Ninety homes share renewable energy systems, including wind turbines and geothermal heating, demonstrating how communities can thrive while minimizing environmental impacts.

Finnish Larsmo Vindkraft demonstrates how private citizens can successfully develop and manage community wind projects. This initiative not only reduces local carbon emissions, but also generates economic benefits for its members. Meanwhile, in Germany, the city of Dindgen is a pioneer of innovative public-private partnership, using public rooftop spaces to produce solar energy that benefits both municipal facilities and community members.

Timeframe of implementation

For companies thinking about this path, the establishment of an energy community is a structured process that usually lasts about a year. The journey begins with the establishment of an association, which usually lasts one to three months. This is followed by obtaining the necessary permits for energy activity, a process that can be extended to seven months. The final phase involves setting up operational systems and mechanisms for energy sharing, which takes approximately six months.

View in advance

How to request ESG reporting becoming mandatory for an increasing number of companies between 2024 and 2028, energy communities offer a practical and effective pathway to achieving sustainability goals. In addition to mere compliance, these communities build stronger relationships between companies, their employees and the local population. They represent an advanced solution that combines environmental responsibility with concrete economic benefits.

For companies that want to improve their ESG performance with a significant impact on their communities, energy communities offer a compelling opportunity. By participating in these communities or starting a business, companies can contribute to a more sustainable future while delivering tangible benefits for all stakeholders involved.


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Discover project Announcements Lectures Project DISCOVER Projects Association Without Borders Without Borders

A lecture on energy communities was held in RiHub

On December 3, 2024, in the RiHub premises, the Association Without Borders presented the project DISCOVER and the topic of civic energy with special reference to the role of entrepreneurs in citizen entrepreneur communities.

Davorka Medved presented the project, objectives and expected outcomes. The previous work on the project was summarized and it was stated which activities will be implemented in 2025 and 2026.

Damir Medved spoke about the topic of energy communities from a technical point of view. He presented to entrepreneurs existing examples of good practice both in EU countries and in Croatia.

He also presented Northern Adriatic Energy Community, one of the three communities registered in Croatia so far.

Damir Juričić spoke about the financial effects of association in energy communities and presented the financial benefits for entrepreneurs and citizens.

After the lecture, the audience asked more questions about this topic. They were interested in practical problems and, most of all, administrative obstacles, which are still a reality in Croatia. The lecturers invited the attendees to additionally contact and inquire about energy communities through all channels of the association, and soon at the OSS at Drenovski put 138A in Rijeka.

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Discover project Announcements Lectures Project DISCOVER Association Without Borders

Lecture for entrepreneurs on the topic of energy communities

In cooperation with the City of Rijeka, the Association Without borders Invites you to a lecture

What benefits do entrepreneurs gain by joining up in energy communities

which will take place 3 December 2024 at 2 p.m.

in space RiHuba at Ivana Grohovca 1a in Rijeka.

The lecture is part of the project DISCOVER funded by the programme LIFE of the European Commission It provides support in the process of establishing energy communities.

The lecture will cover the following topics:

  1. LIFE DISCOVER project – status, methodology and tools available
  2. What are energy communities and why are they important to entrepreneurs?
  3. Legislation – state of play, how can energy communities be mobilised, what changes will happen at the beginning of 2026 and what are the reprecussions?
  4. Technology – why is data collection important and what requirements does it impose on potential members of the community?
  5. Finance – how energy communities work operationally, what are the benefits for citizens, businesses and public administrations if connected to the EC.
  6. Example the North Adriatic Energy Community – experiences and first results.

The lecturers are members of the LIFE DISCOVER - Davorka Medved project team, Damir Juričić and Damir Medved.

After the lecture, time is provided to answer the questions of the participants.

In cooperation with the City of Rijeka, the Association Without Borders invites you to a presentation

What benefits do entrepreneurs gain by joining energy communities

which will be held on December 3, 2024 at 2:00 PM in the RiHub space at Ivana Grohovac 1a in Rijeka.

The presentation is part of the DISCOVER project funded by the LIFE programme of the European Commission, which provides support in the process of establishing energy communities.

The following topics will be covered at the lecture:

  1. LIFE DISCOVER project – status, methodology and tools available
  2. What are energy communities and why are they important for entrepreneurs?
  3. Legislation – current status, how can energy communities be launched, what changes will occur in early 2026 and what are the repercussions?
  4. Technology – why is data collection important and what requirements does it place on potential community members?
  5. Finance – how do energy communities operate operationally, what are the advantages for citizens, entrepreneurs and public administration if they join in an EC.
  6. The example of the North Adriatic Energy Community – experiences and first results.

The presenters are members of the LIFE DISCOVER project team – Davorka Medved, Damir Juričić and Damir Medved.

After the presentation participants can ask questions about topics.


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Discover project Announcements Project DISCOVER Workshops Association Without Borders

CIVIL ENERGY CHALLENGES AND OPPORTUNITIES

Organized by the Friedrich-Ebert-Stiftung Foundation and Blanka Smoljan and with the support of the City of Varaždin, we had the opportunity to participate in a great discussion that gave rise to many questions from the audience!

We all tried to answer the following questions together:

  • It is often said that the question is not whether the energy transition will happen, but who will play an important role in this transition?
  • Will we rely solely on large producers, or will citizens also play an important role in this transition?
  • Will local energy generation and sharing be a necessity in the future?
    Which cities have already recognised their citizens as important partners in this process?

It was a real pleasure to have a great conversation with Martina Nemčić, Mislav Kirac, Damir Medved, Ivan Dubravec and Tomislav Valičević – as always very well moderated by Blanka!

And of course it was a great opportunity to present to the participants what we are doing on the LIFE DISCOVER project and what they can expect from us in the coming period.


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Discover project Announcements Project DISCOVER

DISCOVER Guide for Energy Communities

Discover the DISCOVER Guide for Energy Communities: a comprehensive guide to starting community energy projects

Welcome to DISCOVER Guide, your essential resource to run and manage Community Energy Projects (CEP). As part of the DISCOVER project, this series of guides empowers energy community initiators with tools, strategies and a step-by-step framework to successfully revive their visions, with a special emphasis on Photovoltaic (PV) projects.

Mission DISCOVER project

The DISCOVER project aims to encourage the development of sustainable energy projects in communities by offering integrated support services. Whether you are embarking on a new sustainable energy initiative in your community, working on an ongoing project or planning something in the future, the DISCOVER guide provides a structured approach to simplify your journey. Its services and resources are contained in a comprehensive framework designed to make the complex process of launching and managing CEP more accessible.

The family of guides

The DISCOVER Guide series consists of three key components:

  1. General guide – A universally applicable manual describing the steps to create a CEP, regardless of location.
  2. Specific guide – Customised version for individual pilot regions, enriched with localised content.
  3. Interactive Guide – Online adaptation of a specific guide, accessible via an interactive platform, ideal for a wider audience.

Lifecycle management of energy projects in the community

General guide structuring the entire life cycle of energy projects in communities in three different phases:

  1. Planning phase – Conceptualisation, feasibility assessment, planning and fulfilment of regulatory requirements.
  2. Realization phase - Construction and implementation of CEP, including photovoltaic plant.
  3. Operational phase – Long-term management and maintenance of the energy community.

Within these phases, the guide is categorized into three main areas:

  1. Construction of photovoltaic power plants – from site selection to technical performance.
  2. Renewable Energy Community (REC) or Citizen Energy Community (CEC) – Establishing a legal and operational framework for energy trading.
  3. Community engagement – Building a collaborative environment, fostering teamwork and ensuring long-term participation.

Tackling challenges with practical solutions

The guide addresses the multiple dimensions of CEP development, including: administration, economics, technology i legal requirements. These topics will be addressed separately for each Pilot Region and summarised in country guides.  By consolidating contextualised information, the role of stakeholders, potential barriers and practical tools simplifies decision-making and reduces complexity. A special guide also provides references to local providers of individual components of the solution, which further facilitates the path for project initiators.

Why choose a DISCOVER guide?

The general guide will soon be complemented by the creation of specific national and interactive guides. They will provide additional information for:

  1. Reducing barriers: Addressing and simplifying administrative, technical and legal challenges.
  2. Promoting cooperation: Through community engagement and team building strategies.
  3. Simplification of the process: Providing a clear plan, from concept to operation.

How to proceed?

The general guide DISCOVER is just the beginning. Leading CEP initiators through every step of their projects, paves the way for a more sustainable and energy future.

Follow our future announcements for Specific guide the Interactive online platform, which will offer localised and easily accessible resources to further improve the success of your initiatives in building a local energy community!


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Expert's voice Announcements Workshops Association Without Borders

5th Conference: Fostering a citizen-led energy transition in the Western Balkans

Energy Transition Platform (PET) hosted the conference “Strengthening citizen energy – an opportunity for a more efficient energy transition“ on Friday 25 October 2024, in the beautiful town of Niš, Serbia. This important event brought together more than 80 regional and European experts, community leaders, students and representatives of local governments to discuss the key role of citizens in accelerating energy democratization across the Western Balkans.

Empowering citizens for a sustainable energy future

The conference highlighted how community-driven energy projects empower citizens to take an active role in the local energy transition, contributing to a sustainable and democratic energy future. Introductory speeches and debates showcase real-world examples from the European Union and the Western Balkans, highlighting the potential of citizens' initiatives in fostering environmental progress and energy sovereignty.

Representatives of the Association Without Borders and LIFE DISCOVER projectDamir Medved) and the Northern Adriatic Energy Community participated in the conference, and the President of the ECSJ Damir Juričić He was also a panelist.

Dynamic panel discussion on regional cooperation: A panel of esteemed energy experts explored the path to democratised access to energy in EU countries and outside the EU, moderated by PET Operations Director, Ms Tanja Popovicki, and attended by Mr Dragomir Tzanev (Bulgaria), Damir Juričić (Croatia), Mr Aleksandar Macura (Serbia) and Ms Iva Đinđić Ćosić (Serbia), who shared their own experiences and vision on how we can move forward in more community energy initiatives in the region. They also showcased successful examples. the Energy Communities of the City of Burgas i Gabrova (Bulgaria) and Northern Adriatic Energy Communities based in Rijeka (Croatia).

Building interregional momentum

PET Conference emphasized the key role of cross-border cooperation and knowledge exchange between Slovenia, Bosnia and Herzegovina, Bulgaria, Croatia and Serbia in advancing energy democratization, and panellists and participants emphasized the transformative potential of community-led energy in building resilient, sustainable local economies. With its impressive array of experts, interesting discussions and effective insights, the conference marks a crucial step forward in empowering citizens to lead the energy transition across the Western Balkans.


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Announcements Association Without Borders Without Borders

Future of energy communities on islands

On Wednesday, October 2, in the town of Cres, Moise Palace, an international conference was held "The future of energy communities on islands“. The event was organised as part of the European project ISLET LIFE, which includes three pilot islands, Greece's Astypalea, Italy's Procida and Croatia's Cres, aims to design a model of renewable energy communities (provided for in the European Directive 2018/2001) that will be applicable on all small islands.

The conference brought together a wide range of experts in energy and energy policies, especially those dealing with citizen energy communities and encouraging the use of RES .

A round table was held and it was dedicated to the topic “Energy communities in Croatia: dream or reality?’, and they took part in it Kristina Celic the Ministry of Economy, Goran Čačić from the ZEZ and the Energy Communities Forum, Ugo Toić as a representative of the Cres energy cooperative Apsyrtides, Ivan Zoković from the island movement, Damir Medved the Association Without Borders the Northern Adriatic Energy Community, and Maja Bratko from the Society for Sustainable Development Design (DOOR). The round table was moderated by Franjo Toić from the town of Cres.

Damir Medved, as a representative and association Without Borders and the Northern Adriatic Energy Community he spoke about the experience and challenges that accompanied the whole process of establishing the ECSJ. This process is marked by numerous illogicalities, completely unnecessary financial and technical obstacles, and all this results in only 3 citizen energy communities currently operating in the Republic of Croatia and none of them is operational in the sense that their members can exchange energy.


The organisers of the whole event were the Town of Cres, the Island Development Agency (OTRA), the Island Movement and the Green Energy Cooperative (ZEZ).


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Announcements Project DISCOVER Projects Association Without Borders Without Borders

At the Kastav Smart City conference, we will present the LIFE DISCOVER project

Conference Kastav Smart City It will soon be held for the third time. This year, the Association Without Borders will present to the participants of the conference DISCOVER project.

City of Kastav supported our application to the project DISCOVER It has also engaged in activities through implementation. Kastav is one of our important stakeholders in this project. The City Administration and the Mayor expressed great interest in the topic of civic energy and the establishment of energy communities. Through this project, we will empower interested drivers of energy communities by informing the local community, entrepreneurs and employees of local self-government units about the topic.

The conference will take place from 23 to 25 September 2024. The DISCOVER project will be presented on 24 September 2024 at 5 p.m. in Kastav City Hall:

UNIRI - Centre for Smart and Sustainable Cities

5 p.m. – 5.30 p.m. Energy transition – Energy communities, benefits of connectivity, new models of financing activities, opportunities and barriers

  • Social Energy Communities
  • the Civic Energy Community
  • Energy communities to support the achievement of ESG objectives

Presentation of the ECSJ (experiences and challenges of the establishment and operation of the first operational EC in Croatia)

  • How the Process Worked
  • what were the obstacles
  • where we are now
  • what are the next steps

Association Without Borders - LIFE Discover project

17:45 - 18:00 International LIFE project implemented in the PGC area at a glance

  • What is LIFE
  • What services will be provided to our customers
  • Perhaps some “signature” of the LIFE-City of Kastav cooperation agreement

18:00 – 18:15 New technologies that can help the energy transition

  • What is the BECKN protocol
  • Examples from practice and why we consider it necessary

18:15-18:30 Q&A

I'll see you!


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DISCOVER project presented on Cres

Yesterday, in the Italian Community in Cres, a lecture was held for citizens on the topic of energy communities. Namely, the LIFE ISLET project, whose partners are the Island Movement and the City of Cres, aims to educate the local population and establish an energy community in our area in order to provide multiple benefits to the owners of solar power plants.

The lecture was opened by Dr. Ugo Toić with a short presentation of the LIFE ISLET project, and then by mr. Ivan Zoković from the Island Movement explained the differences between individual legal definitions of energy communities in Croatia and the EU. In addition, mrs. Davorka and mr. Damir Medved presented the DISCOVER project within which an energy community is established in Rijeka. We are sure that this topic will become very important and that in the future more and more islanders will become involved in energy communities.


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Citizens at the centre of the energy transition

CONTEXT

With its ambition and achievement of energy and climate goals, Croatia is lagging behind the leading countries of the European Union, which is confirmed by the latest revision of the European Commission's draft Integrated National Energy and Climate Plan (NECP). 

Energy communities, which were introduced by the European Union in 2019 with directives as part of the package of measures, play a significant role in the transition to renewable energy. Pure energy for all inspired by the civic energy movement and energy cooperatives operating across Europe over the last few decades.

There is currently a gap in the transposition of the provisions of the directives in Croatia, which almost prevents the use of the potential of energy communities for the energy transition and the enjoyment of the rights of active participation in the energy market that Croatian citizens have as citizens of the European Union.

WHAT ARE ENERGY COMMUNITIES AND WHY ARE THEY IMPORTANT?

Energy communities enable citizens, entrepreneurs and the public sector to invest in renewable energy projects and play an active role in the energy market. They represent an alternative to commercial energy companies and are characterized by open and voluntary participation (membership), direct ownership of citizens, cooperation with local small and medium-sized enterprises and with local self-government units and democratic governance. 

An important difference between commercial energy companies and energy communities is the commitment to socio-economic and environmental benefits for the community – these benefits are more important for the energy community than making a profit. 

Energy Communities:

  • enable citizens to be involved in decisions about their own energy production, use and prices, protecting them from crises;
  • contribute to increasing awareness and knowledge of more efficient energy use and change the behaviour and lifestyles of their members towards more sustainable ones;
  • contribute to the diversification of energy sources and the uptake of renewable sources in local communities;
  • work with social services to address energy poverty;
  • create local green jobs and contribute to long-term energy savings;
  • can bring two to eight times higher returns to the local economy than projects by external investors (research in France i Germany);
  • play an important role in fostering a stronger, healthier, more resilient and energy self-sufficient society;
  • can contribute to the financing of the energy transition – their capacity by 2030 is up to 240 billions euro.

STATE IN CROATIA

Although introduced into the Croatian legal framework by the Electricity Market Act and the Renewable Energy Sources and High-Efficiency Cogeneration Act, energy communities are very difficult to come to life in practice. The process of establishing energy communities is complicated, and the imposed registration obligations represent insurmountable obstacles for groups of citizens who do not have the support of professional institutions and financial resources. 

From 2021, when energy communities were introduced into the Croatian legal framework, until spring 2024, only one citizens’ initiative managed to obtain a license to operate, with the support of several experts and the cost of significant financial and human resources. 

PRIORITY REQUIREMENTS FOR THE DEVELOPMENT OF ENERGY COMMUNITIES AND CIVIL ENERGY IN CROATIA

The energy transition can only succeed in the cooperation of all actors, and citizens must be at its center, so all candidates participating in the elections for the Croatian Parliament and the European Parliament elections in 2024 are invited to commit to these four priorities so that energy communities and civic energy can quickly and effectively come to life in practice in Croatia.

  1. Make the process of registering energy communities simple and affordable for groups of citizens who are not (energy) experts and establish a support system in this process.
  2. Provide financial support to energy communities from available funds with the application of state aid rules in order to mitigate the riskiness of energy community projects and encourage their development and stable growth.
  3. Ensure that energy communities can easily reduce the electricity bill of their members by producing energy, share energy directly with members and conclude power purchase agreements directly with other market actors.
  4. Make cities and municipalities at the forefront of civic energy development by ensuring the involvement of citizens and energy communities in renewable energy projects in public areas and rooftops.

ENERGY TRANSMISSION MUST BE FAIR AND USEFUL FOR ALL CITIZENS

The energy transition implies significant changes in society that cannot be successfully achieved without the support and recognition of the role of citizens and local communities. One of the fresh examples is the significant rise in energy prices, which has led to a rise in the cost of living for citizens and a rise in

energy poverty. In Croatia, this jump is mitigated by the package of measures of the Government of the Republic of Croatia that subsidizes energy prices, but it is temporary and does not represent a systemic solution. An inclusive approach that starts with the needs of citizens and communities is how we can ensure a fairer transition and acceptance of change towards renewable energy sources

Renewable energy sources such as sun, wind, water or geothermal energy are available to everyone as common goods, and their use through energy community projects, for the purpose of meeting basic energy needs, guarantees that the energy produced and the benefits thereby obtained will be retained in our local communities. 

LISTS OF APPLICATIONS:

Green Energy Cooperative (ZEZ) over the last ten years, it has supported citizens and local communities in investing in renewables, energy efficiency and technologies that contribute to the decarbonisation of the energy system. ZEZ has implemented the first civic energy projects in Croatia and is a member of the European Federation of Citizen Energy Cooperatives

REScoop.eu. – https://www.zez.coop/  

ZEZ Sun is a European energy cooperative that brings together citizens for joint, long-term and non-speculative investment in solar power plants to create positive social, environmental and economic values in their community. ZEZ Sunce is through its first call for members in March 2024.  raised EUR 140,000 for the construction of a 200 kW citizen-owned solar power plant. – https://www.zez.coop/zez-sunce/  

Croatian Energy Transition (HET) is an initiative and interactive online open access a platform that provides all interested stakeholders with an insight into the methodology of long-term planning of smart energy systems with the Republic of Croatia as a case study. – https://het.hr/

Apsyrtides Energy Cooperative operates in the Cres-Lošinj archipelago and brings together local self-government units, the business sector and citizens. The aim of the cooperative is to provide support and enable its members and the local community to participate in energy transition projects and to lead by example to other island communities. The cooperative is unique in Croatia in that there are members of two cities, Cres and Mali Lošinj.

Society for Sustainable Development Design (DOOR) is an association of experts engaged in the promotion of sustainable development in the field of energy. Our mission is to promote the principles of sustainable development in all segments of society, at local, regional and national level, primarily in the field of energy and climate, and we are actively working with local communities to become leaders of the energy transition. – https://www.door.hr/  

REGEA - North-West Croatia Regional Energy and Climate Agency is an institution focused on providing advice and innovative solutions in the energy and environmental sector with projects throughout the European Union. – https://regea.org/  

Island Movement, information-educational platform which contains in one place all the information needed to initiate and participate in the energy transition on the Croatian islands with a special focus on energy efficiency, renewable energy sources and the importance of the participation of islanders in the process of energy transition. – www.isoci.eu

Energy cooperative NOVI ISLAND KORČULA acts to help citizens in activities to increase energy efficiency and use of renewable energy sources by implementing energy renovation projects, educating the population of all ages on energy efficiency and renewable energy sources, and environmental protection projects by prioritising "green" energy and sustainable development in cooperation with local institutions.

North Adriatic Energy Community is an association formed by 20 members (citizens, entrepreneurs and NGOs) with the aim of producing, sharing and smartly managing renewable energy consumption; https://ezsj.hr

Association Without Borders has been working for 12 years on the development of the local community in the Rijeka settlement of Drenova. He is the initiator and holder of numerous HR and EU projects, and among others has been working for years on the promotion of civic energy and sustainable development. Particularly noteworthy is the project of reconstruction of the Drenova Social Center, where numerous events and educations are held for the needs of the local population and entrepreneurs. He is currently a partner in the three-year LIFE DISCOVER project, where the One-Stop-Shop is being set up to support the establishment of energy communities in the Primorje-Gorski Kotar County. https://energija.bezgranica.hr. 

Greenpeace in Croatia – Greenpeace is an independent global environmental NGO. It has been operating in Croatia since 2012. – www.greenpeace.hr

Green Network of Activist Groups (ZMAG) is an association that brings together organic gardeners, practitioners of applicable technologies and ecological construction, permaculture designers, researchers of fair social models of organization and equal interpersonal relations, and environmental activists. – https://www.zmag.hr/  

My Energy Community - MEC is the first formally established energy community in Croatia. – https://www.myenergycommunity.hr/  


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