Decentralised Energy: A Path to a Sustainable and Inclusive Transition

Decentralised energy production is central to democratising access to energy, promoting autonomy and sustainability at the local level. Decentralised energy production empowers consumers and communities to produce, consume, and control their own energy, reducing dependence on large-scale providers and facilitating decarbonisation targets at national and EU levels.

Promoting decentralised energy production is a key strategy for achieving europeean and national goals, enabling a significant cut in emissions and independence from energy. Energy communities not only have the capacity to accelerate the energy transition but also help alleviate the decarbonisation challenges in a real and inclusive way.

Self-consumption involves individual or community consumers producing their own energy, typically through renewable sources such as solar photovoltaic. This practice not only produces energy but also ensures efficiency and sustainability. Energy Communities are one step ahead of self-consumption by individuals, allowing, for example, a building or a community to share the surplus energy generated in an easier way and using the existing grid to redistribute the energy more equitably.

ADENE/Antena 1 Podcast "Toda a Energia"* on Renewable Energy Communities (REC), Cleanwatts CEO Luísa Matos states that "the soul of an energy community is to have the possibility of trading the excess locally with the neighbourhood through the existing public network. It reinforces the relationships between the community members, stimulates social cohesion, and democratizes access to the energy, which is made more universal" For Luisa Matos, “one of the biggest challenges is to educate and raise awareness among the population about the benefits of energy communities, as people often do not believe in their viability, which is why the message of affordable, locally generated green energy should be explored”.

Renewable Energy Communities (RECs) bring together citizens, small businesses, and local government to work together to produce, consume, and trade renewable energy. For Greenvolt CEO Jo?o Manso Neto, "energy communities take advantage of existing networks, so they are less invasive, unlike large renewable projects that may cause greater disruption to the environment." Furthermore, during ADENE Podcast *, Jo?o Manso Neto also stated that “energy communities don't require subsidies, thereby making the model economically more viable. Solar technology, that is increasingly becoming more available and affordable, together with storage, are the pillars on which decentralisation of energy is feasible, rendering production and consumption to be locally balanced without the need of more investment on the electricity grid."

Ana Rita Antunes, CEO of Coopérnico – a cooperative that is well known for its commitment to engaging citizens in the energy transition process – also highlighted the significant role played by cooperatives in promoting the energy transition. In an interview to Expresso**, Ana Rita highlights the importance of democratizing the energy sector by stating: that "The energy sector does not have to be for large private companies alone, it must open the doors for citizens to produce their own energy and to work in all other areas of the energy transition." This approach is intended to transform citizens from mere consumers into active renewable energy producers, promoting a profound change in how energy is generated and distributed.

Perhaps one of the most relevant aspects of decentralised production is its financial sustainability. Owing to advances in technology and reduced installation and maintenance costs, self-consumption and energy community projects became economically viable without the need for external subsidies. This economic independence enables the reproduction and expansion of these projects, accelerating the trend towards a greener energy matrix. For small investors, decentralised production is a profitable business venture. Price reductions for technologies such as solar panels and storage systems reduce the investment cost and enhance profitability. The possibility of selling surplus energy to the grid is also an additional source of income. The use of batteries in energy communities enhances the benefits even more, enabling clean energy to use not just during daytimes but even at peak hours of usage such as at night or in the evenings.

For communities, this idea ensures greater independence in energy consumption, encourages local employment, and stimulates local economic development. Despite the possibilities, two main challenges persist: more simple licensing processes and more enlightened citizens. The solution is to accelerate and make licensing simpler, a task entrusted to the EMER – Mission Structure for Licensing Renewable Energy Projects, which, together with the National Directorate for Energy (DGEG) and the Portuguese Environment Agency (APA), have been working hard to do more and faster. As regards awareness and promotion of energy transition, ADENE – the Energy Agency – has been holding webinars, local and online sessions and producing explanatory materials available online at https://poupaenergia.pt/energia-verde/ to help different agents of the process to understand how the licensing process works.

At the European level, the European Green Deal and Portugal's National Energy and Climate Plan (PNEC) both aspire to greenhouse gas emission reduction targets as well as targets for increasing the share of renewable sources. Promoting decentralised energy production is a key strategy for achieving european and national these goals, enabling a significant cut in emissions and independence from energy. Energy communities not only have the capacity to accelerate the energy transition but also help alleviate the decarbonisation challenges in a real and inclusive way.

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*Podcast “Toda a Energia” : https://www.rtp.pt/play/p14446/e829147/toda-a-energia

**Entrevista a Ana Rita Antunes: https://expresso.pt/iniciativaseprodutos/mais-europa/2024-11-25-video-o-setor-energetico-tem-de-abrir-as-portas-ao-cidadao-o-desafio-de-criar-comunidades-de-energia-84048510

*** Poupa Energia portal : https://poupaenergia.pt/energia-verde/