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TANDEMS Pilot Project: BioZon by AGEM

An interview with Justin Pagden from AGEM introducing the TANDEMS pilot.

Hello, please introduce yourself and AGEM. What have you been working on?

My name is Justin Pagden. I’m a business developer at Agem. Our company comprises of a team of professional energy enthusiasts. Together, we develop and provide services for energy communities and municipalities in the Achterhoek region of the Netherlands. Agem helps households and businesses to use energy in an efficient, sustainable and local manner. This ultimately results in lower (social) costs.

We have been working specifically with energy communities. Agem enables them to consume their own collectively produces energy at a cost price. We call this the cost price model.

How and why did you choose the location of your pilot?

We have been working on the cost price model for the municipalities for over 5 years now. We were eager to also implement this model in the context of a citizen energy community.

The first pilot, where we introduced the cost price model was the energy community of BioZon, Zelhem. This citizen energy community collectively owns and operates a small electric generator running on biogas from an old landfill. The energy was sold in a PPA (Power Purchase Agreement) to the municipality at a fixed price for a 5 year contract. The citizens that had invested in the installation received a reasonable return on investment.

The installation was producing more electricity than expected and agreed in the PPA contract with the municipality, so when energy prices soared, the question arose if it was possible to allocate this surplus of electricity to the citizens directly at a cost price. This would benefit the citizens immensely on their energy bill.

So we set out together to investigate the possibilities.

What models of collaboration do you use (how do you collaborate with the municipality and other actors? How do you share the work load? Who is responsible for what?)

Eight municipalities in Achterhoek initiated the funding of Agem in 2013. The municipalities created a cooperative company of which they were the shareholders and invested start up capital so the company could develop and provide products and services to accelerate the energy transition. In the last ten years, this has led, among many other things, to the development of up to 15 citizen energy communities in the region. BioZon in Zelhem being one of them. These energy communities have also taken a share in the Agem Cooperative, and therefore have become co-owners of the company.

Therefore, you could say that the main collaboration model is through co-ownership. Agem is the professional organization that provides the services to it’s shareholders, being the energy communities and the municipalities. They provide the governance, done by aldermen from the municipalities or citizens volunteering as board members of an energy community. 

What were and are the main challenges that you are facing when implementing this pilot?

We had all the pieces of the puzzle necessary to make the first cost price model available for citizens. Now all we had to do was to organize them in such a way that it would create the picture we had in mind. This involved getting all the different partners on the same page so that everyone could play their part. This took a considerable amount of deliberation and eventually trust to move forward. But in the end we were able to move fast and went live on the 1st of January 2023.

Everything worked as planned on the administrative end and the data was coming in perfectly, showing clearly the benefits of the cost price model, as apposed to the market model. Ironically, the engine broke down and had to be fixed which took several weeks. This forced us back to the energy market which shows clearly in the data and energy price paid by the consumers. Thankfully everything is up and running again and the energy community members can ones again profit from their own electricity at a cost price.

What feedback do you receive from citizens and how do you communicate with citizens about this pilot?

The Energy Experts at Agem work very closely on the project with the board members of BioZon. All the communications to the community members is coordinated or co-created with the board members of BioZon. We have used presentations at member meetings, video explainers and of course webpages and emails. Also, a new contract had te be signed by the members that wanted to participate.

The feedback from the members has been overwhelmingly positive. This is mainly because the communication has been clear, the members did not have to do much themselves and of course, because they benefit from the new situation.

What is next for this pilot?

When the PPA with the municipality has ended there will be more electricity available. The cost price model can then be expanded to include more citizens from the region. Also, the energy community of BioZon wants to invest in solar panels on the old landfill (hence the name BioSun).

For Agem, this pilot is a proof of concept, and shows clearly that the cost price model for citizens is possible. As happens in industry, the first prototype model is not made the same way as the large scare production model. That is also the case for this pilot.

The next step is to scale up and expand the model to other energy communities that also want to benefit from this model. As we write this we are working hard with our partners to be ready for this next phase of the implementation of the cost price model.

Discovering the Municipality of Gabrovo: Energy Communities in Bulgaria

Interview with Todor Popov, a lawyer with experience in project management for energy efficiency, sustainable management and clean energy and Vanya Lazarova, an expert in citizen participation and the use of ‘One-Stop-Shop’ model* in the field of European projects.  

Can you introduce us to Gabrovo Municipality and tell us why did you decide to participate in TANDEMS? 

Gabrovo, located in central Bulgaria, is a pioneer and leader in the field of energy efficiency and energy consumption optimisation. We opened the first passive kindergarten in Bulgaria or the first ESCO street lighting contract (Energy Savings Performance Contract). Gabrovo is Green Leaf award winner in 2021 and among the first 100 climate neutral EU cities by 2030. Hence, we have decided to participate in TANDEMS. TANDEMS aims to promote the development of energy communities as means of energy transition. We are looking forward to involving citizens, engaging local governments and policy makers. This is very important for a sustainable energy transition. However, apart from TANDEMS we partner also in another LIFE project; namely Life LOOPS. This project focuses on reducing regulatory barriers to energy development. It explores options for wind, biomass, microhydro as well as clean transport.  

Why do you think it is important to discuss and tackle clean energy, energy transition and energy communities?

The theme of energy transition and energy communities was presented as a natural continuation of policies to reduce the carbon footprint of human activity, as an opportunity to improve the economic and social situation of the local community, which from a consumer becomes an energy producer. Through energy communities, independence and stability are achieved. Currently in Bulgaria there are not so many restrictions to energy communities since there is a lack of legislative framework. On the other hand, this exact lack of legislation is also a huge challenge and obstacle for us.

Another difficulty is overcoming the lobbying of large energy companies. These companies have no interest in involving citizens and local communities as players in the energy market. This is quite the opposite of what we are trying to achieve. Citizens must be aware of their role and their opportunities. This is why which is why it is important to talk about this topic.  

Did you receive any feedback from citizens, municipalities or other actors? 

Feedback is still scarce. People do not have enough knowledge and information on the topic. Right now we can see that there is some positive some sceptical reaction to our work. I believe, however, that when we deepen our work with citizens, we will receive more concrete reaction. On the 27th and 28th of April we held a conference in Gabrovo entitled ‘Cooperation for the implementation of green policies’. Representatives of local companies, local authorities and NGO’s attended the conference. The Gabrovo Municipality was represented by Todor, who is the director of administrative, legal and information services, Zhana Bastreva and Maria Radoycheva, chief experts in ‘Infrastructure and Ecology.  

Cooperation for the Implementation of Green Policies

We presented Gabrovo’s policies in the field of environmental protection. Among our main themes was the topic of energy efficiency, renewable energy and opportunities for local communities. We discussed ways to collaborate in order to achieve clean, affordable and secure energy- in the form of energy communities. We also of course presented TANDEMS and LifeLOOP projects, their objectives and benefits as well as any challenges they entail.  

What are your next steps? 

We plan to hold a number of thematic meetings with citizens and representatives of different communities. We plan to invite trade unions, condominiums, small and medium sized enterprises, schools and so on. On 2nd of May we had an expert meeting between Municipality of Gabrovo and EnEffect, who is our partner. We discussed a potential pilot project, which would involve working with citizens. Our next step in this field would be scheduling a meeting with the citizens and several follow-up meetings in June. We hope to launch the implementation of the first pilor community in June.  

*One-Stop-Shop is a model offering multiple services in a centralized location. Citizens can access services in one place rather than in many dispersed places.  

Why should we, as citizens, participate in an Energy Community?

As an initiative of citizens, who bring together resources for sustainable projects, we, ZuidtrAnt, a Belgian energy community with almost 10 years of experience, know first hand the uncertainties connected with joining energy communities. Nevertheless after years of working in the field of providing local and renewable energy to all members of the society, we can confidently stand behind our social purpose and fill you in on the benefits of joining an energy community.  

Energy Independence? Energy or Independence?

One of the most important reason to join an energy community is energy independence. By that we mean the ability to generate and distribute your own energy, but also have an in-depth understanding of energy transition and the future of renewable energy. Energy cooperatives involve members in every step of development. They give households personalised assessments or advice and home-owners decide what kind of involvement they would like to have. There are cases, where an energy cooperative plans to renovate a whole neighbourhood, but even then each residents can decide to what extent they want to be involved in the energy community. Those residents, who decide to be involved are given tools, adive and guidance. Energy cooperatives always work on a local level, which takes into consideration the local circumstances.   

Neighbourhood Renovation
Economy, skills and resilience.

Another ideologically less sexy but nevertheless relevant aspect is, of course, economic advantage. On one hand being a part of an energy community lowers energy prices and provides members with stable bills. This is because energy communities prioritize social value or member benefits over profit maximization. On the other hand, however, economic advantage also relates to the general participation in energy transition. For example the truth is that each European government wants to reach carbon neutrality goals.

In the words of Ursula Von der Leyen, president of the European Union, ‘The Green Deal is about cutting emissions, but also about creating jobs and boosting innovation. […] The old growth model based on fossil fuels is out of date and out of touch with our planet. We want to be the frontrunners in climate friendly industries, in clean technologies, in green financing. Our goal is to […] make it work for the people […] and be sure that no one is left behind‘.

Energy communities become the best vehicle for this because they allow citizens to have an active impact in the transition, becoming the makers of change rather than passive receivers of consequences. Local residents learn new skills and become more resilient. That means that they are able to sustain a comfortable way of living even when the surrounding industry undergoes change.

Neighbourhood and social cohesion.

Finally, energy communities, at least the way we organise them, are about neighbourhood cohesion. Working together towards a goal, which gives advantages to all is a very fulfilling task and forms lasting relationships. Neighbourhood cohesion, however, also means the ability to become self-sufficient in terms of employment or circulation of resources. By way of illustration ZuidtrAnt collaborated with Opnieuw & Co, a non-profit local recycling/thrift company in the suburb of Mortsel, to renovate a building called Shed 409 into a circular hub with social impact. Thanks to the installation of 350 solar panels and in the future stationary batteries, Opnieuw & Co can offer affordable alternatives to new products, create new employment opportunities, up skill residents and distribute any of their solar energy to shops in other locations.  

To conclude being a member of an energy community has multiple long term and short term benefits. The crucial aspect is that joining an energy community is not a lonely task and existing energy cooperatives and organisations working with energy transition support this process through ongoing guidance. Energy communities are the best vehicles for a fossil free society with affordable energy. At ZuidrAnt we are happy to push forward this transition. And we want to that together with you.

Secrets of Energy Sharing

Bild von Anemone123 auf Pixabay

Considering the recent energy crisis and rising energy prices, the topic of affordable energy has become more prevalent than ever. Companies, governments, and individuals explore actions to reduce energy consumption. They took up the challenge of driving the energy transition, and the search for alternative sources of energy could comprise. Although the media presents a well-rounded and balanced debate, still too little space is given to energy communities (EC) and the role of governments and policies in enabling the creation of ECs in Europe.  

Why are community-led projects important? 

Within the complex and nowadays uncertain world of energy production concepts such as citizen-led, collective, or equal citizen participation can sound intimidating and daunting. Considering that the process of normalizing energy communities is still quite new, these reactions are understandable. This paper, by students from business management and environmental studies, shines a light on the concept of energy communities, which are based on a collaboration between citizens, governments, and businesses for a clean energy transition. Even though these initiatives are not so popularized, they are, as pointed out by Sara Giovanni from Energy Cities a European learning community for future-proof cities, making a great contribution to fight climate change. 

In fact, currently, the speed of climate change is accelerating so fast that, according to Elmqvist et al., we must ready ourselves to enter an age of unprecedented transformative solutions, where confusion and vagueness is avoided. Energy communities, with their participatory and transparent information exchange, give power to the people themselves. This leads to, as stated by Feinberg et al, community resilience and better adaptability to socio-ecological issues. 

What are some of the current challenges?

Prominent issues within the process of promotion of energy communities are first the lack of easy access to information, which means a need for an active search, which is difficult without having any prior knowledge. Another problem, as pointed out by Wahlund and Palm from Lund University, is the bias towards a decentralized energy model and an underrepresentation of energy communities within the mainstream media. What follows, as presented by the results of this study from two Universities in the Netherlands, is the lack of trust of the wider public towards EC’s and thus an indifference towards taking an active role in the energy transition. 

Additionally, as claimed by Feinberg et al, energy communities require social cohesion, trust, and clear communication, which can sometimes prove difficult in a globalised world. With masses of people continuously changing their place of living, cooperative action must have better organisation, more proactivity, and increased attentiveness. Knowledge exchange and knowledge distribution, as believed by John S. Edwards from Aston University in Birmingham, are also factors that urgently need development. The way information circulated among communities, as maintained by William King in his Ph.D research at Coventry University, should take into consideration theoretical frameworks, type of language used, and more approachable glossary, which can inspire citizen science.  

What are some of the existing enabling frameworks? 

On the brighter side, however, for those who already have sprouts of interest in EC’s there are various sources including this repository from European Federation for Agencies and Regions for Energy and Environment. The repository aims to give an insight into not only the examples but also various publications and updates related to Energy Communities. Another, more general example of an informative database is the Projects for Public Spaces website, which brings together a wide array of community-led projects from all over the world.  

Furthermore, considering the participative aspect of ECs, members of energy communities themselves are actors, who hold the biggest levers of change. Citizens with an in-depth understanding of the circumstances of their networks and neighbors are often involved in energy community projects already. This has resulted, as presented by this research paper from the University of Bologna, in quite a large number of attempts being made in order to create EC’s and improve communication between them. Many studies, like this one, have also been conducted in order to analyse new methods of knowledge sharing within the energy industry and changes, which can be made to adjust the sector to 21st-century standards. 

Although energy transition is a well-established and urgent matter, it is still in many aspects in its early stages. This is why projects like TANDEMS focuses on establishing methods of mainstreaming this niche market and focuses on increasing the speed with which current traditional and centralized energy systems are transformed into a community-led, collaborative effort.  

Picture by Anemone123 on Pixabay.

5 Reasons Why Energy Communities Give Power to the People

Energy communities are groups of people that come together to collectively generate, store, and manage energy. Often, they are formed with the aim of increasing access to renewable energy sources such as solar panels, wind turbines, and biogas generators, lowering energy costs, and finally reducing a neighbourhood’s impact on the environment. By pooling their resources, knowledge, and experience, energy communities create more sustainable and resilient energy systems than would be possible at the individual level. They may also invest in energy storage technologies such as batteries, which allow them to capture excess energy and use it later when demand is higher. By doing so, energy communities reduce their reliance on traditional energy sources and lower their carbon footprint. 

Here are five reasons why energy communities allow people to take back control of their energy sources and become independent energy providers and consumers.  

1. Energy communities decrease energy costs

In an energy market dominated by large-scale players, energy communities building on renewable energy sources have a great potential to significantly reduce the members’ energy bills. Building on the collective rather than the individual, the prices for both, energy production and purchase are lower. Some energy communities produce and sell to customers at wholesale prices. For example, Helsingin Energia, an energy community in Helsinki, Finland, offers electricity tariffs up to 25% cheaper than traditional local energy providers. That’s as if you would get electricity but without paying VAT. 

2. Energy communities allow members to have a say in how their energy is produced and distributed 

With the gas and electricity shortage expected for winter 2022/2023, an increasing amount of people have become aware of the fact, that they do not really have a say about their electricity. Indeed, many have experienced a maximum of dependency. This is less true for people engaged in energy communities. As members they can actively participate in decision-making processes – the very basis for ‘controlling’ or ‘being in power’ of their own energy usage. To pick yet another example from outside the TANDEMs project, the Samso Energy Academy in Denmark empowers community members to own and operate wind turbines, solar panels, and district heating systems. Have a look at their website; they have an inspiring collection of talks on sustainable energy and energy communities! 

3. Energy communities encourage the use of renewable energy sources such as solar, wind, and hydropower

It is untrue to assume that we will have to wait for years until we have something to gain from cutting CO2 emissions. As a matter of fact, every reduction of the reliance on non-renewable sources for energy production that contributes to a cleaner planet today gives a little more autonomy for other decisions that will be pressing in the upcoming years. Surely, power to the people might be a quite general claim at this stake. It is not said that the newly evolved scope for action plays out in your energy community. To those arguing reducing here is nonsense while Asian countries increase air pollution: Do you really believe atmosphere, air, and pollution stop at the border? 

4. Energy communities encourage energy efficiency by providing members with advice and support to reduce their energy consumption

Knowledge is power and luckily there are many advisors and organisations, which navigate citizens through setting up energy communities. For instance, French Energies POSIT’IF offers free energy audits to its community members and provides personalised recommendations on how to reduce energy usage. Other projects, such as Newcomer – Exploring New Energy Communities, assess the regulatory, institutional, and social conditions to facilitate learnings on a meta, or more precisely, supra-local level. 

5. Energy Communities create jobs 

We’ve started with economy. We end with economy. Hovering over the EU Centres for Development of Vocational Training map of occupation needs in Europe, you’ll quickly find out that the only country in Europe where mining personnel is still hired is Bulgaria. For Czechia and the Northwest region, a 2021 published study of the European Greens (that are obviously not the representatives of coal mining industries) expect 10,000 jobs in the mining sector to be soon replaced by more than 20,000 jobs in renewable energy. The reason: decentral energy harvesting. Indeed, energy communities provide job opportunities for residents in various areas such as installation, maintenance, and customer service. 

Overall, energy communities empower citizens by giving them control over their energy usage. It seems almost ridiculous to assume, they have the potential to empower people. Instead, they do so on an everyday basis already. Energy communities create jobs and decrease the cost of energy. They allow for a minimum scope of action and open windows of opportunity to fight climate change. Finally, they give communities a voice and reduce dependency. The latter is the very essence of empowerment.

Image by Cornell Frühauf from Pixabay

Deviating Legal Frameworks for Energy Communities in Europe

Windmill and a wind turbine on a Field. Photo by Mike van Schoonderwalt. Url: https://www.pexels.com/photo/windmill-and-a-wind-turbine-on-a-field-5511491/

Energy communities have gained momentum in Europe in recent years. They are considered as crucial tools in meeting the goals of the European Union’s clean energy transition, such as improving energy efficiency and reducing carbon emissions. However, there appears to be a lack of a uniform legal framework among European Union member states for energy communities, raising some concerns. This article will explore the deviating legal frameworks that are in place for energy communities all over Europe and suggest how deviations might be overcome.

What are Energy Communities?

Energy communities are groups of individuals or organizations that come together and jointly develop, manage, or own energy projects in their community. Actually, the European Union provides two definitions of energy communities: „Citizen Energy Communities“ and „Renewable Energy Communities.“ Both definitions put an emphasis on participation and effective control by citizens, local authorities, and smaller businesses. Large-scale energy providers and industries are not included in these definitions. In energy communities, members pool their financial resources to invest in renewable energy projects such as solar or wind power. Energy produced by these projects is sold back to the grid, and profits are returned to the members. An already existing example of this, which is also a TANDEMS pilot project, is in Otterbeek, Mechelen (Belgium). It is an energy community set up in a social housing area by Klimaan. 

The Problem of Deviating Legal Frameworks

Energy communities’ participation in the clean energy transition requires a supportive legal framework, which should be designed, considering the criteria of simple and clear administrative procedures, non-discrimination of actors, legal certainty and predictability of the framework, the stability of remuneration, and financing possibilities. Within the European Union, the regulatory framework and support for energy communities depend on individual country policies. In some countries, policies provide little or no support, while in others, policies are more supportive, providing some significant financial incentives. To better grasp the diversity of the policy frameworks enabling energy communities in Europe, it is recommendable to have a look at the RESCoop Transposition Tracker. It is easily accessible through a color-coded map and provides detailed information about each member state. Finally, it shows that there is a lack of uniformity or standardization in the legal framework surrounding energy communities in Europe.

Let‘s pin that down. For instance, in Germany, renewable energy cooperatives and citizen energy partnerships are widely used, with the strong backing of the Renewable Energy Act, which provides incentives such as feed-in tariffs and priority access to the grid for renewable energy producers. In contrast, in Italy, although there is a policy for Energy Communities, it’s not as supportive in terms of the incentives it provides. Similarly, in Portugal, there is no specific law for Energy Communities, and therefore, Energy Communities are not recognized legally. To this end, the deviations in the legal framework across EU Member states pose a challenge for cross-country collaboration in general, but also for the TANDEMS project. 

Possible Solutions to Deviations in Legal Framework

Deviating legal frameworks have been identified as a major obstacle for the realization of renewable energy projects in energy communities. Common legal standards might boost the development of energy communities. At the same time, they might reduce flexibility to react on local specificities, landscapes and community structures. A top-down, one-size-fits-all approach is likely to fail.

To overcome deviations in the legal framework, EU member states should thus develop a regulatory framework that encourages the development of local energy communities. This action may be led by the European Commission or Parliament – what is important though, is to ensure all relevant stakeholders (that are citizens not industries) have a say. The aim of such a framework should be to remove existing barriers and provide supportive measures that incentivize the development of energy communities. It should encourage cross-border cooperation and incentivize participation in the clean energy transition. 

Photo by Mike van Schoonderwalt