3.3. The NEWCOMERS Project (2019–2022)
One of the largest contemporary European initiatives for research on energy communities is the NEWCOMERS project.
The NEWCOMERS (New Clean Energy Communities in a Changing European Energy System) project (2019–2022) was an EU-funded project aimed at exploring and evaluating a variety of different new clean energy communities across Europe. By analysing how different types of clean energy communities operate, in what regulatory, institutional, and social conditions they emerge and thrive, but also what kind of benefits they could offer their members and society at large, the programme hoped to provide practical recommendations to policy makers. These recommendations were intended to help policy makers successfully support new clean energy communities and subsequently contribute to the decarbonisation of the European energy system.
The NEWCOMERS project had six partner countries across Europe, in which ten different energy communities were examined and used as case studies (Germany, Italy, the Netherlands, Slovenia, Sweden, and United Kingdom). The different energy communities were studied using a multi-method approach which included online surveys among community member, qualitative interviews with community members and managers, and an in-dept business model analysis of the 10 different case studies. The study also included a field experiment of a virtual energy community in Slovenia, an analysis of the socio-technological system in the six partner countries and a large-scale survey among the general population in nine European countries (France, Germany, Italy, the Netherlands, Poland, Slovenia, Spain, Sweden, United Kingdom).
It is worth noting that the NEWCOMERS project uses a broader definition of Energy Communities than both CEC and REC.
3.3.1. NEWCOMERS Findings
In their studies, the NEWCOMERS project found that for new clean energy communities (CEC in their reporting, CLEC here to avoid confusion) to survive and thrive they need to develop new and often highly innovative business models. The NEWCOMERS project was able to identify relatively standardised and stable business models, but the report with key project findings (2022) highlights that the new business models are often highly influenced and linked to each country’s national policy frameworks. The reports also highlight that the communities do not operate in a vacuum and that the development of new business models will affect the relationships within the European energy system. The NEWCOMERS project further emphasised in its key project findings report that only a small number of the studied energy communities were engaged with active management of electricity networks or trying to engage with emerging flexibility markets. In addition, they found that whilst CLECs differ in context and operational models, they all largely share the same overarching goal of contributing, in some capacity, to the success of the energy transition.
With respect to actors and networks, the NEWCOMERS project reported in their report on key project findings that CLECs are increasingly forming partnerships with each other and local government to accelerate the local energy transition. In addition, they found that CLEC members are increasingly sharing and acquiring knowledge regarding renewable energy and energy efficiency. The project did however also find that the studied countries differ considerably in supportive infrastructure and that many communities to a large degree are reliant on third party actors for technical expertise and operational support.
While the NEWCOMERS project is able to identify numerous benefits with CLECs the key project findings report (2022) highlights (i) finances (lowering energy costs); (ii) the opportunity to become self-sufficient; (iii) environmental concerns (being able to contribute to energy transitions and reduction of CO2 emissions); and (iv) social benefits (communal living, social recognition, and social approval) as the most commonly mentioned motivators for individuals to join a CLEC. The economic benefits are especially mentioned as a motivating factor by non-members, wereas already active members place special emphasis on the social benefits of a CLEC membership. In the key project findings report it can also be seen that by joining a CLEC, members indicate that they have gained an increased feeling of empowerment. It is also suggested that members have become more environmentally conscious overall after joining a community. On a society level there are additional benefits. As an example, it is suggested in the key project findings report that CLECs have the ability to mobilise people to invest and take action, that they can promote learning and the spread of know-how both regionally and nationally, in addition to increasing the proportion of renewable energy in the supply mix. With locally produced energy there is also a reduced need for system balancing.
A consistent finding from the citizens surveys highlighted in the key project findings report is that the vast majority of households consider CLECs as an important or very important element in the transitions to more sustainable energy systems. It is also highlighted that non-CLEC members consider CLEC as most beneficial if they are run by citizens, has a large member influence and lead to decreased energy costs. Despite the large benefits there are however very few incentives identified by the NEWCOMERS project for CLECs to offer flexibility services, and if they do offer flexibility, it is often facilitated by a commercial actor.
The NEWCOMERS project was also able to identify favourable environments for the creation and viability of CLECs. It found that apart from positive publicity, CLECs benefit from support from the local government to overcome administrative and legal hurdles. CLECs would also benefit from new housing legislations to encourage new clean energy investments by renters and landlords, in addition to increased dissemination of information and promotion of a less consumption-oriented culture. An increased dissemination of information and knowledge about CLEC could contribute to the diffusion of energy communities, as not being aware of energy communities was the most common reason given for not having joined a CLEC.
The NEWCOMERS project also found that there are multiple ways of scaling up or diffusing CLECs, which includes members sharing knowledge, experience, and information with others outside the community on either online platforms, social media, or mouth-to-mouth in both formal or informal settings. Furthermore, the key project findings report suggests that a way of diffusing the benefits of CLECs could be through licensed partnerships, where a licenced supplier could replicate the partnership with a new community elsewhere. To enable successful scale-ups there is however a need for increased incentives provided by legislation, regulation, and policies. There is also a lack of knowledge and understanding among politicians and decision-makers of how to effectively support the development of CLECs. Here the key project findings report suggests that simple guidelines could help improve the scalability of CLECs. In regard to regulation and policies, the NEWCOMERS project suggested that there is a need for adaptation to national circumstances to promote the development of local energy communities (NEWCOMERS, 2022).
3.3.2. NEWCOMERS Recommendations
Based on the findings, the NEWCOMERS project recommends that three key principles should guide policy makers in their work, namely, Recognise, Priorities and Simplify. In the final policy recommendations report, it is specified that this would include recognising the benefits, which energy communities offer their members and local communities, prioritise the CLECs by offering policy support and by simplifying the existing legislation and regulations. Along these three key principles five main categories of policy recommendations were formulated.
The first category; Recognising the value and strengthening the role of energy communities, argues that consistent, unambiguous, and lasting support to CLECs are required at all governmental levels to further the position of CLECs in the European energy system. The authors suggest that this support can be provided by creating clear and nationally adopted definitions of the term energy community to provide increased legal clarity. The authors also suggest preferential regulatory treatment in European legislation is a way to strengthen CLECs position.