Local energy communities: paving the way for Europe's energy transition

In a quiet region of Bavaria, two rural communities are stepping into the future of energy. Set against a backdrop of rolling hills and tranquil village life, the towns of Frensdorf and Pettstadt sit at the forefront of an innovative energy project that could reshape the energy landscape.

Three elements of the E.ON Group: E.ON Group Innovation, regional utility Bayernwerk, and E.ON Digital Technology are testing a pilot project that aims to empower local communities by enabling them to share and consume their own locally-produced renewable energy.

This local energy community model is helping to accelerate the energy transition at the grassroots level.

What are energy sharing communities?

Energy communities are collaborative networks of citizens, small businesses and local organisations that pool their resources to produce and share renewable energy. This model of ‘energy sharing’ not only fosters local engagement but also enhances the efficiency of the local power grid, promoting energy independence, and helping to balance overall energy demand.

Legislation to promote such concepts is lagging, but E.ON and its partners are advancing the concept of energy communities. The six-month pilot project in Pettstadt and Frensdorf offers local residents and businesses the chance to actively participate in the energy transition, not just as consumers but as producers and sharers of renewable energy.

Through an app, users can monitor energy prices up to 24 hours in advance, allowing them to shift their consumption to times when renewable energy is most abundant and affordable. This dynamic pricing model incentivises participants to be more mindful of their energy use, helping to reduce costs and increase the efficiency of the grid.

The app shows how much energy is actually generated in 15-minute intervals, with the community's energy consumption recorded via the customers' smart meters, meaning customers can see whether the local electricity mix is currently green and cheap. 

The project’s impact will be analysed to explore key questions about consumer behaviour, grid performance and the potential for local energy communities to increase awareness of personal and collective energy consumption.

At E.ON we believe local energy communities can have a significant positive impact on Europe's energy transition but they can only succeed if we take people with us and offer them suitable concepts.

Learning from international success

While energy communities are still at early stages, E.ON Group Innovation has successfully launched similar projects across Europe. One notable success is the Adeje Verde project on the island of Tenerife, which ran from 2022 to 2024.

This project set up Spain's largest solar circle at the local music school, offering about 200 consumers the chance to connect to a solar system. The lessons learned in Tenerife have informed the development of the Upper Franconia pilot, especially in terms of customer engagement and collaboration with local government.

Another successful project was in Castelfranco di Sotto, Tuscany, where E.ON Group Innovation worked with Italconcia. By the end of 2024, the community has almost 350 solar panels installed, generating approximately 188,091 kWh for up to 100 members. This initiative is expected to save approximately 60,000 tons of CO2 a year annually, equivalent to planting 2,400 trees.

As the energy landscape continues to evolve, local energy communities will play an essential role in empowering citizens, enhancing energy independence, and contributing to a more sustainable future.

From a UK perspective, all it needs to start putting energy sharing communities into place is a few simple tweaks to existing energy policy. You can read more about that in our blog here: Energy sharing: How we hope to empower communities across the UK | E.ON News