Sustainability Language

Energy & Transition

Community energy

Energy projects owned, governed or substantially shaped by local communities, from cooperatively owned renewables to collective purchasing.

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Definition

Community energy refers to renewable-energy and energy-efficiency projects in which local people hold meaningful ownership, participation or benefit — for example energy cooperatives, community shares in wind farms, or municipal schemes. Participants act as 'prosumers', both producing and consuming energy, and revenues are typically reinvested locally.

References

Earth.Org

definition; prosumer model; just-transition role

Overview

What it means

It redistributes the financial returns and decision power of the energy transition from distant investors to localities.

How it is used

Recognised in EU law (citizen and renewable energy communities) and promoted by IRENA and civil-society networks as a vehicle for a just transition and local acceptance of renewables.

Why it matters

Community ownership increases social acceptance, keeps value local and broadens participation in decarbonisation.

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