Municipalities demonstrate the value of locally powered homegrown energy
In a time of geopolitical uncertainty, municipalities are key to Europe’s energy independence by advancing local renewables with communities. The EU Covenant of Mayors is mobilising local leaders to scale community energy and keep benefits local.
Over the past five years, geopolitical conflicts have twice driven up energy prices for Europeans, exposing Europe’s fossil fuel dependence and vulnerability. European Commission President Ursula von der Leyen has warned that the recent war in Iran is costing the EU 500 million euros per day. As oil and gas prices climb, households and businesses across Europe feel the consequences.
The answer is becoming increasingly clear for Europe: producing more renewable energy at home.
This vision is clearly outlined in the European Commission’s recently released AccelerateEU communication, responding to the EU’s rising energy costs on volatile fossil fuel markets and aims to accelerate the clean energy transition and strengthen our energy resilience, one of its pillars being ‘more homegrown energy’.
But this transformation will not happen only at national level. It will also be built locally – in cities, towns, and villages across Europe – where local authorities can work with local communities to build Europe’s homegrown energy future from the ground up.
The local dimension of homegrown energy
Local governments are uniquely placed to turn nearby resources like sun, wind, and water into affordable, reliable power for their communities.
Homegrown energy protects residents from global price shocks by reducing dependence on imported fossil fuels. It strengthens energy security, giving communities more control over supply. It also helps municipalities meet climate goals faster, bringing everyone along in the journey, while keeping the economic value of the energy transition within the local economy.
That means lower and more stable bills, new jobs, and stronger public trust in the transition.
Across Europe, municipalities are dedicated to advancing homegrown energy, using a wide array of tools, as demonstrated by EU Covenant of Mayors signatories.
Community energy: homegrown and powered by us
One of the most effective tools local governments have for this is community energy – where citizens, municipalities, and local businesses produce, co-own, and manage renewable energy together. Community energy is homegrown energy in its purest form. It gives people ownership over their energy future, stable pricing, and a direct share in the benefits.
Recognised in the European Commission’s Citizen Energy Package, more than 8,000 energy communities already exist across Europe. Their potential is enormous: by 2030, they could scale tenfold and help supply 25 to 30 million households.
Community energy projects are often carried by citizens, but municipalities can also get involved, help drive the project and at times even lead it. When they do, the impacts tend to be broader and more far-reaching, helping these communities reach their full potential.
Across Europe, local governments of all shapes and sizes – from urban cities and towns to rural villages – are showing how municipal leadership makes community energy stronger.
How municipalities can lead
The first and simplest way for a municipality to lead, is just by making it easier for those driving the project. Setting up an energy community comes with many legal and technical challenges.
Municipalities can help by simplifying procedures, connect stakeholders, raise awareness, and provide technical guidance.
In Valencia, Spain, a network of local energy offices has helped create ten citizen-led energy communities since 2020 through sustained outreach, expert advice, and direct support for residents.
In Siena, Italy, local authorities supported the development of a local energy community by mapping suitable public spaces and helping to streamline administrative procedures. They also established a technical working group with academic and institutional partners to put in place a stable, non-profit governance structure, playing a key role in setting up the initiative and guiding its early development.
Second and a bit more advanced, municipalities can directly lend a hand and support those establishing the community.
They can unlock public assets, provide financing support, and offer practical resources that communities may lack.
In Heilbronn, Germany, the municipality rented public rooftops to cooperative EnerGeno in exchange for cheaper electricity. What began as a simple arrangement evolved into a long-term climate and energy partnership.
In the rural catalonian village of Bellpuig, Spain, the municipality made rooftops and public space available for solar installations and EV charging, while supporting the cooperative that now produces more than 490 MWh of renewable electricity each year.
To go even further, municipalities can directly get involved and directly lead community energy projects.
For those wishing to go the extra mile, they can directly join energy communities and co-invest. When there is limited awareness and proactivity around community energy, municipalities can also themselves initiate and lead the project, setting the example.
In the rural Basque town of Ispaster, Spain, the municipality became a member of its local energy community, reinforcing trust and long-term commitment.
In Križevci, Croatia, the municipality partnered with a local energy cooperative to launch a crowdfunding campaign for the development of solar power plants in the city centre and library. These campaigns for a solar roof project raised the required funds within days and showed a strong citizen interest in renewable energy.
When local authorities participate directly, they send a strong signal that community energy is a shared priority.
Beyond community energy
Community energy is one of the strongest tools available, but it is not the only one. Municipalities can also promote homegrown power through strategic procurement, public-private partnerships, flexibility schemes with grid operators, digital energy management, building renovation, demand reduction, and neighbourhood micro-grids.
Valencia, for example, integrates social and green criteria into energy procurement, while Ispaster operates a hybrid microgrid supplying buildings and households with renewable heat and electricity backed by storage.
Meaningful leadership does not need to start large. It can begin with one school roof, one housing block, or one street.
Unlock your power with homegrown energy
Europe’s energy future does not need to be imported. It can be produced locally, owned collectively, and designed to serve communities first – homegrown and powered by us.
Municipalities are uniquely placed to lead this transition. The EU Covenant of Mayors is spotlighting all the ways in which local leadership is powering Europe’s clean, affordable and independent energy future. Follow to find out more.
Is your municipality doing something to promote homegrown energy?
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For more information, contact:
Project Officer – Climate & Energy
