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International (West EU) models of

cooperatives and case studies

Author: Jaroslav Klusák

1.1. Introduction

Energy communities are defined in two separate laws of the Clean Energy Package. The

revised Renewable Energy Directive (EU) 2018/2001 sets the framework for ‘renewable

energy communities’, including renewable energy. The revised Internal Electricity Market

Directive (EU) 2019/944 introduces new roles and responsibilities for ‘citizen energy

communities’ in the energy system covering all types of electricity.

The revised Renewable Energy Directive defines citizen energy communities as “a new type

of entity due to their membership structures, governance requirements and purpose”. The

Directive also spells out specific characteristics of such communities in terms of their sizes

and ownership structures.

Roberts et all (2019) view energy communities as a non-commercial type of market actors,

as they focus not only on non-commercial economic gain but also on environmental and

social community objectives. When operating on the market without discrimination, these

communities must comply with rights and obligations as other market parties and their

activities must not distort the competition.

Energy communities are incorporated as a non-commercial type of market actors that

combine non-commercial economic aims with environmental and social community

objectives (Roberts et al., 2019). The revised Electricity Market Directive states that ‘citizen

energy communities constitute a new type of entity due to their membership structure,

governance requirements and purpose’. The revised Renewable Energy Directive refers to

the specific characteristics of local renewable energy communities in terms of size and

ownership structure.

Therefore, the directives frame energy communities around specific criteria and activities

to ensure they have an equal footing when operating in the market without discrimination

(Roberts et al., 2019). But they must do so without distorting competition and without

foregoing rights and obligations applicable to other market parties.

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Under the same legislation it is obligatory for Member States to provide an enabling

framework to promote and facilitate the development of renewable energy communities as

a way to expand renewable energy. Member States are also required to take renewable

energy communities into account when designing their renewable energy support schemes.

In the revised Electricity Market Directive, the enabling framework is more intended to

create a level playing field for citizen energy communities as new market actors.

In general, citizen energy communities and renewable energy communities are involved in

both traditional and new business type of activities. They are allowed to carry out similar

activities, including, among others, generation, distribution, supply, storage of energy or

provision of energy-related services. In each separate segment of the market they must

comply with relevant market obligations and regulations.

Recurrently energy communities generate renewable energy, however in recent years

there is a growing trend of energy communities encompassing several additional services.

In 2020 the Joint Research Centre published a report (Caramizaru, Uihlein 2020), which

provides a detailed overview of energy communities’ activities based on an analysis of

24 energy cooperatives in Europe.

The activities are as follows:

▪ Generation – an energy source is owned, usually a renewable one. Generated

power is not self-consumed but fed into the network and sold to the supplier (e.g.

Hillerød Biogasification)

▪ Supply - the sale and resale of electricity and gas to costumers (e.g. ECOPOWER)

▪ Consumption and sharing: energy community owns and produces energy, which

is subsequently used and shared inside the community (e.g. Eigg Electric)

▪ Distribution – network owned and managed by the community, usually combined

with generation, i.e. local distribution grids or small-scale district heating and

(bio)gas networks (e.g. Eigg Electric)

▪ Energy services: a whole range of services aimed at energy efficiency or energy

savings, from renovations, energy auditing, energy management to financial

services

▪ Electro-mobility: car sharing or charging stations management (e.g. Courant

d’Air, or Mobicoop)

▪ Other activities: soft measures, including consultancies, information sharing and

awareness raising in the field of energy communities (e.g. Energie Solidaire

Enercoop, France

The declared 24 case studies show most energy communities own and generate energy.

On top of that, some are involved in both generation and supply (Ecopower), while the

combination of generation, supply and distribution performed by EWS Schönau is quite

rare. Advisory role of energy communities looks fairly strong; activities are tailored to local

needs and cover a variety of energy efficiency measures, ranging from lighting upgrade to

building renovations. ‘e.g.Courant d'Air, Ecopower, Ecotrajet1

Mobility is an increasingly popular activity in communities. Communities offer citizens an

opportunity to use electric cars easily, while minimising parking and fuel costs. In addition,

electric cars can be used in flexible management of energy produced in local renewable

energy power plants.

1 See https://www.ecopower.be/energiebesparing/ecotraject

https://www.ecopower.be/energiebesparing/ecotraject

3

Nevertheless, energy communities can also play an important role beyond what its “local

community” remit. Some cooperatives supply their electricity to a large number of retail

consumers, e.g. EcoPower supplies cover 2% of Flemish households2.

Figure x Overview of cooperatives activities

Source: Caramizaru et al., 2020

1.2. Legal structures

There is a few possible legal structures to establish an energy community. Such model

should be selected that enables to carry out planned services an energy community is to

provide and anticipated governance model, defining levels of citizen engagement and

participation in the energy community.

An overview of available legal structures and their definition has been adapted from

Caramizaru, A. and Uihlein, A. 2020

Table x Possible legal structures for energy communities

Legal structure Description

Energy cooperatives • the most common and fast growing form • primarily benefits its members • popular in countries ahead with renewables and community energy

Limited partnerships • allows participating individuals to distribute responsibilities and

generate profits

• governance based on the value of each partner’s share

2 https://www.rescoop-mecise.eu/aboutmecise/ecopower

0 5 10 15 20 25

Generation

Supply activity

Energy efficiency

Distribution activity

Electro mobility

Consumption and sharing

Flexibility and storage

Financial services

https://www.rescoop-mecise.eu/aboutmecise/ecopower

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Community trusts and foundations

• aims to generate social value and local development rather than

value for individual members • profits are used for the community as a whole (for-the-public-good

companies)

Housing associations • non-profit associations can offer benefits to tenants in social

housing • ideal for addressing energy poverty

Non-profit customer-owned enterprises

• deal with the management of independent grid networks, e.g. community district heating networks common in countries like Denmark

Public-private

partnerships

• local authorities enter into agreements with citizen groups and businesses to ensure energy provision and other benefits for a community

Public utility company • invested in and run by municipalities on behalf of taxpayers and

citizens

• less common, but are particularly suited for rural or isolated areas

Source: Caramizaru et al., 2020

The majority of citizen-led initiatives are cooperatives. Cooperatives are a type of social

and economic enterprise that enables citizens to collectively own and manage renewable

energy projects (Yildiz et al., 2015). Local or from the neighbouring area residents can

invest in renewable generation by buying shares to finance a project (Walker, 2008). In

some cases, citizens can also consume and share renewable energy.

Strong community tradition of Germany or Sweden seemed to have contributed to a wide

spread of cooperatives in these countries. On the other hand in the UK renewable

communities are linked to industrial and provident societies with an aim to benefit the

community as a whole.

In a cooperative, the distribution of profits is limited and surpluses are reinvested to

support its members and/or the community. The allocation of revenues from the projects

is regulated by the statutes of the cooperative, which relate to its main purpose.

Sometimes they can be distributed amongst the members through capped dividends. Other

initiatives may provide energy benefits in the form of lower energy prices. Cooperatives

are based on democratic governance - i.e. decisions made on a ‘one member – one vote’

principle.

There are several umbrella organisation, uniting citizen-led communities at national and

EU levels. Energy4All3 is an example of a UK-wide network facilitating knowledge and

experience sharing. At the EU level the most prominent is the European federation of

renewable energy cooperatives, REScoop.eu4, which brings together more than 1,500

energy cooperatives and thus represents 1 million citizens.

Another legal form for citizens’ participation includes limited partnerships, with a limited

liability company as a general partner (Gesellschaft mit beschränkter Haftung & Compagnie

Kommanditgesellschaft - GmbH & Co. KG). The model is suitable for larger projects with

high investment volume. It became particularly popular for citizen-owned wind parks in

Germany. One example is Sprakebüll which started as a community-wind farm pioneered

by a group of villagers based on the GmbH & Co. KG model. Voting rights are proportional

to the capital invested, instead of the traditional one member – one vote cooperative

principle (Co2mmunity, 2019).

3 See https://energy4all.co.uk/ 4 See https://www.rescoop.eu/

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Development trusts are favoured in Scotland. The community group solely owns the

renewable installations, raises funds and distributes income to community projects. An

example is the Isle of Eigg and its off-grid system5.

In the Netherlands, there are several legal models used to set up energy communities.

One to mention is Duurzaam Ameland (“Sustainable Ameland“); a partnership between the

municipality of Ameland and a number of companies in a covenant. The goal is to make

the island's energy supply more sustainable in a few years. It brings together several

projects (innovative energy grid, solar park, sustainable green lighting, hybrid heat pumps

and sustainable public transport)6.

A specific measure can be found in Poland; in line with the EU legislation on renewable

energy sources a definition of „energy cluster“ was introduced. The clusters do not have a

legal personality, however they can be perceived as a local energy community consisting

of both public and private actors that is in charge of balancing demand and supply on a

local level.

Housing associations can be found in many European countries. In Växjö Sweden a housing

association Lyckansberg’s solar plant has been producing solar electricity for its tenants

for past two years.

Non-profit customer-owned enterprises are legal forms for community ownership

represented in Denmark. In 1962 Marstal District Heating was established and today

supplies district heating to 1460 consumers in Marstal. It produces heat from the sun,

burning word chips and heat pumps plus the rest from bio-oil. In this model, profits are

paid back to the members in lower energy prices. Only property owners in Marstal eligible

to connect to the grid can buy the shares in the network

5 http://www.communitypower.scot/case-studies/projects/eigg-electric/

6 https://www.duurzaamameland.nl/

http://www.communitypower.scot/case-studies/projects/eigg-electric/https://www.duurzaamameland.nl/

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Table x Advantages and disadvantages of legal structures

No Legal structure Main factors for establishment Initiator Energy market Advantages Limitations

1 Energy cooperatives

▪ supply issues -use of local RES

▪ sustainability issues

▪ communities

▪ open/liberalised

with high competition between producers

▪ open to everyone

▪ small initial investment (share purchase - in

case of Ecopower (250 EUR)

▪ guaranteed dividends in case of profits

▪ no entry, or exit fees

▪ possibility to be also a customer of the cooperative

▪ lack of sufficient resources in initial phases

▪ limited access to

locations for RE facilities

▪ limited access to the electricity grid

▪ lack of available support mechanisms for project development

2 Limited partnerships



▪ communities

▪ private business

▪ dominated by a

few incumbent producers and suppliers

▪ sufficient resources in initial phases

▪ access to locations for RE facilities and grid

▪ personal and technical capacities of the involved companies

▪ capacity for project development and

financing

▪ open to limited number of communities and companies

▪ higher initial investment

▪ not guaranteed dividend in case of profits to local

community

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3 Community trusts and

foundations

▪ supply issues -use of local RES support mechanism

▪ communities

▪ dominated by a few incumbent producers and suppliers

▪ ownership rights defined by equity

▪ possibility to be also a customer of the trust

company


▪ necessity to own the property

▪ not guaranteed dividends in case of profits

▪ lack of available support mechanisms for project development and

financing due to previous

centralized system

4 Housing associations


▪ support mechanism

▪ citizens

▪ houseowners

▪ open/liberalised with high competition between producers

▪ open to everyone houseowner

▪ small initial investment

▪ guaranteed dividends in case of profits

▪ no entry, or exit fees

▪ possibility to be also a customer of the cooperative


▪ lack of available support mechanisms for project development

▪ specific model just for group of homeowners

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Non-profit

customer-owned enterprises

▪ supply issues -use of

local RES


▪ price of energy

▪ citizens/communiti

es


with high

competition between producers

▪ open to everyone houseowner

▪ small initial investment (together with purchase

of estate)

▪ guaranteed lower price

of energy

▪ additional economic benefit from the visitors


▪ lack of available support

mechanisms for project

development

▪ sensitive to changes in legislation and feed in tariffs

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6 Public-private partnerships



▪ communities



with high competition between producers



▪ personal and technical capacities of the involved companies

▪ capacity for project development and financing

▪ open to limited community and companies


▪ not guaranteed dividend in case of profits to local

community

7 Public utility

company



▪ municipality


▪ open/liberalised with high

competition

between producers



▪ personal and technical

capacities of the

involved companies

▪ capacity for project development and financing

▪ open to limited community and companies


▪ not guaranteed dividend

in case of profits to local community

▪ stakeholders outside of the local region

In the text below 7 case studies mentioned above are deeply analysed - three of them based on direct interviews (Ecopower, Marstal, Eig Electric)

and four of them based on available information through the web pages (due to not availability for direct interviews).

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1.3. Case studies

1.3.1. ECOPOWER (Belgium) - Energy cooperative

Ecopower is a cooperative producer and supplier of renewable energy. Those who invest

in production can consume their own Ecopower power at home. Their mission is to develop

a democratic, decentralized and sustainable energy system and to strive for 100%

renewable energy for electricity, heat and mobility. Ecopower already unites 58,000

citizens who together produce green, Belgian energy, in 2018 they saved around 60,000

tons of CO2. By making ordinary citizens the owners of wind turbines, solar panels, small

hydropower plants and the pellet factory, support for renewable energy is increased.

Ecopower controls energy supplies, so they become independent of energy imports and

large commercial companies.

Ecopower works according to the international principles of cooperative, which have been

established by the International Cooperative Alliance (ICA) and are referred to simply as

the ICA principles. In addition, all seven are listed.

▪ Voluntary and open membership

▪ Democratic control by members

▪ Economic participation by the members

▪ Autonomy and independence

▪ Education, training and information

▪ Cooperation between cooperatives

▪ Attention to the community

Business model

Ecopower is a cooperative what means that profit is not the main purpose of establishment.

The main aim is to supply and produce our members with green electricity form the whole

country at the lowest possible price. The business model is, that Ecopower gather equity

from their members and invest this equity into renewable production (wind, solar, hydro,

wood pallets, etc.) and this produced electricity is sold back to Ecopower members. To

obtain (buy) electricity it is needed to be a member of Ecopower, wood pallets can be also

sold outside of Ecopower (members have a discount).

Cooperative price of electricity is sold “at cost”, meaning that no profits are included into

the final price. Electricity is sold to members as a service and if any profits occurs, these

profits go into reserves and is possibility to give also dividends to members. In Belgium,

when you are classified as cooperative on the national level, dividends are evaluated as

cost, so when cooperative distributes dividends to their members in accounting system are

profits decreased or zero and cooperative doesn´t need to pay any extra taxes from profit.

The electricity price is cheapest on the yearly basis in comparison to other suppliers, but

on the other hand Ecopower is not able to react on current changes on the market, e.g.

during Corona crisis is not Ecopower the cheapest one, but in long time (annual) evaluation

is.

Ecopower is quite big with annual turnover of 36 million EUR. In 2019 profit was 1.5 million

EUR, dividends were 2% and 440 thous. EUR was indicated for reserves.

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Details of energy communities on national level

There is no special support for energy communities in Belgium. Investment support for

cooperatives is the same as for other SME companies (it means can be supplied in large

share in comparison to multinational companies). On the other hand, in Flanders (where

Ecopower operates) is planned to define energy communities and cooperatives as based in

the “winter package” with the aim to support local and small players (citizens,

municipalities, SME).

Energy (electricity) price is based on the overall cost (production and distribution). These

prices differ every year and each customer has the same price for the electricity.

Support scheme for common RES and community RES projects does not differ in Belgium,

there is mostly not direct investment, or operational support. Just existing indirect support

was already mentioned - cooperative can use dividends in accounting system as cost and

decrease profit taxes.

Ecopower has 60 thous. members. General Assembly (in 2020 physically and online about

1.000 people attending) take cares about “big lines”, e.g. discussion about new production

of wood pallets, installation of new sources, etc. There is also Board, which takes mostly

operational decisions and daily Steering Committee where people of different groups

(engineers, accounting, technical stuff) take common decisions. There is also 5 members

which have controlling functions and are in contact with the Board and giving information,

advices, suggestions to other members on the General Assembly. Together 44 people is

working for Ecopower.

Characteristics of the system in which the business model operates

The cooperative operates in the open free energy market. Free market motivates for

keeping electricity price low in other case are customers able with no robust administrative

barriers to switch from current supplier to another one with no fees.

Capacity and production.

In the beginning Ecopower starts with wind turbines, nowadays have 53 installations of

wind with total installed capacity of 110 MW and annual production of 200 GWh. PV systems

are also part of the Ecopower assets with capacity of 460 kWp.

Nr of members and customers

The whole cooperative includes 60.000 members. Just in 2019 3.000 new members occurs

with average share of 1.000 EUR, what is 3 mil. EUR available more as equity. Ecopower

is supplying to 55.000 members. 75% of members have just one share (250 EUR).

The market share of Ecopower is 1.7% of the whole Flanders electricity market.

Energy price

Community price for electricity is unique (just one tariff not distinguishing between day

and night, etc.) with the tariff of 30 eurocents/kWh.

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Target market

The electricity produced in Ecopower installations is sold on the market. Electricity market

is opened and free in Belgium, but is regionalized, so Ecopower is not able to enter the

whole Belgian market, but can sell electricity just in Flanders. Electricity is sold on the base

of bilateral contracts between customers (members) and energy company.

Financial viability

Energy cooperative is financially viable and using standard financial indicators:

▪ yearly budget

▪ financial surplus

▪ energy price

▪ pay-back-time

▪ share of dividends

▪ share of reserves, etc.

For electricity prices there are concluded long term contracts with customers as majority

of production is based on the wind energy (with marginal operational cost), energy

company is able to guarantee long term mostly stable prices and has also be competitive

with other suppliers as they have just 1,7% share in Flanders electricity market.

Pay-back-time period of Rescoop investments is 10-12 years.

Decision making

Decision making is based on the of Board of Directors concerning mostly operational issues

based on the approved budget, actions, maintenance, etc. Once a year there is a General

Assembly available also for a public attending by 500 -1.000 people a year. This General

Assembly has competencies also for approvement of new investments and for approval

majority of attended people is needed. Within General Assembly also new ideas of

shareholders and management are discussed.

Shareholders

Shareholders of energy community are just citizens, there is no other entity able to attend

General Assembly and affect future steps of energy community. There are also no larger

and smaller shareholders in the terms of cooperative control, each shareholder from

60.000 has the same rights and just one vote for General Assembly and also the right for

the same share of potential (e.g. 2% in 2019).

The number of Ecopower shares is limited to 20 per person with total amount of 5.000

EUR. As a couple you can therefore buy a maximum of 40 shares.

Main principles of Ecopower are as follows:

▪ share costs 250 euros and retains its value

▪ no entry or exit fees

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▪ share is always fixed for a period of 6 years

▪ each shareholder has one vote at the general meeting

▪ if profit allows, a dividend will be paid, max. 6%

It means, when you are a direct co-owner of all Ecopower production installations with one

share, approximately 350 kWh of Belgian green electricity is generated each year by this

share and saving 130 kg of CO2.

Strong points

Strong points can be sum up as:

▪ lower price – in comparison to other electricity suppliers in the region (with

difference up to 5 eurocents/kWh.

▪ profits and benefits are distributed within the community (members) and not

leaving the region to the hands of another companies

▪ long term profits – grandparents buying shares for their grandchildren

Barriers

Barriers can be sum up as:

▪ at the beginning to get and involve enough people for the first investment into wind

turbine

Lessons learned

Main lessons for other replications are to:

▪ have good economical calculations and feasibility studies at the beginning to be

sure about potential profits and benefits, which can be redistributed

▪ easy process to become a member

▪ focus on good PR campaign (also based on economic evaluation) to involve crucial

mass of people at the beginning

▪ ensure long term cheap price of energy in comparison to other energy sources

available in the region

1.3.2. Marstal Fjernvarme (Denmark) - Non-profit customer-owned

enterprises

Marstal Fjernvarme started as a consumer-owned co-operative with the installation of the

initial district heating network in the 1960s. Since then, the company is still owned by the

inhabitants of Marstal, nowadays Marstal Fjernvarme cover 1.600 households.

The inhabitants of Marstal financed the original district heating network in the 1960s.

Subsequently, the company financed the transition by tapping into available subsidies and

funding programmes:

▪ 35% of the costs were covered by subsidies from an EU fund (40 Mio DKK)

▪ remaining money (90 Mio DKK) was raised through so-called Kommune Credit,

which is a Danish funding programme that allows borrowing money at favourable

rates.

Since 1994, Marstal Fjernvarme has gradually started transitioning to a renewable energy

system. Nowadays, the company provides heat to the settlement of Marstal from 100%

renewable energy sources, 50-55% comes directly from the solar heat collectors, 40%

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from wood chips, 2-3% from a heat pump. The remaining energy comes from the

combustion of bio-based oil.

Annually, between two and four thousand people visit Marstal Fjernvarme.

Business model

Every customer is a owner of the company, what means Marstal Fjernvarme has

1.600 owners (houses connected) to the grid, so if anybody buys a house in Marstal

Fjernvarme, he is automatically partly owner of the energy community (company). The

price of the house also includes “entrance fee” for membership in cooperative. Company

is operating with no profits, every year after approvement of final financial statements is

profit (surplus) distributed to the owners of the cooperative. In case there is no profit in

current year, company is able to increase heat price, or to take any loan in the bank, if

approved.

Cooperative price for heat is compared to about 500 prices of other heating companies in

Denmark and the price is constantly somewhere in the middle. Prices differs every year

and depends on current investments, when for example investment for changing of heat

source was realized, there was a need to pay a loan and caused increase of price in

comparison to other companies. It happens in the early 1990s, the chair of the board, the

manager of Marstal Fjernvarme, and one of EnergiPlans owners initiated the energy

transition in Marstal. The first solar heating system was installed at the local swimming

pool. After showing promising results, the solar heating system for the local grid was

introduced and were thus able to provide energy to households at a lower price.

Energy community is quite big with annual turnover of 20 million DKK (2,5 mil. EUR).


There is no special support for energy communities in Denmark. Investment support is

mostly focused on new smart technologies as more efficient storage systems, etc., but

when you include in the project any ordinary solutions, investment is not able to get any

subsidy from national, or EU level.

Energy prices are set up from two parts. Firstly from fixed price (including loans and

salary), which depends on the size of the house and secondly from variable price (including

fuel cost), which depends on the energy consumption of houses (customers). These prices

differ every year and each customer has the same price for the heat. This is also common

and same approach how to calculate heat price for no community systems.

Support scheme for common RES and community RES projects does not differ in Denmark,

there is mostly not direct investment, or operational support. Just existing indirect support

that green energy is free of carbon, or other taxes. Support of RES was based on the source

and technology (last support was focused on windmills) instead of the ownership of the

project (community vs. non community).

There is a board of 5 people which manage the day-to-day business activities. To be a

member of the board, you have to be a citizen of Marstal Fjernvarme and be connected to

heating plant. Every 2 years are board members re-elected on the General Assembly by

the members of the energy community. The general assembly has also the last word in big

decisions such as the installation of the solar heating system, etc.

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The energy community operates in the open free energy market. Free market motivates

for keeping heat price low in other case are customers able with no robust administrative

barriers to switch from current district heating to another source and district heating

system should be shut down in the future. There is just a fee needed to be paid for

disconnection depending on the size of the house in average about 10.000 EUR.


In the beginning in 1960´s the main source were 6 oil boilers, which are still working but

not using at all due to their expensive operation. Nowadays are boilers feed by biooil and

woodchips. System is also connected to 33.000 m2 of solar (thermal) panels with big water

tank of 75.000 m3 and to 1.5 MW heat pump.

Annual energy production is 30.000 MWh, 50% of the production is provided by sun, 40%

by wood chips, 5% by heat pump and 5% by biooil boilers (which are used just in the case

of cold winters).


The whole energy community includes 1.600 members (households), what means about

86% of all houses in Marstal, with average rate of 2,5 people in a household energy

company serves to 4.000 customers.

Energy price

Community price for heat is compared to about 500 prices of other heating companies in

Denmark and the price is constantly somewhere in the middle. Comparison can be made

with a “standard” house in Denmark which is assumed to have 130 m2 with 4 people living

using 15 MWh per year for heat and such as typical house pay 2.000 EUR for heating per

year also in Marstal, which means average price of 130 EUR/MWh, more info can be found

in statistics of Danish Energy Agency www.ens.dk.

Target market

The energy (heat) produced in Marstal is used solely for self-consumption and no surplus

is sold on the market. Heat market is opened and free in Denmark, but due to geographical

reasons, there is just possibility for Marstal customers to be connected to district heating,

or to use own individual systems. Heat is sold on the base of bilateral contracts between

customers (members) and energy company.

Financial viability

Energy community is financially viable and using standard financial indicators:

▪ yearly budget


▪ energy price

▪ pay-back-time

http://www.ens.dk/

15

For energy prices there are concluded long term contracts with customers as 50% of

energy is based on the sun (with no, or marginal operational cost), energy company is able

to guarantee long term mostly stable prices.

Pay-back-time period of Marstal investments is 10-15 years.

Decision making

Decision making is based on the of Board of Directors (5 members) concerning mostly

operational issues based on the approved budget, actions, maintenance, etc. Once a year

there is a General Assembly available also for a public attending by 50-60 people a year.

This General Assembly has competencies also for approvement of new investments and

for approval majority of attended people is needed. Within General Assembly also new

ideas of shareholders and management are discussed.

Shareholders

Shareholders of energy community are just citizens, there is no other entity able to attend

General Assembly and affect future steps of energy community. There are also no larger

and smaller shareholders in the terms of energy community control, each shareholder from

1.600 has the same rights and just one vote for General Assembly and also the same right

for potential surplus and profits generating by energy company.

There is no payment for share, anybody who is connected to district heating is part of the

system and can benefit from potential profits and from the heat price. Just in case when

anybody is buying a new house, he has to pay for the connection to the district heating

system, payment is about 3.000 EUR. For existing buildings, there is no need for payment

to enter and be part of energy company.

Strong points


▪ lower price – in comparison to other individual heating systems in the region

▪ no operation – in case there is any problem with heat, no extra costs are needed

from household, just calling operators of district heating system, which is

responsible for heat supply

▪ profits and benefits are distributed within the community (members) and not

leaving the region to the hands of another companies

Barriers


▪ at the beginning (1960´s) to get and involve enough people connected to the grid

▪ nowadays is problem with electricity price, which is cheaper and heat pumps

become more competitive in price

▪ investment financing at the beginning of the whole process - nowadays there is not

too much opportunities to get investment support for conventional technologies and

advanced are still expensive

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Lessons learned



sure about potential profits and benefits, which can be redistributed

▪ focus on good PR campaign (also based on economic evaluation) to involve crucial

mass of people at the beginning

▪ ensure long term cheap price of energy in comparison to other energy sources

available in the region

1.3.3. Eigg Electric (Scotland) - Community trusts and foundations

The new Isle of Eigg electrification scheme is a community inspired project to electrify the

whole island. The system started generating power in 2008 and continuous power was

made available for the first time to all residents and businesses on the island. Further, for

the first time, the renewable resources of wind, water and solar generated electricity were

integrated into a grid system designed to supply an isolated and scattered small

community.

The electricity system is entirely stand-alone. It has no external input from a mainland

utility and is operated and maintained for the community by Eigg Electric Ltd. a wholly

owned company of the Isle of Eigg Heritage Trust. Repair and servicing is the responsibility

of a trained maintenance team of island residents.

The whole project was recognized as the Best Community Initiative at the 2008 in Scottish

Green Energy Awards.

Business model

There are no shareholders in this community trust. The first step was to buy in 1997 the

whole electric system on the island which was privately owned before and to provide

residents stable 24/7 electricity supply by local (community) company, what means Eig

Electric has 47 households (about 100 people) and 10 businesses connected to the grid.

The electric system was bought by three organizations at the beginning - Highland Council,

Isle of Eigg Heritage Trust and The Residents of the Isle of Eigg. Later on the Isle of Eigg

Heritage Trust had three subsidiary companies

• Eigg Trading Limited owns and manages An Laimhrig which houses the island Shop

and Post Office, Tearoom, Craft Shop, Trust office, waiting area and toilet /shower

facilities

• Eigg Electric was set up to build and manage the islands’ electricity grid

• Eigg Construction Limited was set up to undertake renovation works on the Trust’s

properties.

Energy community is quite small with annual turnover of 100 thous. EUR and investment

cost were 1.6 mil. EUR also supported by European Regional Development Fund.


There is no special support for energy communities in Scotland. Investment support is

mostly focused on new smart technologies as more efficient storage systems, etc., but

when you include in the project any ordinary solutions, investment is not able to get any

subsidy from national, or EU level.

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Electricity price is set up individually with no need to be competitive due to closed island

system as mentioned the main reason for establishment of community trust was delivery

of 24/7 electricity. The price is almost higher than price from other bigger electrical

companies. Revenues from selling of electricity are mostly used for repairment works and

local employees of Eigg Electric. On the other hand at the beginning of the project residents

of Isle of Eigg were ask, what price level they afford and this level is trying to be fixed or

increased just only in very small level or if really necessary.

Support scheme for common RES and community RES projects does not differ in Scotland,

there is direct investment support, but in case you obtain any investment support, you are

not able to reach to any kind of operational support. Support of RES is based on the source

and technology instead of the ownership of the project (community vs. non community).

There is a voluntary Board of Directors which meets regularly in case of new investments

(actually expansion of the electric system), if the whole system doesn´t operate as

supposed, or if there are some new busines, etc.


The energy community operates in the closed (island) energy market. The market doesn´t

motivate for keeping electricity price low.


The system consists of three hydroelectric generators a group of four small wind generators

and an array of solar electric panels sited at different locations around the island as

determined by optimum availability of resource. The hydroelectric capacity is

approximately 110kW, the maximum output of the wind farm is 24kW and the solar electric

panels can produce up to 10kW (since increased by a further 40kW). The total generating

capacity of the whole system is approximately 184kW.

A bank of batteries, capable of providing power to the whole island for up to 24hrs, has

been designed into the scheme to enable us to optimise our usage of energy from the

renewable resources. To cover occasions when renewable generation is low, the system is

supported by a pair of 70kW diesel generators, which act alternately as back up and

reserve, and can be switched into the system automatically as a part of the control

strategy.

Total annual production is 250 MWh.


The whole energy community has no members as mentioned, is just private company and

such as company supplies electricity to 47 households (100 people) and 10 businesses.

Energy price

Community price is higher in comparison to annual electricity price in Scotland and

currently Eig Electric charge 250 pounds per MWh.

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Target market

The whole output of all the renewable energy generators is sold on the island. The whole

production is brought together, controlled and distributed to all households and businesses

on the island by way of an island-wide high voltage grid of approximately 11km length.

Consumers are supplied via transformers which convert the grid voltage to domestic

voltage and which are located in close proximity to clusters of properties. These same

transformers provide the means of access to the grid for the energy produced by the

renewable generators. Contracts are directly between Eig Electric and customers

(households, businesses).

Financial viability

Energy community is financially viable and using standard financial indicators:

▪ yearly budget


▪ energy price

▪ pay-back-time

Eig Electric is preparing “management account” every three month to have updated data

about financial situation of the company.

Decision making

Decision making is based on the of Board of Directors concerning mostly operational issues

based on the approved budget, actions, maintenance, etc. There is a community meeting

every month in case of lower production, increasing of the system, repairment, etc. and

reported to Board of Directors.

Shareholders

There are no shareholders.

Strong points


▪ 24/7 accessibility of electricity supply

▪ 95% energy system based on renewable sources

▪ no operation – in case there is any problem with electricity supply, no extra costs

are needed from household, just calling operators of Eig Electric

▪ support from operators (private company) at the beginning who knows a lot of

technical info about generation and distributing system

Barriers


▪ at the beginning to get finance for investment and to ensure sufficiency reserves

for repairment

▪ system has been designed to provide at least 95% of the power consumed on the

island, however, it is of limited capacity, especially in the summer months when we

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may have little wind or rain. To avoid the possibility of overload and to ensure that

electricity was always available equally to all consumers, a decision was taken early

in the design of the project to cap the supply to all outlets. Domestic and small

business premises were to be capped at 5kW and for larger business premises at

10kW. All consumers were provided with energy meters to measure power

consumption and indicate when the cut off point was approaching.

Lessons learned



sure about potential profits and reserves for repairment

▪ focus on good PR and information campaign (also based on economic evaluation)

to involve crucial mass of people at the beginning

1.3.4. Eoliennes en Pays de Vilaine (FRANCE) – Limited partnership

L’association Éoliennes en Pays de Vilaine (EPV) is a REScoop that has been working on a

wind energy project for more than 15 years. In 2013 they established their first wind

project. As a REScoop with no production of their own they needed to find a way to cover

the first phase of the authorisation process for the wind turbines. In order to do this

effectively the REScoop has set up a professional company with the involvement of

different local stakeholders.

In 2006 the wind project came at a stage where it could not be done by only volunteers.

The association decided to hire an employee and created a company Site à Watts (SARL -

limited liability company) to keep the project from going to other private developers. With

the support of many voluntary workers, Site à Watts obtained two construction permits in

2009 and 2011, allowing the creation of Bégawatts a separate company that will be

responsible for the exploitation of the new wind park.

The REScoop EPV brought several stakeholders together to set up the company Site à

Watts. First there were the founding members EPV, 25 founding members, three local

investors clubs (CIGALES in French) and a semi public company from the Department of

Loire-Atlantique (Société d’Economie Mixte in French) invested in the capital of this

company. The company works now as a project developer that only develops citizens

owned wind parks in France.

The total costs for development of a wind project was around 250,000 Euros per project,

not taking into account the time spent by the voluntary workers. To get the venture capital

together for setting up the company that would undertake this development EPV included

several stakeholders:

▪ 25 founding members invested 400,000 Euros

▪ CIGALES (other stakeholders - investor clubs) which invest only locally and in

ethical and solidarity-based projects representing more than 700 people

▪ Energie Partagée Investissement which is a national citizen investment fund that is

authorized by the public financial authority to conduct public offerings

▪ Group of local entrepreneurs in the sector of social and solidarity-based economics.

All the studies and applications were done by Site à Watts with the help of volunteers. The

different studies (wind, noise, impact studies, architectural plans, legal statutes, economic

expertise) were validated by specialized firms. However, the founding members kept the

coordination and the management under their own control. Today it is Site à Watts

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Développement that takes in charge the technical, legal and financial follow-up of the

project.

EPV wanted to mobilize as many small actors who will be implicated and empowered in the

management of their needs for electricity. To keep a role for the public and private local

actors involved they used a cooperative governance: one member = one vote inside each

body of the organization. The company is structured with different bodies of stakeholders.

There are five bodies in the governance of Bégawatt:

▪ Body of founders that holds 35% of the votes

▪ Body of “citizens investment clubs” - 30% of the votes

▪ Body of Actors of the local investment - 12% of the votes

▪ Body of actors of the social economy - 5% of the votes

▪ Body of Energie Partagée Investissement holding 18% of the votes.

1.3.5. Bostadsrättsföreningen Lyckansberg (Sweden) - Housing

associations

Lyckansberg's solar cell plant was commissioned on April 18, 2018. The plant produces

electricity for the association's common purposes (58 households) such as lighting, laundry

rooms, sauna and other functions in the association room.

At certain times, when production of electricity generates a surplus, then that electricity is

sold online. At other times, when association has a higher need than the plant produces,

then electricity is purchased from the grid.

The plant produces as much electricity as the association consumes for common purposes

during one year, e.g. about 55,000 kWh. Since it is difficult to predict the development of

electricity prices, it is difficult to say exactly when the plant has earned its investment

value, but a target value is 12 years. Thereafter, the plant will only mean a saving for the

association. Guaranteed service life is 25 years on the solar cells.

The association has been granted 30% in support of the investment from the state solar

cell grant. The cost of the investment before grants is about SEK 800,000.

1.3.6. Duurzaam Ameland (Netherland) - public-private partnership

Sustainable Ameland is a partnership between the municipality of Ameland and a number

of companies. The goal of this partnership is to make the island's energy supply more

sustainable in a few years. Sustainable Ameland started in 2007 with a number of

interesting experiments.

In Sustainable Ameland, the municipality of Ameland works together with companies

Eneco, GasTerra, NAM, Signify, Liander, TNO and EnTranCe and The Amelander Energy

Cooperation (AEC).

The municipality of Ameland is planning to develop an innovative energy grid together with

residents, companies and local parties. Such a network, which continuously coordinates

supply and demand of sustainable energy, is necessary for the truly sustainable energy

supply that the island has in mind. This grid is an initiative of the partners of the

Sustainable Ameland Covenant.

The following projects have been realized:

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▪ the addition of sustainably generated hydrogen in the natural gas system, a natural

gas filling station and buses running on natural gas (now replaced by fully electric

buses)

▪ a large solar park (6 MW peak)

▪ 45 fuel cells - mini CHPs

▪ LED -lighting in the villages and rural areas

▪ more than 130 hybrid heat pumps in rental homes and private home ownership.

Unique to the transition of Ameland are the large investments of private companies, and

the relative small financial contribution of the municipality. Only in three projects the

municipality contributed directly from its own financial resources. In three projects the

municipality was responsible for the subsidy request. All the covenant parties provide a

large in-kind contribution. The 8 innovation projects were all realized within the Duurzaam

Ameland collaboration. However, not every covenant partner has contributed to the

realization of each project. Only the first project –The Natural Gasstation - has been

realized by all covenant partners. The parties collectively decided and equally invested in

this station. The other 7 projects are executed by the municipality in collaboration with one

or two private parties of the Covenant, sometimes with local parties involved.

Future plans are to convert Duurzaam Ameland initiative into a program with a dedicated

program director with a joint budget and agreements on activities and to include the local

citizens of Ameland more into future projects.

1.3.7. Hillerød Biogasification (Denmark) - Public utility company

In the Danish town of Hillerød the company BioSynergi Proces ApS developed one of the

first biogasification plants. The company gave citizens in Hillerød the opportunity to be

investors and owners of the company that was to run the plant. Within 2½ months in the

autumn of 2011, 1,050 shares at a price of 1,000 euro each were sold.

The investors organised themselves in the democratically run company called Hillerød

Biogasification P/S and transferred the responsibility of the plant operation after the

completion of the project into this company.

The biogasification plant can produce 300 kW power and 750 kW heat. The plant is powered

by an uncomplicated and efficient gasification process that turns wood chips into

a combustible gas, which is used as fuel by an engine that generates electricity and heat.

Electricity is supplied to the grid, while heat production is supplied to the existing district

heating system, which is owned by the local municipal heating company. District heating

is showing its potential in terms of integration of renewable energy systems in existing

facilities, as the plant is connected and partially replaces the fossil gas based heating plant.

Electricity production revenues are generated according to the principles of the Danish law

on promotion of renewable energy, while heat production is settled after an agreement

with the local district heating company. It is agreed that the heat price for the chip-based

generation shall be lower than natural gas price.

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2. PAST LOCAL BEST PRACTICES. CASE STUDIES

2.1. OVERVIEW

Renewable energy sector in the Republic of Moldova is at the very beginning of its

development. Even if the first Law on renewable energy was adopted in 20077, there are no

significant progress achieved in these years.

In terms of overall renewable energy share, the figure of 28% is mainly due to use of low

technology biomass in the households’ sector8. This high share can be explained through the

energy poverty, which comprises a large population, especially in the rural area.

Renewable energy share in the electricity sector is around 2%. In the same time, renewable

energy use in the transport sector is negligible.

The existing renewable electricity generation capacities raised significantly in the last three

years, before the new Law no.10/2016 promoting the use of energy from renewable sources9

entered in force in 2018.

Almost all the existing operating capacities are working on the so-called „old support

mechanism”, which is a variable tariff calculated on the yearly basis, based on the effective

expenditures supported by the power plant. Currently all the generation capacities sum up

around 47 MW power, out of which 42 MW are operating with the „old support mechanism”.

The majority of the installed capacities are in wind energy, while quantitatively the biggest

number of projects are in the solar photovoltaic energy. Business stakeholders in private sector

drove implemented projects. In the public sector, mainly the International Financial

Organizations supported the renewable energy projects. European Union Project „Energy and

Biomass” funded over 30 MW in heat only boilers for the public sector.

There are also other successful projects in the renewable energy field, which are smaller and

rather have a demonstrative or pilot scale.

The vast majority of the renewable energy projects in the public sector were

implemented with the international donors’ community support.

Net metering mechanism was launched in 2018 and according with the last ANRE Report10,

by the end of 2019 was reported approximatively 1,5 MW installed capacity. All generation

capacities are in solar photovoltaic panels, distributed along the 127 prosumers, with an

average figure of approximatively 10 kW per one prosumer.

2.2. PAST AND EXISTING BEST PRACTICES ON LOCAL ENERGY PRODUCTION

Projects chosen to be presented here were selected based on the criteria what fits in a way

the energy cooperative goals. Whether the project is a small community scale project or has a

various combination of the renewable energy technologies or even has implemented using an

innovative financing scheme, all of them were analysed carefully.

7 https://www.legis.md/cautare/getResults?doc_id=91763&lang=ro 8 https://www.energy-community.org/implementation/Moldova/RE.html 9 https://www.legis.md/cautare/getResults?doc_id=106068&lang=ro 10 http://anre.md/storage/upload/administration/reports/495/RAPORT%20DE%20ACTIVITATE%20ANRE%202019%20.pdf

https://www.legis.md/cautare/getResults?doc_id=91763&lang=rohttps://www.energy-community.org/implementation/Moldova/RE.htmlhttps://www.legis.md/cautare/getResults?doc_id=106068&lang=rohttp://anre.md/storage/upload/administration/reports/495/RAPORT%20DE%20ACTIVITATE%20ANRE%202019%20.pdfhttp://anre.md/storage/upload/administration/reports/495/RAPORT%20DE%20ACTIVITATE%20ANRE%202019%20.pdf

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2.2.1. Festelita Village / Energy Efficiency Excellence Center

NGO Moldova Social Innovation Fund together with Festelita Village Hall implements a pilot

project under the Covenant of Mayors11.

The project comprises comprehensive measures in the energy efficiency and the renewable

energy fields12.

The project has the following components:

• Public street lighting with LED - first project funded by NEFCO in Moldova13;

• Biomass boiler in 4 public buildings, namely kindergarten, school, culture house and

village hall;

• Planting the energy crops field: 5 ha of energy willow and 2 ha of energy poplar;

• Construction of the 300 kW solar photovoltaic park what will cover the public electricity

demand;

• Solar hot water collector installation for the domestic hot water preparation in the

kindergarten.

Way of financing the project also may be considered innovative since it combines many

financing institution - UE Delegation, Energy Efficiency Agency, Nordic Environment

Corporation, crowdfunding etc.

Energy efficiency excellence center in Festelita village combines a various number

of the sustainable energy technologies in one single community.

According with the project concept, electricity generated by the photovoltaic park will be

injected into the grid, without using storage batteries.

Excess of biomass coming from the energy crops will be sold to the households by the

municipal enterprise established in this regard. In the village there are 1 thousand households

what uses wood and coal stoves for heating.

2.2.2. Cantemir Town / CanTREB Project

NGO Alliance for Energy Efficiency and Renewables together with the Cantemir Town Hall

implements a pilot project within the Covenant of Mayors14.

This project combines implementation of the comprehensive measures in the energy efficiency

and the renewable energy fields15. As the above-mentioned project, CanTREB Project aims to

implement sustainable energy measures within the public sector buildings.

The project includes the following components:

• Four education buildings comprehensive energy efficiency measures;

• Four individual heating points - very small scale of district heating;

• Two biomass heating plants;

11 https://www.eumayors.eu/about/covenant-community/signatories/overview.html?scity_id=17001 12 https://www.eu4moldova.md/en/content/creation-excellence-center-through-piloting-demonstrative-new-energy-efficiency-technologies 13 https://www.nefco.org/news/first-nefco-financed-energy-efficiency-project-to-take-off-in-moldova/ 14 https://www.eumayors.eu/about/covenant-community/signatories/overview.html?scity_id=17021 15 https://www.eu4moldova.md/en/content/thermal-rehabilitation-educational-buildings-cantemir-cantreb

https://www.eumayors.eu/about/covenant-community/signatories/overview.html?scity_id=17001https://www.eu4moldova.md/en/content/creation-excellence-center-through-piloting-demonstrative-new-energy-efficiency-technologieshttps://www.eu4moldova.md/en/content/creation-excellence-center-through-piloting-demonstrative-new-energy-efficiency-technologieshttps://www.nefco.org/news/first-nefco-financed-energy-efficiency-project-to-take-off-in-moldova/https://www.eumayors.eu/about/covenant-community/signatories/overview.html?scity_id=17021https://www.eu4moldova.md/en/content/thermal-rehabilitation-educational-buildings-cantemir-cantrebhttps://www.eu4moldova.md/en/content/thermal-rehabilitation-educational-buildings-cantemir-cantreb

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• Biomass fuels form waste and wine yards;

• Smart metering for energy consumption;

• Four by 10 kW of photovoltaic systems on each building based on net metering;

• Wind turbines with a capacity of 50 kW based on net metering for water supply system.

Project is financed through a synergy of various donors, in particular Covenant of Mayors -

Demonstration Projects, EU Delegation, GEF Small Grants Program and others.

Four individual heating points, which supplies heat to the two kindergartens and two

schools, from two biomass heating plants, represent a small-scale district heating

system.

The innovation of this project is that it combines a various number of technologies and involves

different public stakeholders.

2.2.3. Ungheni City / EU4Ungheni Project

Ungheni City Hall is a beneficiary of the European Union project - EU4Moldova: Key Regions16.

In the same time, Ungheni is a Covenant of Mayors signatory17.

With the support of the NGO Association for Energy Autonomy were drafted a feasibility study

on 950 kW photovoltaic park construction what will cover entire electricity consumption of the

municipal public buildings in a yearly basis.

In the field of renewable energy city has one small scale off-grid, battery storage, solar

photovoltaics system installed at the 9 levels block of flats funded with Polish Aid. In the city

there are in operation private initiative of 650 kW solar tracking photovoltaic system at the

carpet factory. Photovoltaic park works based on the „old support mechanism”.

In Ungheni there is free economic zone and a special trading regime18. Industrial

enterprises from Ungheni covers automotive, carpets, furniture, meat sectors.

In the city there are quasi-district heating system - 12 district heating natural gas fired heating

plants which provides heat mainly to public buildings and very few apartments.

2.2.4. Riscova Village / Eco-Village Moldova Project

NGO Eco-Visio promotes energy efficiency, efficient use of natural resources and use of

energy from renewable sources. Mainly based on crowdfunding the NGO have built a training

center – Eco-Village Moldova19.

Center use high performance insulation materials, passive heating and renewable

technologies like biomass boiler house, solar water heating and solar photovoltaic system.

In particular Riscova Eco-Center includes the following topologies:

• Pellets heating boiler;

• Solar collectors for domestic hot eater preparation;

• Photovoltaic system on-grid 2,7 kW;

16 https://eu4ungheni.md/ 17 https://www.eumayors.eu/about/covenant-community/signatories/overview.html?scity_id=16267 18 http://www.freezone-ungheni.md/en/ 19 https://www.ecovisio.org/ecovillage

https://eu4ungheni.md/https://www.eumayors.eu/about/covenant-community/signatories/overview.html?scity_id=16267http://www.freezone-ungheni.md/en/https://www.ecovisio.org/ecovillage

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• Clay and straw buildings.

Riscova eco-village unites various financing sources like grants, foreign Aid, crowd

investing, crowdfunding, volunteer, in-kind works and own resources.

The innovative part of the project is that the biggest part was built based on crowdfunding

campaigns. It is example of the small-scale project with a down-up approach.

2.2.5. Pitusca Village / PDG Fruits Farm

PDG Fruits represents an agro-industrial processing farm which besides the fruit growing

combines the renewable energy generation20.

The agricultural farm involves the followings technologies:

• Wind turbine with a capacity of 1,3 MW which works at the „old support mechanism”;

• Rooftop solar photovoltaic panels with a total capacity of 200 kW working based on the

net metering mechanism.

PDG Fruits is a representative example when the agricultural cooperatives through

the integration of the renewable energy may became energy cooperatives.

Idea of the project is that the own electricity generated locally will cover the need of the existing

agricultural cold storage.

2.2.6. Alava Village / Traditional Farm

Traditional Ltd represents another agro-industrial processing farm which combines fruits

growing and the renewable energy generation21. Project is very similar to the previous one

since it involves agricultural cold storage powered by the 100 kW photovoltaics park.

The generated electricity woks at the net metering mechanism and have benefited from the

agricultural subsidies.

The only difference with the previous project is that there is no wind energy generated on-site.

Nevertheless, it confirms the potential of the agricultural cooperatives’ transformation into the

energy cooperatives.

2.2.7. Milesti Village / Solar water pumping

Village had benefited from international donors funding for the implementation of the water

supply and sanitation project though Austrian and Swiss Aid22.

The potable water pumping satiation is powered 100% with the solar photovoltaic energy.

Project concept was that instead of electricity storage water is stored. In sunny days when

water consumption drops water is stored in the storage tanks. The installed capacity of the

photovoltaic park is 40 kW.

20 https://pdgfruits.com/en/eco-energy/ 21 https://agrobiznes.md/seminar-cum-sa-reduci-costurile-de-energie-in-depozite-frigorifice-sau-la-procesarea-produselor-horticole.html?fbclid=IwAR3n5OY1maOglGbTIXQYbnXks_9APOkdinyu0Ik4T312vwC2xeIyq8rDh8A 22 http://news.ungheni.org/2019/07/03/in-milesti-a-fost-lansat-primul-sistem-fotovoltaic-de-pompare-a-apei-potabile/

https://pdgfruits.com/en/eco-energy/https://agrobiznes.md/seminar-cum-sa-reduci-costurile-de-energie-in-depozite-frigorifice-sau-la-procesarea-produselor-horticole.html?fbclid=IwAR3n5OY1maOglGbTIXQYbnXks_9APOkdinyu0Ik4T312vwC2xeIyq8rDh8Ahttps://agrobiznes.md/seminar-cum-sa-reduci-costurile-de-energie-in-depozite-frigorifice-sau-la-procesarea-produselor-horticole.html?fbclid=IwAR3n5OY1maOglGbTIXQYbnXks_9APOkdinyu0Ik4T312vwC2xeIyq8rDh8Ahttps://agrobiznes.md/seminar-cum-sa-reduci-costurile-de-energie-in-depozite-frigorifice-sau-la-procesarea-produselor-horticole.html?fbclid=IwAR3n5OY1maOglGbTIXQYbnXks_9APOkdinyu0Ik4T312vwC2xeIyq8rDh8Ahttp://news.ungheni.org/2019/07/03/in-milesti-a-fost-lansat-primul-sistem-fotovoltaic-de-pompare-a-apei-potabile/http://news.ungheni.org/2019/07/03/in-milesti-a-fost-lansat-primul-sistem-fotovoltaic-de-pompare-a-apei-potabile/

26

This project is innovative one since it is the first public water supply system powered with

renewable energy. In addition, combining water supply service and renewable energy use it

exercise strong social impact.

2.2.8. Crasnoarmeiscoe Village / Biomass heating

Village have implemented four projects what consist in biomass heating of all public buildings

in the community - two kindergartens, mayor’s office and lyceum. In one kindergarten were

installed also solar hot water collectors.

Investments were possible due to „Energy and Biomass” Project in Moldova and it is a unique

village where all public buildings are heated with biomass23.

By implementing biomass heating in absolutely all public buildings,

Crasnoarmeiscoe village became an example of the local energy autonomy.

However, each public building has its own heating plant, that is no heat pipes between them

what would represent a district heating system.

In addition, in the village were implemented other two energy efficiency projects one is windows

replacement in lyceum and another is street lighting.

2.2.9. Causeni Town / Biomass heating

Causeni town is signatory of the Covenant of Mayors24. In the same time, few public institutions

in the town has biomass heating plants.

The town has benefited from the international Aid funding to install biomass heating plant within

the district hospital. Heating plant is integrated with the solar hot water collectors. Another two

big buildings are the and Youth and Sport Center and the Firefighters Station.

The difference from the others projects is that the biomass boilers installed here is the biggest

one’s operation in public buildings. Like in Crasnoarmeiscoe, each public building has its own

heating plant, that is no heat pipes between them what would represent a district heating

system.

2.2.10. Edinet City / Wind park

Edinet city is signatory of the Covenant of Mayors25. City is the one of the biggest communities

in the North part of the country which host Edinet Industrial Park - special trade zone26.

Currently in Edinet are installed five wind turbines which sum up 7,6 MW of wind power.

Initiative is absolutely business driven. Investment are done by the four different enterprises.

Economic cooperation between the four renewable energy generation companies is

a premise for the energy cooperation and respective energy cooperative

establishment in the city.

23 https://www.md.undp.org/content/moldova/en/home/presscenter/pressreleases/2018/peste-5-000-de-oameni-din-raionul-hanceti-au-acces-la-energie-re.html 24 https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=18251 25 https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=17830 26 http://edinet.business/

https://www.md.undp.org/content/moldova/en/home/presscenter/pressreleases/2018/peste-5-000-de-oameni-din-raionul-hanceti-au-acces-la-energie-re.htmlhttps://www.md.undp.org/content/moldova/en/home/presscenter/pressreleases/2018/peste-5-000-de-oameni-din-raionul-hanceti-au-acces-la-energie-re.htmlhttps://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=18251https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=18251https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=17830https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=17830http://edinet.business/

27

All wind turbines installed in Edinet are operating according with the „old support mechanism”,

injecting electricity into the public grid.

2.2.11. Taul Village / Wind park

The concept of the Taul’ project is very similar with Edinet. The only difference between them

is that Taul represents a rural settlement with less population and respective smaller energy

demand.

In the village are operating three wind turbines with a total installed capacity of 3,9 MW. Wind

park is owned by the single company and is operation according with the „old support

mechanism”.

In addition, Taul represent a village with tourism attraction potential, since in the village are

located the famous Pommer Mansion and its biggest Dendrologic Park27. Pommer Mansion

hosts agricultural college heated with a biomass boiler.

2.2.12. Razeni Village / Community Biogas Project

Razeni is signatory od the Covenant of Mayors28. Village have implemented three energy

efficiency projects in two kindergartens and one school what consists in thermal insulation of

buildings. Another energy efficiency project is related to LED street lighting.

Currently in Razeni, within the social canteen is ongoing project what aims to use food scraps

for the biogas production29. Project is a small-scale imitative managed by a consortium of

public associations with funds offered by the international Aid.

2.3. PAST AND EXISTING BEST PRACTICES SUMMARY

Past and existing best

practices

Biomass

heating

Solar PV

farm

Wind

energy

park

Buildings

insulation

LED street

lighting

Agriculture

farm

Crowd-

funding

Festelita Village /

Energy Efficiency

Excellence Center

✅ ✅ ✅ ✅ ✅

Cantemir Town /

CanTREB Project ✅ ✅ ✅ ✅ ✅

Ungheni City /

EU4Ungheni Project ✅ ✅

Riscova Village / Eco-

Village Moldova

Project

✅ ✅ ✅

Pitusca Village / PDG

Fruits Farm ✅ ✅ ✅

Alava Village /

Traditional Farm ✅ ✅

27 http://www.travelomoldova.com/places-to-visit/%C8%9Aaul-park/#.XzfoAegzaUk 28 https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=26642 29 https://www.gen-europe-biogas.info/moldova

http://www.travelomoldova.com/places-to-visit/%C8%9Aaul-park/#.XzfoAegzaUkhttps://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=26642https://www.covenantofmayors.eu/about/covenant-community/signatories/overview.html?scity_id=26642https://www.gen-europe-biogas.info/moldova

28

Milesti Village / Solar

water pumping ✅

Crasnoarmeiscoe

Village / Biomass

heating

✅ ✅ ✅

Causeni Town /

Biomass heating ✅

Edinet City / Wind

park ✅

Taul Village / Wind

park ✅ ✅

Razeni Village /

Community Biogas

Project

✅ ✅

29

2.4. ENERGY COOPERATIVES CASE STUDIES

Based on the existing positive experience described above and energy cooperatives potential,

different case studies are described further. Case studies were chosen in a geographically

balanced manner, being represented from the all three development regions: North, Centre

and South.

2.4.1. Riscani City

Riscani has not signed the Covenant of Mayors and has not drafted yet the Local Energy

Efficiency Action Plan. In the same time, were implemented several energy efficiency projects

with the Energy Efficiency Fund support, in particular:

• Riscani District Hospital (insulation of walls and windows replacement);

• Riscani Nursing Home (insulation of walls, attic and basement);

• Kindergarten no.10 Riscani (insulation of walls and windows replacement);

• Theoretical Lyceum „Dimitrie Cantemir” Riscani (insulation of walls and windows

replacement);

• Public Health Center Riscani (insulation of walls and basement and windows

replacement);

Currently in the city there are no any renewable energy project have been implemented.

Electricity system operators has reported two connection permits issued for 56 kW power

generation.

2.4.2. Edinet City

Edinet has signed the Covenant of Mayors but has not drafted yet the Sustainable Energy

Action Plan and has not drafted yet the Local Energy Efficiency Action Plan.

In the same time city had implemented one energy efficiency project with the Energy Efficiency

Fund support, in particular:

• Edinet District Hospital (insulation of walls and attic and windows replacement).

In addition, city had implemented one energy efficiency project with the National Regional

Development Fund support, in particular:

• Public Health Center Edinet (insulation of walls and attic and windows replacement,

internal heating and ventilation systems improvement).

City has one the biggest wind power generation capacity installed within the city in country:

private investments of 4 companies in 5 wind turbines with a total capacity of 7,6 MW.

City hosts Edinet Industrial Park: within the Industrial Park one of the residents uses biomass

for steam generation in the juice production process.

2.4.3. Drochia City

Drochia has signed the Covenant of Mayors and submitted the Sustainable Energy Action Plan

but has not drafted yet the Local Energy Efficiency Action Plan.

City had implemented several energy efficiency projects with the Energy Efficiency Fund

support, in particular:

• Drochia District Hospital (windows replacement);

• Drochia Musical School (walls insulation).

30

City had implemented one energy efficiency project with the National Regional Development


• Public Health Center Drochia (insulation of walls and attic).

In Drochia is located the biggest biogas power generation capacity installed within the city in

country: Private investment in 3 CHP units based on internal combustion engines with a total

capacity of 3,6 MW where part of energy is used internally in the sugar production process.

2.4.4. Calarasi City

Calarasi has signed the Covenant of Mayors, submitted the Sustainable Energy Action Plan

and has drafted yet the Local Energy Efficiency Action Plan.

City has implemented several energy efficiency projects with the Energy Efficiency Fund

support, in particular:

• Theoretical Lyceum „Vasile Alecsandri” Calarasi (insulation of walls and windows

replacement and natural gas boilers installation);

• Calarasi District Hospital (insulation of walls and windows replacement);

• Kindergarten no.2 Calarasi (insulation of walls and windows replacement);

• Public street lighting with LED.

City has implemented one energy efficiency project with German Aid support, in particular:

• Calarasi District Hospital (natural gas boilers and solar hot water collectors).

Currently city has ongoing energy efficiency project implemented in the frame of Covenant f

Mayors - Demonstration Projects what involves modernization of the public street lighting with

LED.

In addition, city has implemented one comprehensive energy efficiency project with the support

of German KfW bank, in particular were built a kindergarten what corresponds to a passive

house standard.

City has very few renewable power generation - around 20 kW of solar photovoltaics. System

operators has reported one connection permit issued for 190 kW.

2.4.5. Nisporeni City

Nisporeni has signed the Covenant of Mayors but has not drafted yet the Sustainable Energy

Action Plan and has not drafted yet the Local Energy Efficiency Action Plan.

City has implemented several energy efficiency projects with the Energy Efficiency Fund

support:

• Kindergarten no.1 Nisporeni (insulation of walls and attic and windows replacement);

• Culture and Youth Center (insulation of walls and attic and windows replacement);

• Gymnasium „Stefan cel Mare” Nisporeni (insulation of walls and attic and windows

replacement);

• Theoretical Lyceum „Mircea Eliade” Nisporeni (insulation of walls and windows

replacement);

• Gymnasium „Mihai Eminescu” (insulation of walls and attic and windows replacement);

• Public street lighting with LED.

In addition, city has implemented one energy efficiency project with the National Regional


31

• Nisporeni District Hospital (insulation of walls and attic and windows replacement).

Nisporeni has implemented two renewable energy projects with the support of Energy and

Biomass Project, in particular:

• Kindergarten no.1 Nisporeni (biomass boilers and solar hot water collectors).

Electricity system operators has reported two connection permits issued for 2 MW power

generation.

2.4.6. Trebujeni Village

The reason to select this 2 thousand inhabitants’ village is that it is located within historical and

archaeological complex „Old Orhei” - one of the most visited place by tourists30.

Village is located near the river Raut and there was a project to build a run-on-river micro-

hydro power plant of 1,2 MW capacity31.

2.4.7. Cantemir Town

Cantemir has signed the Covenant of Mayors and submitted the Sustainable Energy Action

Plan but has not drafted yet the Local Energy Efficiency Action Plan.

City has implemented one energy efficiency project with the Energy Efficiency Fund support,

in particular:

• Cantemir District Hospital (insulation of walls and attic and windows replacement).

Cantemir has implemented one energy efficiency project with the National Regional


• Cantemir District Hospital (insulation of walls and attic and windows replacement);

Cantemir has ongoing two energy efficiency projects implemented in the frame of Covenant of

Mayors - Demonstrational Projects, in particular:

• Thermal refurbishment of 2 Kindergartens, a Lyceum and Gymnasium in Cantemir;

• Green Light Moldova - Modernization and Saving Energy in Street Lighting.

Cantemir has very few renewable power plants with a capacity of 100 kW solar photovoltaic

panels.

2.4.8. Causeni Town

Causeni has signed the Covenant of Mayors and submitted the Sustainable Energy Action

Plan but has not drafted yet the Local Energy Efficiency Action Plan.

City has implemented one renewable energy project with the National Regional Development


• Youth and Sport Center Causeni (biomass boilers);

In addition, Causeni has implemented two renewable energy projects with the Energy and

Biomass Project support, in particular:

• Causeni District Hospital (biomass boilers and solar hot water collectors);

• Causeni Firefighters Station (biomass boilers and solar hot water collectors).

30 https://moldova.md/en/content/old-orhei 31 https://journal.ie.asm.md/assets/files/12_03_29_2015.pdf

https://moldova.md/en/content/old-orheihttps://journal.ie.asm.md/assets/files/12_03_29_2015.pdf

32

2.4.9. Purcari Village

The reason to select this 2 thousand inhabitants’ village is that it is located near the „Chateau

Purcari” - one of the most visited wine factories by tourists32.

2.5. ENERGY COOPERATIVES CASE STUDIES SUMMARY

2.6. ENERGY COOPERATIVES RECOMMENDATIONS FOR PILOT IMPLEMENTATION

In this part, we would like to summarize practical steps for establishment and operation of

energy cooperatives on local level. Regardless of dominance of energy efficiency measures

proposed in the case studies above, we focus mostly on energy cooperatives projects based

on installation and operation of renewable energy sources with the main aim to pull in these

projects also local community. The following methodology (steps) can be used by local

authorities when preparing community (energy cooperative) projects.

1. Feasibility and economical studies

32 https://purcari.wine/en/page/history/

https://purcari.wine/en/page/history/

33

Crucial evaluation of potential project including optimal capacity of RES, investment

cost, possible external financial sources (subsidies, community financing, municipal

budget, etc.) and based on these technical and economic figures also presumed

revenues for investors.

2. Approval of the form of project implementation and its financing

In this step agreement (contract) between municipality and municipal company

responsible for operation of energy cooperative project is needed. In this contract is

required to agree on the financing and form of the operation (mostly municipal company

is responsible for financing and operation).

3. Investment agreement (contract) for investors

Agreement which defines duties and benefits of investors is part of the whole

„searching money” process. In

international (west eu) models of cooperatives and case …¡k...1 international (west eu) models of...

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