
Energy communities continue to gain ground in Spain as a tool to democratize access to renewable energy and reduce electricity bills. While Toledo is committed to expanding its capacity with two new projects, in the Valencian Community the sector warns of a potential setback due to a lack of regional funding.
Both news items reflect the reality of a model that progresses at different speeds depending on the institutional support it receives. In Toledo, the City Council has approved the creation of two additional energy communities that will allow for an installed capacity of one megawatt, while in Valencia, the employers' association Avaesen denounces that the lack of specific budget allocations puts multimillion-euro investments at risk.
Toledo doubles its commitment to energy communities
The Toledo City Council, through the Municipal Land and Housing Company (EMVS) and its Municipal Energy Office, has approved the management agreement to promote two new energy communities. These will join the existing one in the Historic Quarter, a UNESCO World Heritage Site, and will allow a total power of 1 MW to be reached clean energy for residents and businesses in the area. Since regulations prohibit the installation of solar panels in the old town, the panels will be placed outside the neighborhood, and the energy will be distributed to the participants.

The municipal spokesperson, Juan José Alcalde, highlighted that Toledo was a national pioneer in a Heritage city with its first energy community. The goal is to continue facilitating energy savings and clean energy. to families and businesses in the Historic Quarter. The initiative is part of a broader energy efficiency plan that includes the replacement of streetlights with LED technology on several streets.
Alert in the Valencian Community: fears of a slowdown in investments
On the other hand, the Valencian Association of Energy Sector Companies (Avaesen) has issued a warning about the situation of energy communities in the Valencian Community. According to the employers' association, the lack of specific allocations in the regional budgets for 2026 This puts more than €10 million of projected investment at risk. Pedro Fresco, CEO of Avaesen, pointed out that between 25% and 30% of every 100 projects awaiting funding are located in the province of Castellón.
The Valencian Community currently has 104 energy communities, making it one of the leading regions in Spain. However, the sector is experiencing its second consecutive year without specific regional funding, as previous aid was sustained by... European funds already exhausted. 59% of energy communities in Spain have required subsidies for their implementationAccording to data from Ecodes, this demonstrates the dependence on these supports.
The province of Castellón, with 31 energy communities, is seventh in the country in number of initiatives, with a density of 4,84 per 100.000 inhabitants. Eight out of ten communities in Castellón are rural.This underscores its importance for rural development. The Regional Ministry has indicated that they will seek a way to allocate funds, but as of today, there is no open call for proposals.
Thus, while Toledo is making steady progress in expanding its energy communities, the Valencian Community faces the risk of losing the leadership it had achieved. The disparity in institutional support dictates the pace of a model that, to consolidate, needs a stable and predictable financing frameworkThe experience of both regions demonstrates that, with political will and resources, energy communities can become a reality, but also that their development is fragile if the necessary economic support is not guaranteed.
