This is how local energy communities are advancing in Spain: momentum, challenges, and real-life examples

  • The growth of local energy communities in Spain has been remarkable, with 659 active initiatives in 2024, a 44% increase over the previous year.
  • Energy communities promote citizen participation, self-consumption, bill savings, and sustainability, although they still face regulatory and scaling challenges.
  • Notable projects such as Barakaldo, the development of the La Moraña region (Ávila), and institutional support in provinces such as Cáceres demonstrate the diversity and potential of these models.
  • Collaboration between administrations, municipalities, and citizens is key to promoting the local energy transition and the socioeconomic development of regions.

local energy community Spain

In recent years, local energy communities have gained significant prominence in Spain. Under this model, residents, municipalities, small businesses, and shops join together to produce, share, and manage their own renewable energy, thus promoting a participatory and sustainable approach. This development responds not only to the need to address climate change but also to the pursuit of greater energy independence and savings on electricity costs.

The expansion of these communities is not limited to a few territories: the phenomenon is increasingly widespread , encompassing everything from large municipalities to small rural towns. Institutional collaboration, citizen participation, and success stories are beginning to take hold, although much work remains to be done for the model to mature throughout the country.

Unstoppable growth throughout the territory

energy communities in Spanish municipalities

According to the latest data from the Common Energy Observatory , Spain ended 2024 with 659 local energy communities . In the last year alone, nearly 200 new initiatives have emerged , representing a 44% increase compared to 2023. This dynamism places the country at the forefront of the citizen-led energy transition in Europe.

Currently, 8% of Spanish municipalities already have an energy community in operation. Regions such as the Basque Country, Navarre, Catalonia, and the Valencian Community stand out , where the implementation of these projects is more rapid. For example, in Gipuzkoa, 70% of municipalities have opted for this model, while in Ávila, work is underway to create the first regional energy community for the entire La Moraña area.

This surge can be explained by several factors: institutional support through European and national funds , growing citizen awareness , and the tangible benefits that are already beginning to be seen in bills and in the local economy.

Participation, empowerment and social benefits

local and social energy projects

The energy community model involves not only changing how energy is produced , but also how decisions are made and the value generated is distributed. These are open and voluntary organizations where any resident, SME, or local entity can participate . In most cases, citizens are very involved (92% of communities), while local councils typically act as promoters, partners, or facilitators of the process (57%).

One of the most significant benefits is cost savings . For example, in Barakaldo, the largest energy community in the Basque Country, it is estimated that members reduce their annual electricity bill by up to 25% . In Gipuzkoa, these savings reach 30% for approximately 10.000 people, demonstrating the potential impact on participants' finances.

Furthermore, these structures promote social cohesion, energy justice, and local development . In many cases, resources and shared energy are allocated to vulnerable groups, small businesses, or public services, helping to combat energy poverty and retain population in rural areas.

Real projects that lead the way

example local energy community

There are concrete examples that help to understand how these initiatives work and what they achieve:

  • Barakaldo has become a benchmark with the TEK model, bringing together some 400 families, small businesses, and municipal buildings. In just one year, they have generated more than 436.000 kWh of renewable energy, with several solar installations spread across public buildings and plans to continue expanding spaces and capacity.
  • En The Moraña (Ávila), the town councils are working with the support of the Provincial Council and the distributed energy and communities to create the first regional energy community, where wind, solar, and biomass energy will play a significant role. The goal is not only to provide clean electricity but also to boost the local economy.
  • In Cáceres provinceThe Provincial Council has allocated technical and financial resources so that even the smallest municipalities can establish and consolidate their energy communities. Priority is given to projects that demonstrate technical and social maturity, with the city council leading the fair distribution of the energy produced.

The trend is similar across Spain: local resources are being leveraged, different stakeholders are being involved, and a more equitable and democratic energy model is being sought.

Challenges: regulation, financing and scaling up

However, it's not all good news. The rapid growth and enthusiasm for the model contrast with several remaining challenges :

  • Only two out of ten energy communities already have self-consumption facilities in operation; most are still in the initial stages of planning, incorporation, or processing.
  • La lack of a stable and specific regulatory framework This makes it difficult to consolidate and scale projects. Many communities expect clear rules for operating, accessing aid, or facilitating administrative procedures.
  • There is a high heterogeneity in size and participationMore than half have fewer than 20 partners, and only 1,2% have more than 500. The option for industrial SMEs and industrial parks to expand their reach is one way to achieve greater impact.

Despite the existence of support programs and European funds , financing remains an obstacle, especially for small projects or in municipalities with fewer resources.

Other areas requiring attention include gender equality in governing bodies , the inclusion of vulnerable groups , and civic education . The Common Energy Observatory report highlights progress, but also the need to strengthen female participation and community empowerment.

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Related article:
The rise of energy self-consumption in Spain: communities, businesses, and citizens leading the transition

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