What is a Renewable Energy Community?
About
Renewable Energy Communities (RECs) are legal entities which are owned or controlled by shareholders/members who reside near the renewable energy projects, their main goals being to deliver environmental, economic or social benefits including energy justice to its shareholders, members or the local community.
What are the benefits of RECS?
- RECs can make the transformation of the energy system more fair.
- RECs can make the energy transition more sustainable.
- RECs can be effective at dealing with public acceptance concerns.
- RECs can build social coherence and ensure greater participation by citizens in the energy transition.
RECs in Ireland
Ireland has set a target of at least 500MW of renewable energy to be delivered through local community-based projects by 2030. However, to date, there are limited examples of stand-alone grass roots community-led renewable energy initiatives most of which are small scale.
What are the challenges for RECs?
- RECs can be complex and risky, requiring considerable expertise and commitment before financial returns are realised.
- Costs can be higher for community renewable projects.
- Projects can struggle to find volunteers willing to take part.
- RECs can struggle with a lack of local knowledge in particular project areas.
- RECs can face difficulties in raising capital for projects.
