Communities investing in shared solar parks: A case for energy democracy

As Malta faces increasing energy demands and growing concerns about the climate crisis, alternative energy solutions are becoming a pressing issue.

An approach gaining popularity across Europe is the concept of energy cooperatives. These are community-driven initiatives that promote the collective generation and sharing of renewable energy.

Chris Vrettos, a representative of Rescoop – the European Federation of Energy Communities – believes Malta has potential for community-led energy solutions.

In an interview with MaltaToday, he shared insights on how these cooperatives can revolutionise Malta’s energy sector, enhance community engagement, and provide long-term stability in electricity pricing.

“The transition to renewables is inevitable, but energy cooperatives allow us to ensure it is also fair,” Vrettos said. “We are moving away from a system dominated by large companies and towards one where households, businesses, and municipalities can have a direct stake in producing their own energy.”

Rescoop, based in Brussels, represents over 2,000-member cooperatives and more than 1.5 million EU citizens. Its goal is to facilitate the decentralisation of energy production, allowing local communities to collectively invest in renewable energy sources such as solar and wind.

“In Southern Europe, including Malta, solar power is the dominant source,” he explains. “The most common model involves groups of people pooling their resources to fund a shared solar park.”

The electricity generated is then either deducted from their bills or sold, with profits distributed among members.

Despite the promise of energy cooperatives, Malta’s urban landscape presents obstacles due to the limited land available and a rising number of apartment blocks with reduced rooftop access.

Suzanne Maas from Friends of the Earth Malta, acknowledged these difficulties: “It’s more about matching the space with the people who want to invest and we’ve seen from surveys that we have done that people want a choice in the electricity that they get.”

She highlighted that the government’s recent offshore renewable policy could also be another option for Malta, as it opens up new avenues for community energy investment, following the example of Belgium, where 10% of offshore wind projects are reserved for community ownership.

She emphasised the importance of ensuring that renewable energy projects benefit the community rather than private investors. “Unlike large-scale private energy firms, cooperatives reinvest any profits back into the community, expanding projects and making renewable energy more accessible.”

One of the key concerns surrounding energy cooperatives is whether people, given their busy lives, would actively engage in managing their own energy supply.

“Not everyone needs to be deeply involved,” Vrettos says. “In every energy community, there is a core group of individuals driving the initiative. Others may contribute by staying informed or simply benefiting from reduced energy costs.”

He points that that its important for communities to regain a sense of agency over their energy.

“The goal is not just energy independence, but energy democracy,” Vrettos concludes. “The more people are involved in producing and deciding on their energy sources, the more fair the system becomes.”