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April 28, 2025
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An EU budget that works for the people: unlocking finance for energy communities

Authors: Dirk Vansintjan, President of REScoop.eu, EUSEW’s digital ambassador; Sara Tachelet, ACCE project coordinator and Chris Vrettos, policy advisor finance, also EUSEW’s young energy ambassador.

Europe’s transition to a clean energy system requires unprecedented investment, but today’s financing tools fail to unlock the full potential of citizen-led energy initiatives. Energy communities can mobilise billions of euros in renewable energy investments, yet their potential remains untapped due to complex state aid rules, inaccessible funding mechanisms, and burdensome regulations. Considering the broader policy landscape of the Clean Industrial Deal and the ongoing negotiations around the Multiannual Financial Framework, how can Europe close this gap and ensure fair access to finance for energy communities?

Financing the future: the role of citizens’ investments

Europe needs major investments in renewable energy, energy efficiency, and grids to meet its decarbonisation goals. The European Commission estimates an annual €400 billion shortfall by 2030. While the Action Plan for Affordable Energy Prices acknowledges the potential of energy communities in stabilising and lowering energy prices, the Clean Industrial Deal (CID) ignores their potential in mobilising investment.

A study shows that citizens could contribute €176 billion to wind energy alone by 2030. These citizens’ investments boost local economies while helping to democratise the energy system and stabilise prices. Every euro invested in citizen energy projects generates two to eight euros locally.

In contrast, up to 75% of the profits from investments in energy projects by large energy companies are distributed as shareholder dividends, limiting their local impact. Interestingly, energy communities are increasingly investing in industrial-scale projects such as offshore wind and large-scale district heating, demonstrating their ability to contribute to Europe’s reindustrialisation objectives. However, without tailored financial support, their expansion remains constrained.

Foto: Dirk Vansintjan, President of REScoop.eu, EUSEW’s digital ambassador and Chris Vrettos, policy advisor finance, also EUSEW’s young energy ambassador

Breaking barriers: state aid rules and public funding gaps

Energy communities face financial and regulatory barriers, particularly restrictive state aid regulations and a lack of investment mechanisms tailored to their needs. Many Member States fail to use EU funds effectively to support energy communities, while commercial banks often hesitate to lend, disregarding the social and economic benefits these communities can bring.

To fill this gap, national federations of energy communities in countries such as the Netherlands, France, and Spain have created ‘Community Energy Financing Schemes’ (CEFS), designed to support and finance energy community projects. These schemes effectively pool investments from citizens, public institutions, and private investors. Experience from the Netherlands and France shows their impact: every euro of public funding in the early stages can attract up to 60 euros in private investment for project implementation.

While revised EU State aid Guidelines have improved conditions for renewable energy communities, the framework remains difficult to navigate. Member States need clearer guidance on designing support schemes that are accessible to energy communities. Additionally, administrative and regulatory hurdles, such as grid connection fees and complex licensing processes, continue to slow down community-led projects.

Foto: Sara Tachelet, ACCE project coordinator

A call to action: targeted financial support for energy communities:

To fully unlock energy communities’ potential, the EU should support the creation of dedicated financial instruments tailored to their needs. This includes:

  • An EU Guarantee Facility, similar to InvestEU’s SME window
  • Simplified State Aid procedures for energy communities
  • Stable financing mechanisms for energy communities in the next Multiannual Financial Framework
  • Technical assistance for Member States to help ensure that energy communities can access the Social Climate Fund and Just Transition Fund
  • Support for national federations in scaling up financing models like CEFS can also help advance and professionalise community-led energy projects across Europe

Unlocking community potential in the energy transition

The EU’s energy transition cannot be left solely in the hands of large corporations and institutional investors. Energy communities have shown they can drive the shift to renewables, help citizens access affordable local production, and invest in industrial-scale projects like offshore wind and district heating. However, the right financial and policy tools are needed to help scale up. By improving these tools, policymakers can empower energy communities to become a cornerstone of Europe’s clean energy future.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week (EUSEW) 2025. See ec.europa.eu/eusew for open calls.

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April 28, 2025
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Romania’s plan to install 2.15 GW of gas power plants isn’t viable

Romania’s plans for new combined cycle gas turbines with a total capacity of 2.15 GW isn’t economically viable and, if constructed, the facilities should be decommissioned by 2035, according to ENTSO-E’s annual assessment of Europe’s security of electricity supply for the ten years ahead.

ENTSO-E’s European Resource Adequacy Assessment 2024 (ERAA 2024) provides an integrated pan-European perspective for the years 2026, 2028, 2030 and 2035.

The document includes comments on individual countries, specific insights provided by transmission system operators (TSOs).

According to the entry about Romania, low adequacy concerns have been identified in ERAA 2024. The findings rely on assumptions from the National Energy and Climate Plan (NECP), in place on the date of the data collection, as well as from investment plans, permits, connection requests, and available inputs from market participants.

NECP’s central reference scenario reflects the coal phase-out process and further plans for the replacement of the decommissioned capacity with, mainly, combined cycle gas turbine (CCGT) power plants, the document reads.

The results of the economic viability assessment show 2.15 GW of CCGT capacity would not be economically viable by the 2035 horizon

The commissioning of envisioned gas CCGTs is, however, highly uncertain, and national analyses reveal that the validity of the adequacy indicators depends on the implementation of generation goals, the update showed.

Uncertainties related to the commissioning date of the new capacities may have an adverse impact on Romania and, potentially, on the region, the document underlines.

Moreover, results of the economic viability assessment (EVA), part of ERAA 2024, demonstrate that the 2.15 GW of envisaged CCGT capacity would not be economically viable by the 2035 horizon and should be decommissioned in target year 2035.

Considering it is not existing capacity, but rather assumed commissioned in the 2026-2030 period, it is most likely the investments will not materialize at all and thus, the correspondent capacity should be excluded from the analysis for the earlier target years, too, not only 2035, with a negative effect on loss-of-load-expectation (LOLE) results, the authors warned.

Goal in NECP is 2.6 GW of CCGT power plants

According to Romania’s NECP, the goal is 2030 to construct at least 2.6 GW of natural gas–powered CCGTs and around 900 MW of natural-gas-fired combined heat and power (CHP) plants.

The CCGT facilities are Iernut (430 MW), Mintia (at least 860 MW, with a possibility of reaching 1.700 MW), and Ișalnița and Turceni, of 1,325 MW in total.

Investments aren’t going as planned. In January, Minister of Energy Sebastian Burduja acknowledged that the addition of gas-fired units expected in line with the restructuring plan for Complexul Energetic Oltenia – CE Oltenia has been delayed.

Burduja: Mintia to be operational next year

Tenders were launched, such as the one for Ișalnița, but not a single offer was submitted, he added. In Burduja’s words, it is one of the reasons why the operation of coal power plants should be extended.

State-owned CE Oltenia is the largest producer of coal power and the third-largest producer of electricity in the country. Its restructuring plan envisages lignite-based electricity production to be replaced with natural gas, in Işalniţa and Turceni, and renewables.

The Mintia project got the construction permit in January. In March, Burduja said it would be commissioned next year, according to Romania Insider.

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April 28, 2025
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Project for first gas power plant in Albania enters next stage

In partnership with domestic company Gener 2, Greece-based GEK Terna and DEPA Commercial are preparing to build the first gas power plant in Albania. The current phase involves seeking financing. Separately, Azerbaijan’s SOCAR is expected to start installing the first gas distribution network in Albania, in the city of Korça.

Albania is almost 100% dependent on hydropower plants in domestic electricity production. Efforts are underway to diversify the mix with solar and wind energy and introduce storage capacities. Actually, not a single wind turbine has been built yet, but there is another opportunity for strengthening the energy supply: with gas from the Trans Adriatic Pipeline – TAP. Greek conglomerate GEK Terna and state-owned gas supplier, importer and trader DEPA Commercial intend to build the first gas power plant in Albania, with a local partner.

Late last year, the Council of Ministers, the country’s government, approved the project and determined a three-year deadline for completion. The site for the gas plant is in the municipality of Roskovec in Fier in western Albania. Notably, the county attracts most solar power projects in the country.

Gas facility in western Albania reportedly to have 147 MW in capacity

In the current project development phase, Fier Thermoelectric, the joint venture, is seeking financing, Insider.gr reported. The facility is envisaged to have 147 MW in capacity, according to the article. The government’s decision was for 170 MW.

DEPA Commercial, also known as DEPA Emporias (in Greek), DEPA Commerce and DEPA Trading, entered the project in 2023. It took over a 35% stake from GEK Terna and signed a seven-year gas supply contract for the proposed facility.

They have equal ownership, while Albanian company Gener 2 holds the remaining 30%. It is active in construction, infrastructure, civil works, energy, real estate development, telecommunications and retail in Albania and the broader region.

Both GEK Terna and Gener 2 have solar power projects in Albania as well

Gener 2 has submitted a 50 MW solar power project to the government a year ago. The location is in Bistrica in Finiq municipality, Vlora district.

The government’s approval is not for a concession, but the operator is obligated to either deliver 2% of electricity it produces, as royalty – royal right, or give an equivalent sum for the state budget. The permit is for 49 years since the entry of the decision into force. The firm also needs to sell a share of output to the public power supplier, in accordance with the country’s law.

A group of residents of surrounding villages has repeatedly protested against the investment, arguing that they weren’t consulted. The locals even filed a criminal complaint against Roskovec Mayor Majlinda Bufi.

They claim that the gas facility would pollute the area and jeopardize public health while exporting 90% of the produced electricity.

GEK Terna to benefit from synergies with its gas power plants in Greece

GEK Terna has three gas-fired power plants in Greece. The group’s other energy investment in Albania, through its subsidiary Heron, isn’t without controversy either.

The project is for a 93 MW photovoltaic plant in Libohova, near the Greek border, in Gjirokastër county. Project firm Faethon won approval from the Council of Ministers in Tirana in early 2024. It would be valid for up to 49 years.

GEK Terna’s solar power plant project in Gjirokastër was disrupted last year over fake documentation

Local press wrote last summer that some land documentation for the 122-hectare area was forged, prompting a raid and arrests in the cadastral office in Gjirokastër. The operator of the Libohova plant is obligated to deliver 2% of its electricity for free, too.

First gas distribution network in Albania about to be built in Korça

Albania aims to become a net electricity exporter before the end of the decade. There is also a project for a liquefied natural gas (LNG) terminal in the port city of Vlora, where a gas-fired power plant is planned to be built.

A long-awaited project called Nur, for the gasification of Korça, was presented last week. It would be the first city in Albania with gas.

The final investment decision is expected this year. State Oil Company of Azerbaijan (SOCAR) would be tasked with implementation, with financing from its government. The estimated cost is EUR 21 million. The idea is to then expand the local gas distribution network to nearby Pogradec and Erseka.

Fier and Elbasan are next on the schedule. Azerbaijan and its company are also interested in the project for the LNG terminal in Vlora and to connect the facility with TAP.

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April 28, 2025
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CATL: World’s first mass-produced sodium ion battery is here

Chinese battery producer CATL has unveiled Naxtra, claiming it is the world’s first mass-produced sodium ion battery. At its inaugural Super Tech Day, the company also showcased a battery that sets a new global record for superfast charging technology.

Naxtra breaks resource constraints and strengthens the foundation of the new energy industry, according to Contemporary Amperex Technology Co. Ltd. (CATL), one of the world’s biggest battery producers. Back in 2021 the company presented first generation of sodium ion batteries.

Batteries for electric vehicles and energy storage systems are predominantly made using lithium ion technology. However, the technical solution comes with environmental risks because of lithium production in mines and salt flats. The race is on to find a better one and sodium ion could be the winner.

CATL underlined that Naxtra Battery breaks through the performance boundaries of the material itself, allowing mass production of sodium ion batteries for the first time.

Naxtra Battery product line has two units

“With sodium’s inherent safety and abundant reserves, it efficiently reduces dependence on lithium resources and strengthens the foundation of new energy technologies, while promoting energy utilization from single resource dependence to energy freedom,” the press release reads.

Naxtra passenger EV Battery (photo: CATL)

The Naxtra Battery product line has two units: the Naxtra passenger EV Battery and the Naxtra 24V Heavy-Duty Truck Integrated Start-Stop Battery. Both are capable of performing across the full temperature range from minus 40 to as high as 70 degrees Celsius, redefining the extreme temperature limitations of batteries, CATL said.

The Naxtra passenger EV Battery retains 90% usable power at minus 40 degrees and achieves an energy density of 175 Wh per kilogram, the highest among sodium ion batteries worldwide, and comparable to LFP batteries, the update reads.

In terms of safety, it is a transformative breakthrough

CATL said the system provides a 500-kilometer range and that it can achieve over 10,000 cycles, significantly reducing maintenance costs. In terms of safety, it is a transformative breakthrough from “passive defense” to “intrinsic safety,” the manufacturer claimed.

According to the company, Naxtra 24V Heavy-Duty Truck Integrated Start-Stop Battery boasts over eight years of service life and reduces total lifecycle costs by 61% from the level in traditional lead-acid batteries.

Compared to lead-acid batteries, it is more efficient, eco-friendly, and economical, driving commercial vehicles into a lead-free era where vehicles and batteries age as one, the company claims.

Shenxing Superfast Charging Battery offers robust power across all temperature ranges

On the same occasion, the company presented two more “groundbreaking EV battery products,” as it called them.

The Freevoy Dual-Power Battery introduces a pioneering cross-chemistry system design that transcends the limitations of single technology paths to meet customized user needs. The second-generation Shenxing Superfast Charging Battery, with its peak 12C charging rate, sets a new global record for superfast charging technology, according to CATL.

The company stressed that Shenxing Superfast Charging Battery is the world’s first LFP system featuring both an 800-kilometer range and a 12C peak charging rate. With a peak charging power of 1.3 MW, it achieves 2.5 kilometers of range per second of charging, virtually eliminating the frustration of waiting, according to the press release.

Additionally, the device provides robust power across all temperature ranges and states of charge.

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April 25, 2025
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Turkey to manufacture green hydrogen, nuclear, CCS equipment

The 2030 Industry and Technology Strategy includes setting up industrial facilities in Turkey for nuclear energy, green hydrogen, battery storage and carbon capture and storage (CCS). The country is planning to establish a value chain for critical raw materials. The government vowed to support the development of semiconductor technology, autonomous and flying vehicles and cybersecurity solutions, alongside innovations for electric vehicles and solar and wind power.

With its recently unveiled 2030 Industry and Technology Strategy, Turkey announced the ambition to upgrade its industrial production to one of the most advanced in the world. As Russia’s Rosatom is completing the country’s first nuclear reactor in Akkuyu, the government is planning to develop its own technology in the segment.

The strategy involves setting up industrial clusters for equipment and infrastructure. Among the possible technologies are molten salt reactors. The Scientific and Technological Research Council of Türkiye (TÜBİTAK), Turkish Energy, Nuclear and Mineral Research Agency (TENMAK) and Istanbul Technical University (İTÜ) are tasked with establishing a nuclear tech park.

Green hydrogen mostly needed for decarbonizing hard-to-abate industrial production

TÜBİTAK is responsible for developing domestic electrolyzers as well. The national hydrogen program is set to bring support for integrating the production of green hydrogen, storage, transportation and consumption. The last of the four is especially focused on energy-intensive industries such as steel, petrochemicals and fertilizers.

Another segment that would get incentives is the use of hydrogen in fuel cell vehicles including heavy vehicles. The strategy envisages setting up pilot zones for green hydrogen production, with electrolyzers powered by wind and solar energy.

Turkey has high ambitions for high-tech exports

Turkey has revealed the goal of tripling its high-tech exports to USD 30 billion by the end of the decade. It is part of an ambition to lift industrial exports to USD 400 billion from last year’s USD 247 billion. At the same time, the government’s target for the overall valuation of domestic tech startups is USD 100 billion.

The 2030 Industry and Technology Strategy has other chapters, too, like carbon capture, utilization and storage (CCUS or just CCS), access to critical raw materials, semiconductor and battery manufacturing and cybersecurity. Officials vowed to continue prioritizing domestic electric vehicles, but with investments in autonomous operation systems and even flying cars.

Cybersecurity solar and wind turbine technologies. Turkey apparently remains dedicated to expanding the industrial base for solar panels and wind turbines as well.

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April 25, 2025
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Terna Energy to make pumped storage, wind power hybrid in Amari in Crete

Greek renewable energy company Terna Energy, recently acquired by Masdar, made a step forward in its Amari hybrid power plant project in Crete.

The facility in the country’s largest island would comprise two wind farms with a total capacity of 81.6 MW and a pumped storage hydropower station, at the Amari dam reservoir, of 50 MW. The Ministry of Environment and Energy approved a construction site study, advancing the investment.

It should be noted that the project has been plagued by delays. The initial environmental license was published back in 2019. The total planned capacity has been reduced from 161.1 MW to 131.6 MW.

The pumped storage system would consist of two turbines and four pumps, the update shows. The sites for the wind farms are in the municipality of Sitia.

Terna Energy has said it would be the largest hybrid power plant in Europe, valuing the investment at EUR 280 million. Masdar’s subsidiary is also building its Amfilochia pumped storage hydropower plant in mainland Greece, which will have a capacity of 680 MW.

Investors mainly interested in standalone storage, not hybrids

Interest in hybrid power plants has been low in Greece, as there are only a few small investment proposals per licensing cycle.

But companies are keen on building standalone pumped hydropower units. In the April round, Freenergy submitted seven proposals of 80 MW apiece. It follows 14 applications in March by various groups, each for more than 100 MW.

Greek authorities are eager to facilitate the first standalone storage projects, including batteries. The country faced a grid overload issue during the Easter holiday, as electricity from photovoltaics far exceeded demand and it had to be heavily curtailed. The first storage installations are expected this year. The technology is seen gradually easing the curtailments and allowing further renewable energy penetration.

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