This report outlines financial opportunities for renewable energy projects focused on reducing energy poverty. It is intended for municipalities and other entities looking to implement socially oriented initiatives. The report covers public grants, private financing, and crowdfunding, showing how these can benefit vulnerable populations.
Public funding includes EU grants, national subsidies, and local bank loans, which are key for promoting social equity in energy projects. Private financing, such as bank loans, investment funds, and crowdfunding, complements public funding by filling financial gaps and offering additional resources for project implementation.
Takeaways from the cities that are involved in the POWER UP project:
- UCSA Pilot (Italy, Campania Region): Photovoltaic (PV) panels were installed on public rooftops to share energy with a renewable energy community, including vulnerable households. However, the project faced funding limitations due to the municipal size. The key takeaway is that low upfront costs and direct municipal investment make such projects sustainable without relying on loans.
- Valencia Pilot (Spain): Regional grants and energy community models funded 2.8 MW of PV systems on public buildings. The energy is shared with vulnerable households, reducing their bills. This project highlights the power of combining public funding with community-driven initiatives.
- Eeklo Pilot (Belgium): The local government purchased shares in an energy cooperative and gave them to vulnerable households, enabling them to benefit from lower tariffs on wind energy. This model shows how municipal investment in cooperatives can make renewable energy more accessible.
- Rožnov pod Radhostem Pilot (Czech Republic): PV systems were installed on social housing, benefiting residents directly. Limited access to private financing made public grants essential, demonstrating the importance of public funding in regions with fewer private investment opportunities.
These examples demonstrate that there is no single solution for financing renewable energy projects with a social impact. In Campania and Valencia, a mix of public and private funds works well, while Rožnov relies mainly on public funding. Eeklo demonstrates the benefits of municipal involvement in energy cooperatives. Flexibility in financing is crucial for making future projects inclusive and sustainable.
