6. May 2025 | Home

Joint press release by the Institute for Ecological Economy Research (IÖW) and the Institute for Sustainability Governance (INSUGO) at Leuphana University Lüneburg

More and more citizens are joining forces to generate their own energy locally. The coalition agreement between the parties CDU/CSU and SPD reinforces this commitment: they want consumers to play an active role in shaping the energy transition – for example through community energy, tenant electricity or energy sharing. Researchers from the Institute for Ecological Economy Research (IÖW) and the Leuphana University of Lüneburg show what obstacles community energy still faces and how these can be removed: A policy paper by the “SteuerBoard Energie” junior research group funded by the German Federal Ministry of Education and Research, the research team recommends that policymakers anchor community energy in accordance with EU directives and set targets. The framework conditions at state and federal level should also promote community energy, for example by introducing energy sharing or simplifying supplier obligations. Energy producers, consumers, and grid operators should be digitally connected to enable communication.

Energy communities: from pioneers of renewables to transformation players

Many citizens are involved in renewable energy plants such as solar parks, wind farms and biomass power plants, as well as heating networks, and operate them on their own responsibility. The members of an energy community are actively involved in the planning, financing, and operation of the plants. Around one in fifteen wind turbines installed in Germany is operated by citizens in this way. In 2024, there were around 2,500 to 3,000 energy communities in Germany, the research group estimates.

“Energy communities are pioneers in the expansion of renewable energy,” explains Astrid Aretz, energy expert at the IÖW. “Community energy enables people to participate in the energy transition and involves them in sustainable economic processes. This promotes acceptance and prosperity in the regions – through financing, for example – that the energy transition makes progress. An expansion of renewables reduces dependency on fossil fuels and enables democratic participation, social inclusion and a fairer distribution of resources. In this way, communities become agents of transformation and strengthen socio-economic resilience. Politicians should recognize this as an opportunity and promote it more,” she emphasizes.

New German government: strengthening energy communities now

The EU sees community energy as a key component in accelerating the energy transition and becoming climate-neutral. All member states are obliged to create suitable framework conditions. In the policy paper, the IÖW and Leuphana University make suggestions on how energy communities should be promoted. “The EU Solar Energy Strategy stipulates that an energy community should be established in every municipality with more than 10,000 inhabitants. In order to meet such targets, the new German government should – as announced in the coalition agreement – promote energy communities, anchor political goals and make their progress measurable,” says Lars Holstenkamp from Leuphana University.

“What we also recommend: Community energy should be given better framework conditions at state and federal level. Unlike large investors in the renewable energy sector, community energy faces specific structural and financial challenges; for example, they only have limited equity capital and are considered riskier. Digitalization should also be promoted and standardized market communication established,” the economist explains.

What could a municipality in which energy communities are promoted look like? The researchers show this in a vision of the future that explains, for example, how community banks or a competence center can empower community energy.

Online presentation of the recommendations at the Berlin Energy Days on May 7, 2025

On May 7, 2025, the project will present the recommendations of the policy paper from 15:00–16:30 in the online event “The role of energy communities in the future energy system” at the Berlin Energy Days. You can register free of charge here. (The event is in German.)

About the project

Astrid Aretz from the IÖW and Lars Holstenkamp from Leuphana University Lüneburg and the Ecolog Institute lead the junior research group “SteuerBoard Energie”, which is funded by the Federal Ministry of Education and Research in the priority area of socio-ecological research. Together with four doctoral students, they are researching the question of what governance energy communities need in order to develop their potential. The team is investigating specific models such as energy sharing or pooling of storage facilities and their socio-economic and ecological impact. It is also researching the governance of energy communities in all European member states and their influence on transformation pathways.

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Further information:

• Download IÖW policy paper: Astrid Aretz, Lars Holstenkamp (2025): Promoting citizen energy: Accelerating the energy transition together, IÖW-Impulse 10, May 2025 (in German)
• Download vision of the future (Copyright: Volker Haese/SteuerBoard Energie 2025)

Expert contact:

Dr. Astrid Aretz

Institute for Ecological Economy Research

Phone: +49–30–884 594-17

E-mail: astrid.aretz@ioew.de

Dr. Lars Holstenkamp

Leuphana University Lüneburg

Phone: +49–4131–677-1931

E-mail: lars.holstenkamp@leuphana.de

Press contact:

Richard Harnisch

Institute for Ecological Economy Research (IÖW)

Phone: +49–30–884 594-16

E-Mail: kommunikation@ioew.de

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The Institute for Ecological Economy Research (IÖW) is a leading scientific institute in the field of practice-oriented sustainability research. About 70 employees develop strategies and approaches for a sustainable economy – for an economy that enables a good life and preserves the natural foundations. The institute operates on a non-profit basis and without basic public funding. The IÖW is a member of the “Ecological Research Network” (Ecornet), the network of non-university, non-profit environmental and sustainability research institutes in Germany.

www.ioew.de

The Institute for Sustainability Governance (INSUGO) is part of the School of Sustainability at Leuphana University Lüneburg. At the heart of the activities of the staff of the Institute for Sustainability Governance is the question: Which public institutions and regulatory systems can achieve the normative goal of sustainability in a complex and pluralistic society? This question is answered through scientific research, academic teaching and practice transfer on topics of public sustainability management.

https://www.leuphana.de/en/institutes/insugo.html