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Community energy in transition – Ökologisches Wirtschaften 4/2025

Citizens are actively involved in the energy transition – from installing their own solar panels to joining energy cooperatives that build wind turbines. However, community energy is not just about producing electricity, but also about models for consuming it collectively, such as tenant electricity or energy sharing. The current issue of “Ökologisches Wirtschaften” highlights how such communities operate. In the introduction Jan Wiesenthal, Astrid Aretz, Malte Zieher and Lydia Takit address the question of where community energy stands today and what potential it has despite the difficult framework conditions. 

Energy cooperatives enforce regional economy 

More speed and additional sources of financing to accelerate the expansion of renewable energy, greater network stability, local revenue, and stronger local acceptance – these are important advantages of community energy. 

Especially for regions undergoing structural change and redesigning their economy, community energy is of particular interest. Sina Diersch, Steven Salecki, Detlef Sack and Jörg Radtke show this using the example of the Rhineland mining area and Lusatia. Energy cooperatives in former coal mining regions could help retain a significant proportion of various value-added effects, especially operator profits, in the local area, thereby strengthening regional economic cycles.

Is the German Energy policy falling behind? 

Despite some legal advancements in the past years, there are still gaps in the regulatory framework for community energy. Now it is up to the government to commit to community energy, emphasize Jan Wiesenthal, Astrid Aretz, Malte Zieher and Lydia Takit. For example, it could be anchored it in energy policy objectives at the state level. 

The EU sets the bar and puts citizens at the heart of energy supply. One requirement, for example, is that at least one energy community should be established in every town with more than 10,000 inhabitants. Germany can learn from its European neighbors: According to Roland Kuras and Julian Binz, the success of energy communities in Austria is largely due to government support. The most important factor here is the establishment of a coordination office that provides information, model contracts, and assistance with setting up, joining, and operating such communities.

Furthermore, other countries are leading the way in electricity market design. Regional price signals can encourage network-friendly behavior, as Steven Salecki and Bernd Hirschl argue in their article “Regionalisierung als Chance für mehr Effizienz, Akzeptanz und Resilienz im Stromsystem” (available in German). In Scandinavia and Italy, bidding zone divisions are common practice; Spain is experimenting with time-variable grid fees, and France uses central coordination to control regional markets. Germany, however, continues to rely on a uniform national price zone.

Missing publicity and diversity 

Energy cooperatives have great potential for a participatory energy transition. However, according to Melanie Vogel and Marcel Schwalbach, energy cooperatives can only exploit this potential if the model is well known among the population and attractive to different population groups. A representative survey conducted in 2024 revealed that only 22 percent of respondents in Germany know what energy cooperatives are. Furthermore, women are underrepresented in these cooperatives. The authors analyze barriers and show seven possible solutions.

Also in this issue: Economic policy by the new federal government, conflicts about land use 

David J. Petersen discusses the economic and climate policy of the new federal government together with Economists for Future. In his article he shows how large the gap between political promises and actual implementation continues to be. 

The fair distribution of space is often the subject of heated debate, e.g. concerning new wind farms, large-scale industrial projects, the designation of nature reserves, or the construction of bike paths. Meike Fienitz and Thomas Weith offer a new perspective on the link between spatial conflicts and questions of justice.

Reading samples: 

►To the online edition of Ökologisches Wirtschaften 4/2025 (DE)

New free download: Climate adaptation as an integrative field of action:

Extreme weather events such as record heat waves and flooding are becoming increasingly common. The time for adaptation measures is pressing. Since July 2024, the new Climate Adaptation Act has been in force in Germany, requiring local authorities to adapt to the climate crisis in a manner specific to their region. This issue of “Ökologisches Wirtschaften” asks what this adaptation should look like – from the necessary scope and speed of the measures to appropriate political procedures, financing, and technical implementation.

► To the online edition of Ökologisches Wirtschaften 4/2024 (DE)

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