Navigating the rise of energy communities in Estonia: Challenges and successes through case studies

Abstract

This study explores the emergence and development of energy communities (ECs) in Estonia, emphasizing the challenges and successes encountered. ECs are integral to the European Union's Clean Energy Package, which aims to include citizens in the energy transition. Unlike countries with a longstanding tradition of ECs, Estonia faced a new empirical concept with the introduction of the European directives. Utilizing a comparative case study framework approach, this research combines desk research, stakeholder workshops, and case study interviews to analyze five diverse EC initiatives in Estonia. The findings reveal that the first successful pilots are essential for any wide-scale rise of ECs. Despite challenges, several successful case studies showcase the potential for ECs. Key success factors include strong local leadership, effective communication strategies, municipal support, and clear business models. The study underscores the importance of proactive roles from the state and distribution system operators and highlights the need for legislative improvements to support ECs. This research fills a critical gap in the literature by providing insights into the unique dynamics in Estonia. It offers practical recommendations for policymakers and stakeholders to enhance the scalability and sustainability of these initiatives, emphasizing the need to overcome structural barriers and foster collaboration.