València investment on citizen energy to keep energy transition benefits in-house

The city of Valencia, 3rd main Spanish city in economic activity (mainly services) and population around 800.000 inhabitants, has a solid and widely agreed-upon mandate for sustainability and environmental protection. This mandate has grown in scope and ambition over the years, and it is more necessary than ever after the tragic floods caused by the DANA storm of October 29, 2024. This shared vision reflects a long-term commitment to protecting natural resources and people, reducing environmental impact, and promoting a more resilient city, better prepared to face future climate challenges.

This comprehensive and collaborative approach has been developed in Valencia's Urban Strategy, which defines a city model for the coming decades, and is specified in the "sustainable vision" contained within it. This vision offers an ambitious perspective that brings together all local and strategic initiatives that share the common goal of improving urban sustainability, protecting the environment, and increasing the city's safety and adaptive capacity to changing climate conditions. Sustainable Valencia is not just a present-day project, but a medium- and long-term strategy that looks toward the future, supported by initiatives such as the European Green Capital and the Climate Mission, ensuring the continuity of actions and policies that promote balanced urban development respectful of the natural environment.

A strong network of citizen-led energy communities

When the Valencia Climate and Energy foundation (currently Valencia Sostenible) started fostering the creation of energy communities in the city back in 2020, the establishment of a local network of Renewable Energy Communities felt like a long term goal. Today, more than 10 city RECs collaborate to become a relevant player in the local energy transition.

The first two energy communities were legally established in the summer of 2021 as non for profit associations. One of them, CEL Castellar-l’Oliveral, successfully implemented its first collective self-consumption PV installation by November 2022, placed in a public roof facilitated by the Municipality of Valencia as a pioneering experience. Since then, several groups of citizens from different neighbourhoods followed the path, closely supported by Valencia’s OSS the Energy Offices, setting up new associations in Aiora-Algirós, Malva-rosa, Malilla, Ciutat Vella, Russafa, la Saïdia, Benimaclet, Poblats Marítims and la Raïosa.

Their main activity is the promotion of collective self-consumption PV projects, with 3 RECs (Castellar, Malilla and Zaidia) already managing 4 PV plants. CEL Castellar is also promoting its first collective purchase of windows and shadowing structures to enhance energy efficiency, home comfort and adaptation to climate change.

Citizens at the heart of the strategy

RECs in Valencia are strongly citizen-based, led by actual neighbours interested in enhancing the quality of life of their districts and achieving a more sustainable and democratic relationship with the energy field. The background of the early adopters is pretty heterogenic, but a clear link can be identified with activism and previous experience in neighbourhood associations. RECs are initially composed of between 5 and 10 founding members which rapidly grow as first PV plants are in place.

Currently more than 250 members are engaged in the three RECs which are already operating at least one PV plant: CEL Castellar-L’Oliveral, CEL Malilla and CER Zaidia. Members are mostly middle-age adults residents of the neighbourhoods where the RECs are based, but also including other profiles such as local cooperatives, offices, music schools or farmers. Vulnerable households inclusion is also considered in close cooperation with the municipality. Even if the founding goals of RECs are very similar, they all adopt different strategies when it comes to citizen engagement or how to tackle energy poverty, taking into account their daily realities.

Valencia believes that the energy should be fully in hands of the citizens, that’s why RECs directly owns, manages and operates the PV installations and the energy that is generated. Every member of a REC acts as a shareholder of the installations, signing a contract between RECs and individual members which establishes a right to access the energy generated by a pre-set equivalent installed power, normally proportional to the upfront investment (i.e. 1 share = 600€ = 500 kWp = approximately 120€ /year savings).. 

The Municipality as enabler of independent and autonomous energy communities

Valencia has the promotion and support to RECs as a key line to drive the energy transition. Valencia Sostenible, an autonomous municipal entity, acts as the main enabler of this support by providing direct human and technical assistance to RECs in the city.

Moreover, when it comes to integration of vulnerable household households in community energy projects Valencia Sostenible takes a prominent role by, for example, taking part as founding member in solidarity based RECs (Comunidad Energética Solidaria Malva-rosa), investing in social shares (CEL Castellar first installation) or acting as key facilitator of household integration in close cooperation with the municipal social services.

The main goal is to establish well founded RECs, independent, autonomous and skilled enough to become key actors in the city ecological transition.

One Stop Shops to provide personalised supporting services to Energy Communities

Valencia Sostenible manages three physical and one mobile One-Stop-Shops for the energy transition, called “The Energy Offices”. Those are open spaces for citizens to obtain information and support for any need related to the energy field, covering topics on bills, efficiency, right to energy, education and of course renewable energy. Besides this municipal service that has been available since 2019, an additional boost has been received between 2024 and 2026 thanks to a national grant for deploying “community transformation offices”, this is, a dedicated OSS for supporting energy communities.

Valencia offers complete technical, legal, administrative and social support to existing and new RECs by providing personalized support and intermediating with all relevant stakeholders. The supporting services include: informative sessions, workshops, PV feasibility studies (also available in open solar map), search of funding sources, support for the application to grants and subsidies, identification of high PV potential roofs, negotiation with roof owners, support in establishing and maintaining legal entities, intermediation with licensing services, DSOs and other authorities, and the organization of periodic gatherings for knowledge exchange.

  © CEL Malilla 

Creating pioneer projects to inspire change

Valencia has achieved in creating a solid base of organized citizens around the energy transition, with legal entities registered and ready for action, covering almost every corner of the city.

The municipality made possible a first successful case in Castellar that inspired others, and gave tailored support to RECs at key moments. Helped CEL Malilla access a multi-apartment block roof for their first installation, by organising informative events, building a strong storytelling highlighting incentives, and providing tailored energy savings studies for future members.

With CER Zaidia, a structural architectural study was needed to unlock access to a private church-owned building roof which was found and negotiated by the community. The cost of the study was covered by Valencia Sostenible. Finally, intense support was provided to CEL Castellar facilitating an agreement with an industrial REC which makes big industrial roofs available for community energy.

Energy poor households are a target

RECs revenues, besides grants, are directly reflected as savings in members’ electricity bills. Consequently there’s no regular income for the energy communities that can be reinvested. All three RECs received a grant covering part of the cost of their installations, but they differ in the use of this grant. While CEL Castellar keeps the money in the bank to cover operational costs and thus not asking for membership fees during the coming years (only after the installation is amortized), CEL Malilla preferred to use it for reducing the cost of the upfront investment for new members.

Nonetheless, RECs take direct action to tackle energy poverty. CEL Castellar has collectively covered the cost of 6 kWp from their new installation which will be dedicated to vulnerable households identified by social services. CER Zaidia, for their part, is dedicating a share of free energy to associations and small businesses present in their neighbourhood, identified and prioritized by member voting. Those actions stem from RECs founding principles, as fighting energy poverty is explicitly reflected as an activity line in their founding statutes. 

Additionally, the Municipality has been working for the past few years to review its public procurement rules to create a specific tender for energy communities. Indeed, with the new rules, Valencia was able to give the rooftops of some municipal buildings to energy communities to develop solar panels, with the condition of at least 10% of the energy to supply the municipal buildings, and at least 5% to supply energy poor households. More details about the new rules can be found on this case study.

Lessons learnt and next steps

Create link and relationships: the key for success

By giving constant feedback and tailored support to every group of citizens, any challenge is addressed more effectively. Thus, sstablishing a close relationship with citizens based on mutual trust is a clear lever of success.

Having a highly dedicated, multi-disciplinary municipal team, with complementary skills on education, social dynamization and engineering, helps deliver a wide range of services adaptive to any kind of need.

Basing RECs on existing community movements is also identified as a facilitator, as promoters may have a solid background on social engagement and management of organizations, which are key capacities to launch energy communities.

Bottlenecks remain, but solutions are possible

A lot of efforts and expectations have been put on the concession of municipal roofs to RECs through a tender process. Launching the tender is taking longer than expected and communicated to RECs, generating a certain feel of frustration since many of the project proposals were granted by the regional government. Managing those expectations has proved to be a key element to avoid jeopardizing the trustful relationship that has been built with the RECs over the last 6 years. 

Access to available roofs remains the main bottleneck for community energy deployment. Besides that, as learnt from successful cases, more challenges come when it comes to addressing the management of the PV plants and interactions with permitting institutions such as regional bodies, DSOs and retailers.

Additional challenges are foreseen for replication, scale-up and deployment of new services on efficiency and mobility, for instance, as the knowledge gap is still a big barrier.

Improve accessibility and diversify the portfolio

To compensate for the delay in the public tender, which is foreseen as a tipping point for community energy in the city, a big effort has been made to foster accessibility to private roofs, by launching a solar city map and a dedicated communication campaign to encourage roof owners to cooperate with RECs in exchange for economic energy-related incentives.  

Finding synergies between diverse stakeholders, even if costly in time, have been proved to be key to facilitate access to roofs and unlock several projects implementation. Giving tailored support at key moments in negotiation processes led by RECs has delivered great results.

Finally, participation in new European projects and funding opportunities has been identified as a key element to expand the reach and portfolio of services offered by RECs, by giving chances to cover the cost of tailored studies and build new capacities.

Replicability and key takeaways

Putting resources in supporting energy communities pays off, having citizens engaged, formally organized in legal forms which covers the city and have their own capacity to promote energy projects give room for deep, long lasting change. Fostering and supporting a local network of RECs with their own advanced skills and capabilities is a key factor to ensure a successful, sustainable and long lasting community energy movement in the city.

This way the municipality makes sure that the benefits of the energy transition remain in-house, with citizens as relevant social players. 

Valencia's Energy Communities

Active since: 2021

Stage of implementation: Active Energy Cooperative

Key Energy Figures

• Total capacity installed:  244,64 kWp in 4 installations (47,79+106+48,96+41,89)
• Ratio production/consumption: estimated 25% coverage of electricity demand with renewable generation
• - X% in average in bills: estimation based on actual bills: 200€/year savings per kWp 

Type of support from the Municipality

• Facilitation: setting targets, one stop shop, workshops, permits, and access to meeting room
• Support: access to public roofs/land (in process), and administrative support
• Direct Involvement: joining as a member, and co-investing in projects

Covenant Figures

• Signatory to the Covenant of Mayors since: 2009
• Emission reduction ambitions: 
  % GHG emissions reductions by 2030: Climate neutrality (>80%)
• City “awards”:  European Green Capital 2024, Mission Label, Mission Adapt 

Related link

• https://valenciasostenible.com/es/oficina-de-transformacion-comunitaria/ 
• https://celcastellaroliveral.org/ 
• https://avzaidia.com/comunidad-energetica-renovable-cer/?v=12470fe406d4 
• Case Study on Valencia's social public procurement