Towards a climate neutral EU:
efficient allocation of EU funds

Umbrella projects - A first step towards energy communities?

Organisation: Institute for Sustainable Development Fondation Website: www.pine.org.pl Added: June 29, 2022
Project start date: January 01, 2014
Project end date: December 31, 2021

Narrative

In the 2014-2020 period, many local authorities decided to carry out joint 'umbrella projects' to finance small renewable installations for private residences. Municipalities were in charge of overall project management, but investments (PV systems, for example) were realised on private properties, with periodic investments being donated to private owners. These projects mobilised local resources to successfully develop small renewable installations, and also established a local letwork of renewable energy development stakeholders. Renewable systems were purchased wholesale, which provided financial savings in comparision to individual purchases. This 'umbrella' approach can be considered a predecessor for establishing 'energy communities', and should be analysed as a good practice.


Financial data

There were projects in several different Polish regions during 2014-2020 financial period. Examples iclude: Opole Lubelskie municipality (EUR 12 million, with 78% ERDF funding) -  http://adaptcity.pl/wp-content/uploads/2017/11/ROF_V-Forum-Klimatyczne_prezentacja.pdf, and Sokołów Małopolski (EUR 2.5 million, with 75% ERDF funding). 


Recommendations

Good lessons: The way that municipalties initiated and operated the umbrella projects is an example of a process that can lead to the creation of energy communities, as opposed to doing so through individual RES investments; also, the umbrella projects saved the EU money because were priced on the wholesale market. Bad lessons: The umbrella projects presented several problems during the implementation period because people did not yet own the installations yet, and municipalities did not often provide proper maintenance.


Information sources

Own

Other info

Opole Lubelskie municipality (EUR 12 million, with 78% ERDF funding) -  http://adaptcity.pl/wp-content/uploads/2017/11/ROF_V-Forum-Klimatyczne_prezentacja.pdf, and Sokołów Małopolski (EUR 2.5 million, with 75% ERDF funding). 

European Climate Initiative (EUKI)
This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.