The new Renewable Energy Directive (RED II) in Europe establishes a target of 32% renewable energy by 2030, and calls for citizens to help develop renewable energy. As part of that directive, the European Union enables renewable energy communities and self-consumption of renewable energy. Every country in Europe by the end of the year is expected to incorporate these concepts into national laws. In Miranda do Douro, a municipality in northern Portugal, the process has begun, with Cleanwatts helping to establish the country’s first energy community allowed under the country’s new legal framework that’s based on RED II.

An energy community is made up of participants who jointly benefit from local clean energy, said Michael Pinto, co-founder and CEO of Cleanwatts, a software company that aims to accelerate energy decarbonization for companies and communities globally. The communities — which generally use 100 kW to 2 MW of solar — can be based in remote villages, suburban neighborhoods, business parks, industrial parks, resorts or other locations and can include energy storage and other assets, in front of or behind the meter, he said.

Energy communities provide clean energy to participants — at costs up to 40% less expensive than traditional utility power — and are especially helpful to people experiencing energy poverty, said Pinto. His software company offers energy efficiency services and also aggregates clean energy assets, selling them into utility markets, […]

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