Energy communities have only recently been recognized as active par
ticipants in the energy transition within the European Union (EU). However, there potential in the process of a just energy transition, one that is decentralized, inclu
sive, and closer to citizens, has yet to be fully realized. Unlike the traditional para
digm, which relied on a centralized, top-down approach to energy system governance, the new paradigm aims to bring more democracy to all stages of the energy life cycle. Energy communities should help drive the transition by providing greater benefits to local communities, such as increased self-sufficiency, improved consumption management, enhanced efficiency and savings, promotion of clean energy, a reduction in energy poverty, job creation and support for local economic growth. This chapter aims to analyze the position of energy communities within the existing regulatory framework. We apply a multi-level governance model to the EU’s energy system to understand this role. Currently, we still rely heavily on cen
tralized energy systems managed by incumbents and public authorities. In this con
text, energy communities can have a supportive role in the just transition, complementing centralized energy structures and the top-down decision-making process. Recognizing citizens as equal participants in the energy transition, together with market players and public bodies, is crucial for gaining wider acceptance of fundamental changes in the energy sector. While this is just one of the objectives that active local communities can help achieve, they can also contribute to other social goals, such as promoting green jobs and economic growth, by utilizing locally available resources
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