Across Europe, energy communities and peer-to-peer (P2P) energy trading are transforming how electricity is produced, shared, and consumed. These decentralized models are empowering citizens, accelerating the adoption of renewables, and reshaping national energy systems from the bottom up. As governments across the EU pursue climate neutrality and grid resilience, community-led energy models are gaining momentum as a vital piece of the puzzle.
The European Commission’s Clean Energy Package (Source: European Comission) has laid the foundation for this shift, giving citizens the right to generate, consume, share, and sell renewable energy. However, member states are at varying stages of implementation, with regulatory clarity, grid access, and financial incentives emerging as key success factors.
Germany has seen a growing interest in energy communities, especially among prosumers looking to increase solar self-consumption. Yet, outdated grid fee structures and a lack of regulatory clarity continue to hinder the development of local P2P trading platforms. Pilot projects using blockchain and smart meters show promise, but widespread adoption requires policy reform. Programs such as the European Energy Communities Facility (Source: European Comission) are helping local initiatives navigate these obstacles by offering technical support and funding for business model development.
France offers a legal foundation for collective self-consumption, allowing citizens to share electricity within a 2 km radius (extendable to 20 km in rural areas). Despite limited financial incentives, ongoing regulatory improvements aim to scale up citizen participation. The French Energy Regulatory Commission and the Ministry for the Ecological Transition are actively refining policies to support broader adoption of energy communities (Source: CRE).
Finland’s advanced digital infrastructure makes it an ideal environment for smart grids and P2P trading. However, legal frameworks are still catching up. Interest in energy communities is growing, with regulators exploring how to modernize market rules to accommodate decentralized exchange models. Trials involving blockchain and virtual power plants are laying the groundwork for future scaling (Source: Finish Energy).
Italy continues to lead the way in Europe’s decentralized energy transition. Backed by strong government incentives, streamlined regulation, and favorable tariff structures, the country has cultivated a fertile environment for energy communities and local energy trading. Programs actively support the creation of citizen-led initiatives, and reduced grid fees further incentivize participation. Italy’s approach serves as a blueprint for other European nations seeking to accelerate the adoption of decentralized models (Source: WINSS).
As Europe advances toward a cleaner, more democratic energy future, the role of energy communities and P2P energy trading will only grow. Projects like the European Energy Communities Facility are already equipping local actors with tools, training, and legal support to turn grassroots ideas into operational realities¹. Yet, the success of this movement hinges on harmonizing regulations, simplifying access to the grid, and ensuring fair compensation for locally generated energy.
In countries like Germany and Finland, where interest is high but systemic barriers persist, reforms are crucial. Meanwhile, the progress in France and the leadership in Italy demonstrate what is possible when policy and technology align. As EU policy continues to evolve in 2025 and beyond, decentralization is no longer a fringe experiment, it is becoming the backbone of Europe’s next-generation energy system.
On May 8, 2025, the 9th Energiewende Award ceremony will take place at The smarter E Europe in Munich, Europe’s largest alliance of exhibitions for the energy industry, to celebrate and honor the most innovative energy suppliers who have shown exceptional commitment and progress in promoting the energy transition. The initiators of the project are The smarter E Europe and EUPD Research.
Further information on the Energiewende Award can be found at https://www.energiewende-award.de/en/home. If you have any questions, please contact Saif Islam (+49 (0) 228 504 36-20, islam@energiewende-award.de) or Kim Wiersberg (+49 (0) 228 50435-55, k.wiersberg@eupd-research.com).
Further information on The smarter E Europe can be found at https://www.thesmartere.de.