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Implementing EU-defined energy communities in the Nordics

Borch, Kristian ; Palm, Jenny LU orcid and Juntunen, Jouni K. (2026) In GAIA - Ecological Perspectives for Science and Society 35(2). p.99-107
Abstract

The EU's Clean Energy Package introduced renewable and citizen energy communities (RECs/CECs) to strengthen citizen participation in electricity markets. Nordic countries, however, have long-standing traditions of community-based energy provision, including district heating cooperatives, small hydropower schemes, and wind cooperatives. This article examines how nationally embedded energy models in Denmark, Finland, Norway, and Sweden align with or diverge from the legal and governance criteria defined in the Renewable Energy Directive RED II and the Internal Electricity Market Directive IEMD. Using a comparative institutional framework, the study analyses regulatory design, ownership structures, and system configurations shaping... (More)

The EU's Clean Energy Package introduced renewable and citizen energy communities (RECs/CECs) to strengthen citizen participation in electricity markets. Nordic countries, however, have long-standing traditions of community-based energy provision, including district heating cooperatives, small hydropower schemes, and wind cooperatives. This article examines how nationally embedded energy models in Denmark, Finland, Norway, and Sweden align with or diverge from the legal and governance criteria defined in the Renewable Energy Directive RED II and the Internal Electricity Market Directive IEMD. Using a comparative institutional framework, the study analyses regulatory design, ownership structures, and system configurations shaping implementation. The findings show that regulatory conditions, rather than cooperative traditions alone, determine alignment. Finland demonstrates high compatibility, Denmark and Sweden partial alignment, and Norway limited alignment, being outside the EU framework. The study highlights how institutional path dependencies condition the practical realisation of EU energy community provisions.

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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
citizen energy communities, energy markets, EU Clean Energy Package, Nordic countries, renewable energy communities, renewables
in
GAIA - Ecological Perspectives for Science and Society
volume
35
issue
2
pages
9 pages
publisher
Oekom - Gesellschaft fuer Oekologische Kommunikation mbH
external identifiers
  • scopus:105040694678
ISSN
0940-5550
DOI
10.14512/gaia.35.2.21
project
Resistance and power - on smart grids for the many people II
language
English
LU publication?
yes
id
8a144624-a51b-4488-bb3b-c0c00daa2162
date added to LUP
2026-06-11 10:46:40
date last changed
2026-06-12 03:10:56
@article{8a144624-a51b-4488-bb3b-c0c00daa2162,
  abstract     = {{<p>The EU's Clean Energy Package introduced renewable and citizen energy communities (RECs/CECs) to strengthen citizen participation in electricity markets. Nordic countries, however, have long-standing traditions of community-based energy provision, including district heating cooperatives, small hydropower schemes, and wind cooperatives. This article examines how nationally embedded energy models in Denmark, Finland, Norway, and Sweden align with or diverge from the legal and governance criteria defined in the Renewable Energy Directive RED II and the Internal Electricity Market Directive IEMD. Using a comparative institutional framework, the study analyses regulatory design, ownership structures, and system configurations shaping implementation. The findings show that regulatory conditions, rather than cooperative traditions alone, determine alignment. Finland demonstrates high compatibility, Denmark and Sweden partial alignment, and Norway limited alignment, being outside the EU framework. The study highlights how institutional path dependencies condition the practical realisation of EU energy community provisions.</p>}},
  author       = {{Borch, Kristian and Palm, Jenny and Juntunen, Jouni K.}},
  issn         = {{0940-5550}},
  keywords     = {{citizen energy communities; energy markets; EU Clean Energy Package; Nordic countries; renewable energy communities; renewables}},
  language     = {{eng}},
  month        = {{06}},
  number       = {{2}},
  pages        = {{99--107}},
  publisher    = {{Oekom - Gesellschaft fuer Oekologische Kommunikation mbH}},
  series       = {{GAIA - Ecological Perspectives for Science and Society}},
  title        = {{Implementing EU-defined energy communities in the Nordics}},
  url          = {{http://dx.doi.org/10.14512/gaia.35.2.21}},
  doi          = {{10.14512/gaia.35.2.21}},
  volume       = {{35}},
  year         = {{2026}},
}