Energy Sharing in the Agri-Food Industry: How Does It Work?

Since the adoption of the European directives of 2018 and 2019, a new model has opened up to actors who were previously not involved in the energy sector. SMEs, citizens, and even local authorities can now come together within energy communities and jointly carry out activities related to the energy sector. These activities are accessible to all members, according to transparent rules defined collectively.

Among the opportunities offered, energy sharing occupies a central place.

The principle is simple: electricity produced by a local installation—such as solar panels, a wind turbine, or other sources—is distributed among the members of the community. Each member can thus consume energy produced nearby, without being physically connected to the installation. Participants jointly set the price of this electricity and choose the allocation method that best suits their needs. 

Technically, energy sharing relies on data from smart meters. When a member consumes electricity at the same time the production installation feeds energy into the grid, this consumption is considered to come directly from the installation. This mechanism allows for decentralized production and gives control back to local actors, even if they are not energy sector professionals. 

The benefits are numerous. The first is economic: the price of shared electricity is generally more stable and lower than the market rate, as it is not subject to geopolitical fluctuations. Energy sharing also promotes a better understanding of energy issues and bills by making consumers active participants in their own supply. Finally, it provides access to local renewable energy for those who cannot invest in an installation on their own. 

In the agri-food industry, this model finds particularly favourable conditions. Farms often have large unused rooftops, ideal for hosting solar panels. However, a farmer may hesitate to invest alone, especially if their daytime consumption is low. The creation of an energy community changes the equation. 

Imagine a farmer owning several barns. They do not consume enough electricity during the day to make a solar installation profitable. However, by partnering with local shops, residents, and local authorities, a collective project can emerge. Together, they finance the photovoltaic installation on the available rooftops and organize electricity sharing. Each participant then benefits from a portion of the production, according to the rules defined by the community. 

Beyond the savings achieved, such projects strengthen ties among actors in the same territory and contribute to a more inclusive energy transition. Energy sharing thus becomes a tangible lever for developing renewable energy in the agri-food sector while boosting local cooperation.

This content was created as part of the activities of the EU project AgriCom, co-funded by the EU Single Market Programme (SMP COSME) under grant number 101241510.

The views expressed in this text are the sole responsibility of Energie Commune and and do not necessarily reflect the views of the European Union.