Shared Governance, Shared Energy: How Cooperatives Can Lead Renewable Energy Communities with Support from AGRICOM

The energy transition is not only a technological challenge, but above all a social, organisational, and cultural transformation. In this specific context, the European project AGRICOM supports the creation and development of Renewable Energy Communities (RECs), which represent a key tool for combining environmental sustainability, citizen participation, and local development.

One form of an energy community is the cooperative model, the benefits of which are described in this article. The cooperative model, by its very nature, is a suitable organisational structure to lead and consolidate these new forms of energy production and sharing, as it embodies the principles of mutuality, democracy, the absence of a prevailing profit purpose, and a strong link to the local territory. These characteristics enable members to jointly manage energy facilities and the benefits they generate, also helping to tackle energy poverty, in line with the requirements of the European RED II Directive and the national transposition law (Legislative Decree No. 199/2021).

Shared governance as an enabling factor

One of the main strengths of cooperatives is democratic governance. The principle of “one member, one vote” ensures that strategic decisions are not concentrated in the hands of few actors but are shared among community members. Applied to RECs, this approach promotes transparent and inclusive energy management, strengthening the sense of belonging and collective responsibility. The “open door” principle further reinforces this aspect, as it allows anyone who meets the requirements to freely join or leave the REC.

Shared energy and redistribution of benefits

Cooperatives enable a fair distribution of the economic and social benefits generated by energy production and sharing. Incentives and the value created do not become just private profit, but resources to be redistributed among members according to mutualistic criteria, in compliance with the rules decided by the members of the energy community. In this way, cooperative RECs can make a concrete contribution to reducing energy poverty and territorial inequalities.

Local roots and social capital

The strong connection between cooperatives and their local territory is a decisive element for the success of energy communities. Trust among members, knowledge of local needs, and proximity to institutions make cooperatives credible and stable actors over time. This is further reinforced by the cooperative feature of indivisible reserves, which safeguards the REC’s resources, extends its lifespan, anchors it to the community, and ensures intergenerational continuity. This local rootedness supports more effective decision-making processes and greater social acceptance of energy projects.

Economic sustainability oriented toward the common good

Unlike purely profit-driven models, cooperatives reinvest the generated value within the community. This logic allows RECs to maintain a balance between economic sustainability and social impact, ensuring long-term continuity and alignment with the environmental goals of the ecological transition.

From energy to social innovation

Renewable Energy Communities in cooperative form can evolve beyond simple energy production, becoming platforms for social innovation. Integration with welfare tools, member services, and mechanisms of solidarity-based redistribution transforms energy into a lever for inclusive development, capable of generating economic, social, and relational value.

In conclusion, shared governance and shared energy are not just slogans, but operational principles that find concrete application in the cooperative model. Cooperatives can play a leading role in the energy transition by guiding Renewable Energy Communities capable of combining democracy, sustainability, and territorial cohesion.

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 Federazione Trentina della Cooperazione and do not necessarily reflect the views of the European Union.