The challenges of setting up an “Energy Community”.

Challenges of setting up an energy community

Setting up an #energycommunity involves overcoming a number of hurdles. From doing the necessary #paperwork to finding funding, planning each step will help you avoid wasting time. The process can be long and time-consuming, so it is essential to be aware of the issues you are likely to face.

Bureaucracy

The obstacle of #bureaucracy is present in any project that you want to carry out. Given the scale of creating an energy community, you have to comply with a series of laws, regulations or municipal ordinances. It is essential that the plans we are designing comply with the indications and requirements set by the administration.

Overcoming #bureaucracy implies understanding the laws in force and complying with the steps they impose. For example, in Navarre it is necessary to establish a community driving group. This involves determining the people (between four and twelve) who will lead the project. In other words, they are the ones who will take on the responsibilities and who will be in charge of relations with the rest of the group.

It is also essential to have a governance plan that explains the internal power dynamics. This is a way to prevent the leadership group from having an ironclad and irrevocable control over the rest of the participants. In addition, design and feasibility studies will need to be carried out, which involve providing a variety of documentation. Such is the case of a site plan, an action report or the implementation plan proposal.

Time it takes to set up

The constitution time is another obstacle that must be taken into account. It is not enough to complete all the paperwork, you have to wait for the administration to review it and give the go-ahead.Progressing from one phase to another of the project involves completing a series of milestones, such as developing a business plan, and its delivery initiates a cycle of checks that will last for weeks. It must also be understood that, if rectification is necessary, there will be delays in shaping the community. Mistakes will have to be corrected and solutions sought, and then submitted again to the scrutiny of the administration. We should therefore act with precision, knowledge of the regulations and professional advice.

Funding

This is one of the big challenges in building the energy community. We will need adequate #funding, separated into different amounts and earmarked for specific phases. For example, project development will require a certain amount and operation another. Although this may seem like an insurmountable barrier, there are several options available to us to raise capital. One of the most common is to apply for grants, subsidies or a traditional loan. There are also more modern options available, such as crowfunding, micro-patronage or equipment leasing. In any case, we must adjust the amounts of money to the project we have in mind to ensure its viability.

Management

Management presents an inherent complexity, as we must coordinate different activities within the community. It may be necessary to manage several sources of energy, which involves balancing the supply and demand for electricity. Distribution will also need to be carefully planned to avoid overloads or interruptions in supply.

Compliance

The main challenge is the interaction between regulations and community dynamics. The community is subject to municipal, regional and state regulations, which makes it difficult to comply with all of them exactly. From licensing or building permits to maintaining quality standards, we must find the right solutions. But enforcing compliance will require us to commit resources, which can be significant.

Choosing a CRM for management

CRM is a computer programme that will take care of many management tasks. It is a very effective solution that will help us to overcome many challenges, such as legal and administrative. However, it is necessary to select the most suitable one for the project we are going to develop: it has to be a software that adapts to the particularities of the community and its members. In addition, it has to provide remote access, through a mobile application, to be able to carry out different tasks. In this way, problems can be solved in the shortest possible time and the emergence of a crisis that is difficult to repair can be avoided.

Dependence on professionals from sectors other than the energy sector

Members of an energy community do not necessarily have to be knowledgeable in all areas affecting their installation. In other words, it is likely that electricians, lawyers or builders are not available. Therefore, there is a dependency when it comes to solving specific problems, such as the ongoing maintenance of generation facilities.

‍Difficult participation in tenders

Depending on the size of the community, it may be difficult to participate in a tender. A small community will have to deal with the complications of #paperwork, for example. When it comes to completing it, it may be outbid by another with more resources. After all, there is a certain amount of competition, and you need to remember that you need solid technical and financial documentation, which is essential to get support or approval for your project. Having all the documents up to date, according to the specifications of the administration and delivering them in a timely manner can be difficult. If the community does not have adequate human and capital resources, it may end up not being formally established at all. The way to address them, in most cases, is to act in detail and with sufficient time. In addition, patience will be key to not giving up.