In the context of rising energy prices and a push towards energy decarbonization, a new form of decentralized energy production is gaining popularity within the European Union—energy communities. These collective structures offer members the unprecedented ability to democratically manage their own renewable energy production and storage installations, utilize the energy produced, and generate profits through fixed long-term contracts or the open market. These communities are one of the cornerstones in Europe’s strategy for achieving climate neutrality.
Challenges in the Energy Market
The impending reform of the energy market, slated to integrate household consumers into the open energy market as of January 2025, promises substantial benefits for both the sector and the broader economy. However, it also introduces potential challenges of uncertainty and instability for the household consumers, who will have to navigate a completely new landscape. Households will be required to swiftly adjust to this new market environment by identifying reliable energy providers and keeping a close watch on market trends. Unfortunately, such adaptation demands both time and effort – resources that many families may find challenging to muster.
Opportunities for Energy Communities in Bulgaria
With the legislative changes to the Energy and Renewable Sources Act adopted in October 2023, Bulgaria has legally paved the way for the establishment of this new types of energy generators by granting them equitable access to the free market. In practice, these amendments have facilitated citizens in creating their own collective energy systems that provide a consistent supply of renewable energy at fixed and stable price, ensure investment returns, and open avenues for revenue generation. What is more, these legal amendments allow for the democratization of the energy sector, which has historically been dominated by large and specialized players. Civic energy associations have no restrictions on the number of members or the size of the installations, which in turn empowers individuals with substantial bargaining power within the democratic framework.
Sonnis Energy Bulgaria’s Business Model
Sonnis Energy Bulgaria plays a pivotal role in this new energy landscape with an innovative business model that unites citizens and local authorities in joint energy projects. Such collaboration offers numerous benefits to both sides:
- Benefits for Citizens: Citizens can attain energy independence and reduce their personal energy costs over the lifespan of the system, which often exceeds 25 years, with the potential for financial gain once the initial investment is recuperated within five to ten years. Additionally, regular interactions between citizens and local authorities foster personal connections and provide informal channels to address local issues.
- Benefits for Local Authorities: Local administrations also reap significant benefits from this partnership. By offering their available rooftop spaces for solar installations, municipalities can reduce their own costs while sharing the investments and benefits with citizens and investors. This partnership contributes to the achievement of the municipalities’ climate targets and enhances their resilience to energy crises.
How Can Sonnis Energy Bulgaria Help?
Sonnis Energy Bulgaria offers the much needed know-how and support to citizens and local administrations unfamiliar with the process of establishing energy communities by handling the critical steps of building a cooperative from the scratch. We offer:
- Needs Assessment: Sonnis Energy conducts a thorough evaluation of the community’s energy requirements to determine the proportion of consumption that can be met through renewable sources. This step ensures that the solutions provided are tailored to the specific needs and potential of each community.
- Technical Implementation and Installation: Sonnis Energy identifies the most suitable technologies for the project, develops a comprehensive technical plan, and partners with reliable suppliers and contractors to ensure high-quality installation and seamless integration of renewable energy systems.
- Cost Assessment and Business Planning: We perform a detailed analysis of the investment costs associated with the renewable energy system and develop a strategic business plan to ensure a profitable return on investment, providing financial security and sustainability for the community.