European Federation of Regions and Energy Agencies

Developing local renewable energy is essential not only to cut greenhouse gas emissions, but also to strengthen Europe’s energy security. By reducing dependence on fossil fuel imports, renewables such as wind, solar, hydro, and sustainable bioenergy make our energy system more resilient to price shocks and geopolitical crises. Regional and local energy agencies play a vital role in this transition: they mobilise communities, design supportive policies, and accelerate renewable deployment on the ground, ensuring that clean energy is produced where it is most needed and that citizens benefit directly from the transition.

The Clean Industrial Deal is driving Europe’s transition to a competitive, sustainable, and energy-independent industrial sector. FEDARENE and its member regions are supporting this EU initiative by helping businesses—from SMEs to energy-intensive industries—phase out fossil fuels, increase energy efficiency, and adopt renewable energy and clean technologies. Regional and local Energy Agencies also facilitate cleantech networks, innovation clusters, and electrification solutions, ensuring that decarbonisation strengthens both competitiveness and resilience. By embedding local expertise into EU governance and scaling proven regional solutions, Europe can achieve a fair, secure, and prosperous industrial transition.

As climate impacts intensify, Europe must not only cut emissions but also prepare for rising temperatures, extreme weather, and changing ecosystems. Climate adaptation is about building resilience in our communities, infrastructure, and energy systems to protect citizens and ensure continuity of services. Increasingly, regional and local energy agencies are evolving into climate and energy agencies, expanding their missions to support adaptation planning, risk assessments, and preparedness strategies. By combining expertise in energy transition with local knowledge of climate vulnerabilities, they help authorities and citizens design responses that safeguard both people and the planet.

Citizens are no longer just energy consumers — they are becoming active players in Europe’s energy transition. From joining energy communities that collectively produce and share renewable power, to participating in local renovation programmes, demand-response schemes, or energy-saving initiatives, people are taking ownership of their energy future. Citizen-led energy boosts social acceptance of the transition, creates local economic value, and strengthens resilience by keeping benefits within communities. Regional and local energy agencies are key enablers of this movement, supporting citizens with technical expertise, financing solutions, and governance models that make participation accessible to all.

Europe’s energy transition requires massive investments, yet a significant private financing gap remains. Regional and local energy agencies play a crucial role in bridging this gap by aggregating projects, connecting stakeholders, and designing innovative financing schemes that make sustainable investments feasible at scale. From Energy Performance Contracting (EPC) to Project Development Assistance (PDA) and ELENA-supported initiatives, agencies help unlock funding for local energy projects, ensuring that both public and private capital drives the shift to a low-carbon, resilient Europe.

Heating and cooling represent half of Europe’s energy demand, making their decarbonisation essential for climate neutrality. The revised Energy Efficiency Directive (EED) requires Member States to establish a legislative framework for heating and cooling plans by October 2025, creating both an obligation and an opportunity to accelerate local action. Regional and Local Energy Agencies are already responding: as independent facilitators with public mandates, they support municipalities and regions in designing and implementing heating and cooling strategies, developing tailored fuel-switch programmes, and running renovation one-stop shops. Crucially, no single technology can provide the answer. A diversity of renewable-based solutions — from heat pumps to biomass, to modern district heating and cooling networks — must be scaled up and adapted to the diversity of regional circumstances. To succeed, EU and national support should prioritise the upscaling and replication of such local and regional programmes, where Energy Agencies are already leading the way.

A resilient, flexible grid is the backbone of Europe’s energy transition. As renewable energy penetration grows, challenges such as curtailment and mismatches between supply and demand emerge across territories. Energy storage, demand-side flexibility, and integrated grid planning are essential tools to maximise clean energy use, maintain system stability, and prevent lost renewable production. The Up and coming EU Grid Package will structure an EU wide effort to reinforce the energy infrastructure of our continent. Regional and Local Energy Agencies support the deployment of storage solutions, facilitate innovative flexibility measures, and advise authorities on tailored policies and investment strategies. Ensuring that no kilowatt nor territory—is left behind is key to turning Europe’s climate ambition into real impact.

Artificial intelligence and digitalisation are transforming how energy systems are planned, managed, and monitored. Regional and local energy agencies are increasingly incorporating AI and data-driven approaches to improve energy efficiency, forecast renewable generation, manage grids, and support public authorities in developing climate and decarbonisation strategies. Many are already experimenting with digital tools, regional energy observatories, and data visualisation platforms, building capacity to turn complex datasets into actionable insights. As these technologies become central to the energy transition, developing AI and data skills will be essential for all agencies to ensure resilient and sustainable communities. For more about the role of AI in the Energy Sector: Energy Meets Intelligence. Wrap-up - Fedarene

Islands are trailblazers of the energy transition, where unique challenges have turned into unique strengths. With scarce land, isolated grids, and strong exposure to climate impacts, island communities have become forerunners in developing integrated solutions for renewable integration, storage, flexibility, and demand-side management. They are also champions of local ownership and democratic energy governance, showing how to build acceptance and resilience while creating new opportunities such as green jobs. Regional and Local Energy Agencies play a central role in these transitions, enabling islands to become living laboratories of autonomy and sustainability — offering lessons that the European mainland cannot afford to ignore.