Solar School Energy Community

The environmental NGO Focus, Association for Sustainable Development, was looking into the possibility of piloting an energy community project. The Municipality of Hrastnik volunteered to participate, and applied under the programme for municipalities in Slovenia’s LIFE IP CARE4CLIMATE project. There are several uncertainties in the Slovenian legal framework regarding energy communities. The organisers decided to set up a cooperative, which would go on to manage the project of installing a communal self-consumption solar power plant. The cooperative as a democratic form of economic governance allows for ownership and democratic management of common resources.  

The Green Hrastnik Energy cooperative was founded in 2022 by the Municipality of Hrastnik, Focus, and interested citizens. Over time, individuals and legal entities started to join the cooperative to be part of the energy community. Several meetings were organised with residents in Hrastnik.   

The plant was installed in December 2023, and the community connected to the grid in summer 2024. The project was a trailblazer; there was no model to follow, and it exposed a number of legal ambiguities. The cooperative had to create all the legal documentation, contractually regulate relationships between members of the energy community, justify the project to lenders, and meet a number of requirements.  

The investment was funded through contributions from cooperative members, a state grant for solar promotion, and a loan from Eco Fund, Slovenian Environmental Public Fund. 

This practice’s integrated approach brings together environmental, economic and social dimensions. 

Environmental: The project cuts CO2 emissions – by an expected 150 234 kg CO2 per year on average – by generating renewable solar energy. Its 300-kW solar power plant reduces reliance on fossil fuels, encouraging other municipalities to adopt similar renewable energy solutions.  

Economic: Participants, including households and businesses, benefit from reduced electricity bills – by about 30% in the first 13 years and up to 65% after loan repayment. The cooperative model, with member contributions and subsidies, keeps financial benefits within the community. It also provides economic stability by lowering vulnerability to energy price fluctuations, and allows wider participation, to include energy-poor households.  

Social: Residents, businesses and public institutions are involved as cooperative members, fostering a sense of ownership and empowerment. Workshops and a democratic governance model ensure community involvement in decision-making. The project raises awareness about renewable energy, enhancing the community's commitment to sustainability.  

Integrated approach: Collaboration with the municipality, energy cooperatives, environmental organisations and residents strengthens the local community and economy. Action learning through workshops and meetings engages various stakeholders to gather knowledge and solve problems. Technical, financial and legal expertise ensures effective project implementation. 

The energy cooperative, in collaboration with the municipality and the environmental NGO Focus, organised workshops to involve community members in decision-making processes. These workshops provided a platform for community members to contribute ideas and ensure the project reflected local needs and preferences. 

The project operates on a cooperative model with the principle of one member, one vote, ensuring equal say in decision-making. This democratic structure promotes transparency and accountability, allowing members to influence financial planning, operational strategies and future developments.   

The cooperative includes 16 individual residents, two businesses, the municipality and two municipal institutions. This diversity ensures different perspectives and needs are considered. The Green Hrastnik energy cooperative leads the project, organises workshops and meetings, and manages the solar plant.  

The municipality aligns the project with local goals and participates as a cooperative member to represent public interests. Focus organises workshops, provides legal expertise and helps navigate regulatory challenges. A company, Kisik, designs and implements technical aspects. 

The cooperative model facilitates ongoing engagement, allowing stakeholders to provide feedback and make adjustments. Cooperative members have a say in important decisions, such as maintenance and future expansion.   

By installing a solar power plant, the Energy Cooperative Zeleni Hrastnik is estimated to reduce CO2 emissions by 150 234 kg per year, helping combat climate change. The project expects to bring substantial cost savings to participants, reducing energy costs by approximately 30% in the first thirteen years and up to 65% after loan repayment. This benefits 16 residential units, three public buildings, a small commercial space and two businesses, making energy more affordable. The project has empowered residents through their involvement in planning and decision-making, and through co-ownership. The cooperative model, based on one member, one vote, ensured democratic participation and equal say in decisions. This fostered a sense of ownership, responsibility and enhanced community spirit.   

The project tackled high energy costs by providing a more affordable and sustainable energy source, particularly benefiting lower-income households and small businesses vulnerable to energy price fluctuations. By producing renewable energy locally, the project reduces dependence on fossil fuels, contributing to energy security and sustainability.  

The Solar School Hrastnik project demonstrates a participatory approach, increasing community engagement and ownership, fostering a stronger sense of community and collective responsibility. By addressing key issues like high energy costs, reliance on fossil fuels, and limited community involvement, the project has created significant added value and set a positive example. 

This practice enables the creation of energy communities, recognised by the EU as crucial for decarbonisation. Contributing to Sustainable Development Goals 7, 11 and 13, the project empowers consumers to become producers, enhancing energy independence and reducing fossil fuel reliance. People lacking access to suitable roofs for solar panels, or facing grid congestion issues, can contribute to the green transition.  

Studies reveal that support for wind and solar projects is substantially higher among co-owners. And locally controlled and financed renewable projects return up to eight times more to the local economy than those built by external developers.  

Hrastnik’s project was developed in line with national self-consumption regulations. It resolved several legal questions, making its replication easier and faster. The key innovation is to include the municipality as a cooperative founder: previously considered impossible. The project team found a legal basis for a new model of public-private partnership that secures public interest. 

The practice can be adapted to other city contexts, assessing local factors such as energy needs, infrastructure, and regulatory environments. Certain elements are crucial:  

• Stakeholder engagement of residents, businesses, and public institutions through participatory planning and workshops. 
• A cooperative model with a democratic decision-making process ensures community ownership and participation.  
• An understanding of local regulations and policies on renewable energy.  
• A robust financial model incorporating cooperative member contributions, subsidies and favourable loans. 

The municipality of Ig is already adopting Hrastnik’s practice, and others are starting to lay the foundations for a self-consumption energy community based on the cooperative model. A second project has also been sparked in Hrastnik: a solar power plant on the local Health Centre.