Economic Model of the Gabrovo Energy Community: Driving Local Sustainable Energy Transition
Economic Model of the Gabrovo Energy Community: Driving Local Sustainable Energy Transition

Author(s): Todor N. Popov
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, Business Economy / Management, Micro-Economics, Energy and Environmental Studies, Sociology, Environmental and Energy policy, Evaluation research, Economic development, Green Transformation
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: SDG; Gabrovo energy community; renewable energy communities
Summary/Abstract: In Europe, energy communities are widely acknowledged, rather in Bulgaria are still rather rare, for their capacity to bring together citizens in promoting the energy transition. Energy communities not only implement green transition policies to reduce dependence on fossil fuels in the energy system, but they also make a significant contribution to achieving Sustainable Development Goals. The present study examines the economic framework that governs the functioning of the Gabrovo Energy Community, a pioneering initiative in Bulgaria with the objective of fostering domestic renewable energy generation. Through an analysis of the financial structure of the Energy Community, this study illustrates how localised energy systems can provide substantial cost reductions, energy stability, and a feasible return on investment for both residential and non-residential stakeholders. The economic model adopted in Gabrovo fosters the achievement of the Sustainable Development Goals by diminishing reliance on fossil fuels, decreasing energy costs, and empowering local stakeholders. The evaluation of key financial results, such as the expected returns of 22% over a tenyear period, is conducted considering the regulatory frameworks and market conditions. The present case study functions as a reproducible paradigm for other municipalities and regions seeking to leverage the advantages of renewable energy communities.

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