Energy Poverty as a Shared Challenge in Central Europe

Date: 10.10.2025

Energy poverty is a growing issue across Central Europe. Rising energy prices, dependence on fossil fuels and the poor energy performance of buildings have made it difficult for many households to afford adequate heating, cooling and electricity. Vulnerable groups – such as low-income families, elderly citizens and residents of inefficient housing – are disproportionately affected. This is not a challenge limited to one country: it is a cross-border phenomenon that requires shared solutions.

The HERCULES-CE project promotes Renewable Energy Communities (RECs) as a tool to fight energy poverty while accelerating the green transition. RECs allow citizens, municipalities, SMEs and other actors to jointly produce, share and consume renewable energy at lower costs. Beyond economic savings, RECs also empower local people to take ownership of their energy future, build social cohesion, and invest collectively in sustainable infrastructure.

Within HERCULES-CE, several pilot activities directly address the link between energy communities and energy poverty:

– Croatia (IRENA, Labin): The Istrian Regional Energy Agency is leading a pilot that explores how citizens living in protected cultural heritage buildings – who normally cannot install solar panels on their roofs – can still be included in energy communities. By using nearby public spaces for renewable installations and creating innovative public-private partnerships, this pilot ensures that heritage protection and social inclusion can go hand in hand.

– Germany (Bioenergie Werratal eG, Thuringia): A cooperative model is being tested to provide affordable renewable heat to rural villages. By combining biomass and solar thermal heating, the cooperative supplies reliable energy at stable prices, reducing the risk of energy poverty for more than 160 local households.

– Austria (Neudörfl, Burgenland): Here, the focus is on assessing how existing RECs can lower environmental impacts while tackling energy poverty. By collecting real-time energy data and involving over 100 members, the Austrian pilot demonstrates how smart monitoring tools can identify vulnerable groups and design targeted support measures.

While each pilot reflects local circumstances, their real strength lies in transnational exchange. Partners regularly compare results, share best practices and co-design strategies to ensure that lessons learned in one region can be adapted elsewhere.

For example, the German experience with cooperative heating systems provides inspriation for rural communities in Croatia and Poland, while the Austrian use of advanced data-driven monitoring tools supports IRENA’s work in identifying vulnerable households in Istria. In return, Croatia’s innovative approach to including heritage buildings in RECs offers valuable insights for countries where cultural restrictions also limit renewable installations in historic city centres.

By addressing energy poverty through cross-border cooperation, HERCULES-CE shows that the energy transition must be both climate-friendly and socially just. IRENA’s role is crucial in ensuring that the Istrian region not only keeps pace with European frontrunners, but also contributes its own solutions to the common pool of knowledge.

Through the establishment of new energy communities and the improvement of existing ones, the project will deliver models that can be replicated across Central Europe. Ultimately, this joint effort helps make renewable energy more affordable and accessible – ensuring that no citizen and no community is left behind.