Enhancing collaboration amongst local stakeholders would improve the fight against energy poverty in Spain

Addressing energy poverty requires a coordinated effort involving government administrations, third-sector organisations, academic institutions and stakeholders from the energy sector acting locally, offering a closer connection to groups experiencing difficulties or at risk of social exclusion. This key insight emerges from the study titled “Energy Poverty: Ecosystem of stakeholders for combating it through local interventions”, conducted by the Chair of Energy Sustainability at the IEB-Universitat de Barcelona and published by the Naturgy Foundation.

The research, spearheaded by Professor María Teresa Costa-Campi, examines the key stakeholders engaged in mitigating energy poverty and suggests strategies for improving coordination and collaboration among them.

Spain is one of the EU countries with higher levels of energy poverty. In 2012, it was in tenth position, with 9.1% of households struggling to maintain proper temperatures in the home. However, a decade later, amidst the financial crisis, the effects of Covid-19 and the energy crisis, Spain has climbed to the sixth spot, impacting 17.1% of Spanish households and surpassing the European average of 9.3%.

Energy poverty is not solely a result of low income within the family unit. It is also influenced by inadequate energy efficiency in buildings and energy-consuming devices, consumer education gaps and energy pricing. These factors contribute to severe health consequences, worsen social exclusion and generally diminish the overall well-being of families.

“These significant consequences require the coordination of diverse stakeholders involved in their resolution and the establishment of a governance model that embraces their diversity”, explains Costa. She emphasises that “the fight against energy poverty should be approached from the grassroots level, involving government administrations, third-sector entities, academic institutions and stakeholders from the energy sector acting locally, as they offer greater proximity to groups facing difficulties or at risk of social exclusion”.

According to the study, this model facilitates an understanding of the immediate and localised challenges, enabling more targeted interventions for precise and effective execution. It also addresses emerging challenges and specific needs of the most vulnerable groups through the collaboration and empowerment of various stakeholders within the local ecosystem.

The study emphasises that public administration, particularly at the local level, plays a pivotal role in driving the majority of initiatives against energy poverty. Additionally, third-sector entities, along with companies and cooperatives, actively participate in local initiatives against energy poverty, contributing to 87.5% and 81.3% of initiatives, respectively. Lastly, universities and research centres are engaged in three out of every four initiatives aimed at combating energy vulnerability.

Local challenges and opportunities

The study carried out by the Chair of Energy Sustainability at the IEB-Universitat de Barcelona identifies key areas for improvement and opportunities to enhance efficiency at the local level. In the public sector, a critical transformation is needed to convert identified weaknesses –slow, complex administrative processes with low levels of digitalisation– into strengths that align with the extensive regulatory landscape regarding energy poverty in Spain.

Conversely, companies in the energy sector exhibit a strong commitment to innovation and possess a wealth of valuable information on energy consumption. Leveraging these strengths could facilitate a systematic use of data to proactively address energy poverty.

Third-sector entities, with their widespread coverage and trusted relationships with vulnerable families, play a vital role. However, their weakness lies in a shortage of human resources.

Additionally, common challenges across all studied initiatives include the absence of qualified professionals, a lack of experience in implementing initiatives and difficulties accessing financial support and subsidies.

The study underscores the importance of accurately characterising individuals experiencing energy poverty. This requires gathering information from diverse sources, including standardised surveys from official bodies, data from social entities, insights from smart meters to assess energy usage and data that provides insights into the condition of housing.

Energy efficiency and renewable energy promotion  

The study analyses the involvement of local stakeholders across four initiatives: energy efficiency, promoting renewable energy use, knowledge transfer and applying technological innovation.

In the area of energy efficiency initiatives, local administration plays a key role in establishing contact with vulnerable families and streamlining administrative processes for necessary interventions. Public assistance for rehabilitation and allocation of homes and buildings is available at national, regional and local levels.  Companies offer their services and occasionally contribute funds and material resources. Social organisations primarily collaborate in identifying and reaching out to vulnerable households, while universities and research centres play a more limited role.

In local initiatives promoting the use of renewable energy, collaboration between public administration and energy companies is pivotal. Energy companies focus on implementing installations, grid connections and developing self-consumption applications. Local organisations contribute their knowledge of the area, fostering energy empowerment through energy communities or neighbourhood associations. Universities and research centres provide technical expertise, support fieldwork and contribute to the development of action plans.

Local initiatives in the fight against energy poverty

The event featured a roundtable discussion on the role of social entities and showcased initiatives aimed at addressing energy poverty at the local level.

“Top-down approaches in energy rehabilitation often fall short in reaching families due to the complexity of fund management. Social entities need to strategise on implementing more impactful improvements that benefit individuals and the environment. Because all entities share the same goal, a review of these mechanisms is essential to ensure our efforts not only accumulate but also multiply”, noted Xavier Mauri from Fundació Hàbitat3.

Sara Casas from the Spanish Red Cross emphasised that “in 2023, out of the 23,000 people assisted by the institution, 60% expressed a lack of temperature comfort at home, along with economic constraints and insufficient resources to address the situation. So, there is much work to be done in this area”.

Arturo Zea, representing the Valencia City Council València Clima i Energia Foundation, stated, “We are committed to an inclusive energy transition, relying on the Energy Office where we assisted over 8,500 people last year, especially in schools. It is crucial to work with the new generations”.

Meryem Madi, an energy-saving advocate, shared, “Our project started from scratch. We assist families living in residential centres who need training to lead independent lives and manage energy when they can live in their homes”.

The event concluded with João Pedro Gouveia from the European Energy Poverty Advisory Hub (EPAH-EU), emphasising that “we aspire to transform the Energy Poverty Advisory Hub into an expert platform providing various support tools to local authorities, the third sector and entities fighting against energy poverty, both in the form of knowledge and increased skills, and in the execution of the initiatives”. “We are considering how to address data issues and select key indicators to aid local governments, categorising them into various blocks: climate, housing, mobility and socio-economic aspects”, he said.