Across Europe, real stories show how solar and wind projects can protect vulnerable communities and drive meaningful social progress write Maya Perera and Alberto Vela from the European Environmental Bureau (EEB).
Europe is entering the renewables era. In 2024, half of the EU’s electricity came from renewable sources, and the expansion of wind and solar has already saved the bloc €59bn ($64bn) in fossil fuel imports since the launch of the Green Deal.
These achievements are the result of decades of strong EU policies and major technological advancements. Yet while the business case for renewables is overwhelming, the scale of this transformation extends far beyond economics.
There is a huge social dimension to the energy transition that cannot be ignored. It is not just about replacing coal with solar panels; we must ensure climate action does not deepen existing inequalities and spark social backlash. Low-income households, who may struggle to afford the upfront costs of adopting new technologies, and fossil industry workers, whose livelihoods are at risk, are two groups that need particular attention as we move into a new energy era.
Recognising this, the EU has introduced financial mechanisms like the Just Transition Fund and Social Climate Fund to help citizens cope with the costs of the green transition. While these funds are a crucial step toward a fair transition, their scope and resources remain limited. To achieve meaningful impact, effective and transparent use of these funds is essential.
Across Europe, successful initiatives show how public funding can enable renewable energy projects to deliver broader, lasting socio-economic benefits.
Shielding low-income households
Rooftops across Europe are increasingly being equipped with solar panels, and for good reason: it is a smart way to escape spiralling energy bills. But for many who need it most, this choice is not as straightforward.
Access to cheap renewable energy can shield households from the volatility of fossil fuel markets, yet many in Europe lack the financial resources to cover the upfront costs of installation. While subsidies for the energy transition exist in most EU states, they often fail to reach low-income households – especially renters or those living in multi-household buildings. Bureaucratic obstacles, difficult negotiations with landlords, or a lack of resources typically stand in the way.
However, innovative strategies across Europe show how these barriers can be overcome.
In Belgium, energy cooperatives play a crucial role by helping low-income households navigate administrative hurdles. In Flanders, a cooperative company is working to install over 400,000 solar panels for low-income households, offering tariffs lower than both social and commercial rates. Similarly, in Brussels, the collaboration between the administration and cooperatives has been key in bringing solar power to social housing, using deliberative processes in buildings with multiple tenants. Crucially, non-commercial structures can build trust and engage more effectively with marginalised and structurally excluded groups than public and private entities.
In Spain, Valencia is tackling barriers and complex negotiations by leveraging public spaces rather than private buildings. The regional government recently launched a program to install solar panels in 114 public schools, which is set to save €6.9m in public energy spending. But here is the key: surplus energy will primarily benefit up to 7,000 vulnerable households near public schools through collective self-consumption schemes. Once fully implemented, this initiative aims to power 18,000 low-income households.
The upcoming Social Climate Fund offers an opportunity to showcase and expand on these strategies, helping deliver renewable energy to those who need it most.
Uplifting fossil industrial regions
As Europe transitions to a renewable-based economy, fossil industrial heartlands fear job losses and economic decline. But the energy transition itself may offer the best path for these regions to remain industrial powerhouses.
Former fossil industrial areas often have key advantages that position them to lead in renewable energy: vast stretches of degraded land that can be repurposed for clean energy production, robust electricity infrastructure already in place to transport power and a skilled workforce with experience in related fields such as engineering and logistics.
To capitalise on these assets, proactive industrial and social policies are essential. Unlike short-term compensatory measures, such as workers’ early retirements, smart investments in the renewables supply chain can provide long-lasting solutions to unemployment and economic decline.
Burgenland, an important former coal-mining region in Austria, made an early and decisive commitment to wind energy in the 2000s. Supported by EU funds, the region expanded beyond energy production, establishing six technology centres focused on renewable energy training and creating 1,700 jobs in the process. These investments have turned Burgenland into a national green energy hub, attracting a solar panel manufacturing plant to the area and generating thousands of jobs in the renewable energy sector.
Similarly, the former mining town of Andorra in Spain’s Aragon region is undergoing a major transformation into a renewable powerhouse. An old 1,050MW coal-fired power plant is being decommissioned and replaced with 1,800MW of renewable capacity, with the new project expected to create more long-term jobs than the coal industry ever did. The plan includes seven large-scale solar farms, seven wind farms, two energy storage plants, and a green hydrogen production facility, along with investments in renewables-related industries such as a solar tracker factory, a precast concrete plant, an electrolyser production centre and a wind turbine recycling facility. Backed by EU funds, the initiative also features environmental restoration, training for 1,300 workers, and community energy projects benefiting 3,800 people. This holistic approach earned the project the Just Transition Award at COP28.
People-centred transition
The energy transition must not repeat the mistakes of past economic transformations, where entire social groups were left behind as mines and industries closed throughout the 20th and 21st centuries.
The social risks of climate action extend beyond job losses. As carbon pricing expands to heating and transport in 2027, there is a real risk of rising fuel costs triggering social backlash – echoing the Yellow Vest protests. Decision-makers, NGOs, and businesses must act now, pushing for effective decarbonisation policies that prevent carbon pricing from deepening inequality, along with fair distributional measures to gain public support.
Renewables have an important role to play here: reducing emissions while contributing to social cohesion and sustainable development. Beyond driving down energy costs for industries, solar and wind power can significantly reduce household expenses, easing the overall cost of living. But this will not happen on its own. Governments must integrate bold social policies into the renewables rollout, turning the energy transition into a driver of inclusion and socio-economic development.
