Community energy is key to action on the climate crisis. It can empower people, boost local economies, and reinvigorate communities. Community-led initiatives play an important role in the transition towards a 100% renewable and just energy future. Success stories of community energy projects can be found all over Europe. At REScoop.eu we want to highlight these stories to further accelerate the movement towards a cleaner and democratic system.

This month, we find ourselves at a European crossroads to learn more about the first cooperative cross-border investment, a refinancing loan between Westmill Solar Co-operative from the UK and the European cooperative society REScoop MECISE, in partnership with energy cooperatives from Spain, France, Belgium and the UK.

The financing challenge

Energy cooperatives don’t just contribute to a more sustainable future, they also allow citizens to make decisions that benefit the majority, breaking free from models that prioritise the high-return investments of wealthy groups.

But there are no two ways about it: financing a community energy project is not easy. New projects require funding from the start, and finance raises deep questions about a project’s identity and values. A financing approach that does not match the philosophy of the project and its members can hinder the development of an energy cooperative.

Children exploring westmill
Children explore Westmill Solar's park © Westmill Solar
Today’s financial sector is not built to support a just and fair energy transition. Banks are often unfamiliar with energy cooperatives, and don’t like to take risks during early stages. Powerful economic actors, like big energy companies or investment funds, can also be fierce competitors, especially when policies like feed-in tariffs make renewable investments attractive. At the same time, mobilising your community can also be a challenge: citizens are often reluctant to invest in an abstract project that they cannot see with their own eyes.

Funds, expertise, trust: REScoop MECISE

While some energy cooperatives struggle to find money, other established initiatives have the opposite problem: they have available funds, but no projects to invest in. Energy cooperatives in Belgium, Spain, France and the UK saw an opportunity in this gap. They wanted to support smaller, emerging renewable projects with funds and expertise. Eventually, this led to the creation of a new structure: REScoop MECISE.

REScoop MECISE (Mutual for Energy Communities Investing in a Sustainable Europe) is a European cooperative society founded in 2018 by five energy cooperatives, Ecopower (Belgium), Courant d’Air (Belgium), Som Energia (Spain), Enercoop (France), Energy4All (UK), and the European network REScoop.eu. The mutual pools funds to finance citizen-led energy projects, providing loans, equity, or guarantees, giving them time to raise funds locally. Guided by the principle of solidarity, it offers projects the flexibility to repay early and without penalty. Moreover, it provides trusted expertise and crucial support in managing risk.

By allowing projects to borrow from cooperatives, REScoop MECISE puts ordinary people at the centre of the energy transition, and provides an important alternative to unstable subsidy programmes and profit-driven financial institutions. Sara Tachelet, coordinator of REScoop.eu, emphasised the importance of this innovative structure. “REScoop MECISE proves what citizens can achieve when they join forces. The mutual isn’t just about money, it is about creating a platform of trust, solidarity, and expertise that enables cooperatives to take the lead in the energy transition.”

However, the first steps weren’t easy. From the start, REScoop MECISE ran into a big challenge: the global pandemic. Covid-19 turbulence made it much harder for people to meet, exchange ideas, and identify potential projects. In fact, the idea for the first transaction was born when European energy cooperatives were able to meet again at REScoop.eu's General Assembly in Athens in 2023. REScoop MECISE had found its first project: Westmill Solar.

A bridge loan to let the sun shine for Westmill Solar

When Westmill Solar purchased a 12-hectare solar park in Oxfordshire (UK) in 2012, it became the world’s largest cooperatively run, community-owned solar farm. Today, it is still one of the largest community energy projects in the country, producing the annual electricity consumption of around 1,600 homes. Tom Parkinson, Chair of Westmill Solar, highlighted the importance of citizen initiatives in the energy transition: “If we are to have a successful energy transition, it needs to be democratic. Planning objections and delays are greatly reduced and more renewable generation gets built more quickly. Additionally, when citizens are involved, they think more about their electricity consumption and adapt their usage.”

In spring 2023, Westmill Solar had the opportunity to refinance a loan after a pension fund decided to divest from the project. Westmill Solar started exploring refinancing options, and despite an offer from a bank, the cooperative decided to try a new, citizen-led financing model, and partnered up with REScoop MECISE.

Visit WS
Westmill Wind and Solar have welcomed over 12,000 visitors since 2011 © Westmill Solar

The first-ever cross-border cooperative investment in Europe was under way: a £5 million, 10-year refinancing loan for Westmill Solar that prioritises the cooperative’s development. Its fixed-cost funding provides more certainty for repayments, and its flexibility allows for early repayment.

Tom sees this loan as a pivotal moment. “Westmill has always been innovative and different. Borrowing from cooperatives rather than from banks or private equity directly connects us to an international community of citizens committed to sustainable energy. This loan shows the huge potential of REScoop MECISE to transform the way community energy is funded.”

Trust was key in the transaction’s success. Karel Derveaux, chair of REScoop MECISE, explained: “We were looking for a project that was commercially viable, but sharing values with its initiators was just as important. We wanted to find people who really believed in our idea. We also worked hard to ensure everyone was comfortable and understood the risks and opportunities of this transaction.”

Across borders and beyond banks, citizens can fund their own energy revolution

For now, the loan will enable Westmill Solar to install batteries, invest in other community-owned renewables, and continue its grant programme to fund climate projects and activities in the community, such as building insulations or educational activities for children.

For MECISE, this first loan certainly won’t be the last. The mutual hopes to trigger new citizen financing alternatives, opening an exciting new chapter for energy cooperatives. Work is underway to identify future projects to support, assessing where the mutual brings added value and can foster collaboration between cooperatives. The mutual is also adapting its governance structure to acquire existing renewable projects, which could allow citizens or communities to invest in them.

Westmill Solar
The solar park produces the annual electricity consumption of around 1,600 homes © Westmill Solar

Beyond addressing the societal challenge of decarbonisation, cooperatives are paving the way for a more collaborative and inspiring future. Sara added: “Cooperatives are not just reacting to challenges, we are redefining the solutions. REScoop MECISE embodies the cooperative spirit: it is bold, values-driven, and committed to making the energy transition work for everyone—not just the privileged few.”

Tom concluded with a word of advice: “Don’t be put off by people who say ‘It can’t be done’. With ambition, dedication and the right partners, almost anything is possible.”