Financing the energy transition at the local level remains a major challenge, especially when municipalities and energy communities seek to collaborate on large-scale projects. The Community Energy Financing Standard (CEFS) model aims to bridge this gap by standardising financing processes and fostering stronger partnerships between banks, municipalities, and energy communities.

In this interview, Katharina Habersbrunner from BBEn outlines the key aspects of this CEFS, its impact on energy communities, and how it paves the way for more accessible and sustainable project financing in Germany.

Could you outline the key aspects of your CEFS model?

We have developed a model to standardise financing processes for projects that involve collaboration between energy communities and municipalities. Our goal is to ensure that the full potential of this cooperation is effectively realized in Germany and to use the great cooperation of municipalities and energy communities

How is the fund structured? Who are the key players involved?

The core of our model is the standardisation of bank loan financing. The key stakeholders include:

  • Banks, which provide the loans
  • Municipalities, which offer guarantees for the project development phase
  • Energy communities, which actively contribute to the financing with citizen funding

How many communities have benefited from CEFS so far?

So far, three energy communities have benefited from our model and many energy communities are interested in the concept

Where does the remaining financing come from?

In addition to bank loans, part of the financing comes directly from energy communities and also from municipalities. Three energy communities provide equity via citizen capital as part of the funding structure.

What is the ultimate goal of the fund?

Our long-term goal is to replicate and further develop the CEFS structure for future wind and large scale photovoltaic projects. Key objectives include:

  • Utilizing municipal guarantees as a financial security mechanism
  • Establishing a standardised financing process in close collaboration with banks
  • Strengthening the exchange between banks, municipalities, and energy communities to create sustainable financing structures