As we transition away from fossil fuels such as gas, oil and coal, it’s important to understand what types of alternative energy sources are available. What are the benefits and challenges of different energy sources, and what policy measures might help support their uptake?  In this fact sheet you will:

• Find out more about different types of alternative energy sources.
• Explore the benefits and challenges of different alternative energy sources.
• Consider some of the policy measures that could support different energy communities. 

Download Energy communities: Understanding different energy sources - EN (368.4 KB) (PDF) 

Go deeper! Explore some innovative policy tools that could help support energy communities:

Regulatory sandboxes

Regulatory sandboxes are temporary frameworks that allow energy communities and innovators to test new business models, technologies, and processes - such as peer-to-peer trading and storage integration - under real-world conditions with exemptions from certain regulations. These sandboxes are designed to provide evidence for potential permanent regulatory changes and foster innovation in areas like grid flexibility, sector coupling, and local energy management.

Pilot projects

Pilot projects offer real-world environments for testing new technologies, energy community designs, and renewable energy source integration strategies. These projects help identify technical, regulatory, and social challenges before broader deployment. They are often supported by public funding and can serve as demonstration models for replication and scaling. For example, the U.S. Energy to Communities (E2C) program connects local governments and organisations with national laboratory experts to develop and implement innovative energy solutions tailored to community needs, including renewable energy generation and storage.