Today, we would like to share with you definitions for the concept of energy communities, namely new definitions for “Renewable Energy Communities”(RECs) and “Citizen Energy Communities”(CECs). According to a CEER ( Council of European Energy Regulators) Report from June 2019.
🔻The main differences between the two definitions relate to the rules on membership, admissible generation technologies, the geographic scope and the allowed activities.
1️⃣ According to Article 2 of Directive (EU) 2018/2001 ”renewable energy community” means a legal entity:
(a) which, in accordance with the applicable national law, is based on open and voluntary participation, is autonomous, and is effectively controlled by shareholders or members that are located in the proximity of the renewable energy projects that are owned and developed by that legal entity;
(b) the shareholders or members of which are natural persons, SMEs (small and medium-size enterprise) or local authorities, including municipalities;
(c) the primary purpose of which is to provide environmental, economic or social community benefits for its shareholders or members or for the local areas where it operates, rather than financial profits”.
2️⃣ According to Article 2 of Directive (EU) 2019/944 ”citizen energy community’ means a legal entity that:
(a) is based on voluntary and open participation and is effectively controlled by members or shareholders that are natural persons, local authorities, including municipalities, or small enterprises;
(b) has for its primary purpose to provide environmental, economic or social community benefits to its members or shareholders or to the local areas where it operates rather than to generate financial profits; and
(c) may engage in generation, including from renewable sources, distribution, supply, consumption, aggregation, energy storage, energy efficiency services or charging services for electric vehicles or provide other energy services to its members or shareholders”.
✔️RECs can only include renewable energy technologies.
✔️Shareholders or members of RECs must be located in the proximity of the renewable energy projects that are owned and developed by the REC (there is no geographic limitation for CECs).
✔️CECs are limited to the electricity sector (RECs can cover any energy sector) but can cover more activities, namely generation, distribution and supply, consumption, aggregation, storage or energy efficiency services, charging services for electric vehicles or other energy services (RECs can only cover production, consumption and selling of energy).
🌍CEER Report on Regulatory Aspects of Self-Consumption and Energy Communities, 25 June 2019