As a renewable energy producer, you can share your surplus energy within your building and beyond it. Ideally, when renewable energy is generated, for example with photovoltaic panels, it is self-consumed directly by the person producing it. However, it is not always possible to consume this energy the moment it is produced. Until now, the unconsumed surplus was injected into the grid, and traditional energy suppliers bought it from producers at a low price and resold it at a margin to other consumers. This is where the energy sharing system comes into play.
Regulation
Today, thanks to new European regulations from 2018 and 2019, it is now possible to share this surplus of generated electricity with your neighbours, local shopkeepers, your business, your family and even an entire neighbourhood. The closer to home you share it, the more virtuous and profitable the system becomes.
Types of energy sharing
There are 3 main forms of energy sharing:
1. Peer-to-peer exchange
Two people can exchange electricity from renewable sources. Both parties will need to conclude a contract setting out the terms of this exchange. As long as the purchasing activity through a peer-to-peer exchange involves only one other participant, the person buying electricity from another participant as part of a peer-to-peer exchange is not subject to the obligations incumbent on an energy supplier.
2. Sharing within the same building
This is sharing between occupants of the same building. It is possible under the following conditions:
- The sharing only concerns electricity from renewable sources;
- The production installation is located inside or on the building in which the jointly acting participants are located;
- Each participant involved retains a supply contract with the holder of a supply licence.
Participants must sign an agreement with the sharing manager to define their respective rights and obligations and the terms of the sharing arrangement.
3. Sharing within an energy community
We speak of an energy community when it brings together at least one producer and several members who then share the energy produced among themselves.
The primary purpose of energy communities is to generate environmental, social or economic benefits for their members and the areas in which they operate, rather than to pursue profit.
There are 3 different types of energy community, the main differences lying in the participants, the type of energy shared (whether or not from renewable sources) and the ownership of the installation.
- The citizen energy community (CEC) : its distinctive feature is that any person – natural or legal (including large companies) – can be a member. This type of community may include non-renewable sources of electricity, such as electricity generated by gas-fired cogeneration. Finally, in order to carry out an electricity-sharing activity, the CEC must own the production installation as a legal entity.
- The renewable energy community (CER) : as its name suggests, the CER must use renewable energy sources (fossil fuels are therefore excluded). As regards participants:
- Large companies are excluded
- SMEs are allowed, but their participation (in one or more energy communities) may not constitute their main commercial or professional activity.
- Natural persons and local authorities may also be members of a CER.
In the case of electricity sharing, the CER must own the production installation.
- The local energy community (CEL) : the CEL is a Brussels initiative that does not stem from the European directives and is intended in particular to broaden the financing options for a production installation, for example by allowing the use of a third-party investor.
Indeed, unlike the CEC and the CER, the CEL can own the production installation, but it is also possible for one or more of its members to be owners themselves or to hold a right of use over the production installation. The CEL's activities are limited to renewable energy sources. As for participation in a CEL, the same conditions apply as for the CER.
There are specific differences between the three regions. Do not hesitate to contact us to discuss them.
Differences between sharing within the same building and sharing within an energy community
The main differences are:
- For sharing within the same building, a simple contract is sufficient, whereas an energy community requires a legal entity (it is possible to use an existing legal entity – if necessary, adapting its articles of association so that its corporate purpose and activities match the objectives an energy community must pursue – or to set up a new one).
- As for the scope of the sharing activity, between jointly acting active customers, electricity sharing is limited to one and the same building, whereas for an energy community, sharing can extend over a wider area.
- The resale price of the energy is set in an agreement between the participants. Note that network/distribution charges and VAT still apply, except VAT on self-consumption. And the closer the various participants are to each other, the lower the cost of using the grid. This is designed to encourage sharing arrangements that are as local as possible.
If energy communities are of interest to you, do not hesitate to get in touch with us !