GEODE Fact Sheet on Energy Communities

GEODE is pleased to launch a new fact sheet on energy communities. 

With the adoption of the Clean Energy Package in 2019, energy communities received their legal recognition – they are viewed as one of the key market players within the EU’s vision of a future decarbonised and decentralised energy system, with active consumers at its core.

However, the concept of energy communities is still very much a work in progress for EU Member States. This GEODE fact sheet – prepared by WG Innovation & Development – aims to start a discussion on the role of the Distribution System Operator (DSO) vis-à-vis energy communities and support their emergence across Europe.

As such, we have provided an illustrative GEODE Model of an Energy Community and outline six key factors for the successful transposition of the European framework into national legislation:

• Energy communities contribute to decarbonisation by enabling the integration of renewable energies. This means more consumers can be active and generate their own energy from renewable sources as well as new technologies, e.g., EVs into the existing grid.
• Energy communities can be a key actor on the path towards decentralised, flexible, and cost-efficient national/local energy markets.
• Energy communities should have equal rights and responsibilities as any other market player. This means participants keep the right to choose a supplier of their choice (key principle of energy markets) independent of their “membership” in an energy community.
• In order to avoid duplication of assets and ensure economic efficiency of the system, the ownership and operation of the grid should remain with the DSO and their regulatory framework guaranteeing a reliable and high level of quality service.
• Where energy communities are connected to a wider DSO grid, network charges are to be applied at the connection point(s) such that they are cost reflective of the energy community’s access, impact, and usage of the DSO grid at all relevant connection points, in accordance with the relevant NRA rules.
• Energy communities are focusing on local energy production and consumption but will still be reliant on selling into or buying energy from the existing grid under effective market price signals. Therefore, shared business models with DSOs can help to ensure the most cost-efficient management of the energy community.

We are also pleased to announce that we will organise a GEODE Workshop on Energy Communities on 29 September, 9:30-11:00 to discuss the different developments regarding energy communities across Europe. More information on the event will follow soon. In the meantime, please save the date!

Please find our previous Fact Sheets here:

• GEODE Fact Sheet “The Distribution System Operator Transforming the Customer Experience“
• GEODE Fact Sheet on Data Management
• GEODE Fact Sheet on Flexibility
• GEODE Fact Sheet on e-Mobility and the role of DSOs to help Decarbonising the Transport Sector