The fight against climate change is (besides handling the current COVID-19 pandemic) arguably the most important goal of governments worldwide. However, it seems that legislative measures have so far only been implemented sporadically at the European level. The legal framework “Clean Energy for all Europeans” aims at changing this situation for the better.
A potential factor for success on the path to a more sustainable energy future can be seen in the participation of citizens and (local) communities as institutional partners in renewable energy projects. If a household has a photovoltaic system on its roof which generates more electricity than the household consumes, why can’t it directly distribute the excess energy within the local municipality or community?
Austria is one of the first countries in Europe to present draft legislation that provides for the implementation of energy communities based on the EU’s “Clean Energy for all Europeans” package.
The status-quo in Austria
The Austrian legislator enabled the establishment of so-called community generation facilities (Gemeinschaftliche Erzeugungsanlagen) pursuant to the Austrian Electricity Industry Act (Elektrizitätswirtschafts- und -organisationsgesetz 2010, "EIA 2010") in 2017. According to the EIA 2010, renewable electricity generated by a renewable energy system installed on the premises of a multi-party apartment building, usually a photovoltaic plant, can be made available for direct consumption by its inhabitants/tenants. The generation, distribution, and consumption of self-produced electricity beyond the premises of a specific property has – until now – only been possible under strict regulatory requirements.
Energy communities under the draft Renewable Energy Expansion Act
In September 2020 the Austrian government set out to implement the requirements imposed by Directive (EU) 2018/2001 and Directive (EU) 2019/944 and published its draft of the Renewable Energy Expansion Act (Erneuerbaren-Ausbau-Gesetz, "REEA"). Austria wants to generate 100% of its electricity from renewable energy sources by 2030 and reach carbon-neutrality by 2040 at the latest.
Alongside other measures the REEA will enable the creation of two different types of energy communities: renewable energy communities (Erneuerbare Energiegemeinschaften, "RECs"), and citizens energy communities (Bürgerenergiegemeinschaften, "CECs").
According to the draft REEA, a REC may produce electricity from (strictly) renewable energy sources and consume, store, or sell the energy it has produced within the community. Additionally, a REC may also be active in the field of aggregating self-produced electricity and provide ancillary energy services. The draft REEA does not prohibit the REC from storing or selling energy it has not generated itself. However, if the REC wants to do this, it must comply with the legal provisions related to these activities. The main purpose of a REC, as well as its members’ participation, is achieving ecological, economic, or social benefits for its members or the regions in which they are active. While RECs primarily focus on the expansion, local use and promotion of renewable energies within a limited geographical area, CECs make possible the emergence of a new market participant at a national level in Austria that also includes other participants and stakeholders. Unlike RECs, the CECs’ production, distribution, and consumption of energy is not limited to renewable energy sources (but to electricity) and there is no requirement for an immediate proximity of the CECs members.
Evaluation process and outlook
The public was able to review and comment on the draft REEA for a period of six weeks, which ended in October 2020. The Austrian government received a total of 127 statements from a broad range of stakeholders involved in the Austrian energy market, which shows not only the great interest in the topic, but also the potential significance of this new piece of legislation to the Austrian energy sector.
From a mere legal perspective, it must be noted that the proposed draft of the REEA leaves several civil (liability), corporate (unclear with regard to profits), and data-protection-law-related issues unresolved.
The Austrian government originally intended the REEA to come into force on 1 January 2021, but this date will unfortunately not hold and it is not yet clear when it will come into force. Although the details of the REEA concerning energy communities arguably need further refinement, one conclusion can already be drawn: The introduction of energy communities will significantly alter the energy landscape in Austria and beyond.
Are you interested in the topic? Read the long version of this article on Balkan Green Energy News.
