Origin and Development of Energy Communities in the European Union and Poland

Energy communities are a key component of the energy transition, connecting local stakeholders in sustainable energy management. Read to learn about the development of these initiatives in the EU and Poland and discover their benefits and challenges.

Introduction to energy communities in the European Union and Poland

Energy communities represent one of the most important phenomena in the energy transition, offering an alternative and sustainable model of operation in the energy market. They involve the engagement of citizens, local businesses, and local governments in the production, management, and sale of energy based primarily on renewable sources. These types of initiatives are distinguished by a democratic management model, which means that each community member – regardless of the size of their contributed capital – has a real influence on decisions made. The first energy communities emerged in Western Europe as early as the 20th century, especially during the energy crisis of the 1970s. It was then that centrally controlled, large-scale energy systems were recognized as not only inflexible but also susceptible to fluctuations in raw material prices and uncertain geopolitical situations. In West Germany and Denmark, grassroots initiatives emerged, often in the form of cooperatives, which installed their own, initially small, renewable energy installations. A significant factor here was the desire to reduce dependence on large energy companies.

EU Regulations

Currently, the significance of energy communities has been influenced by EU climate and energy policy. As part of the “Clean Energy for All Europeans Package,” a series of legal acts were developed aimed at harmonizing the regulations of member states and supporting the development of renewable energy communities. This package includes, among others, Directive 2018/2001 (RED II) concerning the promotion of renewable energy sources and Directive 2019/944 (IEMD, Internal Electricity Market Directive), which relates to the functioning of the internal electricity market.

Legal Forms of Energy Communities in Poland

Under Polish law, the development of energy communities stems from the implementation of EU directives into national regulations, primarily contained in the Act of February 20, 2015, on renewable energy sources (the so-called RES Act) and in the Act of April 10, 1997, Energy Law. Currently, in Polish law, there are three forms of energy communities: energy cooperative, energy cluster, and citizen energy community. Each of these legal forms has separate regulations and requirements regarding their establishment.

Support System for Energy Cooperatives

Currently, the form of energy cooperative is popular, with 63 currently registered in the KOWR registry. The entity is covered by the net-metering system. Moreover, from the amount of energy produced in all RES installations of the cooperative, and subsequently consumed by all cooperative recipients, including the amount of electricity settled at a ratio of 1:0.6, the energy cooperative does not pay: fees for energy settlement to the seller, fees for the distribution service, the amount of which depends on the amount of electricity consumed by all producers and recipients of the energy cooperative (i.e., the so-called variable distribution fee). The above fees are covered by the seller. Additionally, in relation to the amount of energy mentioned above, the following are not calculated and not collected: RES fee, capacity fee, cogeneration fee. The cooperative support system makes them an attractive way to reduce electricity bills.

Development Barriers

Despite the clear benefits of energy communities, this sector in Poland faces several significant barriers. Despite successive amendments to regulations, there are still many limitations (e.g., lack of ability for energy cooperatives to sell electricity to entities that are not their members, lack of preferences in public procurement law for energy clusters whose (mandatory) member is a local government unit, or lack of a support system for citizen energy communities). There is also a lack of extensive advisory infrastructure; crucial is the role of so-called one-stop shops – advisory points where interested parties could obtain not only legal advice but also technical, economic, and organizational support in establishing communities. The technical condition of the power grid is also a problem, as well as refusals by distribution network operators regarding the connection of RES installations to the grid.

Future Prospects

In the perspective of the coming years, it is clearly visible that energy communities will gain importance. EU legislation unambiguously favors such models, recognizing them as an essential element in achieving climate goals and in modernizing European power systems. New energy storage technologies, advanced IT tools for managing demand and supply, and the progressive digitization of networks can further strengthen the competitiveness of clusters or cooperatives, making them equivalent players in the market. Energy communities are a reasonable response for times of crisis, where local energy security and decarbonization should be harmonized in the spirit of social justice.

Bibliography:

1. Dyrektywa (UE) 2018/2001 (RED II) z dnia 11 grudnia 2018 r. w sprawie promowania stosowania energii ze źródeł odnawialnych.
2. Dyrektywa (UE) 2019/944 (IEMD) z dnia 5 czerwca 2019 r. w sprawie wspólnych zasad rynku wewnętrznego energii elektrycznej.
3. Ustawa z dnia 20 lutego 2015 r. o odnawialnych źródłach energii (Dz.U. 2015 poz. 478 z późn. zm.).
4. B. Kupiec, A. Szpor: „Nowy sposób na walkę z ubóstwem energetycznym na polskiej wsi”, Klub Jagielloński, 2021.