Multiple participation in Energy Communities from 2024

A provision of the Electricity Industry and Organisation Act (Elektrizitätswirtschafts- und organisationsgesetz, ElWOG 2010) on multiple participation in energy communities has taken effect as of 1 January 2024. It holds the potential to significantly boost regional electricity generation and consumption while at the same time preserving grid capacities. Benefits may accrue not only to consumers and producers, but also to real estate developers.

In brief, renewable energy generation systems (such as rooftop photovoltaic systems) no longer have to be exclusively dedicated to either a communal generation system, a renewable energy community or a citizen energy community. Specifically, this means, for example, that the electricity from rooftop PV systems operated as communal generation systems can first be supplied to the respective building’s residents, and then any surplus can be provided to an energy community, instead of feeding it into the public grid, as was the case previously. Moreover, both producers and consumers can now participate in multiple (local or regional) renewable energy communities or citizen energy communities.

Brief Recap – Beginning in 2017, models were created for consumers and producers to be able to join forces for the purpose of generating, consuming, and selling energy primarily from renewable energy sources. Such energy communities (ECs) may be defined based on property borders (communal generation system, CGS) since 2017 and based on the local grid area (renewable energy community, REC) since 2021, the latter with entry into force of the Renewables Expansion Act (Erneuerbaren-Ausbau-Gesetz, EAG). Since 2022, they may also be nationwide networks (citizen energy community, CEC). Previously, participation in one EC model precluded participation in another EC (multiple participation), and the surplus electricity produced had to be fed into the public grid.

Multiple Participation – As from 1 January 2024, multiple participation is now possible under Section 111 (8) of ElWOG 2010, with implementation to be gradually effected until April 2024. The associated advantages can be illustrated in a nutshell as follows: By way of example, a group of tenants operating a PV system as a CGS may combine with other CGS to form an REC. In the best-case scenario, it can buy additional electricity from another generating system of the REC (rather than from regular electricity suppliers at a higher price). At the same time, it can sell excess electricity generated to the other REC participants at fixed prices. Taking this further, the participants in a local REC (within one transformer station) could participate in a regional REC (within one substation) and even in a (nationwide) CEC, in order to benefit from the same synergies with the next higher grid level and form a sort of energy network.

Consumers and producers are not the only ones that stand to benefit from these opportunities: The real estate sector is also expected to focus on multiple participation and the added value it holds. By considering existing ECs in site selection and structural requirements for renewable energy generation systems in planning, real estate developers can lay the groundwork for the founding or (multiple) participation of/in an EC. The related (cost) benefits can be leveraged for project marketing.

Challenges – Initial difficulties are expected in particular as regards allocation and billing of the electricity generated. These difficulties will be resolved with the introduction of a participation factor, planned for 8 April 2024. The participation factor is the share percentage of generation/consumption for each member of an EC. It must be agreed on between the EC and each member in advance and notified to the grid operator. Moreover, it seems likely that initially multiple participation will be limited to five ECs simultaneously. From a general legal perspective, participation agreements must in any case provide for rules and principles for allocation and prioritisation that do not contradict each other overall (in terms of the entire energy network) while still achieving the desired synergy effects.

The Electricity Monitoring Ordinance (Elektizitäts-Monitoring-Verordnung, EMo-V 2022) on data transfer to the Austrian regulatory authority (E-Control) was recently amended to, among others, account for multiple participation in energy communities (effective as of 1 January 2024). Further legal provisions to implement multiple participation are expected to follow shortly.

For more information on this act, contact your regular CMS advisor or local CMS experts: Georg Gutfleisch and Alexandros Hantasch.