With this page, we aim to provide the general findings and recommendations from the European legal framework on Energy Communities - with the focus on the Belgian (Flemish legal system). It is based on the RENergetic Deliverable 7.6 - Final European Analysis on Obstacles to Innovation Around Energy Islands.
I. Complexity in the distinction between CEC and REC definitions in European and National law
The differences between the RECs and CECs and the reason why two very similar organisational forms were created in two separate directives can be traced back to the initial intention of the European legislator.
The distinction between the two definitions makes it much more complex for energy islands to function within the legal framework that is supposed to facilitate energy sharing and the production of green energy. As Member States transposing European directives often adopt these definitions in whole or in part, regulation loses much of its effectiveness. The following table shows the main differences between the two legal forms.
Table 1 REC versus CEC
REC |
CEC |
|
Geographical Scope |
Proximity requirement of effective control |
No geographical limitation |
Membership |
Limited Membership (not for large companies, but SMEs are not excluded); their participation in a REC should not be their only commercial activity |
SMEs are not excluded, as long as the decision-making process is not influenced by those enterprises and their participation is not motivated by the commercial goals only |
Energy Generation | *Open for other renewable energies too (such as heat) – but renewable |
Only electricity |
Technologies |
Focus: renewable energies |
Technology neutral (not necessarily renewable energy) |
Purpose
|
Goal: promote the development and growth of RECs to expand the share of renewable energy at national level.[1] |
Goal: enabling CEC ‘s as new market actors[2] |
Electricity Sharing |
Possible for both RECs and CECs |
|
Distribution Grid Operation |
Possible for both RECs and CECs |
[1] JASAIK M., Energy Communities in the Clean Energy Package, 2021, EEJ Vol (8) Issue 1, P.32
[2] Ibid.
Applying these distinction to Flanders, the question arises to what extent the distinction between REC and CEC is still useful and whether it should not evolve towards a unified definition (hernieuwbare energiegemeenschappen (REC), energiegemeenschap voor burgers (CEC)).
Every EC has an obligation – under Belgian law - to notify the VREG – which is the Flemish Energy regulator - regarding their activities (and any change thereof), the way they are composed and if they fulfil the proximity criterion (a condition which counts for renewable energy communities only). To the extent VREG will effectively check whether the application conditions of a CEC or REC are met, it risks becoming an approval procedure rather than a notification procedure.
II. Complex review of conditions
A classically distinguishable criterion is the proximity requirement. Geographical proximity is fulfilled in different ways by the ECs. It can be filled in either a technical way or a geographical way. It is necessary to specify this requirement in order to make a clear distinction between CEC and REC, while this is the case in the Walloon regulations. Confusion often occurs with the concepts of energy parts in a building or with oneself as an organisation.
In addition, ECs should not be profit-driven but should serve a more social purpose of energy efficiency and social cooperation. However, this is difficult to substantiate in the statutes of ECs. It is also difficult to verify and is not translated as such in the known examples in practice. Furthermore, ECs should not have a major commercial involvement in the energy sector or participation in an EC should not be the main commercial activity.
Furthermore, ECs should not have a major commercial involvement in the energy sector or participation in an EC should not be the main commercial activity. In practice, there are many similarities between CECs and RECs, making it more difficult when the application conditions for a REC are much stricter. The activity that both forms of ECs can engage in are also similar, with the exception that RECs may only relate to renewable energy sources (including thermal energy).
As such, an EC can simultaneously qualify as both a REC and a CEC, but the distinction makes little difference in practice as there are no specific advantages prohibited to the special qualification (under Flemish regulations).
III. RENergetic Innovation Conformity with REC & CEC
The innovation of the RENergetic tools consists of goals to maximise self-sufficiency, multi-vector energy planning and community-based engagement within the urban energy islands.
Energy self-sufficiency is not an absolute requirement for REC or CEC, although both REC and CEC are allowed to exercise energy-sharing and have the right to consume the energy generated within their own energy production installations. The local self-consumption within the REC and CEC is thus allowed and can be understood as an aspect of self-sufficiency. Within the CEC, this energy does not necessarily have to relate with renewable energy sources. Maximising local energy-sufficiency in the heating sector is not excluded from the scope of the REC activities if the heat generation is based on renewables.
Multi-vectoral or sector-coupled planning can also be found in several provisions concerning the REC and CEC. RECs are allowed to generate both electricity and heating energy – an optimisation strategy within these “sectors” is possible. CECs are limited to electricity generation only. They can equally offer charging for electric vehicles within the community, extending their activities to the mobility sector.
Last, the community-engagement in form of resident’s participations is another important innovative factor for the urban energy islands – both REC and CEC require their members to participate in their communities. However, EI residents cannot necessarily engage in the decisions related to the energy management and plant installation. Their engagement in the pilots is still restricted, as compared to what the REC and CEC legal criteria require.
A specific legal form is not given, neither for the REC, nor for the CEC. However, given that an urban energy island can also be a municipality or an urban district, whenever residents are not part of a particular organisation or association, the REC or CEC criterion might not be compatible with the concept of RENergetic energy islands.