CEER Publishes Report on Self-Consumption and Energy Communities
Today, CEER has published a Report on Regulatory Aspects of Self-Consumption and Energy Communities. Following the formal recognition of active consumers and the introduction of Citizen Energy Communities (CECs) and Renewable Energy Communities (RECs) in the Clean Energy Package (CEP), CEER sought to analyse the regulatory implications of these new actors.
The report is based on a number of case studies from existing and relevant provisions in the recast Electricity Market Directive and the recast Renewable Energy Directive.
CEER welcomes the formal recognition of energy communities in the EU framework; however, provided that energy communities do not become a vehicle to circumvent existing market principles, such as unbundling, consumer rights or the cost sharing principles applied to energy grids. Furthermore, the report concludes with several recommendations for EU Member States, to ensure that important areas of the regulatory framework are sufficiently addressed. These areas include:
I. Consumer rights – Participants of energy communities should maintain the same consumer rights (e.g. around switching supplier to ensure quality of service and contractual certainty).
II. Balancing and flexibility – Energy communities should be able to enhance the flexibility potential of customers and therefore more effectively integrate renewables and new technologies e.g. EVs into the grid. Effective market design is essential to ensure this reduces overall system costs.
III. Business model and market design – Local consumption should still respond to effective market price signals, including trading in the context of optimally sized bidding zones.
IV. Grid ownership, operation and development – Energy communities owning grid infrastructure remains optional for MS. However, if and where this approach is adopted, it should avoid duplication of assets, ensure economic efficiency, be subject to appropriate regulation in line with the regulatory framework for DSOs and ensure quality of service and supply.
This report is part of CEER’s strategic effort to provide Dynamic Regulation that can adapt and develop frameworks for changes such as energy communities and increased self-consumption. Please be informed that in the coming weeks CEER will publish two additional case study reports related to consumer technology and empowerment issues in the CEP.