Energy communities reduce power bills for members, improve electricity market

Citizen energy communities make the energy system greener and benefit society at a local level, Josh Roberts from European federation of energy communities REScoop said in his presentation, organized in Belgrade by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is a form of association that also lowers costs for households, institutions and small firms and entrepreneurs, contributes to the application of progressive technologies. Furthermore, it is a framework for democratic control.

The event included developers from in the emerging segment of energy communities and cooperatives in Serbia. They outlined the current initiatives and pointed to challenges regarding market entry, financing and policies.

The establishment and operation of energy communities is arranged through the European Union’s latest legislation, as well as in Serbia and other Western Balkan countries, but they are not a new concept. For instance, such entities still accounted for almost half of wind power output in Denmark in late 1990s, according to Senior Policy Officer Josh Roberts from REScoop, the European federation of energy communities and cooperatives.

Speaking at a gathering that GIZ organized in Belgrade he pointed to the benefits for citizens, small firms and entrepreneurs and for institutions from setting up or joining energy communities. Initiatives in Serbia were also presented, and their progress in the same field, and the event included dialogue on the necessary technical solutions for connecting to the distribution grid.

Brussels-based REScoop was founded in 2013. In its membership are organizations from 22 European countries. They include Serbian energy cooperative Elektropionir. It gained the most ground regarding association and the implementation of projects.

One coal town has put up signpost for energy communities in Slovenia

Among other examples, Roberts highlighted Slovenia’s first energy community with a rooftop solar power plant for joint use. The facility is on the roof of an elementary school. The project involves aid for people living in energy poverty and it is free to join the group.

It is in the town of Hrastnik in a former coal industry area. The participants already lowered their power bills by 30%, and the gains will be even greater when they pay off the loan, Roberts said.

There are more than 1,600 energy communities in Austria

The representative of the REScoop federation stressed that municipalities in the Belgian region of Wallonia have succeeded in obtaining the right for citizens to participate in investments in green energy projects. It resulted in the foundation of a range of energy communities.

Roberts especially commended Austria’s legal framework with regard to enabling citizens to participate. The country hosts more than 1,600 energy communities.

Energy community eases grid operator’s job

Energy communities are envisaged to return the invested funds to society at the local level. Subsidies are especially favorable for that, Roberts explained. Income is directed to education, infrastructure and aid against energy poverty.

The essence is that the community controls the distribution of the proceeds. In addition, grid operators can communicate more easily with one entity than with a hundred prosumers, Roberts underscored. Prosumers – or buyers-consumers, as they are formally called in Serbia, generate electricity for their own needs.

Pooling together enables providing services in the market, where energy communities can supply and store energy as well as conduct energy efficiency services, among other activities.

It means an entity of such type can ease the evening grid load, in moments of the highest demand, using energy from its batteries. That way, price peak shaving is achieved.

Registration process must be separate from defining activity

As for the procedure, Roberts said registration needs to be only for acknowledgement, rather than for approving specific activities.

“It’s about acknowledging the legal form and it’s about checking about how that legal form ensures compliance with the eligibility criteria. We have found very complex registration procedures. This does not work. It needs to be simple,” he stressed.

There are many activities that energy communities can undertake and they need to be able to enter them gradually, without complex procedures for licenses and permits

Conversely, in some jurisdictions there are simplified ways to get a supplier license. It enables an energy community to enter the activity gradually, instead of having to fulfill the requirements for all segments, even without having a comprehensive business model, the members or a business case, Roberts said.

He mentioned at the same time that one of the basic ideas is promoting inclusiveness.

“It’s already hard to set up an energy community, but it’s even harder to involve members who may have a hard time paying their bills, or have a lot less disposable income. So we found that the best models at the moment are for energy communities either to front the membership fees or for local authorities to pay for this upfront. And in energy sharing, we’re seeing more and more of energy donated to vulnerable households,” he stated.

Energy cooperatives helping improve rural areas from which people are leaving

Energy communities are giving people an opportunity for climate action and to contribute to their community, Roberts said. He added that such projects improve the area where they are conducted, stressing that it is especially important for rural areas from which many people are leaving.

A key point is that they enable participants to control their costs, production, consumption and energy sharing.

 The main challenge in Serbia is how to obtain a grid connection, alongside the matter of accessibility of incentives and loans

Importantly, energy communities are linked to the tradition of cooperatives, for which Serbia used to be known, but there is still much left to do around the legal framework.

There was word at the said gathering with representatives of institutions about the complexity of adjusting the electricity network to the production’s decentralization, as well as about the possibility to streamline the procedure for the establishment of energy communities and their operation.

Serbia is yet to address the accessibility of subsidies and financing, while currently the main issue is how to get grid connection approvals.

Enterprise, association or cooperative

The speakers and other participants in the event agreed that the electricity market isn’t complete without energy communities, while that they modernize and democratize it.

When it comes to Serbian regulations, such legal entities have the right to conduct aggregation, but they need a license for it. Notably, aggregators have balancing responsibility, so they need to cover the deviations from the forecasted output.

Energy communities were introduced in the latest version of the Law on Energy. When they become regular in practice, the framework will need to be adjusted gradually to the situation. Citizens, firms and municipal authorities establish energy communities as enterprises, associations or cooperatives.

The bottom line is to enable citizens to take part in the clean energy transition and achieve local environmental, economic and social benefits, as opposed to prioritizing profits. It implies collective ownership, democratic control and reinvestment into the community with the goal of reducing energy poverty and promote energy independence.

The basic technical requirement for members is to have a smart electricity meter.

Elektropionir pioneering agrisolar in Serbia

The event’s organizers gathered the people who achieved the first steps in Serbia – from the Sunčani krovovi (Sunny Roofs) energy cooperative, created in 2019, to Platform for Energy Transition, which participated in uniting three residential buildings in Niš, which have a joint solar power plant and electric vehicle chargers. It is one of the first six prosumers in Serbia in the category of homeowner associations.

The Elektropionir energy cooperative managed through crowdfunding to install two cooperative-owned rooftop solar power systems on the territory of the City of Pirot, on the buildings of a local community council and a cultural center. As part of the Solarna Stara project, on Mt. Stara planina, the two villages receive the income from the sale of surplus electricity.

Srem is set to become the main region in Serbia for community energy

Next, the same organization built the first agrisolar power plant in Serbia. The 20 kV facility is at an organic farm, Organela, near the city of Valjevo.

Another recent undertaking is a rooftop photovoltaic unit on a school in the town of Ruma, envisaged to be the basis for an energy community. In the same area, Elektropionir is working on the installation of several prosumer power plants on house roofs and on aggregating them, inspired by the enthusiasm and the solar system of its member Nenad Maričić.

Owners and neighbors can jointly invest and they will be able to become an energy community and share energy among themselves.

Center for Sustainable Development to integrate string of energy systems of various technologies

Near Ruma, which is in the Srem (Syrmia) region, the City of Sremska Mitrovica and Regional Development Agency Srem have launched a major project. It is for the establishment of renewable energy communities (RECs), which are essentially a subset of citizen energy communities (CECs).

The local authority provided land for research and development. It is next to the regional waste landfill and a wastewater treatment plant. The plan is that the Center for Sustainable Development builds and integrates a string of energy systems.

They would include combined heat and power (CHP) production – cogeneration – from biomass, small wind turbines and a PV plant. The project also involves heat pumps and a storage facility assembled from old batteries.

There would be a facility running on biogas from the landfill within the center, and a magnet electric generator. Residents of the adjacent village of Jarak would be able to join the energy community.

Belgrade Energy Community is focused on equity, solidarity

Another group emerging in community energy is Belgrade Energy Community. It intends to apply a model of collective self-consumption in an urban area, with a focus on trust, equity and solidarity.

Its idea is to enable people to generate, share and use green energy. The plan is to map roofs and consumption and set up the first pilot installations.

According to the Belgrade Energy Community, it will donate 5% of the output to households affected by energy poverty. It consists of a cooperative, a civil society organization, two small enterprises, several prosumers and citizens.