Energy communities, energy cooperatives, energy clusters

• Law No. 5037/2023
• Law No. 4513/2018

Law No.4513/ 2018 introduced the concept of Energy Communities. Greece had no previous experience on such entities and for the first time a comprehensive framework that regulated the establishment and operation of Energy Communities was introduced. The Law No. 5037/2023 has provided the institutional framework for Renewable Energy Communities (REC) and Citizen Energy Communities (CEC) through the integration of Directive 2018/2001 on the promotion of the use of energy from renewable sources and Directive 2019/944 on common rules for the internal electricity market.

As per the Law No. 5037/2023, the Renewable Energy Communities (REC) operate within a single region and must engage in at least one of the following activities: production, consumption, storage, and sale of energy from renewable sources.

Within its scope of activity, each REC:

1. may allocate energy produced from renewable sources within the community. This energy is generated by production units and stored in storage facilities owned by the REC.
2. RECs have access to all energy markets, either directly or through aggregation, in a non-discriminatory manner.

Additionally, RECs can:

• Apply virtual net metering from renewable energy plants, including those with storage, to meet the energy needs of their members or consumers living below the poverty line.
• Manage biomass, biofluids, and biogas for energy production or utilize the biodegradable fraction of municipal waste.
• Install and operate desalination units powered by renewable energy.
• Attract capital for investments in renewable energy, CHP, or energy efficiency improvements.
• Prepare studies and provide technical support for renewable energy utilization.
• Manage or participate in programs funded by national or EU resources.
• Offer advisory services for participation in funding programs.
• Conduct public awareness and educational activities on energy sustainability.
• Support vulnerable consumers and combat energy poverty through energy provision, upgrades to residential energy efficiency, or other measures to reduce energy consumption.
• Develop and manage alternative fuel infrastructure or sustainable transport systems.
• Provide energy services, act as an aggregator, and promote electromobility, including managing electric vehicle charging infrastructure.
• Undertake community-benefit initiatives related to the supply of raw materials, energy, fuel, and water.

Citizens' Energy Communities (CEC) operate within one or more regions and are required to engage in at least one of the following activities: production, self-consumption, or sale of electricity from renewable sources, as well as storage, distribution, and supply of electricity. They can also provide services such as aggregation, flexibility, balancing, energy efficiency, electric vehicle charging, and other energy-related services to their members.

CEC may also:

• Manage or participate in programs funded by national or EU resources to promote its purpose.
• Provide advisory services for the participation of its members in funding programs related to its objectives.
• Raise public awareness and provide education on energy sustainability.
• Support vulnerable consumers and address energy poverty, including through energy provision, residential upgrades, or other measures to reduce energy consumption.

CECs may engage in additional REC activities and benefit from the financial incentives and support measures available to RECs, provided they meet the proximity requirements for their members.

Under Law No. 4513/2018, the eligible participants for Renewable Energy Communities (REC) include natural persons, Local Self-Governing Organizations, Small and Medium Enterprises (SMEs), agricultural and urban cooperatives (of Law 1667/1986), and public or private non-profit legal entities.

Similarly, for Citizens' Energy Communities (CEC), eligible participants are natural persons, Local Self-Governing Organizations, public and private legal entities, as well as agricultural and urban cooperatives (of Law 1667/1986).

The minimum number of members for both a Renewable Energy Community (REC) and a Citizens' Energy Community (CEC) is thirty (30), with specific variations depending on certain conditions. 

More specifically:

• This number is reduced to twenty (20) if the REC or CEC is based in a municipality of an island region with a population of less than 3,100 inhabitants, as per the latest census. 
• It further decreases to fifteen (15) if at least fifteen (15) SMEs participate. 
• In cases where at least one (1) first- or second-grade Local Self-Governing Organization (LGSO) is a member, along with two other members that are either businesses fully owned (100%) by a first- or second-grade LGSO or LGSOs themselves, the minimum is set at three (3) members.

There is also a locality criterion for the REC, in which at least fifty percent (50%) plus one (1) of the members must have proximity to the area where the REC conducts its activities and develops the Renewable Energy project.

• Net Billing
• Virtual Net Billing
• Net Metering (only for existing projects)
• Virtual Net Metering (limited to beneficiaries of specific programs and farmers for installations up to 30 kWp)

• Energy communities, energy cooperatives, energy clusters   : Energy communities