Energy communities, energy cooperatives, energy clusters

• DL 162/2019
• Directive 1/2021
• Ordinance 332/2012
• Ordinance 592/2010
• Regulation 266/2020
• Order 6453/2020
• Decree-Law 15/2022

The new regulation, Decree-Law 15/2022 of 14 January, which came into effect in 2022, significantly updates Portugal's legal framework for energy communities, self-consumption, and renewable energy generation. This decree builds upon Decree-Law 162/2019 of 25 October by clarifying and expanding the rights, responsibilities, and operational flexibility of energy communities and prosumers, further aligning with EU directives and climate goals. 

DL 15/2022 introduces a more comprehensive support for decentralised energy production, with particular attention to renewable energy communities (RECs) and citizen energy communities (CECs). 

It establishes clearer rules on grid access, enhances financial incentives, and simplifies administrative processes, making it easier for individuals, communities, and businesses to generate and manage renewable energy.

Moreover, it also broadens the role of prosumers and energy communities by supporting their integration into the energy market. These changes promote a more active participation in the Portuguese/Iberian energy market, allowing members of energy communities to engage in energy trading and contribute to grid stability.

The framework targets Renewable Energy Communities (RECs) and Citizen Energy Communities (CECs), enabling collective participation in energy projects by individuals, local authorities, small businesses, and cooperatives. These entities can produce, consume, store, and sell renewable energy while benefiting from simplified administrative processes and financial incentives.

To qualify as an energy community, entities must:

• Be legally recognised and operate under a cooperative or associative model;
• Prioritise environmental, social, and economic benefits over financial profit;
• Ensure local energy generation primarily benefits community members;
• Comply with grid access regulations and metering requirements set by the Energy Services Regulatory Authority (ERSE).

Energy communities must register their electricity-production units and obtain a production license, following regulatory requirements. They can trade the energy produced through direct contracts or market facilitators.

The tariff structure applicable to energy communities is the same as the one for individual self-consumption actors, which is the grid access tariffs deducted from the grid usage tariffs corresponding to the self-consumption unit voltage (art. 29 of Regulation 266/2020). Tariff prices applicable to them (for the year 2021) are described in pages 170-172 of Directive 1/2021.

The Portuguese government provides various financial incentives for community energy projects, particularly those focused on renewable energy sources (RES). These incentives may include grants, subsidies, and favourable loan conditions to reduce initial capital expenditures and encourage investment in sustainable energy infrastructure. Specific programmes and funding opportunities are periodically announced by governmental bodies such as the Directorate-General for Energy and Geology (DGEG) and the Environmental Fund.

Portuguese community energy policies enable various models of energy sharing, fostering collective participation in energy markets. These models include:

• Collective Self-Consumption: Multiple consumers share energy generated by one or more renewable installations, distributing electricity among participants based on predefined agreements.
• Renewable Energy Communities (RECs): Legal entities where members collaborate in producing, consuming, storing, and selling renewable energy. RECs prioritise environmental, economic, and social community benefits over financial profit.

Community energy projects are typically developed within specific localities to optimise the use of local renewable resources and facilitate grid integration. While there are no explicit national geographical restrictions, projects must comply with regional planning and environmental regulations. Additionally, proximity between energy generation and consumption points is encouraged to minimise transmission losses and enhance efficiency.