Legal framework for energy communities in the EU
A rapid energy transition, strong decarbonization and abandoning fossil fuels are strategic determinants of a higher level adopted by the European Union in the Green Deal.
The objectives of the Green Deal are the backbone of the legislative package “Fit for 55” and the package of measures “Clean energy for all Europeans”, which emphasize fairness, democracy and inclusion of the energy transition. Actions to further facilitate the development of energy communities and prosumers have been undertaken as part of the REPowerEU plan, specifically in the Solar Energy Strategy and the proposed amendments to the Renewable Energy Sources Directive, in order to speed up the issuance of permits for renewable energy projects.
According to the EU Solar Energy Strategy, the goal is to establish at least one energy community based on renewable energy in every city and municipality with a population of more than 10,000 inhabitants by 2025.
Accordingly, citizens, craftsmen, small and medium-sized enterprises, local self-government units and public institutions have been defined, through several directives, the right to self-production and self-consumption of energy individually or through association in energy communities. The directive that introduced the Citizens’ Energy Community (CEC) as a new legal form is the Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (recast).
The directive requires that Citizens’ Energy Communities be provided with a favorable legal framework for their growth and development, fair and equal treatment on the market, and establishes their rights and obligations.
Legal framework for energy communities in Croatia
The directive was transposed into the Croatian legislation by the Law on the Electricity Market (ZOTE) in 2021, which created a legislative framework for the establishment of citizens’ energy communities in Croatia.
A number of laws and regulations are also relevant for the process of registration of energy communities:
The Law on the Electricity Market,
Law on renewable energy sources and high-efficiency cogeneration,
Rulebook on permits for the performance of energy activities and keeping a register of issued and revoked permits for the performance of energy activities.
Competent authorities (registration process):
Ministry of Economy; Croatian Energy Regulatory Agency (HERA)
A number of these laws and regulations are relevant for the (in)ability to share energy with community members:
Law on the electricity market; Law on renewable energy sources and high-efficiency cogeneration; Rulebook on general conditions for network use and electricity supply; Methodology for determining the amount of tariff items for electricity distribution; Methodology for determining the fee for connecting to the electric power network; Network rules of the distribution system; Rules on connection to the distribution network.
Competent authorities (possibility of energy sharing):
Ministry of Economy, HEP-ODS, HERA
And last but not least. The Green Deal follows a global agreement to reduce carbon emissions to keep global warming within safer levels, up to 2 degrees C. The global agreement was reached with the Paris Climate Agreement at the COP21 and is binding.
