ElWG Check: community energy – together alone?

Authors: Johannes Hartlieb, Alexander Gimona

In the draft Electricity Industry Act (ElWG), community energy is no longer a niche topic, but an essential building block of market organization. Part 4, “Decentralized Supply and Citizen Energy,” and, in particular, Part 2, “Citizen Energy” (sections 60-68), for the first time consolidate all fundamental rules for active customers, shared energy use, peer-to-peer contracts as well as renewable energy communities (EEGs) and citizen energy communities (BEGs). In addition, there are cross-cutting provisions on metering, data, and billing as well as accompanying regulations (electricity supply contracts, load/feed-in management, direct lines; sections 57-59).

Those who generate electricity should also be able to share it. Those who need electricity should be able to afford it. Elisabeth Zehetner (State Secretary for Energy, Startups and Tourism at the Federal Ministry of Economy, Energy and Tourism)

The (new) pillars of community energy

The new Electricity Industry Act (ElWG) aims to structure the network of community energy forms more clearly and mold it into a coherent system. Four central pillars characterize this system:

Active customers (section 60) are granted the explicit right not only to consume self-generated renewable energy but also to store, transfer, or sell it. They can make their generation and consumption more flexible and even participate in the market via aggregators. This strengthens the role of consumers, who become active participants in shaping the energy transition.
Shared energy use (section 61) forms the core: it specifies how electricity from community installations or within the framework of energy communities is distributed, metered, and billed. What is new is that the framework is not limited to the local area, but can also cover the entire bidding zone. This opens up the possibility for projects to extend beyond individual buildings or neighborhoods. Central is also the role of the “organizer,” who coordinates the processes and serves as an interface between the network operator and participants.
The third pillar consists of renewable energy communities (EEGs; section 64) and citizen energy communities (BEGs; section 65). While EEGs focus on the local area and the shared use of renewable energy, BEGs have a broader scope. They are also allowed to generate, consume, store, and sell electricity across regions in the bidding zone – and additionally take on roles such as aggregator or energy service provider. A key feature of BEGs is that control rests with their members.
Peer-to-peer contracts (section 62) are newly introduced. They allow two or more market participants to trade electricity directly with each other – automatically and according to pre-agreed rules. This creates a flexible instrument that enables electricity trade beyond traditional supplier models and picks up on the trend toward decentralized, digital marketplaces.

ElWOG vs. ElWG – what is changing

Compared to the previous Electricity Industry and Organization Act (ElWOG), the new draft brings clear systematization and standardization. Until now, the provisions on community installations and energy communities were scattered or only regulated in specific areas. Now, all forms of citizen energy are found in a separate section, with consistent definitions and coordinated interfaces.

Another new feature is the uniform legal framework for peer-to-peer contracts. The geographical scope is also being expanded: whereas previously primarily local constellations were possible, the ElWG opens the door to bidding zone-wide models – a decisive step toward enabling larger and more flexible associations.

Equally relevant in practice are the standardized provisions on metering and billing. While under the old system many aspects had to be negotiated on a project basis between operators and network companies, the new law contains clear requirements for metering points, billing points, and metering concepts. This is intended to make processing and integration into market communication easier and more uniform.

Finally, the ElWG explicitly enshrines the prohibition of discrimination against community models. This is new and is intended to prevent suppliers from making participation unattractive, for example through excessive fees or contractual conditions. Overall, the legal framework is thus shifting from a rather fragmented support regime to a comprehensive, consistent system for all forms of community energy.

Outlook

With the new legal framework, community models are moving to the very center of the energy transition. The possibility of using energy collectively not only locally in the home, but also in larger associations across the bidding zone, creates opportunities for innovative projects, ranging from municipal partnerships to cooperatively organized citizen power plants.

At the same time, technical and organizational requirements are becoming more demanding: standardized metering concepts, digital market communication, and the integration of aggregators make it clear that projects will have to be set up more professionally in the future. This opens up new opportunities for service providers, municipalities, and energy companies that can act as partners and enablers.

The creation of new contractual solutions will simplify the design; corporate or association structures will recede somewhat into the background in the future. However, established energy communities will still require a legal entity.

During the consultation process, the new provisions also attracted criticism – for example regarding the exclusion of very large generation plants. We will examine this in detail.

The coming years will show whether the new rules will not only provide legal certainty, but also lead to the actual spread and scaling of community energy. In any case, the ElWG opens up new opportunities for citizens, municipalities, and companies to actively participate in the energy transition and benefit from it both economically and ecologically.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.