Energy communities are set to become a key element in achieving a fair and distributed energy transition, empowering consumers to take an active role in the electricity sector. They enable collective participation in the generation, consumption, and management of renewable energy, promoting sustainability and efficiency at the local level.
At SD Verdia we have extensive experience providing legal advice on energy communities. Our added value lies in specialised knowledge of local public law, essential for coordinating the involvement of public authorities in these types of projects, ensuring legal certainty and operational feasibility.
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We answer the most common questions about energy communities and their set-up.
An energy community is an entity of open and voluntary participation whose main aim is environmental, economic or social benefits for its members rather than financial profit. There are two forms: Renewable Energy Communities (RECs), introduced by Directive (EU) 2018/2001, and Citizen Energy Communities (CECs), regulated by Directive (EU) 2019/944.
RECs are limited to renewable energy projects and require their members to be close to the installations; they can be controlled by individuals, SMEs and local authorities. CECs can carry out almost all electricity-sector activities (except transmission), do not require proximity and their control lies with individuals, small businesses or local authorities, excluding medium-sized enterprises. Members of a CEC also retain their rights as consumers.
Both forms are recognised in the Electricity Sector Act (Law 24/2013): RECs in articles 6.1.j) and 12 bis, and CECs in articles 6.1.k) and 12 ter, which transpose Directives (EU) 2018/2001 and 2019/944. A specific royal decree is still pending to define concepts such as "effective control"; in the meantime, the definitions from the grant calls are used, and some regions (such as Aragón or Catalonia) have developed their own frameworks.
In practice, many energy communities are structured through collective self-consumption, which allows a single generation installation to be shared among several consumers. They bring savings on the bill, access to local renewable energy and community cohesion, and can apply for public grant schemes. At SD Verdia we advise on choosing the legal form, drafting the bylaws and handling the procedures.
