Energy communities according to the Renewable Energy Expansion Act

The advantages - in addition to proactive participation in the energy transition - lie in particular in the expansion of decentralized energy systems, in the utilization of economic incentives, such as the elimination of contributions, and in the strengthening of the regional value chain.
Energy communities are the association of at least two participants for the joint production and utilization (use) of energy. Energy communities thus offer participants the opportunity to use energy jointly and to trade among themselves. Members can achieve economic advantages by selling or purchasing the self-generated energy within the community - the agreement on the price is a matter for the energy community. The community is free to decide whether to sell the generated electricity exclusively to its members or to also feed surplus energy into the public power grid.

Two energy community models

Two energy community models are foreseen: the locally restricted "Renewable Energy Community" (REC) and the "Citizens' Energy Community" (CEC), which is geographically unrestricted within Austria.

• A renewable energy community may produce energy (electricity, heat or gas) from renewable sources, store it, consume it itself and sell it. RECs use the facilities of the grid operator (like the electricity grid), but they must always be located within the concession area of the grid operator. Members or shareholders of a renewable energy community may be natural persons, municipalities, legal entities of public authorities in relation to local services and other legal entities under public law or SMEs (no participation of electricity and natural gas companies). RECs shall be organized as an association, cooperative, partnership, corporation or similar association with legal personality, but not as a civil law partnership (GesbR).  The non-profit nature of the community is paramount, as the main purpose of renewable energy communities is not financial profit. This must also be anchored in the statutes or articles of association or result from the organizational form of the energy community.

• Similar regulations apply to citizen energy communities as to REC. In contrast to the REC, the CEC may only generate, store, consume and sell electrical energy. It is not limited to renewable sources and can cover the concession areas of several grid operators:inside throughout Austria. Also in CECs the members or shareholders:inside can be private persons and/or legal entities. In the same way, profit-making must not be in the foreground.

In addition, there are financial incentives for the electricity purchased from the renewable energy community:

• Waiver of the renewable energy subsidy
• Exemption from the electricity tax for electricity from photovoltaics
• Reduction of grid fees
• A maximum of 50% of the renewable electricity generated and not consumed within an energy community (REC and CEC) can be subsidized by means of a market premium

Tip: If you are considering setting up an REC, you should seek advice before founding a company in order to clarify or avoid any tax risks when founding the community or from its ongoing operation, e.g. in the area of sales or income tax.