EDSO publishes position paper on Local Energy Communities

EDSO publishes position paper on Local Energy Communities

Engaging in local energy communities represents a promising opportunity for Europe’s consumers to better manage their energy use while promoting a wider renewables uptake. In their function as neutral market facilitators and key enablers of the energy transition, distribution system operators will play a fundamental role in empowering prosumers, individually or collectively engaged in energy self-consumption.

In a position paper published today, EDSO for Smart Grids highlights the roles that DSOs will play in supporting these new entities with the most adequate grid infrastructure solution. Such services can include grid balancing, data metering and other solutions they may need. However, EDSO also signals that the regulatory framework for energy communities must be rightly set, by making sure that new entities are not exempted from network charges and other system obligations that apply to the rest of the customers.

In line with its earlier position on the Clean Energy for All Europeans Package, EDSO makes the following recommendations to policymakers:

  1. Creating a new type of actor in an already complex energy market must respect economic sustainability by making sure that costs do not outweigh the benefits.
  2. There should be no discrimination between local energy communities members and other systems users in terms of network charges and – when applicable – policy costs, levies and other taxes.
  3. Local energy communities acting as DSOs must be in principle subject to the same rights and obligations, including an adequate regulatory supervision.
  4. Further clarify the exact scope, rights and obligations of local energy communities to ensure consistency of the different legal concepts.
  5. DSOs are prepared to start innovative collaborations with local energy communities to work out best solutions, but always in transparent and non-discriminatory forms.

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