Collective self-consumers

Luxembourg has published a draft law in 2020 modifying the 2007 law on the organisation of the electricity market. The amendment transposes the main framework for individual and collective self-consumption and renewable energy communities into national law (Government of Luxembourg 2020). In the current text, the general definitions of renewables self-consumers correspond to the definition in the REDII, allowing the storage and sale of renewable electricity. For non-household renewables self-consumers, the corresponding activities may not constitute their primary commercial or professional activity. Both individual and collective self-consumption are limited to the same building or multi-apartment block. As a specification to REDII, renewables self-consumers are in addition limited to the area behind a single connection point to the public grid. Self-consumers of renewable energy are authorized to store and sell their excess production of renewable electricity through electricity suppliers or by renewable power purchase agreements. Renewable self-consumers have the right to organize the sharing of electric energy produced on their site themselves. The installations for collective self-consumption may be owned and managed by a third party as long as this party underlies the instructions of the self-consumers. Collective self-consumers need to conclude an agreement with the DSO including at least:
1.) the identity and address of the renewable energy self-consumers

2.) the installation(s) concerned, and

3.)the distribution key applied for the sharing of the electrical energy produced.

The DSO establishes an energy balance with a quarter-hourly granularity according to a pre-defined distribution key for the shared electricity and communicates the total individual consumption as well as the electricity received from the public grid at least every month to the renewable self-consumers and their respective suppliers. A similar approach is foreseen for RECs.

Source: Frieden et al., 2020

RECs and CECs

Renewable energy communities are defined, in line with the REDII, as legal persons whose members or shareholders are natural persons, SMEs or local authorities, including municipalities. RECs are to be located in the same locality downstream from high or medium voltage to low voltage transformer stations. Other criteria such as the prime objective, voluntary participation and others correspond to the REDII. However, a possible minimum duration for the participation of one year is defined. The existence of a renewable energy community does not prevent the distribution network operator from making changes to the topology of its distribution network even when such a change implies changes in the composition
of the community in question. RECs have the right to access all energy markets to sell their excess electricity directly or through aggregation.
Unless the renewable energy community itself allocates the electrical energy to its members, this allocation is made by the DSO, following a “static and simple” distribution. The specific distribution model is to be developed by the regulator in concertation with the DSOs. If the sharing is undertaken by the energy community itself, it can freely define the distribution model while the required data exchange with the DSO needs to be specified. An agreement comparable to the one for collective self-consumers needs to be concluded between the REC and the DSO. The renewable energy community is authorized to delegate the organization of electricity sharing to a service provider that must comply with technical and organizational requirements referred to in the law. This service provider should not be a member of the renewable energy community. The sale of surplus renewable electricity fed into the grid can be done through individual suppliers of the members or shareholders of the renewable energy community, or, if foreseen by the statutes, through a common supplier. The energy community can also sell its excess electricity through renewable power purchase agreements, provided that it acts as a balance responsible party.

Source: Frieden et al., 2020