22. 4. 2024
Advocating for the amendment of the Energy Act for community energy occasionally felt like a never-ending journey, even though we knew exactly what needed to be done, and had rational arguments on our side. However, our perseverance and determination paid off. Take a look at the 11 steps that, in our view, led us to celebrate the signing of the Energy Communities Act (ECA) at the end of 2023.
As we entered 2023, we had a clear goal: to advocate for the amendment of the Energy Act for community energy (ECA). Although the Ministry of Industry and Trade (MIT) prepared the draft amendment (ECA) very well, negotiations began to lag worryingly due to conflicting interests. Therefore, on January 11, 2023, we urged Minister Síkela and the entire government to enact rules for the establishment and functioning of energy communities no later than January 1, 2024.
Our efforts paid off; on February 27, 2023, we finally saw and analyzed the new version of the ECA amendment. Changes have been made for the better; the proposal complies with the requirements of European law and draws on proven examples, such as those from Austria.
However, we drew attention to the impending delay in the commencement of electricity sharing, which is crucial for functional community energy. The draft also included specific paragraphs regarding the Electro-Energetic Data Center (EDC), which is applying for a subsidy of 800 million CZK from the National Recovery Plan (NRP) and is to provide new services in the energy sector, including electricity sharing.
"Before the beginning of the Russian aggression against Ukraine, the reasons for Opava's transition to renewable energy sources were mainly economic and climate-related. In our considerations, 1000 m3 of natural gas meant 10,000 CZK, which would flow out of the region and be missed by us, or 2,000 kg of CO2, which would further worsen the climate crisis. Now, moral reasons have been added for not purchasing natural gas, especially not from Russia: those 10,000 crowns are approximately the price of 1 artillery shell caliber 152 mm. And we certainly don't want to finance the purchase of ammunition for the killers of Ukrainian women and children," explained Jiří Krist, chairman of ENERKOM Opava, z.s. and a member of the UKEN council.
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We know that there is strength in numbers, so we strengthened ties with and welcomed two strategic partners, Česká spořitelna and Domy Sobě. Both helped us create a manual for electricity sharing in apartment buildings, which has been possible since January 1st, 2023. To date, it has been downloaded by over 1,600 interested parties. Have you downloaded it yet? Get your copy now (available only in Czech language).
"Three years ago, we entered the market and started providing solutions to apartment buildings in the form of merging consumption points, allowing electricity to be used in individual apartments and thus saving up to 50% of its consumption. However, we are glad that with the year 2023, things are finally moving in the Czech Republic, and the benefits of solar energy are beginning to be respected by new legislation. Without the long-term effort, in which the UKEN significantly contributes, we would probably still be waiting for legal regulations supporting community energy. Since the beginning of our existence, we have been trying to accelerate the spread of photovoltaics in the field of apartment buildings, and membership in the UKEN allows us to participate in further cultivation of legal standards and the standard of photovoltaic services," said Stanislav Gaj, project manager of Domy Sobě.
In April, an unpleasant surprise awaited us: according to a leaked proposal, the Ministry of Industry and Trade (MIT) was considering radically restricting community energy to one municipality with extended competence (MEC) and the involvement of no more than 1,000 consumption points. Additionally, the ministry did not invite stakeholders representing the interests of energy communities to discuss the proposed changes.
We criticized that the proposed limitations were not in line with the purpose of community energy and lacked technical justification. They only led to delays or made it impossible to adopt quality legislation that would reduce the dependence of Czech citizens on fossil fuels and Russia. Through persistent and expert argumentation, we managed to, at least, mitigate the limitations.
We supported - and continue to do so - the connections of our members with one another and with relevant experts. In May, we organized a meeting on the topic "How to Win Over Citizens and Municipalities in Favor of Renewable Energy Construction," featuring experts in law, participation, and municipal management. From the contributions, we have compiled proceedings of the seminar that we offer to all those interested in community energy for free (download in English).
In June, the focus was on personal meetings of the working group focused on sharing project know-how. We met at the Open Garden in Brno, discussed the projects of our members, toured a passive building, and visited Dalibor Veverka's House for the Future in Omice.
We anticipate that there is still much work ahead with the amendment to community energy, so we are significantly strengthening our presence both in the Czech Republic and Europe. Joining us as members are the Czech Bishops' Conference and the regional cities of Liberec and Hradec Králové.
After less than two years of operation, UKEN itself became a member of the international network REScoop.eu. This is a tremendous success. We have already agreed with REScoop.eu to organize the European Energy Communities Forum and have submitted a joint project to the LIFE European Energy Communities Facility program.
Keep your fingers crossed for us to succeed because this means further financial support for energy community projects in the Czech Republic. Clearly, establishing meaningful partnerships pays off!
"REScoop.eu warmly welcomes UKEN to its network. As a European federation of energy communities, we recognize the importance of strong national organizations supporting community energy. In this context, UKEN serves as a model for regions where the legal framework for community energy is lacking or unstable. We look forward to the collaboration," said Dirk Vansintjan, President of REScoop.eu.
At the end of August, the ECA finally began to be discussed in the Chamber of Deputies. Despite its shortcomings, we supported the proposal because further delays in the start of community energy were simply unacceptable to us and our members.
We highlighted more efficient methods of electricity sharing, which are crucial for the economics of energy community projects, and strict limitations on voting rights. Once again, we brought examples of best practices from abroad in an effort to provide factual arguments against the pressure from the centralized energy lobby.
"The draft amendment, despite its shortcomings, is still of high quality, and therefore we support it. A good practice from abroad is to specify methods of electricity sharing directly in the text of the law. For example, in Austria and France, it is directly guaranteed at the level of energy laws that members of the community can distribute shared electricity according to their current consumption, using a dynamic method. This is crucial for the profitability of projects and for maximizing the use of electricity generated within the community," emphasized Eliška Beranová, a lawyer from Frank Bold and the head of UKEN's legislative working group.
As if that wasn't enough, we were closely monitoring the creation of another amendment that concerns community energy. Lex RES III (AEFA) introduces the concepts of electricity storage and flexibility aggregation into Czech law. Both are crucial for the development of renewable energy sources in the Czech Republic and community energy, and they finish the transposition of EU Directives (RED II and IEMD).
Energy communities can contribute to grid stabilization by providing flexible services, provided that legislation supports this. For further assessment, it would be beneficial for the Czech Republic to have an analysis of the costs and benefits of community energy and electricity sharing. As demonstrated by the Belgian experience, communities can help with the distribution network.
In November, we hosted an online press conference on the Electro-Energetic Data Center (EDC), which increasingly appeared to be the main reason for the delayed start of electricity sharing. Despite receiving a subsidy of 800 million CZK from the National Recovery Plan (NRP), the construction of the EDC was progressing slowly and inadequately considering the needs of energy communities.
Experts from the IT sector helped us build expertise in this area. We have submitted a document to the Ministry of Industry and Trade (MIT), distribution companies, and the Czech Transmission System Operator (CTSO) outlining the needs of our members and the technical possibilities of modern IT systems.
At the beginning of December, the Ministry of the Environment (ME) finally opened a call for pilot projects of energy communities, which we have been advocating for since 2022.
Together with the Ministry of the Environment, we have organized two webinars on how to properly prepare a project and apply for a grant. The first one was exclusively for our members. At the beginning of 2024, it was confirmed that there is indeed a great deal of interest in community energy in the Czech Republic. 83 projects are competing for support in the call.
"The demanding preparation of applications required considerable technical insight and close cooperation between partners in future communities, demonstrating that despite all obstacles, there is widespread interest in community energy here. With a relatively small allocation of funds, the Czech Republic will obtain 40 pilots that will pave the way for community energy. However, support should not end with them; the Ministry of the Environment should utilize additional funds from the National Recovery Plan and the Modernization Fund to enable the massive expansion of energy sharing from renewable sources," said Ondřej Pašek, an energy and grant expert from Hnutí DUHA and the head of UKEN's grant working group.
As recently as mid-2023, nobody believed that the Czech Republic would have legislation on community energy by January 1, 2024.
It's happened! The amendment to ECA smoothly passed through the Chamber of Deputies and the Senate, and the president signed it on December 22, 2023. However, electricity sharing will only be possible upon the commissioning of the first phase of the Electro-Energetic Data Center (EDC) by July 1, 2024.
We thank all UKEN members for their cooperation and perseverance; without you, we wouldn't have come closer to functional community energy in the Czech Republic.
Anna Michalčáková
+420 605 038 162
anna.michalcakova@uken.cz
