Self-consumption and electricity sharing

The electricity generated by a building is used directly by its occupants, making the energy producer and consumer the same entity. To maximize the self-consumption rate, it’s important to align energy use as closely as possible with production. If there is surplus electricity, it can either be fed into the grid or stored for later use—either in a solar battery or by powering equipment like a heat pump that charges a buffer tank. Any electricity fed into the grid is compensated at the wholesale market price for that month. During times when production is low or absent, you can draw on stored energy or rely on the electricity grid.

Collective self-consumption means sharing the produced energy:

• within a condominium (several network users in the same building, behind a single connection point) ;
• between neighbours (maximum of three network users), where the distance between the two furthest injection or withdrawal points does not exceed 100 metres;
• or in the specific case of a network user with several supply points (e.g. an agricultural, craft or industrial establishment).

Collective self-consumption is only possible with a single low-voltage electricity grid operator. The first two cases are exempt from the grid usage tax for shared electricity, and the third case is only exempt if the maximum distance of 100 metres is respected.

The energy is shared based on an allocation scheme to be defined between the members of the sharing group. Agreements must be drawn up with the grid operator and between the members of the sharing group to set up this distribution.

An energy community is possible in two scenarios

• the local energy community (sharing of renewable energy when the distance between the two furthest points of injection or withdrawal does not exceed 300 metres, and exemption from network use tax, a single electricity network operator and low voltage)
• the national energy community (without geographical restrictions, but without exemption from the grid usage tax).

By law, an energy community must be set up as a legal entity. With the exception of large companies, any private or legal entity, including public organisations, is eligible. All types of business are permitted. The production plants ( possibly at national level) can be joint or individual.

In the context of the electrical system, a site¹ consists of contiguous parcels on which all network users are electrically connected to each other through the same electrical installation, located downstream of the same connection point. Thus, electricity produced on a site and consumed at the same time on that same site does not pass through the public network.

¹ a national, regional, or municipal economic activity zone is not considered a single site.

An energy community is a legal entity whose statutes specify that its main objective is to offer environmental, economic, or social community benefits to its members, shareholders, or the local areas where it operates, rather than generating financial profits. An energy community is authorized, among other things, to organize the sharing of electrical energy produced by generation units, which the community or its members/shareholders own or have made available to the community through a leasing contract, without prejudice to network access fees, usage fees, and other charges, levies, and taxes applicable to each member of the community. This sharing can be organized into one or more sharing groups. In general, an energy community is used by its members or shareholders as a vehicle to jointly participate in the energy sector. The majority of existing energy communities are structured as cooperative companies or non-profit associations. Communities are required to notify the regulator of their creation and dissolution.

It should be noted that large companies cannot be shareholders or members of an energy community.

The role of a supplier is specifically regulated by the amended law of August 1, 2007, concerning the organization of the electricity market. This role involves several obligations, which also apply to an actor who chooses to become a supplier, in order to sell electricity produced on the same site to an end customer through a power purchase agreement. The main implications of this role are as follows:

• Every electricity supplier is an obligated party under the energy efficiency obligation mechanism². This obligation to promote energy-saving projects is based on the supplier’s market share. The quantities sold on the same site are not considered in determining the supplier’s market share;
• If a supplier provides electricity to residential customers, they are required to offer standardized, published, and non-discriminatory products to all residential customers and must apply a number of consumer protection rules, including transparent billing;
• Every supplier is required to bill the amount of electricity consumed by the customer according to specific conditions outlined by law;
• Every supplier is required to provide certain data to the ILR (Institute of Regulation) for statistical purposes.

² established by article 48bis of the amended law of August 1, 2007 on the organization of the electricity market (article 48bis de la loi modifiée du 1er août 2007 relative à l’organisation du marché de l’électricité)

A company that employs more than 250 employees, or whose annual turnover exceeds 50 million euros, or whose total annual balance sheet exceeds 43 million euros.