Guidelines on community-led heating and cooling

Supportive framework

Regulatory framework for Community-led Heating and Cooling

The best way for the government to support the development of energy communities and their H&C activity is by setting clear and strict not-for-profit accounting rules for H&C projects (as Denmark did). This ensures low and stable H&C prices for households, and serves as fertile ground for social economy actors to grow.

If a Member State does not mandate the not-for-profit nature of the H&C sector, another approach is to specify the role of community-led heating and cooling in the sector through legislation. This definition can ensure equal market access for community-led Heating and Cooling, like citizen-led district heating and cooling, allowing the national government to establish their own support systems to assist citizens in developing their own district heating systems and accessing the market.

Our recommendation is for Member States to adopt both approaches: Include a clear definition of energy communities and Community-led Heating and Cooling, accompanied by robust not-for-profit regulations, and stringent rules governing transparency and accounting of H&C projects.

 

Example

The Danish Heating Supply Act permits the formation of H&C projects through various entities: Municipalities, a combination of municipalities and cooperatives, or commercially-owned entities. District heating cooperatives hold a legal status equivalent to that of district heating companies. All these entities are bound by the same regulations governing the district heating sector, which are verified by the Danish Utility Regulator. It operates under a non-profit principle, where expenditures and earnings find equilibrium. The Heat Supply Act delineates which costs can be factored into the heat pricing equation — only those directly linked to heat supply are eligible. However, some exemptions exist on the not-for-profit principle.

 

Does your Member State have good practices for energy communities and their H&C, and you would like to see it in these Digital Guidelines? Send an email to info@energycommunityplatform.eu.