Bürgerenergie Rhein-Sieg, a leading citizen energy renewables cooperative in Siegburg, Germany, is set to redefine clean energy sharing with the construction of a state-of-the-art solar park on newly leased land at a former landfill site. With over 350 members joining forces since 2011, this cooperative aims to revolutionize the way we generate, distribute, and consume environmentally friendly electricity.

Germany prides itself on nearly 900 civic energy communities, forming a significant part of the European Union’s (EU) 9,000 community-driven initiatives across northern Europe. By purchasing cooperative shares, anyone can be part of these communities, contributing to the growth of clean energy. At Bürgerenergie Rhein-Sieg, a single share costs €250 ($275), providing members with returns on their investment and dividends from the electricity they feed into the public grid.

While the EU supports citizen energy cooperatives and aims to decentralize Europe’s electricity market, challenges remain. Thomas Schmitz, the volunteer director of Bürgerenergie Rhein-Sieg, highlights the need for “energy sharing” to distribute and sell collectively produced electricity within the region. However, current regulations prevent the distribution of self-generated electricity to neighboring households.

Germany’s Ministry for Economic Affairs and Climate Protection acknowledges that EU law does not favor the privileged treatment of collectively generated power. Despite this, the non-discriminatory treatment of renewable energy collectives is encouraged. The inability to channel electricity through the public grid poses a significant obstacle to energy sharing, hindering the growth of this emerging sector.

Furthermore, Germany’s current regulatory framework limits the profitability of selling citizen-generated electricity via the public grid. Levies and taxation on energy trading would significantly increase costs for energy-sharing cooperatives, deterring potential customers. This creates a disparity where private solar power from individual homes enjoys exemptions, while communal solar parks face burdensome expenses.

Felix Schäfer, co-founder and co-chair of Bürgerwerke, emphasizes the need for levies reduction to foster energy sharing. By reducing taxes and transmission fees imposed on electricity traders, small energy cooperatives can provide affordable green community electricity to customers. This would make locally sourced renewable energy a cost-effective alternative to imported hydropower.

Bürgerenergie Rhein-Sieg and other energy cooperatives call on the government to address these regulatory challenges and create an enabling environment for clean energy sharing. By promoting fair treatment and reducing levies, Germany can unlock the true potential of citizen-driven renewable energy projects, paving the way for a greener and sustainable future.

Source: DW