Energy cooperative – what is it all about?

I have noticed growing interest in energy cooperatives, but at the same time a lack of knowledge about them. I hope that the following information will be useful to anyone interested.

What is an energy cooperative?
An energy cooperative is a special form of cooperative whose economic activity focuses on the production of electricity, heat, or biogas exclusively for its own needs and those of its members, using renewable energy sources. Its main goal is to achieve energy self-sufficiency for its members and to reduce the costs associated with purchasing energy from external sources. The members of the cooperative – individuals, entrepreneurs, and local government units – form an energy community that organizes energy production and consumption in a balanced, local manner, in accordance with the principles of sustainable development.

Benefits for members and local communities

Energy cooperatives benefit from a number of facilitations, such as:

· exemption from part of distribution fees,

· no obligation to purchase and submit certificates of origin for redemption,

· exemption from excise duty for installations with a capacity of up to 1 MW,

· simplified settlement rules using a discount system.

Barriers and practical challenges

Despite the planned incentives, practice shows that the development of energy cooperatives faces significant difficulties:

High investment costs – RES installations and network infrastructure require large capital outlays, and access to financing is sometimes limited.

Problems with grid connection – obtaining connection conditions from distribution network operators is often time-consuming and subject to additional requirements, which translates into costs.

Regulatory obligations – cooperatives whose members are local government units are subject to the rigors of the Public Procurement Law, which prolongs the investment process.

Energy balancing – the need to meet self-consumption thresholds (40% by the end of 2025 and then 70%) requires careful selection of members and investment in energy storage facilities.

Risk of inspection and removal from the register – failure to meet the statutory conditions may result in intervention by the National Agency for Renewable Energy Sources and Energy Conservation (KOWR) and administrative sanctions.

In summary, an energy cooperative is a way to obtain cheaper energy, greater independence, and a real impact on the environment around us. However, for cooperatives to have a real impact on our lives, it is necessary to reduce the complexity of regulations, standardize procedures, and ensure stable financial support instruments. Only then will the potential of cooperatives be fully exploited—to our benefit!