An energy community is a legal entity in which citizens, local businesses or authorities work together to generate, share, store or supply energy. Its primary aim is not profit but environmental or community benefits for its members and the surrounding area.
Legal basis
The concept comes from two European directives: the renewable energy community in Directive (EU) 2018/2001 and the citizen energy community in Directive (EU) 2019/944. The Energy Act, in force since 1 January 2026, anchors the energy community in Dutch law and regulates energy sharing between connected parties. The defining feature is the control requirement: the community is controlled by members or shareholders who are natural persons, small businesses or local authorities, and participation is open and voluntary. The community may supply energy itself, but needs the relevant licence to supply small consumers.
How it works in practice
Most initiatives opt for a cooperative or an association, since that form fits the control requirement. The articles must record the social purpose and the openness of participation. Alongside the corporate structure, three points deserve attention: the relationship with the grid operator and the connection regime, the tax consequences for members, and whether the community supplies energy itself or works with a licensed supplier.
Where it goes wrong
Initiatives underestimate the licence requirement for supplying small consumers and the conditions attached to it. A second error is articles under which a developer or investor in fact retains control, so that the community does not meet the definition. Third, arrangements for withdrawal and for distributing proceeds are frequently left unresolved.
Related terms
The energy community connects to the supply licence, the net metering scheme and the Energy Act.
Setting up an energy cooperative? Our energy law specialists review the articles and the licence requirement.
