Landmark RAAEY decision on the institution of Energy Communities

Landmark RAAEY decision on the institution of Energy Communities

A fundamental step towards cleaning up the sector, prompted by the case of the Akarnanika Mountains.

A highly significant decision aimed at the reform of the institution of Energy Communities (EnComs), Citizen Energy Communities (CECs) and Renewable Energy Communities (RECs) was announced last week by the Regulatory Authority for Waste, Energy and Water (RAAEY). According to the announcement posted on the Authority’s website last week, RAAEY interpreted the relevant provisions of the legislation in order to address the issue of ownership concentration  that has arisen during the licensing process of energy communities, which leads to the abuse of rights granted by the legal framework governing energy communities..

 

The extensive and detailed announcement of RAAEY leaves no room for misinterpretation regarding cases of abuse of the energy community model. Its key points can be summarised as follows:

  • It is stated in the most categorical terms that ownership concentration within EnComs, CECs and RECs contradicts their cooperative character and effectively undermines their non-profit nature (which the legislation explicitly requires for these entities), masking commercial exploitation.
  • It is made clear that the correct interpretation and application of the legislative framework leads to the understanding that the legal entities participating in the aforementioned energy communities are independent from each other,meaning that they are not connected through a natural or legal person who participates directly or indirectly in their management or holds any shareholding, regardless of size,as a shareholder, partner or member of a legal entity.
  • RAAEY concludes with a categorical statement that it is entitled to verify the ownership structure of EnComs,either on its own initiative or following a complaint,and — in cases where the independence requirement of their members is not met — to proceed even to the revocation of Production Certificates/Licences.

The basis for RAAEY’s important decision . the joint intervention and complaint by 22 environmental organisations, regarding the abuse of the legal framework by energy communities that act as operators of 15 wind power stations in the Akarnanika Mountains.In this specific case, brought to light by the Hellenic Ornithological Society,, ownership concentration and clear non-compliance with the independence requirement of EnComs members were observed,since nearly half of the members of each community are single-member companies owned by the same economic operator. Although this deviation from the legislation had been repeatedly pointed out, until now no action had been taken by the authorities to clarify the relevant legal framework — a gap that is now being addressed clearly and decisively.

The undersigned organisations welcome RAAEY’s announcement,which they consider a necessary and fundamental step towards the reform of the sector and the recognition of genuine energy communities. In the next phase, we expect both the implementation of the decision, starting with the case of the energy communities in the Akarnanika Mountains,and relevant initiatives by the Ministry of Environment and Energy,such as issuing clear guidance to all authorities involved in licensing renewable energy projects, to identify and address such abusive cases.

The undersigned organisations::

  1. Alkyoni – Association for the Care and Protection of Wild Animals
  2. ALKYON – Federation of Environmental Organisations of the Gulf of Corinth
  3. ANIMA – Association for the Protection and Care of Wildlife
  4. ARION, Cetacean Rescue and Care Research Centre
  5. ARCHELON, The Sea Turtle Protection Society of Greece
  6. Hellenic Society for the Protection of Nature
  7. Hellenic Ornithological Society
  8. Society for the Protection of Biodiversity of Thrace
  9. Society for the Protection of Prespa
  10. CALLISTO
  11. Ecological Recycling Society
  12. PANDOIKO – Panhellenic Network of Environmental Organisations
  13. Pindos Environmental
  14. Naxos Wildlife Protection Association
  15. “Tulipa Goulimi” Association
  16. Friends of Nature Greece Greece
  17. Greenpeace
  18. iSEA
  19. MEDASSET
  20. MedINA – Mediterranean Institute for Nature and Human
  21. The Green Tank
  22. WWF Greece