Denmark

REC/CEC definitions

Overall assesment

In July 2021, RECs were inserted into the Law on the Promotion of Renewables, while in an Executive Oder both CECs and RECs are defined. The CEC definition covers all relevant criteria in the EU Definition. In particular, the definition goes into some detail on how to avoid abuse or control from other companies or individual members. It will be necessary to see how this evolves along with the REC definition. Furthermore, the electricity law will soon be revised again, so it will be necessary to monitor for any additions to the definition.

Detailed assesment

Criteria of EU definition reflected in national definition

  • Open and voluntary are covered
  • REC definition mentions autonomy
  • CEC definition does not mention geographical proximity
  • Both definitions elaborate effective control, but there are other more strict controls (see below)

Level of detail in the elaboration of principles contained in EU criteria

For CECs, effective control is limited to small businesses, while for RECS, effective control is determined by physical proximity. Physical proximity is not further defined.

For both citizen and renewable energy communities:

  • Energy communities can develop internal eligibility (enter and exit) criteria as long as they are not discriminatory and are based on company laws for the legal entities that are used
  • Natural and legal persons engaged in extensive commercial activities and energy sector activities as a main economic activity, as well as individuals that are part of the management of other companies, are forbidden from taking decisions on behalf of the community
  • Members engaged in extensive commercial activities and energy sector activities as a main economic activity, as well as individuals that are part of the management of other companies, are forbidden from exercising decisive influence in the community (autonomy)
  • For energy sharing, it is possible to set up a new REC and CEC in order to provide the sharing of electricity for the energy community

Clearly defined purpose

No.

ICA cooperative governance principles reflected

To the extent they are covered in the definitions, yes. But they are not elaborated in detail.

Legal entities allowed

Can be an association, partnership, cooperative, or capital company.

Citizen participation is ensured

No.

Designated authority to oversee

Yes, but nothing about checking compliance with definition.

Number of definitions

2

Coherency between both definitions

Both definitions are covered by the same Executive Order, suggesting similar core treatment.