REC/CEC definitions

Overall assesment

Luxemburg has only proposed the transposition of the REC definition into national law. In doing so, some of the EU criteria have been left out (openness and autonomy). Furthermore, geographical proximity has been defined in an overly-narrow scope, neglecting technical characteristics of different types of activities. The definition leaves legal form open, so that any legal form could become an energy community. Nevertheless, the regulatory authority has a duty to oversee registration aspects of RECs, and service providers are forbidden from becoming a member/shareholder in a REC.

Detailed assesment

Criteria of EU definition reflected in national definition

  • Eligibility limited to natural persons, SMEs, and local authorities that are also network users + geographical proximity requirement
  • Geographical proximity is confined to the distribution network operator’s area of control (downstream from high or medium voltage to low voltage transformer stations)
  • Voluntary participation is ensured, including the right to leave within one year – the community may determine entry and exit in its statutes
  • Nothing on openness
  • Nothing on autonomy

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

  • The definition does not specify any requirements other than eligibility, beyond the text of the EU definition
  • Proximity is narrowly defined around grid features, which ignore the technical specificities of conducting different activities that may require a different geographical scope

Clearly defined purpose

Copy-paste of the EU definition

ICA cooperative governance principles reflected

As openness and autonomy are not mentioned, very few ICA principles are reflected.

Legal entities allowed

RECs are identified as legal persons, implying that the legal form is open.

Citizen participation is ensured

No, but eligibility is limited to final consumers, excluding commercial service providers to energy communities from becoming a member.

Designated authority to oversee

RECs must notify their creation, dissolution, and changes in composition, to the regulator and grid operator, although there is no requirement to comply with the participation requirements.

Number of definitions

1 – REC.

Coherency between both definitions