Electricity Sharing Begins in the Czech Republic

The Czech Republic has officially launched its highly anticipated electricity sharing program today (1.8.2024), following a one-month delay. This initiative allows households, businesses, and buildings within municipalities to share electricity among themselves. The launch follows the opening of registrations at the Electricity Data Center (EDC) for energy communities and active customers. The original July start date was postponed due to preparations of the EDC’s information system.

Electricity sharing will become operational once the registration process with the EDC is complete, which will take approximately three months, and once smart meters are installed. “Customers will become active players in the energy market, instead of merely passive consumers. This will support local energy production and consumption, enhancing regional energy self-sufficiency. It will also ease the burden on the distribution network. This year, dozens of pilot projects are launching, and by 2040, community energy could cover up to 80% of the electricity consumption of Czech households,” says Laura Otýpková, a lawyer and energy law expert at Frank Bold.

Apartment buildings, where electricity sharing is already practiced, will also experience changes. They now need to register with the EDC by the end of this year to continue sharing electricity. New participants wishing to join the sharing scheme in these buildings must also register.

This revolutionary change in the Czech energy sector follows a two-year legislative process aimed at embedding community energy into law and legally enabling it in the Czech Republic. As a result, people will be able to reduce their electricity costs and achieve greater energy independence.

“With this step, a completely new era begins in our energy sector, and we are pleased that our company can contribute to the successful development of community energy. We are implementing the NRGCOM project, alongside more than ten other partners from across Europe, aimed at supporting the creation of energy communities,” notes Michaela Novotná, Director of the South Bohemian Agency for Support of Innovative Business.

The introduction of electricity sharing is one of many changes that will gradually transform Czech energy. Currently, legislators are discussing the Lex OZE 3 amendment, which will support the development of batteries and flexibility aggregation. This will be followed by the transposition of the new Electricity Market Design approved by the European Union in April of this year. These changes will modernize the Czech energy sector, making efficient use of data on production and consumption as well as available network capacity. All market participants – businesses, households, and municipalities – will benefit from renewable energy sources.