What is an energy cooperative – how does it work and why is it gaining importance?

An energy cooperative can operate within one municipality or two neighboring municipalities. Its members can be individuals, businesses, and local government units.The cooperative generates electricity, heat, or biogas from renewable sources—most often photovoltaics, agricultural biogas plants, or small wind farms-and then uses it for its members' own needs. Unused energy is fed into the grid and billed through a system called net-billing, which involves balancing energy consumption over time.

Benefits for members and the local community

The greatest advantage of an energy cooperative is the ability to reduce electricity and heating bills. Producing energy for one's own needs reduces dependence on external suppliers and market price fluctuations.Furthermore, energy cooperatives strengthen local energy security – energy is generated and consumed locally, reducing transmission losses and grid congestion. In many municipalities, such initiatives also contribute to job creation in the renewable energy sector and the development of local installation companies.

Energy Cooperatives in Agriculture and Local Government

The cooperative model works particularly well in rural and agricultural communities. Farmers with large roofs and land can gain an additional source of income through joint investments in photovoltaics or biogas plants.Local governments, on the other hand, use energy cooperatives as a tool to reduce the costs of maintaining public buildings, street lighting, and municipal facilities. In many cases, a municipality's membership in a cooperative also allows for easier access to EU funds for the development of local renewable energy sources.

Significance for businesses and local economies

Companies joining an energy cooperative can stabilize their energy costs, which is crucial in times of high electricity price volatility. By investing in renewable energy sources, businesses gain access to cheaper energy and can improve their image as environmentally friendly entities.From the perspective of the entire local economy, cooperatives foster the development of independent energy clusters, support energy transitions, and increase regional resilience to energy crises.

How to Establish an Energy Cooperative

To establish an energy cooperative, you need at least 10 individuals or three other entities (e.g., companies or municipalities). It's necessary to develop bylaws, register with the National Court Register, and obtain an entry in the register maintained by the National Support Center for Agriculture (KOWR).A technical and economic analysis of the project is also crucial – determining the installation's capacity, energy demand, and balancing method. The cooperative can benefit from funding under programs such as "Energy for Rural Areas" or from the Modernization Fund.

Challenges and the Future of Energy Cooperatives in Poland

Although the number of energy cooperatives in Poland is growing, they still face legal and administrative barriers. The most common include difficulties connecting installations to the grid, complex settlements with operators, and limited access to financing.At the same time, energy cooperatives align with the EU's climate policy goals and will play an increasingly important role in implementing the energy transition, especially at the local level.

Energy Cooperative Support and Consulting

Establishing energy cooperatives requires a combination of legal, technical, and financial expertise. We support local governments, businesses, and local organizations in analyzing the feasibility of establishing a cooperative, preparing documentation, and securing financing. We help assess the benefits and risks, and adapt the project to current legal requirements and support programs.