What legal issues should you pay attention to when establishing an energy cooperative?

In addition to industry-specific regulations, the Cooperative Law also applies. It defines the rules for the formation, registration, operation, and liability of cooperative members. In practice, this means that the process of establishing an energy cooperative requires the preparation of statutory documents, registration with the National Court Register, and obtaining an entry in the register maintained by the National Support Center for Agriculture (KOWR).

Who can establish an energy cooperative?

Members of a cooperative can be individuals, businesses, and local government units. The minimum number of founders is 10 individuals or three other entities (e.g., a municipality, a municipal company, or a business).It is important that an energy cooperative is non-profit – its goal is not to generate profit, but to collectively meet the energy needs of its members. The cooperative's income can only be used for its statutory activities, which include developing local energy infrastructure and reducing energy costs.

Key Formal Obligations

The founders of a cooperative must develop a statute that specifies, among other things, the management method, membership admission rules, organizational structure, and investment financing method. The statute should also precisely define the scope of activities – whether the cooperative will produce electricity, heat, or biogas.The next step is registration with the National Court Register (KRS) and filing an application with the register of energy cooperatives maintained by the National Support Center (KOWR). Only after registration can the cooperative formally begin operations and exercise the rights provided for in the Renewable Energy Sources Act, such as the ability to balance energy (net-billing).

Energy Billing and Cooperation with the Grid Operator

One of the key elements of an energy cooperative's operation is billing for energy produced and consumed by its members. In practice, this means collaborating with the local distribution system operator (DSO), which is responsible for energy metering, billing, and transmission.The cooperative can feed surplus energy into the grid and then withdraw it during periods of lower production. Balancing is performed on a value-based basis, requiring detailed billing. It's worth paying attention to the agreements with the operator and energy metering policies in advance, as they are one of the most common sources of organizational problems.

Tax and Financial Aspects

When establishing an energy cooperative, it's also important to consider the tax implications. Generally, a cooperative is subject to corporate income tax (CIT), but in practice, some revenue may be exempt if it serves its statutory purposes.It's also worth exploring the possibility of using financial support programs, such as "Energy for Rural Areas," the Modernization Fund, or funds from the National Reconstruction Plan. Many of these instruments offer grants or preferential loans for investments in renewable energy sources, grid modernization, and energy storage.

Member Risks and Liability

Members of an energy cooperative have limited financial liability, but must be accountable for obligations arising from the cooperative's activities within the limits of their contributions.Clear regulations regarding installation operation, asset management, and the allocation of maintenance costs are also important. In practice, most problems in cooperatives stem not from regulations but from a lack of clear agreements between members. Therefore, it's important to establish detailed internal regulations and procedures at the formation stage.

The Importance of Professional Document Preparation

A carefully drafted statute, regulations, and agreements with grid operators is crucial for the smooth operation of a cooperative. These documents should take into account not only current regulations but also future changes resulting from the energy transition and EU law, such as the "Fit for 55" package or the RED III directive.Initial formal errors can lead to difficulties in obtaining subsidies, disputes between members, or even the loss of energy cooperative status.

Legal and Organizational Support

The process of establishing an energy cooperative requires the collaboration of lawyers, energy experts, and economists. We assist local governments, farmers, and entrepreneurs in preparing comprehensive documentation, conducting legal analysis of projects, and negotiating with grid operators. We also support them in securing financing and implementing cooperation models that ensure regulatory compliance and long-term sustainability.