Energy sharing? What is it and how does it work?

Energy sharing is sharing the excess energy produced by your solar panels with neighbors, friends or family. This takes place within so-called "energy communities," such communities bring buyers/producers together and allow them to exchange local energy between buildings. Energy communities are a way of organizing collective energy activities through an open and democratic system. The active participation of consumers can further promote renewable energy so that all relevant citizens have access to green energy, and help integrate it into a more flexible energy system. Users who, for practical or financial reasons, cannot produce their own energy can also purchase that shared energy. To this end, Flemish Energy Minister Zuhal Demir has drawn up an energy market reform plan.

Co-investment in solar panels on the roofs of apartment buildings is not so interesting at present, because the proceeds of the installation go to a particular resident, or only to the public part of the apartment building. Other residents do not benefit. But starting January 1, solar energy generated by the building can be distributed to all residents of the apartment building. This does not require the intervention of a legal entity.

Owners of a facility that produces electricity from renewable energy can resell their green power to other individuals or entities starting July 2022. This could be a neighbor, friend, family or business. This form of direct selling is also called peer-to-peer selling. Thanks to this peer-to-peer contract, as a green energy producer, you can choose to make your excess generated power available "for free" to family members in financial difficulty, for example. Thanks to this reform, the energy market in Flanders will become more social than ever before.

Starting in 2023, there will be the possibility of energy sharing through energy communities. People who join such an energy community will then have the opportunity to invest in renewable energy solutions as a group. In turn, the community can then begin to determine where the need or demand is highest. They can then invest in solar panels, a large battery for the entire neighborhood, communal charging stations for electric cars or even insulation. Both the costs and benefits of such an installation are then shared among community members. According to Demir, a local government can, for example, set up an energy community together with local residents and install solar panels on the roof of the sports hall or church. The power generated that is not used immediately can then be distributed directly to the participating local residents. Energy sharing is an ideal tool to reduce pressure on our future energy bills.

Energy Sharing is subject to a number of conditions to ensure its proper operation. All participants must have a digital meter that will be read on a quarterly basis. Each participant retains their individual meter and energy connection. In this way, each participant can choose whether to participate in an energy community and they are also free to choose an energy supplier. The Flemish grid operator Fluvius will handle the settlements associated with energy sharing and sales. They will register the different forms of energy exchanges and transmit the taken, injected and shared energy volumes to the relevant manager and energy suppliers. VEKA (Vlaams Energie- en Klimaatagentschap), VREG and Fluvius are now working on the technical regulations and outlining the technical requirements so that the future energy exchanges can proceed in a correct and automated manner.