Companies can also be part of an energy community

What is an energy community?

Local Energy Communities (CEL for the acronym in Spanish) are a recent concept that aims to organise collective self-consumption movements, boost private investment in renewables, reduce energy dependence, bring energy generation closer to consumption, increase energy sovereignty and ensure grid access rights and freedoms, among other key concerns.

In essence, an energy community is a group of members (no less than five) who voluntarily self-organise in some kind of society (association, cooperative, etc.) to produce and/or consume energy that is locally sourced and, if possible, renewable, green and emission-free, fairer and with less environmental impact.

As the Spanish Government’s Institute for the Diversification and Saving of Energy (IDAE) points out, "energy communities can carry out multiple activities: producing, consuming, storing, sharing, or selling energy." Their common features include:

• Voluntary and open participation of its members, who may be individuals, companies or local authorities.
• Autonomy of the community and effective control of it by its members.
• Its main objectives will be to provide environmental, economic or social benefits, although there may be other benefits unrelated to economic profit.

Types of local energy communities and how SMEs fit into them

Current legislation allows for the establishment of two different types of local energy communities: Renewable Energy Communities (CERs), aimed at promoting the use of energy from renewable sources, mainly photovoltaic, and Citizen Energy Communities (CCEs), whose primary objective is to ensure equal and non-discriminatory grid access rights and freedoms, as well as to facilitate citizens' participation in the domestic electricity market.

Although the two are very similar in form and objectives, most of which coincide, there are some differences in terms of business involvement:

• In a Renewable Energy Community, participating SMEs can be: micro, small or medium-sized enterprises, with no limit other than being classified as an SME, with fewer than 250 employees, with an annual turnover of less than 50 million euros per year and a balance sheet total of no more than 43 million euros. Some 99.9 % of Spanish companies, roughly 3.4 million, belong to this category.
• In a Citizen Energy Community, only companies considered small or less, i.e. with a ceiling of less than 50 employees and 10 million in turnover, will be allowed. Despite this restriction, 99.3% of Spanish companies can participate in a CCE.

Advantages for SMEs in being part of an energy community

Most private (family or business) photovoltaic installations are not very productive when their surplus energy is not shared with other users because the average utilisation is very low. In residential contexts, many people spend the daylight hours away from home, and businesses are often closed during peak productivity.

The core of energy communities is the possibility of maximising the use of these largely underutilised facilities by leveraging the simultaneity factor, converting unused private facilities into elements of high occupancy and continuous demand. Local Energy Communities (CELs) take advantage of the fact that not all families, businesses, municipalities or factories have the same consumption curve, so that there is always a consumer for the energy generated by each photovoltaic panel.

For example, a family that puts photovoltaic panels on their roof will only get the most out of them if they do their washing or cooking during the middle of the day, which is precisely when fewer people are at home. However, the idea of CELs is that a nearby company can use this energy, for example, to microwave employees' lunches. During the weekend, the family does adapt their consumption better to the solar curve.

For SMEs, becoming part of an energy community, whether a Renewable Energy Community or a Citizen Energy Community, is not only an advantage in terms of the cost of the partial purchase of solar panels, but also a way of creating a community, making themselves known or "becoming part of the neighbourhood". It implies taking a step forward and integrating into the local fabric that surrounds them by sharing infrastructure with neighbours, the city council and other companies in the vicinity.

Additionally, another way to save on your business' energy bill is through our range of electricity tariffs for businesses, specifically designed to meet your business' needs. At Endesa, we can conduct a free analysis and create a strategy based on your usual consumption, the power you require, and additional products for your business maintenance.