Energy communities and real estate in Austria

An energy community is the association of at least two participants for the joint production and utilisation of energy. Energy communities (ECs) are an essential building block for producing and consuming electrical energy locally (self-sufficiency/partial self-sufficiency). The aim is to increase regional power generation and consumption while at the same time preserving grid capacities. 

Forms of energy communities 

There are three different models of ECs. The requirements of all models are a built-in smart meter (intelligent measuring device) and the measurement and storage of quarter-hour values (opt-in). 

1. The communal generation system (CGS)
   Since 2017, several people who use a common grid connection (e.g. residents of apartment buildings) have been able to produce and jointly utilise electricity as part of a communal generation system (CGS). The CGS generates electrical energy to cover the consumption of the participating beneficiaries (= natural or legal persons). It exists in addition to the energy supply via the public power grid. Each party in a building with a shared generation facility has the free choice to participate. The supplier for residual electricity can still be freely chosen. 
   
   
2. The renewable energy community (REC)
   Since 2021, several people have been able to produce, store, consume and sell energy across property boundaries.
   
   The renewable energy community (REC) is particularly characterised by its regionality. Participants must be in close proximity to one another, and a distinction is made between local and regional RECs. It is possible, among other things, to share electricity and heat within the community, but the energy generated must come from renewable sources – e.g. a small company installs a photovoltaic system on its warehouse roof, covers its own direct consumption, and shares the “unused” electricity (surplus) with other residents of the town.
   
   
3. The citizen energy community (CEC)
   A citizen energy community (CEC) is an energy community in which participation is not limited to a specific geographical area. CECs can extend across the whole of Austria. A CEC is only active in the electricity sector, whereby the electricity can come from both fossil and renewable sources. 

Example: A municipality in network area A installs a photovoltaic system on a school roof. Its partner municipality in network area B revitalises a small hydroelectric power plant. They share the electricity they generate to operate e-charging stations in their respective municipalities. Citizens can also participate in the energy community and purchase the electricity they generate themselves. 

Multiple participation and use for property developers

Previously, participation in one EC model precluded participation in another EC (multiple participation), and the surplus electricity produced had to be fed into the public grid. 

Since April 2024 there have been provisions to allow for multiple participation in ECs (Section 111 (8) of ElWOG 2010). Real estate developers can also benefit from this – for example, the electricity from a rooftop photovoltaic system can initially cover the electricity needs of the house's residents and the surplus can then be made available to an energy community (or fed into the public grid). The real estate sector in general is expected to focus on renewable energies, as well as multiple participation and the added value it holds. 

Quo vadis? 

Large property developers are a major lever in the switch to renewable energy sources and finding ways to make optimal use of solar energy’s potential. Due to various regulations and guidelines, property developers in some cases even obliged to build solar systems. For example, the Vienna Building Code has required all new buildings to be solar-powered since 2024. 

In future, project developers will have to consider creating rooftop spaces suitable for photovoltaics/solar power, so the electricity generated can be used as effectively as possible for the residents. The establishment of ECs and participation in such communities will play an important role in the future. 

Mario Kapp was the sole founder of the law firm in 2006. He is also the Managing Partner and specialises in bankruptcy law, corporate law, and business restructuring.

Raffaela Lödl-Klein is a partner of KAPP & PARTNER Rechtsanwälte GmbH, and specialises in real estate and corporate law. She joined the firm in 2013.