Each consumer, independent of their place of residence in Luxembourg, has the right to apply self-consumption, respectively to constitute or join a Sharing group.

The Law (Loi du 9 juin 2023 modifiant la Loi du 1er août 2007 relative à l’organisation du marché de l’électricité) provides for two ways of sharing electrical energy with others:

• either as a member of a group of “jointly acting renewables self-consumers” (AC);
• or as a member of an “Energy Community”

In particular, grid operators identify consumers and production plants by their “Points Of Delivery” (or “POD”). Each POD is unique and can at any time be clearly identified by the grid operator via its number and then be assigned to a specific consumer or producer.

Each consumer must have a supply contract with a supplier for each POD. This means that the consumer must sign a supply contract with a supplier of their choice, even if they have a production plant on their roof or if they are part of a Sharing group. The same applies to grid users who solely join a Sharing group as a consumer (i.e. without being in possession of their own production plant).

The advantages of joining a Sharing group are obvious: each kilowatt hour shared or not taken from the grid does not have to be purchased from a supplier. This reduces dependence on price fluctuations in the energy market. In addition, shared electricity is exempt from taxes and fees. So one benefits from cheap, self-produced electricity and is still reliably supplied with electricity by their electricity supplier if the own production plant produces no or not enough electricity.

The grid operator measures the offtake and injection data and determines the energy balances, taking into account the distribution keys. Thus, the electricity supplier does not charge for the electricity produced and consumed within the Sharing group.

If several grid users wish to share their electricity, they can jointly form a CE. A CE must always be constituted in the form of a legal entity. In addition, any holder of a POD, who wishes to share their electricity within this Sharing group, must be a member or shareholder of this legal entity.

A non-profit association or a cooperative society are most suitable as a legal form. This is the case because the main objective of an Energy Community is to offer environmental, economic or social community benefits to its members rather than generating financial profits.

A CE can establish one or more Sharing groups by signing the respective agreement(s) with the relevant grid operators.

If the Sharing group is made up exclusively of PODs located in the “low voltage” network with a respective distance of 300 meters maximum, it is called a “Local Sharing group” (CE-L), otherwise a “National Sharing group” (CE-N). The difference between the two types of Sharing groups is that in the Local Sharing group, the shared electricity is not subject to the volumetric tariff for the grid usage.

As with an AC, there must be an electricity supply contract for each POD belonging to a CE. In this case, the distribution keys must be defined in the agreement between the CE and the grid operator.

No one can be forced to join a CE. If a member of a Sharing group wishes to leave the group, they can do so within the time limits provided for in the agreement between the Sharing group and the grid operator.