New Opportunities for Cities

Recent amendments to the regulations governing energy cooperatives have opened the possibility of establishing them in urban areas as well. Until now, such initiatives could only be undertaken in rural and urban-rural municipalities. However, the new regulations cannot yet be fully applied in practice, as they require approval from the European Commission, which Poland is still awaiting. The notification procedure has been registered under case number SA.121920. According to one of the latest positions issued by the Polish Ministry of Climate and Environment, the approval may be granted by the end of 2026. It is therefore worthwhile to begin preparatory activities now so that cities can efficiently implement these solutions once the regulations become fully operational.

What Is an Energy Cooperative?

An energy cooperative is a legal entity operating on the basis of its statutes and subject to registration in the National Court Register (KRS). Depending on its area of operation, whether rural, urban-rural, or urban, it must also be entered into the register maintained by either the Director General of the National Support Centre for Agriculture (KOWR) or the President of the Energy Regulatory Office (URE).

Its primary purpose is to reduce and optimize energy costs for its members. In the public sector, energy cooperatives already operate by bringing together local government units, their organizational entities, and municipal companies. This model enables the integration of local energy generation sources with major energy consumers, including energy-intensive entities. A carefully designed membership structure facilitates more efficient balancing and settlement of energy through its local production and consumption within the cooperative.

Stage 1. Energy Potential Assessment

Establishing an energy cooperative by public entities makes it possible to utilize existing generation assets, such as photovoltaic installations located on public buildings, as well as land designated for future energy investments. The energy produced can then be supplied to energy-intensive cooperative members, for example schools.

The first stage of preparations should include identifying potential energy generation sources and energy consumers, analysing energy demand, and selecting the optimal membership model.

The assessment should include: An audit of the energy profiles of local government units, municipal companies, schools, and district heating utilities; Identification of the main energy consumption points (PPEs); Analysis of daily and seasonal energy consumption patterns; Assessment of self-consumption potential; Inventory of available feedstocks, including sewage sludge and biowaste, as well as existing energy infrastructure.

Stage 2. Legal Structure and Cooperative Organisation

The results of the assessment form the basis for selecting the most appropriate legal model and undertaking the necessary implementation measures. These activities include, in particular:

drafting the cooperative’s statutes; determining the membership structure; assigning energy consumption points (PPEs) to individual members; preparing a preliminary energy balance and coverage forecast; submitting applications for connection conditions for renewable energy source (RES) installations.

The legal stage concludes with registration in the National Court Register (KRS) and the relevant register maintained by KOWR or URE. Registration in the register maintained by the President of URE will only be possible after obtaining approval from the European Commission.

Further Implementation Activities

The process does not end there. Some further implementation activities can, and should, be carried out in parallel with the assessment phase or immediately following its completion.

These activities include:

  • preparation of a feasibility study;

  • comparison of technological options and energy balancing models;

  • selection of contractors responsible for energy installations and technical operation;

  • securing financing for the project.

The practical and legal aspects of these activities will be discussed in future articles dedicated to the operation and development of energy cooperatives.