Energy cooperative and energy cluster with a biogas plant: definitions, limits, registers

An energy cooperative and an energy cluster are two different forms of local cooperation: a cooperative is a cooperative within the meaning of cooperative law (or a farmers' cooperative) that generates and settles energy or gas solely for its members, while a cluster is a written agreement in which a local government unit must take part. A biogas plant, a biomethane producer or a heat producer may be a member of either. Below we set out the definitions, limits and registers as of 2024.

Energy cooperative

The definition from the Act on Renewable Energy Sources: a cooperative under the Cooperative Law or a farmers' cooperative under the Act of 4 October 2018, whose business is the generation of electricity, biogas, agricultural biogas, biomethane or heat in RES installations, trade in them or their storage — solely for the cooperative and its members. The installations are owned by the cooperative or its members.

Cumulative conditions:

• operation in the area of a rural or urban-rural municipality or not more than three such municipalities directly adjacent to one another,
• the area of one distribution system operator (electricity, gas or heating),
• electricity: a total capacity of up to 10 MW, and an efficiency allowing at least 70% of the own needs of the cooperative and its members to be covered,
• heat: a total achievable thermal capacity of up to 30 MW,
• biogas or agricultural biogas: an annual output of all installations of up to 40 million m³,
• biomethane: an annual output of up to 20 million m³.

A cooperative may begin operating once its data have been placed in the list of energy cooperatives, which is kept by the Director General of KOWR.

Settlements. The quantities of electricity fed into the grid and drawn by members are settled at a ratio of 1 to 0.6, and members do not pay charges for the settlement itself. The commercial balancing costs of energy from installations with a capacity below 400 kW are covered in full by the relevant seller (Article 40(1a) of the Act).

Energy cluster

An energy cluster is an agreement (in written form on pain of nullity), in which the cooperating parties deal with the generation, storage, balancing, distribution or trade in electricity, fuels or heat. At least a local government unit or a municipal company must be a party.

• The area cannot exceed a county or five adjacent municipalities.
• The members are connected to the grid of the same distribution system operator at a voltage below 110 kV.
• The activity cannot include connections with neighbouring countries.
• The cluster is represented by a coordinator, who applies for entry in the register of energy clusters kept by the President of URE (entry within 14 days of the application).

Comparison

The role of the biogas plant

• A biogas plant may supply energy, heat or gas to members — in a cooperative also biogas delivered outside the gas grid.
• Its own entry in the KOWR register (agricultural biogas) or the URE register (other biogas, biomethane) remains mandatory.
• The limits are counted jointly for all the cooperative's installations, so before an expansion it is worth adding up the annual output of biogas or biomethane.

How to set up a cooperative — steps

1. Define the area and the members. Establish the municipalities in which you operate and the grid operator; check whether you fall within the limits on the number of municipalities and capacity.
2. Choose the form. A cooperative under the Cooperative Law or a farmers' cooperative; the statutes must cover activity in RES, including biogas.
3. Register the cooperative in the KRS and prepare data on the installations.
4. Submit an application for entry in the list of energy cooperatives to the Director General of KOWR. For electricity, the distribution system operator makes available on request historical metering data for the last 12 months.
5. Conclude agreements with the seller on settling energy with members; the rules of settlement are set by the Act (a ratio of 1 to 0.6, no charges for settlement).
6. Keep documentation and reports. The cooperative documents the quantities of energy, biogas, biomethane and heat generated and consumed by it and its members, and submits annual reports to KOWR broken down by month — within 60 days of the end of the year.

How to set up a cluster — steps

1. Conclude a written agreement with at least a local government unit or a municipal company, specifying the area, the coordinator and the scope of cooperation.
2. Indicate the points of offtake and feed-in of energy of the cluster's members.
3. Appoint a coordinator, who represents the members and applies to the President of URE for entry in the register of clusters.
4. After entry, ask the seller to adjust the members' comprehensive contracts; the seller has 90 days to conclude new contracts or amend existing ones.

Scenarios for a biogas plant

• An agricultural biogas plant and surrounding farms. A farmers' cooperative enables joint management of energy and heat; the biogas plant's own entry in the KOWR register still applies.
• A municipality with its own biogas or biomethane plant. A cluster makes it possible to combine the producer, municipal consumers and the local distributor in one agreement.
• Biomethane in a local grid. A cooperative may carry out biomethane activity for its members, within the limit of 20 million m³ per year and the area of one gas distribution system operator.

This text is for information purposes and does not constitute legal advice; before an investment or formal decision, check the current wording of the regulations and consult a lawyer or the competent authority.