These communities may carry out production, including of renewable energy, distribution and other activities described more precisely in § 1, item 76 of the Additional Provisions of the Energy Act (“EA”).

The changes implement the basic requirements of the European legislation, providing maximal legal and organisational freedom for associating in favour of the consumers. This could be carried out in the form of a trade company, cooperation, non-profit entity, under the Condominium Ownership Management Act, or a civil company under the Obligations and Contracts Act. The relations between the members of the communities shall be regulated by Articles of Association or a contract (depending on the legal-organisational form chosen). Given the lack of such regulation at present, it could be envisaged on legislative level in the future better specification of the mandatory content of the Articles of Association/contract, for instance – the obligation any profit generated to be spent for the development of the activity and not to be distributed in favour of the community members.

One of the key advantages of these energy communities is the absence of an obligation to have a license under Art. 39, para. 4, item 5 of the EA, the existence of which is a requirement for electricity production. Thus, the establishment of such energy communities is facilitated and stimulated.

Despite the undoubtedly positive aspects highlighted above, the new piece of legislation also has some disadvantages, mainly concerning the measures to promote the civil energy communities. For instance, the measure according to which cooperation as regards the transmission of community energy shall be provided to the relevant distribution network operator and/or thermal transmission company is rather wishful. Similar is also the situation with the required regulatory support, ensuring fair, proportionate and transparent administrative procedures, as well as the applying of non-discriminatory treatment to communities in terms of facilitating access to finance and information, etc.

Gabrovo Municipality is the first one that has benefited from the opportunity to create an energy community. Through cooperation with individuals and legal entities, the municipality has built a photovoltaic park with a nominal capacity of 100 kWp, with an initial investment of 180 000 BGN (approx. EUR 90 000). The initiative will involve a partnership between the municipality, natural and legal persons, and small and medium-sized enterprises. During the first stage participants registered on the territory of the Gabrovo Municipality would be accepted, whereas the second stage shall be open for participants from other regions of the country. The good European practices show that for the promotion of the measure, a detailed guideline with instructions to customers (including on the manners of financing) should be drafted. An awareness campaign on the benefits of the energy communities shall be carried out. This will stimulate interest in such cooperation, which will undoubtedly contribute to the realization of the Green Deal as a key EU priority.

Naturally, a more detailed regulation of the status of these communities as participants in the electricity market is required, in connection, for instance, to their relationships with the relevant network operator – connection, measuring, payment of network services, the conditions under which the end customer exercises rights as a separate end customer of the network and the status of the energy community as a participant, as well as the sustainable financing mechanisms.

By introducing these regulations for the establishment and operation of energy communities, a further step has been taken in stimulating the production of renewable energy, which is in line with the European directives.