A comprehensive process for establishing an energy cooperative

The case involved a group of entities interested in jointly generating electricity from renewable sources and benefiting from preferential billing rules provided for energy cooperatives. The ambition of the initiators of the project was to create a sustainable local organizational structure that would enable the community’s energy independence, lower energy costs for its members and actively participate in the region’s energy transition.

Complexity of the process

The establishment of an energy cooperative in practice involves a number of legal, organizational and regulatory requirements, the fulfillment of which requires specialized knowledge of energy law, cooperative law and regulations on renewable energy sources. An energy cooperative must meet precisely defined statutory conditions – concerning, among other things, the number of members, the area of operation, the capacity of installed generation sources or the ratio of generated energy to its total consumption by members – failure to meet which precludes the possibility of using the preferential billing system. An additional challenge was to design the cooperative’s internal organizational structure and operating rules in a way that suited the specifics of the founding group and the long-term investment plans of its members.

Law firm’s activities

The HWW team carried out comprehensive legal services for the entire process – from the conceptual stage to the registration of the cooperative and its application to the National Agricultural Support Center. At the initial stage, the law firm conducted a detailed analysis of the legal and technical conditions of the project, verifying the fulfillment of the statutory prerequisites necessary to obtain the status of an energy cooperative. The team then drafted full incorporation documentation, including the cooperative’s charter taking into account the specifics of the energy business, the rules for joining and withdrawing members, and the rules for managing the joint generation infrastructure. The firm also supported the client at the stage of reporting the cooperative to the NEB list and concluding the relevant agreements with the DSO in order to fulfill the obligations under the applicable law. Throughout the process, the HWW team provided ongoing advice, explaining to the cooperative’s members the rules of the billing system and their practical financial implications.

Result

The registered energy cooperative obtained full legal and regulatory status entitling it to benefit from the preferential energy billing system provided for such entities in the Law on Renewable Energy Sources. The smooth execution of the entire process allowed the founding group to avoid the typical legal and organizational pitfalls that in practice often delay or prevent the successful launch of such initiatives. The case is an example of effective support for the local community in building energy independence using available legal and regulatory instruments.

Aleksandra Lindner – Partner, Attorney at Law, Court Mediator; Zuzanna Bokina-Kiełbasa – Legal Counsel, Managing Associate Corporate&Energy Team; Aleksandra Chomicka – Legal Counsel, Senior Associate were responsible for handling the case on the Law Firm’s side.