Energy Sharing Revolutionizes Swedish Housing Cooperatives
For years, the idea of housing cooperatives sharing self-produced electricity between buildings has been discussed, but regulations have long been a hindrance. Since January 1, 2022, this has become possible as electricity laws have been amended, allowing cooperatives to build internal power grids connecting multiple buildings, even on different property designations. The prerequisite is that the transfer occurs via an internal low-voltage grid and is connected to a shared production or storage facility, such as solar panels or a battery.
The technical term for this is microgrid or smart local energy grid. Regardless of the name, it’s about the same thing: a local energy system that optimizes energy use and often includes energy production and the ability to store energy. We will likely see this become much more common in the future. With a solar panel system, the solar panels on the roof can supply both common electricity usage such as elevators and laundry rooms, but also the energy consumption in apartments. Surplus electricity can be stored in batteries and used when consumption is highest – or when the electricity price is most expensive. If the cooperative has charging stations for cars, the charging boxes can be controlled smartly so that the cars are charged when the cooperative has its own electricity available.
Beyond Production: The Holistic Approach to Smart Energy Networks
But a smart energy grid is not just about producing, storing, and sharing electricity. Often, the journey begins with energy measurement of electricity and water. For example, the cooperative can replace private electricity subscriptions with a shared property subscription and sub-metering for each apartment. This saves residents money as they do not need to have their own subscriptions and the fixed costs that come with them. But individual metering and charging of hot water often reduces consumption by around 30 percent.
Energy measurement is the foundation for further energy efficiency. To measure is to know. Energy measurement provides a completely different decision-making basis for trimming consumption. This is often combined with, for example, 3D visualization of temperature in the property. By seeing how the heat is distributed in different parts of the house, the heating system can be adjusted more precisely. This not only leads to a more even indoor climate but also to large sums of money being saved, as over- or under-heating is avoided.
Navigating the Regulatory Landscape
The possibility, therefore, already exists on paper, but the reality is not always as smooth. Many cooperatives still encounter long processing times and different interpretations of the regulations from the electricity network companies. Sometimes, extensive dialogue with the Energy Markets Inspectorate is required, which can take time.
At the same time, the Energy Markets Inspectorate is preparing the next step: to introduce virtual energy sharing. This means that cooperatives should be able to share electricity via the public electricity grid within the same electricity area, even when the buildings are not directly connected. The EU requires all member states to have this in place by 2026 at the latest, and when this happens, completely new opportunities will open up for both larger and more dispersed housing cooperatives.
The Broader Benefits of Energy Communities
For a housing cooperative, a local energy grid or an energy community means more than just lower energy bills. It is about increasing the degree of self-sufficiency, cutting peak loads, and strengthening preparedness in the event of disruptions in the electricity grid. It is also a way to future-proof the property in the face of the tightened energy requirements that come with the EU’s new energy directive. And when energy measurement is smart, visualized, and linked to the control of the heating system, the savings can be far greater than what solar cells and batteries alone can provide.
The question is therefore no longer whether microgrids – or whatever word one prefers – will become common in Swedish housing cooperatives, but when. The cooperatives that already now combine local energy production with visualized measurement and optimized heat control have a clear advantage. When technology, regulations, and business models fall into place, they will be ready to go from vision to reality – and then energy sharing will become a natural part of how we run our properties.
Key Facts About Energy Sharing Regulations:
- Since January 1, 2022, it is permitted to build internal power grids that connect several buildings or properties, even if they have different property designations.
- The transfer must take place via a non-concession low-voltage grid connected to a common production or storage facility, e.g. solar cells or a battery.
- Applies within the same connection point to the public electricity grid.
Current Challenges:
- Unclear interpretations of the regulations from certain electricity network companies.
- Long processing times at the Energy Markets Inspectorate in the event of disputes.
What Awaits by 2026:
- The EU requires that virtual energy sharing be permitted by 2026 at the latest.
- This makes it possible to share electricity via the public electricity grid within the same electricity area, even when the buildings are not physically connected.
- The proposal has been submitted by the Energy Markets Inspectorate and is awaiting a political decision.
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