The European Green Deal, the climate neutrality target and the unavoidable energy security requirement – all of these are driving the shift towards renewable energy sources (RES). The phenomenon of recent years is the rise of numerous solar power systems as installing panels on roofs or building facades has become both effective and affordable.
The Surplus Problem and Solution
Although green energy can be consumed locally, we face a fundamental practical challenge: generation rarely matches delivery in real-time, creating a persistent imbalance between production and demand. This temporal mismatch is where the surplus arises.
We can store surplus electricity in storage facilities – battery systems – at the point of generation until it is needed. However, this has its limitations such as:
- during prolonged storage, self-discharge and energy losses occur,
- after a certain number of charging cycles, the battery’s capacity decreases,
- procurement, operation and disposal are costly.
For households or small businesses, the combination of PVE and BESS is generally a less advantageous solution.
This led to the development of a specific service – a virtual battery. Essentially, it operates as an accounting mechanism. The producer (e.g. a small PVE owner) feeds surplus electricity into the distribution network. The trader later credits this energy to specific delivery points via an evaluation system, based on a pre-agreed allocation key. The distribution network thus acts as a virtual storage facility: electricity is “fed” into it when there is a surplus and “drawn” from it when needed.
This entire process takes place purely at the level of accounting and settlement. Thanks to this virtual battery, electricity generated at one location can seamlessly be “sent” via the grid to another participant within a sharing group.
Interestingly, virtual battery services were introduced in Slovakia long before EU legislation officially codified the concept of energy sharing.
The most effective solution to the RES surplus problem is electricity sharing – and this is precisely what has become an increasingly important topic in the Slovak electricity market over the past two years.
A further step envisaged under the Renewable Energy Directive is the development and promotion of battery energy storage systems (BESS), which are expected to complement sharing mechanisms by enhancing grid flexibility.
Whether it involves sharing within an apartment building, between family members at different delivery points, or within a fully-fledged energy community – the key to success lies in properly establishing contractual relationships.
I. Electricity Sharing Benefits
Electricity sharing brings economic, environmental and social benefits – and these reinforce one another.
Economic savings. A sharing group enables more efficient use of locally generated electricity. An active consumer who generates more than they consume does not have to sell the surplus back at a regulated price – they share it with other group members, effectively reducing their energy costs.
Sharing for remuneration and free of charge. The law explicitly covers both options. Directive (EU) 2024/1711, in recital 23, requires that active consumers be able to share surplus production for a fee or free of charge and that they have the right to participate in shared facilities (up to 6 MW) directly or through an organiser.
Protection against discrimination. The law prohibits suppliers from making the conclusion of a supply contract conditional on a ban on sharing or a restriction on the amount shared. Such contractual provisions are absolutely void – they have no legal effect.
Flexibility of use. Sharing covers two aspects:
- Internal sharing – electricity generated or stored at one supply point and consumed at another supply point belonging to the same entity.
- External sharing – electricity generated by one active consumer and supplied to another active consumer, either for a fee or free of charge.
Community dimension. Community energy focuses on the local generation, storage, distribution and supply of electricity. It contributes to energy security, the fight against energy poverty and decarbonisation. It supports the local economy and helps Member States meet their climate commitments.
Out-of-court dispute resolution. RONI is the competent authority for the alternative resolution of disputes arising from electricity sharing agreements. Active consumers have access to an effective mechanism without the need for lengthy court proceedings.
II. Legislative Development
Interestingly, there is a slight terminology difference between the language versions. While the official English text of the relevant EU legislation explicitly uses the term “energy sharing,” the Slovak translation adopted the term “joint use of energy”.
Beyond terminology, there is also a notable substantive difference: whereas EU legislation limits sharing to electricity generated from RES, Slovak law extends the scope of sharing to electricity from any primary source, not solely renewables.
Recently, Directive (EU) 2024/1711 introduced a precise legal definition of ‘energy sharing.’ It defines it as the self-consumption of renewable energy by active customers, which is either generated or stored off-site or on-site by a facility they own, lease, or rent in whole or in part, or energy to which the right has been transferred to them by another active customer, whether free of charge or for a fee.
Article 15a of the Directive (EU) 2024/1711, titled “Right to energy sharing”, goes even further in securing active customers’ rights. It sets out that active customers shall be entitled to:
- share renewable energy among themselves based on private agreements or through a legal entity,
- appoint a third party as an energy sharing organiser — a newly defined energy market entity — to manage the communication, contracting, billing, and operation of the sharing.
Furthermore, the Directive officially introduced the energy sharing organiser as a new market entity and clearly defined its role.
At the national level, Slovak legislation has undergone several amendments regarding energy sharing, with each update fundamentally changing the rules of the game.
Phase One: the open regime.
The initial framework, established in 2024, operated through individual agreements between entities, allowing for flexible energy sharing.
Phase Two: restriction to a single balance group.
Subsequently, rules tightened: all delivery points within a sharing group had to share the same balance group. Officially announced aim was to resolve technical complications—namely, the administrative friction caused by settlement entities reporting data under different Balance Responsible Parties (BRPs) at mismatched intervals.
The consequences were profound. Forming a group required all members to consolidate under one electricity supplier—a restrictive barrier that hampered new initiatives.
Crucially, this condition appeared during the final legislative stages, post-comment period. Municipalities, businesses, and residential complexes were blindsided, discovering it only upon publication in the Collection of Laws. Lacking transitional provisions, existing groups were retroactively forced to restructure. The professional community criticized the amendment as both impractical and potentially incompatible with European energy law.
Key change: The End of the Single Balance Group Restriction.
Act No. 259/2025 Coll. brought about a fundamental shift. It amended the Energy Act, the Act on Regulation in Network Industries, and the Act on the Promotion of RES and High-Efficiency Cogeneration. The changes came into force on 1 November 2025 and 1 January 2026, respectively.
The new rule is clear: a supply or delivery point may be assigned to only one sharing group, but points within that same group may belong to different balance groups.
What does this mean in current market practice?
- Sharing is independent of the supplier.
- Delivery points can be in various balance groups and in the same sharing group.
- Customers do not need to change suppliers to join.
This is a crucial development for apartment buildings, industrial parks, retail chains, and local authorities with diverse property portfolios.
The amendment also introduced a clear legal definition of electricity sharing in the newly established Section 35b of the Energy Act. Electricity sharing is now defined as the provision of electricity generated at a delivery or delivery point by an active customer or an energy community, which is simultaneously consumed at another delivery or delivery point. This applies regardless of who consumes the energy and whether the supply is provided for a fee or free of charge.
The expanded scope of sharing is another highly significant point. Notably, Slovak legislation does not restrict sharing solely to electricity generated from RES—it covers any electricity, including that from other primary sources. In this regard, the Slovak legislator viewed the European requirements as a minimum baseline, not a ceiling.
III. Stakeholders Involved in Electricity Sharing
The Energy Act deals with three types of entities that make up the sharing ecosystem. Their mutual relationships, rights and obligations must be thoroughly addressed in law and in their respective contracts.
Active Customer: The active customer is at the heart of the entire system. This is the party who, through their own generation or storage, creates a surplus and wishes to share it—either with their own secondary delivery points or with other entities.
Who can be an active Customer? The amended Energy Act lists:
- an end customer of electricity,
- a group of end customers acting jointly,
- a domestic electricity customer,
- a legal entity established for purposes other than business,
- municipalities, towns, higher territorial units and their organisations.
- subsidized organisations of municipalities and higher territorial units,
- entities in which municipalities or higher territorial units hold at least a 51% stake.
Additionally, the law now recognises electricity generated at another active customer’s premises, as well as electricity stored by an active customer (or an energy community) at a different location.
Certain restrictions apply to larger enterprises exceeding SME (Small and Medium-sized Enterprises) limits: the capacity of their renewable energy power plant must not exceed 6 MW of installed capacity. There is a limit regarding income from energy sharing and it may only constitute a minor fraction of their total business or individual revenue. The objective is to ensure the entity retains its status as an active customer rather than transforming into a standard electricity supplier.
Sharing Group Administrator:
The sharing group administrator is an entity authorised to act on behalf of the individual members of the group. Their responsibilities include concluding a settlement agreement on electricity sharing with EMO, managing the registration and deregistration of delivery and delivery points, and coordinating the electricity sharing allocation key.
A sharing group cannot exist without an administrator, as someone must be officially registered within the EMO system. The administrator essentially acts as the group’s administrative “representative” to the outside world. They register the group, report its members, and determine the distribution key—dictating who receives how much electricity.
The administrator may be any member of the group or a third party—such as an energy community, its chairperson, one of the active customers, or a contracted company. The administrator may also serve as the sharing organiser, though this is not mandatory. Furthermore, performing the duties of an administrator does not inherently require a sharing organiser authorisation.
Sharing Organiser: The sharing organiser is a newly introduced electricity market participant, established by Directive (EU) 2024/1711 and subsequently transposed into Slovak law.
Furthermore, the Act stipulates an explicit prohibition to maintain market integrity: neither a holder of an electricity transmission licence nor a holder of an electricity distribution licence may act as a sharing organiser. This measure effectively prevents potential conflicts of interest, ensuring that the infrastructure operators remain neutral and do not leverage their position to dominate the emerging energy-sharing market.
Crucially, operating as a sharing organiser does not require a formal energy licence. Submitting a notification to the Regulatory Office for Network Industries (RONI) within 30 days of commencing operations is legally sufficient (the same applies when terminating or altering operations). A formal confirmation of compliance with this notification obligation, issued by the Office, serves as definitive proof of authorisation to operate.
The Role and Rights of a Sharing Organiser
- conclude contracts to facilitate the sharing of an active consumer’s electricity,
- arrange for the installation or operation of equipment for the generation of electricity from RES or for the storage of electricity,
- provide expert advice on the management or provision of flexibility of equipment,
- inform the system operator and the supplier of the registration and deregistration of supply points,
- ensure the maintenance of generation and storage facilities, provided they are professionally qualified to do so.
The sharing organiser is subject to significant obligations towards active customers, particularly when serving households. To ensure consumer protection and market fairness, they are primarily required to provide clear information—including a concise contract summary—well in advance, and to offer their services in a strictly non-discriminatory manner.
If the active customer is a household, any contractual penalty for failing to share electricity via the organiser during the term of the agreement is void. This provision serves as a critical safeguard, ensuring that households are not locked into sharing arrangements against their will.
IV. Energy Communities
An energy community is not a specific legal form, but a status acquired once regulatory requirements are met.
Although a profit may be generated, it must be directed towards the development of the community or the reduction of members’ costs. Thus, the main objective must be environmental, economic or social benefit, not generating dividends for investors.
The Energy Act (No. 251/2012 Coll.) sets out three basic conditions:
- Openness – membership must be voluntary and open.
- Members – natural persons, municipalities, higher territorial units or companies controlled by them, SME and even larger companies.
- Control – decision-making rights may only be held by members who are natural persons, municipalities, higher territorial units or SME. Large companies may be members, but they may not take part in community management.
The legal form is not prescribed – it may be a cooperative, a civic association, a limited liability company or similar. To obtain the status of an energy community, a certificate from RONI is required. The Office will issue it within 30 days of a written application, provided the conditions are met. If not, the application will be rejected by decision.
From November 2025, energy communities have rights guaranteed by law:
- to consume electricity at their own delivery point,
- to generate and store electricity,
- to supply electricity to their members,
- to share electricity to their own supply points or from transfer points to their members or other active consumers,
- to carry out aggregation for their members,
- to operate a charging station.
V. New Energy Sharing Dimension in Heating
The heating sector is a network industry regulated by Act No. 657/2004 Coll. on heat energy and Act No. 250/2012 Coll. on regulation in network industries.
The logic of this sector is simple: either you hold a RONI licence and are a regulated supplier, or you are a consumer. A third position – for example, a “sharing community” – simply does not exist in heating legislation. This is a fundamental difference from the electricity sector, where European directives have created space for active consumers, prosumers and energy communities.
Why Can’t Heat be Shared Like Electricity?
Sharing electricity is virtual – the producer and consumer can be hundreds of kilometres apart; settlement is purely an accounting matter. This does not work with heat. District heating systems are urban, local networks without regional or inter-city connections. Their parameters – pressure, temperature, heat transfer medium, network topology – are not standardised and vary from system to system.
European Impetus and the Slovak Legislative Gap
RED III clearly required the Member States to ensure that operators of district heating systems with a capacity exceeding 25 MWth are encouraged to connect third-party suppliers of RES and waste heat. The message is unambiguous –heating should be an open platform, not a closed system.
The Directive does not explicitly lay and obligation and allows for the refusal of connection – due to lack of capacity, failure to meet technical parameters, or an unreasonable increase in costs for consumers.
Slovak heating legislation is silent on community heat sharing. It contains:
- no regulation of community heat sharing,
- no definition of the energy communities within the heating system.
And this regulatory gap in practice creates a real barrier to any heat energy sharing. For an investor, a bank or a local authority with a community model, legal uncertainty alone is reason enough to back out.
There is only one mechanism that comes close to energy sharing – a decentralised heat source. However, this instrument only addresses cases where a consumer generates heat for their own use. It does not cover community sharing or third-party access.
Solutions for Heat Industry Development
The Heat Energy Act requires an amendment to transpose RED III, establishing a comprehensive legal framework for third-party access to district heating, complete with clear procedures, defined deadlines, and an effective dispute resolution mechanism.
Competent authorities shall implement a district heating strategy focused on the systematic monitoring of RES and waste heat sources potential to enable coordinated integration of new players into the existing district heating network.
VI. Conclusion
Electricity sharing is no longer a pilot scheme. Nowadays, it has become a standard market activity, with clear rules and stakeholders. Market rules, EMO methodologies, technical conditions of distribution system operators and suppliers’ products have all been adapted to this new regime. Households, enterprises, municipalities and developers can apply to set up electricity sharing today.
The law requires transparent billing, non-discriminatory access for all members and respect for the rights of households – including the right to terminate contracts free of charge should conditions change.
Underestimating the contractual arrangements or communication with EMO can lead to unnecessary delays. A properly drafted contract protects the investment and ensures that the benefits of sharing can be utilised effectively.
In the heating sector, we are in a different position. District heating is naturally more complex due to rigid technical parameters like pressure, temperature, and specific network topology, which make integrating new sources challenging. RED III, however, points out the way, and technical solutions exist. Slovak legislation needs to challenge its view on heating and embrace it as an open platform of clean district heating. Bridging this final regulatory gap in heating is the crucial next step to complete the transformation of energy sharing into a fully-fledged market instrument.