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26 novembre 2025
Publication series – 19 de 86 Publications
Energy Sharing under Section 42 of the German Energy Industry Act (EnWG)
- Quick read
With the latest amendment to the Energy Industry Act, Germany is implementing an important component of European internal energy market policy known as energy sharing. The idea is that citizens and small businesses will no longer just generate renewable electricity themselves but will also be able to share it with each other within an energy community. From 2026, this will create a completely new market segment between self-supply and traditional electricity supply. This will give rise to opportunities for cities, municipalities and small businesses, but also new organisational and regulatory requirements.
Background
In November 2025, the Bundestag passed the amendment to the Energy Industry Act encompassing the new regulation on energy sharing in Section 42c EnWG. The basis for this is Article 15a of the Internal Electricity Market Directive, which has now been transposed into German law. From June 2026, end consumers – in particular, private individuals and small businesses – will be able to form energy communities and jointly exploit the potential of renewable energy systems. It is important to note that the jointly shared amount of electricity will continue to supplement the existing residual electricity supply, meaning that the original energy supplier will remain in place.
Implementation of energy sharing
While tenant electricity models and communal building supply have so far been limited to individual buildings or neighbourhoods, energy sharing offers significantly greater spatial and organisational flexibility. For the first time, renewable electricity generated in renewable energy systems and/or temporarily stored in “front-of-the-meter” storage facilities can be shared with other end consumers in the same balancing area via the public grid – and from 2028 onwards, even beyond. This creates added value for so-called prosumers and provides a noticeable lever for energy transition in urban areas.
The model is also deliberately designed to remain citizen friendly. Private individuals, SMEs, municipalities and other public institutions as well as citizen energy companies are eligible to participate. For municipal SMEs in particular, the concept creates new opportunities to use renewable energy more flexibly and integrate it economically.
Challenges
However, to ensure that an energy community works, the legislator has defined a set of organisational requirements. The participants must conclude clear agreements on electricity supply, billing, the use of controllable consumption devices, and the operation and maintenance of the systems. To make implementation more practicable, these tasks can also be transferred entirely to external service providers which should give projects the required legal certainty.
However, the question of financial support remains open. So far, Germany has not introduced any specific incentives such as premiums or grid fee reductions, like those in Austria or Italy. Taxes, levies and grid fees continue to be charged via the conventional residual electricity contract. It remains to be seen whether the Federal Network Agency will make things easier in the future by setting rules – the lawmakers have deliberately left this decision up to them.
Overall, energy sharing is a new instrument that makes renewable electricity more widely available, strengthens participation and brings the energy transition into the everyday lives of many consumers. At the same time however, it raises new organisational and regulatory issues that must be addressed at an early stage.
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Revision of energy efficiency requirements for data centres: an overview of the amendment to the Energy Efficiency Act
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Offshore wind in Germany: from market premiums to Contracts for Difference?
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Energy Sharing under Section 42 of the German Energy Industry Act (EnWG)
26 novembre 2025
Bundestag Decides on the Privileging of Battery Storage Facilities in Outdoor Areas under § 35 (1) BauGB
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New amendment to the Energy Industry Act (EnWG) introduced in July and August 2025
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Industrial electricity prices: initial assessment and opportunities for businesses
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New Legal Framework for the Commercial Use of Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU)
11 juillet 2025
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Are offshore wind converter platforms a bottleneck in the energy transition? New German government wants to create production capacities at German shipyards
17 juin 2025
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Speeding up the energy transition - the new German government’s plans for gas and steam power plants and its quest for the right technology for renewable energy
8 mai 2025
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Update - Change of government opens the door to carbon capture and storage and carbon capture and utilisation
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The special fund for infrastructure and climate protection - what is next?
10 avril 2025
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Changes to CBAM through Omnibus legislative package
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The role of heat probes in the energy transition: Authorisation procedures and potential
26 mars 2025
CJEU judgement on customer installations in accordance with Section 3 No. 24a Law on the Energy Industry EnWG
26 mars 2025
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26 février 2025
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Waste heat from data centres - new reporting obligations under the EnEfG
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28 novembre 2024
par Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
BGH: Balance sheet allocation of electricity withdrawals at higher voltage levels in the event of supplier failure - recommended action for grid operators
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Hydrogen core network - The Federal Network Agency’s strategy for the energy transition
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Amendment to the Energy Industry Act: changes for energy supply companies and grid and system operators
18 septembre 2024
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Land acquisition and data protection: The importance of the GDPR when project developers request owner data
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par Dr. Patrick Vincent Zurheide, LL.M. (Aberdeen), Dr. Julia Wulff
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Updating the National Hydrogen Strategy
6 novembre 2023
par Dr. Niels L. Lange, LL.M. (Stellenbosch), Dr. Janina Pochhammer
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New IT security requirements for the energy sector
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par Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Alexander Schmalenberger, LL.B.
Does monument protection hinder the expansion of renewable energies?
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Challenges for data center operators - The federal government’s draft bill for an energy efficiency act
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12 avril 2023
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Power Play: Renewable Energy Update
12 juillet 2022
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Liquefied Natural Gas Projects in Germany: The LNG Acceleration Act
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10 juin 2022
Participation of local municipalities in the context of wind and photovoltaic projects
Power Play: Renewable Energy Update
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Renewable Energy Wrap-Up – France
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Renewable Energy Wrap-Up - United Kingdom
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Building energy performance: the revised Energy Performance of Buildings Directive
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Fit for 55 – Hydrogen and the Reform of the European Gas Market
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Renewable Energy Wrap-Up – Netherlands
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Renewable Energy Wrap-Up – Poland
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Renewable Energy Wrap-Up - Germany
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