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Shared Generation

Shared Generation is injected into the electricity grid and consumer-generators receive credits to offset energy consumption in their electricity bills, reducing costs with energy consumed from the conventional electricity grid.

Common questions

Shared Energy Generation is a model in which multiple consumers come together to share the benefits of a renewable energy generation system. In this context, energy is produced in a centralized location, such as a solar, wind, hydroelectric or other renewable source, and the benefits of generation are shared among the participants in the system.

This approach allows consumers, who cannot install solar panels or other generation technologies on their own properties, have access to clean and renewable energy. By being part of the Shared Generation, these consumers contribute financially for the construction and maintenance of the central generation system and, in exchange, receive credits in their energy bills corresponding to the amount of energy that participated in the generation.

The operation of Shared Generation is generally based on an energy compensation model, in which the surplus generated by the central system is injected into the electrical grid, and consumer-generators receive corresponding credits. These credits can be used to deduct energy consumption from your bills when local production is insufficient to meet demand.

It is important to note that regulation and rules for Generation Shared can diversify between countries, states and jurisdictions. Some regions may have specific policies that promote and regulate this generation model, while others may not offer this type of option to consumers.

Generation Shared works through the union of multiple consumers in a centralized renewable energy generation system. The first step is to determine the source of renewable energy to be used for shared generation, the example, photovoltaic solar energy, wind, hydroelectric, biomass or other clean source available in the region.

A renewable energy generation plant is built in a suitable location to capture the chosen energy source, including the installation of solar panels, wind turbines, biomass generators or other technologies.

Already Consumers interested in participating in Shared Generation join the project through cooperatives, consortia, associations or specialized companies.

The shared generation plant starts producing renewable energy from the selected source. This energy is injected into the electrical grid to be distributed to associated consumers.

Like this, the excess energy produced by the generation center is sent to the electrical grid, and consumer-generators receive credits equivalent to the amount of energy they contributed to the system. These credits are proportional to the participation of each consumer in the shared generation.

Energy credits can be used to deduct consumers' electricity consumption from their energy bills. When consumption is greater than generation, credits are used to offset the balance.

The maintenance and management of the generation plant are the responsibility of those involved in the shared project. This can be done by the consumer-generators themselves or by specialized companies contracted for this purpose.

Therefore, Shared Generation is an innovative way to allow a greater number of people and companies to participate in the production of clean energy, reducing the environmental impact and promoting the transition to a more sustainable energy system.

Shared Generation allows a greater number of people and companies to have access to renewable energy, even if they cannot install generation systems on their properties. This promotes the democratization of access to clean and sustainable energy.

By encouraging the use of renewable energy sources, such as solar and wind, Shared Generation contributes to the reduction of greenhouse gas emissions, helping to mitigate the effects of climate change.

The adoption of Shared Generation demonstrates a commitment to environmental sustainability, since the energy produced comes from clean and renewable sources.

Consumers associated with the Shared Generation system can reduce their electricity costs, as they receive credits for the energy generated and use them to offset the electricity consumption on their bills.

Therefore, Shared Generation is a way to encourage Distributed Generation, as multiple consumers come together to produce energy in a decentralized manner, taking advantage of local generation capacity.

The installation of a shared generation plant can take advantage of external areas that are more suitable for the production of renewable energy, such as large plots of land for solar plants or windy areas for wind turbines.

It can strengthen the sense of community among the consumers associated with the project, as they work together to achieve common goals related to sustainability and reducing environmental impacts.

The Shared Generation model is flexible and scalable, allowing new customers to join the system as demand for renewable energy increases.

Also, the adoption of Shared Generation encourages innovation in renewable energy generation technologies, driving the development of more efficient and accessible systems.

Furthermore, the Shared Generation contributes for meeting energy and environmental goals established by governments and regulatory bodies, promoting the transition to a cleaner and more sustainable energy matrix.

Participation in the Shared Generation diversify in accordance with the legislation and rules specific to each country, state or region. Generally, this modality allows the participation of different types of consumers, from households to companies and institutions. 

Homeowners can join Shared Generation projects to gain access to renewable energy without the need to install generation systems on their properties. This is especially relevant for those who live in apartments, places with shading or restrictions on installing solar panels on their properties.

Stores, restaurants, offices and small businesses can also participate in Shared Generation to reduce their electricity costs and demonstrate their commitment to sustainability, as well as big industries in the union of Shared Generation projects to supply part of its energy needs with renewable sources and reduce operating costs.

Other examples are residential condominiums and housing complexes to provide clean energy to their residents and reduce electricity costs, in addition to government agencies, schools, hospitals and other public institutions to reduce energy bills and promote sustainability in their operations.

Furthermore, developers and builders can integrate Shared Generation projects into new real estate developments, making buildings more sustainable and attractive to customers, even rural properties such as hotels and resorts, especially when they are located in areas with ample opportunities for renewable energy generation .

The distribution of energy generated in Shared Generation is carried out through the conventional electrical grid in the concession area where the shared generation center is installed. The process involves injecting the excess energy produced by the plant into the electrical grid, allowing it to be used by consumers associated with the system.

A renewable power plant, such as a solar or wind farm, produces energy from the chosen renewable source. The energy generated in excess by the plant is injected into the conventional power grid. It is possible due to bidirectional metering system, which records both the energy consumed from energy suppliers and the excess energy sent to the grid.

Like this, Consumers associated with the Shared Generation system receive energy credits equivalent to the amount of surplus energy that the plant generated and injected into the network. These credits are proportional to the participation of each consumer in the shared generation.

Energy credits can be used by consumers to offset electricity consumption on their energy bills. When consumption is greater than generation, credits are used to reduce the balance, reducing the electricity bill.

Furthermore, energy compensation is carried out by deducting the credits generated from the total amount of energy consumed by members of the system. This process is normally done on a monthly basis, and unused credits can be rolled over to subsequent months.

Consequently, The electricity distribution company is responsible for managing the relationship with consumers associated with the Shared Generation system and ensuring that the credits are properly accounted for and applied to the participants' energy bills.

Countries around the world have specific regulations for Shared Power Generation. In the United States, for example, Shared Generation is regulated by policies at the state level, such as electricity compensation and virtual electricity compensation. In Europe, the EU Renewable Energy Directive establishes a framework for Generation Shared, implemented by each member state. In Australia, Shared Generation is regulated by the National Electricity Rules and the National Power Retail Rules. Therefore, each country has its own specific regulations and policies regarding Shared Generation, but the general objective is to promote the use of renewable energy sources and allow consumers to generate their own electricity while remaining connected to the electrical grid.

There are specific regulations for Shared Generation of energy in Brazil. Shared generation is regulated by Normative Resolution No. 687/2015 of the National Electric Energy Agency (ANEEL). This resolution establishes the rules for the generation of electricity through a solar or wind power plant shared by several consumers, located in the same building or in different buildings, as long as they are connected to the same electricity distribution network. In addition, the resolution establishes the conditions for sharing the energy credits generated among consumers participating in the project.

The technical requirements to participate in Shared Generation can diversify depending on the specifics of each project and local regulations. However, there are some common technical requirements that consumers interested in participating in this renewable energy generation model need. consider consumers located in the same concession area of the electricity distributor where the shared generation plant is installed. 

Generally, Shared Generation is feasible for consumers that are close to or connected to the same electrical grid as the generation center.

Consumers need to have an energy demand that is less than the excess generation capacity of the shared plant. In other words, the amount of energy generated and injected into the network must be greater than the energy consumption of the participants.

It is necessary to install a bidirectional measuring system in order to record both the energy consumed from the conventional electrical network and the excess energy produced and injected into the network from the shared generation center.

That's why, the shared generation plant must meet the technical standards and regulations of the electricity distribution company to ensure compatibility with the existing electricity grid.

Consumers who want to participate in the Shared Generation often sign a contract or agreement with the company responsible for the generation center and with the electricity distributor. This contract will establish the conditions of participation, the distribution of energy credits, the costs involved and other important details.

Shared Generation projects must comply with regulations and guidelines established by local regulatory authorities. That includes electrical safety standards, compliance with environmental legislation and other specific requirements.

In this way, it is necessary that participants in the Shared Generation system be aware of their responsibility to keep their measuring and monitoring equipment in good working order. Therefore, Regular maintenance is essential to ensure measurement accuracy and shared system efficiency.

Starting a Shared Generation project can be a valuable strategy in order to promote the generation of renewable energy and involve different consumers in the transition to a more sustainable energy matrix. 

Legislation and regulations related to Shared Generation diversify significantly between different countries, states and regions. Understanding and complying with legal and regulatory requirements is essential to ensure project feasibility and compliance.

Define the appropriate business models for Shared Generation, as well as prepare fair and clear contracts between the participants, the generation center and the electricity distributor, it's challenging. Therefore, It is important to balance the interests of everyone involved to ensure the success of the project.

Starting a Shared Generation project usually requires a significant initial investment for the installation of the renewable energy generation plant and other necessary equipment. Furthermore, getting adequate financing is essential, mainly in places where there are no clear financial incentive policies.

Selecting the most suitable generation technology for the project is fundamental. The choice will depend on local conditions, such as available natural resources (sun, wind, water, biomass), geographic characteristics and existing electrical infrastructure.

Engage the community and attract participants to the Shared Generation project is considered another challenge factor. In this way, it is crucial educate consumers about the benefits of Shared Generation and create effective communication mechanisms to attract adherence.

Also, ensure the economic viability of the project is relevant for your long-term success, as well as calculate the costs and benefits involved and ensure that the business model is financially sustainable.

Yet, it is necessary to ensure that the electrical infrastructure supports the injection of excess energy and that the measurement systems are compatible, like this ensuring proper maintenance of generation equipment and efficient operation of the shared plant are important for project reliability and performance.

In some cases, electricity distributors may have reservations or logistical challenges regarding connecting Shared Generation projects to their grid. overcome these obstacles impacts the successful integration of the project.

To start a Shared Generation project, it is recommended to gather information about local regulations, identify potential partners and stakeholders, conduct technical and economic feasibility studies, and seek guidance from experts in the renewable energy sector.

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