Collective self-consumption offers a new path for local authorities to manage their energy. It involves sharing locally produced electricity among several consumers and producers, all governed by precise rules. This model, which differs from individual self-consumption, opens up interesting prospects for controlling costs and valuing local resources. But how exactly does it work? What is the legal framework to be aware of? This article sheds light on collective self-consumption for local authorities.

Key Points to Remember

• Collective self-consumption allows several stakeholders within a local authority to share locally produced electricity, thus forming an energy community.
• The French legal framework defines collective self-consumption by the necessity of an organising legal entity (PMO) and regulates the possible geographical perimeters, ranging from a single building to a neighbourhood scale.
• The extension of the geographical perimeter, now possible up to 2 km, facilitates the pooling of production and consumption, optimising the local energy balance.
• Benefits for local authorities include control over energy bills, the valorisation of local resources, and participation in energy decentralisation.
• The implementation of collective self-consumption projects presents challenges related to the structuring of operations, requiring case-by-case studies to assess profitability and non-financial benefits.

Understanding the Legal Framework of Collective Self-Consumption for Local Authorities

Collective self-consumption (CSC) represents a significant evolution in how local authorities and their residents can manage their energy supply. It is a legal framework that allows several consumers to share electricity produced locally by one or more installations. This approach aims to optimise the consumption of renewable energies at a local scale, thereby promoting more efficient and potentially more economical electricity management for all participants.

Legal Definition of Collective Self-Consumption

French law, aligning with European directives, defines collective self-consumption as an operation where electricity is supplied between one or more producers and one or more final consumers. These actors must be linked within a legal entity. The off-take points (consumption) and injection points (production) must be located in the same building, or, in the case of an extended operation, on the low-voltage network while respecting geographical proximity criteria.

Evolution of French and European Legislation

The concept of collective self-consumption emerged simultaneously at the European level, particularly with the

Geographical Perimeters of Extended Collective Self-Consumption

Collective self-consumption, in its extended version, paves the way for large-scale projects that go beyond the simple framework of a single building. Initially, French legislation limited these operations to installations located downstream of the same electricity transformer station. This constraint, although logical for ensuring immediate proximity, proved restrictive for the development of projects at a neighbourhood scale, where the diversity of consumers and producers nevertheless offers greater potential for energy optimisation.

The Initial Perimeter of a Single Building

The legal definition of collective self-consumption first considered the simplest case: that of an operation taking place within the same building. This could concern a co-ownership, for example, where residents share energy produced by a common installation. This configuration is the easiest to implement from a technical and regulatory point of view, as it limits interactions with the public distribution network.

Extension to the Neighbourhood Scale

To overcome this limitation and allow for better resource pooling, legislation has evolved. The objective is to be able to aggregate production and consumption at a broader scale, that of the neighbourhood. This geographical scope allows for benefiting from foisonnement (diversity), i.e., the diversity of consumption and production profiles, which improves the overall efficiency of the operation. The idea is to create more robust and resilient local energy loops.

Revised Geographical Proximity Criteria

A decree from November 2021 redefined the proximity rules for extended collective self-consumption. Now, participants must be located at a maximum distance of 2 kilometres from each other, measured from their delivery point (for consumers) or their injection point (for producers). This distance applies to connection points to the public distribution network, whether low or medium voltage. Furthermore, the cumulative power of production installations must not exceed 3 MW. These adjustments aim to reconcile the ambition of extending perimeters with the need to maintain a logic of proximity and valorisation of local production. It is even possible, under certain conditions and for specific territories, to request a derogation to extend this perimeter up to 20 kilometres, thereby favouring projects in rural or isolated areas.

The ability to extend the geographical perimeter is a key evolution for collective self-consumption. It allows for multiplying the benefits by involving a greater number of stakeholders and optimising the use of local energy resources.

The following points summarise the evolutions of the perimeters:

• Initial Perimeter: A single building.
• Extension: Several buildings, initially under the same transformer station.
• New Extension (since 2021): Distance of 2 km between delivery/injection points, maximum power of 3 MW.
• Possible Derogation: Up to 20 km for specific territories.

This regulatory adaptation is essential for the development of ambitious collective self-consumption projects and for supporting the energy transition of local authorities.

Stakeholders and the Legal Structure of a Collective Operation

For a collective self-consumption operation to come into being, several stakeholders are involved, and a well-defined legal structure is essential. It is not a simple aggregation of consumers, but a genuine organisation that requires clear governance.

The Role of the Organising Legal Entity (PMO)

At the heart of every collective self-consumption project is the Organising Legal Entity (PMO). It is this entity that legally carries the operation. Its role is central: it ensures the liaison between the different participants (producers and consumers) and the distribution network operator (often Enedis). The PMO is responsible for the smooth administrative and technical running of the project, including the management of energy flows and the distribution of costs and benefits. It guarantees the regulatory compliance of the operation.

The Composition of Participants: Producers and Consumers

Participants in a collective self-consumption operation can be varied. On the one hand, there are the producers, who install and operate renewable energy production capacities (for example, solar panels on a roof). On the other hand, there are the consumers, who are the end-users of this energy. These two groups are linked within the PMO. It is important to note that in a collective operation, the same actor can be both a producer and a consumer.

Possible Legal Forms for the PMO

French law allows a certain freedom regarding the form the PMO can take. This makes it possible to adapt the structure to the size and specificities of the project. The most common options include:

• The 1901 law association: Flexible and easy to set up, it is often favoured for projects with a social or environmental purpose.
• The cooperative: It allows for democratic governance where each member has a voice, promoting participant involvement.
• The Civil Real Estate Company (SCI) or co-ownership: Relevant when the operation concerns a single building or a set of buildings managed in common.
• The Local Mixed Economy Company (SEML): For large-scale projects, often initiated by local authorities.

The choice of legal form will depend on the project’s objectives, the number of participants, and the desired management modalities. It is often useful to be accompanied by specialised structures to legally structure the project.

The establishment of a PMO is a key step that requires in-depth reflection on governance, role distribution, and risk management. A well-structured PMO is the foundation of a sustainable and efficient collective self-consumption operation.

Technical and Regulatory Aspects of Collective Self-Consumption

Collective self-consumption, although promising, relies on a precise technical architecture and regulatory framework. These elements are essential to ensure the proper functioning and viability of projects. Technological advancements, particularly in the digital field, have made it possible to implement these operations on a larger scale than before.

The Importance of Smart Meters

The deployment of smart meters, also known as communicating meters, represents a major technological advancement for collective self-consumption. Unlike older models that required manual readings and offered aggregated data over long periods, smart meters allow for near real-time transmission of consumption and injection data, generally with a 30-minute time step. This granularity is essential for fine management of energy flows shared among participants in a collective operation. It allows for precise monitoring of local production and consumption by different stakeholders, thus facilitating balancing and billing.

Maximum Power of Production Installations

To frame the development of collective self-consumption, limits have been set regarding the power of production installations. Currently, the cumulative power of production installations within an extended collective self-consumption operation must not exceed 3 MW. This limit aims to promote local and decentralised production, while ensuring that these installations integrate harmoniously into the public distribution network without overloading it. It is important to note that this power is calculated across all producers participating in the operation.

Connection to the Distribution Network

Participants in a collective self-consumption operation, whether producers or consumers, must be connected to the public distribution network. Regulations have evolved to allow connection to the low-voltage (LV) network and, since July 2021, also to the medium-voltage (MV) network. This opening broadens the possibilities for project implementation, particularly for extended collective self-consumption operations which can now cover wider perimeters. Network connection is managed by the distribution network operator, who ensures the safety and reliability of the electricity supply for all stakeholders involved in the operation. Understanding these technical aspects is a key step for implementing successful collective self-consumption projects, as detailed in this guide on collective self-consumption.

The implementation of a collective self-consumption operation requires rigorous technical coordination. Smart meters are the cornerstone of this coordination, offering the necessary visibility on energy flows. Power limits and network connection rules are designed to ensure the stability of the electrical system while encouraging the development of local renewable energies.

Collective Self-Consumption within Energy Communities

Collective self-consumption fits perfectly into an energy decentralisation approach. It allows territories to regain control over their energy production and consumption, thereby promoting local re-appropriation. This model finds a particular resonance within energy communities, a concept gaining ground at the European level.

Integration into Energy Decentralisation

The idea behind collective self-consumption is to bring production closer to consumption. Rather than relying solely on large power plants, the aim is to produce electricity where it is consumed. This reduces losses related to network transport and strengthens the energy independence of territories. It is a concrete way to participate in the energy transition, by making citizens and local authorities more active in the energy landscape.

The European Definition of Energy Communities

At the European level, energy communities are defined as legal entities controlled by their members. These members can be citizens, small businesses, or local authorities. The main objective is to enable them to produce, consume, store, and sell renewable energy. Collective self-consumption is a form of organisation that aligns well with this vision, by creating direct links between producers and consumers within a shared structure. French law has also integrated provisions that facilitate these dynamics, particularly for electricity and even for gas, as shown by the amendment to Article 100 of the law [7abd].

Objectives of Local and Environmental Benefits

Beyond purely technical aspects, collective self-consumption aims to generate tangible benefits for communities. This includes control over energy bills, thanks to direct consumption of locally produced energy. Furthermore, it valorises the production of renewable energies within the territory, thus contributing to environmental objectives of reducing greenhouse gas emissions. Although the CO₂ impact might seem limited in countries like France, where the electricity mix is already low-carbon, the ecological interest is undeniable, especially in contexts where electricity is produced from fossil fuels. The establishment of a legal structure, such as an organising legal entity, is essential for managing these operations [9f86].

• Reduction of energy costs for participants.
• Support for the development of local renewable energies.
• Strengthening social cohesion and citizen involvement.
• Contribution to the fight against climate change.

Benefits and Challenges of Collective Self-Consumption for Local Authorities

Collective self-consumption represents a concrete opportunity for local authorities to actively engage in the energy transition. It allows for the appropriation of energy production means, thus offering better control over energy expenditure, especially in a context of fluctuating prices. It is a way to participate in energy decentralisation and strengthen local energy independence. By promoting the production and consumption of renewable electricity at a neighbourhood or building scale, it creates dynamic local energy ecosystems.

Control over Energy Bills

One of the most direct advantages of collective self-consumption is the possibility of reducing costs related to electricity consumption. By consuming locally produced energy, participants are less dependent on tariffs set by traditional suppliers. This allows for better budgetary predictability for local authorities and involved citizens. Collective self-consumption operations can thus stabilise energy costs in the long term.

Valorisation of Local Production

This model highlights the production of renewable energy as close as possible to consumption sites. It allows for the valorisation of local resources, such as the sun, by transforming them into shared electricity. This strengthens the local economic fabric and creates synergies between different stakeholders in a territory. For example, private companies, local authorities, and public landlords can partner to pool costs and optimise the profitability of common solar installations. In June 2025, France had over 1,100 active operations, illustrating the rise of this territorialised model [10c8].

Optimisation of Existing Infrastructure

Collective self-consumption encourages the optimal use of existing infrastructure, particularly the roofs of public or private buildings, car parks, or other available spaces. By pooling these spaces to install solar panels, local authorities can generate energy without requiring heavy new constructions. This contributes to a more rational use of land and better integration of renewable energies into the urban or rural landscape.

Collective self-consumption is a concrete lever for the energy transition, fostering independence and citizen involvement in renewable energy production. It allows for the creation of genuine local energy ecosystems, where each participant becomes a co-beneficiary of common production.

The benefits can be quantified: a typical operation can see more than half of its production consumed locally, thus reducing grid dependence. Although the direct environmental impact might seem limited in countries with decarbonised electricity like France, collective self-consumption remains a significant ecological gesture, particularly in contexts where electricity production is more carbon-intensive [82e8].

Challenges of Implementing Collective Self-Consumption

Setting up a collective self-consumption operation is a bit like assembling complex furniture without clear instructions. It requires patience and a good deal of coordination. You can’t just install solar panels and expect everything to work by itself. You have to think about a lot of things.

Complexity of Project Structuring

One of the first obstacles is bringing together all stakeholders. You need to find producers, consumers, and often, a local authority that supports the project. Then, you have to choose a legal structure to manage it all. Do you create an association? A cooperative? Or something else? Each option has its advantages and disadvantages, and the choice really depends on the specific situation of each project. You also need to clearly define how electricity will be shared, how costs will be distributed, and how decisions will be made. It’s a real organisational task that can take time and require varied skills.

Need for a Case-by-Case Study

Each collective self-consumption project is unique. You cannot apply the same recipe everywhere. You need to carefully examine the site: what surface area is available for installing panels? What is the solar potential? You also need to analyse the electricity needs of future participants. Do they consume a lot during the day, when the sun shines? Or rather in the evening? Smart meters are a valuable aid for obtaining this data, but you need to know how to interpret it. Therefore, an in-depth technical and economic study is essential before starting. This ensures that the project is viable and will meet everyone’s expectations. The number of operations in France has also doubled in one year, rising from 454 in June 2024 to 1111 in June 2025, showing growing interest but also a complexity to manage for each new operation.

Questions on Profitability and Non-Financial Benefits

Of course, the financial aspect is important. Participants want to know how much they will save on their electricity bills. Therefore, precise simulations are needed to estimate the return on investment. But collective self-consumption is not just about money. There are also benefits that cannot be put in a pocket: the feeling of participating in the energy transition, the creation of social ties in the neighbourhood, or the valorisation of local heritage. These aspects, called non-financial benefits, are often very motivating, but they are more difficult to quantify. Therefore, a balance must be found between economic profitability and these other advantages for the project to be truly successful in the long term.

The Future of Collective Self-Consumption and Development Prospects

Collective self-consumption (CSC) is undergoing a profound transformation, driven by technological advancements and a growing desire for energy decentralisation. Interaction with the European ecosystem and the integration of emerging technologies are redefining its potential. It is no longer just about producing and consuming locally, but about rethinking our relationship with energy from a broader perspective.

The Role of Emerging Technologies like Blockchain

Blockchain, for example, offers interesting possibilities for managing energy transactions within CSC operations. It can provide increased transparency and enhanced security for the distribution of produced and consumed energy. Imagine a system where every kilowatt-hour exchanged is immutably traced, simplifying the management of distribution keys and strengthening trust among participants. This could also facilitate the emergence of new economic models for energy communities.

Interaction with the European Ecosystem

Europe plays a driving role in the development of collective self-consumption. European directives and regulations aim to harmonise national frameworks and encourage local initiatives. In 2025, Europe is seeing a notable rise in these projects, with France at the forefront thanks to a favourable framework. It is therefore essential to follow legislative developments at the European level to anticipate changes and adapt projects [67e0]. This European dynamic fosters the exchange of best practices and innovation, allowing local authorities to benefit from an increasingly mature framework for their operations [9c7f].

The Need for In-Depth Reflection for Sustainable Development

For collective self-consumption to be sustainably integrated into the energy landscape, in-depth reflection is necessary. This involves considering not only technical and economic aspects but also social and environmental impacts. The complexity of project structuring requires a case-by-case analysis to guarantee the expected profitability and benefits, whether financial or not [6bf1].

• Network adaptation: Current infrastructures must be able to integrate these new forms of decentralised production and consumption.
• Evolving regulatory framework: Laws must continue to adapt to support the development of CSC and energy communities.
• Social acceptance: It is important to communicate and involve citizens to ensure adherence to these new energy models.

The future of collective self-consumption lies in its ability to integrate harmoniously into a rapidly transforming energy ecosystem, while meeting local needs and contributing to the ecological transition. Collaboration between stakeholders, technological innovation, and a long-term vision are the keys to its success.

Collective self-consumption is the future! More and more people are becoming interested in it. How will it evolve? What are the new developments? If you want to know more about this exciting topic and how it could change the way we consume energy, come and discover all the information on our website. We explain everything simply!

Conclusion

In summary, collective self-consumption presents itself as a promising path for more local and shared energy management in France. Although the legal framework is evolving and adjustments are still needed to facilitate its large-scale deployment, the foundations are laid. The evolution of technologies, particularly with smart meters, makes its implementation more concrete. It is clear that this approach, often integrated into citizen energy communities, invites broader reflection on the re-appropriation of energy by citizens and local authorities, beyond simple financial aspects. However, a case-by-case analysis remains essential for each project to fully measure its benefits and challenges.

Frequently Asked Questions

What is collective self-consumption?

Collective self-consumption is when several individuals or businesses share electricity produced by the same installation, such as solar panels. It’s a bit like having a large solar farm that powers several homes or buildings in a neighbourhood. The idea is to collectively consume energy produced close to home.

What is the difference between individual and collective self-consumption?

Individual self-consumption is when a single person or household produces and consumes their own electricity. Collective self-consumption is larger: several people or buildings are connected and share electricity produced by one or more common installations.

Who can organise a collective self-consumption operation?

To organise an operation, a legal structure must be created, known as an ‘Organising Legal Entity’ (PMO). This can be an association, a cooperative, or even a co-ownership. This structure is responsible for bringing together participants and liaising with electricity grid operators.

What is the maximum distance between participants in collective self-consumption?

Previously, there were stricter rules. Now, for extended collective self-consumption, participants can be up to 2 kilometres from each other. The important thing is that they are connected to the same low or medium voltage electricity network.

What is the maximum power an installation can have in collective self-consumption?

The total power of production installations in a collective self-consumption operation must not exceed 3 Megawatts (MW). This is a limit to ensure that the operation remains local and well-managed.

What are the advantages for a local authority of engaging in collective self-consumption?

Local authorities can reduce their electricity bills thanks to locally produced energy. This also allows them to valorise renewable energy production in their territory and demonstrate a commitment to the environment. It’s a way to better manage energy resources.

Is collective self-consumption complicated to implement?

Yes, organising a collective self-consumption operation can be a bit complex. Each project needs to be carefully studied because rules and benefits can vary. One must consider how electricity will be shared and the benefits for everyone, not just financial ones.

Can collective self-consumption help fight climate change?

Absolutely. By producing electricity locally, often from renewable energies like solar, we reduce the need for electricity produced far away and decrease greenhouse gas emissions. It’s an important step towards a greener future.