Broad regulatory and legal question reconnaisance regarding tokenized renewable energy communities

For the third time, 2Tokens gathered a consortium for a EU regulatory sandbox use case.

The current use case, involving the 2Tokens consortium, along with ABN AMRO, Energy Blocks, Hypha Energy, Value X and Ameland Energy Cooperatie (AEC) focusses on Renewable Energy Communities (RECs), using commercial and industrial Energy Hubs and web3 solutions for energy management, membership, participations, governance, treasury & administrative processing.

RECs are cooperatives, enabling members to collectively own and govern energy assets. Energy value is quantified and distributed proportionally among members and local consumers using Energy Tokens. Excess / deficit capacity is traded with the grid. REC members are local households, companies, and public entities. Members invest capital in return for tokenized ownership and governance. Members get proportional share of the (tokenized) energy from the REC and pay a cost-price-plus for consumption. Local consumers (non-members) sign energy contract with the REC for delivery and get proportional share of the energy offtake & pay a fair/market price for the consumed energy. External Investors (non-members) finance the startup investments of REC for eBonds

Legal and regulatory topics to be covered in this use case are:

• Energy Tokenization and Legal Status: Regulatory status of Energy Tokens in relation to crypto assets (MiCAR) and property law. Understanding how tokenized energy (kWp/kWh) fits within existing financial, energy, or cross-sectoral regulations.
• Taxation and Reporting: Guidance on tax implications for energy sharing through tokenized energy within and between energy communities, particularly considering DAC8. Additionally, we need clarity on tax reporting regulations for platforms like the REC under DAC7.
• Privacy and Data Protection: We are concerned about privacy implications. Seek guidance on required accountability measures for processing personal data, expectations for privacy-by-design and data minimization.
• Cross-Border Transactions and Regulatory Cooperation: Interested in understanding how cross-border transactions in tokenized energy will be monitored and enforced, and the envisioned role for cooperation between national and European authorities.