Key Aspects and Challenges in the Implementation of Energy Communities

Abstract

Energy communities (ECs) are an important tool towards a fair energy transition. Hence, the European Union (EU) has positioned ECs at the centre of its energy strategy and the foreseen transformation of its energy system. This paper aims to give an overview of key aspects and challenges for the implementation of the EC concept. Firstly, the regulatory framework is examined with a focus on the new definitions for ECs introduced by the EU, Renewable Energy Communities (RECs) and Citizen Energy Communities (CECs). Secondly, examples of established ECs and their main objectives are mentioned. Additionally, based on the identified challenges and requirements of establishing ECs, the key technologies that are implemented or have the potential to be deployed in an EC are examined, as well as innovative cross-cutting services that are optimally suited to be integrated in an EC. Moreover, the data management challenges linked to some of these technologies are considered. Finally, an overview of actual or potential financing schemes to support the EC development is given. Overall, the analysis highlighted the regulatory, technical and financial aspects and challenges that ECs are facing and the need to address them so that the EC concept is effective and successful. The main challenges identified for each of these aspects are the regulatory compliance with the legal framework, the data management dimension when innovative technological concepts are adopted and the financing of new projects.

Strategic Behavior of Competitive Local Citizen Energy Communities in Liberalized Electricity Markets

“…Indeed, the European legislation's flexibility regarding CECs allows the formation of multiple types of energy communities, from a microgrid community with one owner similar to a prosumer to a national-level virtual community similar to a retailer [30][31][32][33][34]. The main issues about the community business models consist of their formation, weight, and scope [35][36][37][38]. Multiple CECs' business models have been proposed in the literature [19,39,40].…”

“…Some CECs are formed by retailers, providing small discounts to consumers compared with their potential cost reduction [9]. The formation and management of CECs are important to guarantee their economic sustainability [35][36][37][38]. CEC's agents shall be equipped with decision protocols, intra-team strategies, forecast methodologies, and strategic bidding [42,[46][47][48].…”

The role of community energy systems to facilitate energy transitions in Ethiopia and Mozambique

“…In certain European countries and in Canada, community energy projects are also being initiated by both the desire to meet renewable energy goals and increase energy efficiency [12,13]. With these understandings, the European Union has put community energy at center of its strategy and policy [14][15][16], with the United States lagging behind in creating energy communities because of its reliance on top-down strategies [17].…”

“…A study of community energy systems in France found that involving various actors, including businesses and the government, challenges the idea that communities hold a central role in project governance though its impact is minimal [22]. Additional difficulties involve meeting regulatory requirements, managing data when implementing novel technologies, and securing funding for new initiatives [15]. Some critics of the European strategies suggest that community energy policies lack true citizen empowerment and democratization [23].…”