Peer-to-peer energy communities: regulatory barriers in the EU context

Abstract

The effects of climate change are already impacting people’s quality of life worldwide. Evidence highlights the urgency in action to counteract this on-going process. Europe aims at fostering the green transition becoming climate neutral by 2050. The envisioned pathway encompasses an overhaul of the energy system including an increase in renewable energy production and end-user energy efficiency. The EU further recognizes the fundamental role of citizens and communities in addressing an effective transition. Within this framework, energy communities (EC) and peer-to-peer (P2P) energy trading are emerging as new opportunities for boosting green technologies in renewable energy and the smart grid sector, and for rising citizens’ awareness of the theme. However, the implementation of P2P ECs in Europe entails complex legal challenges that cannot be solved only through sector-specific regulation. This open letter critically presents the experience gained in the H2020 NRG2peers project about the knowledge advancement in the regulatory context of the project pilot sites. These are located in four EU ecosystems (from innovators to laggards) that are: the Netherlands, Spain, Slovenia, and Italy. Each EC involved in the NRG2peers project is thus facing different challenges related to its specific socio-economic condition and energy market framework. These barriers need to be overcome and new tools will be delivered during the NRG2peers project. Moving from the lessons learnt at the pilot sites, both roadmaps at the regulatory level and an advisory app are under development to support the uptake of the next generation of European peer-to-peer Energy Communities.

A Review of Renewable Energy Communities: Concepts, Scope, Progress, Challenges, and Recommendations

“…However, there are still many challenges [43,199], like policy challenges, regulatory and legal barriers, financing and funding issues, technical limitations and grid integration issues, social acceptance, community participation, capacity building, unequal distribution of costs and benefits, and knowledge sharing, that should be mitigated. Many authors have focused on these topics to address the challenges associated with RECs, including policy and regulatory [34,200,201], energy market regulations, grid connection and interconnection rules, the potential effects of ECs on MV distribution networks, financial policies, ownership, collective RE prosumers in the EU [50], business models [52], and governance models. These authors have reviewed energy communities governed by European-level regulations extending to the national legislation of selected European countries.…”