IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v378y2025ipas0306261924021263.html
   My bibliography  Save this article

Assessing the impacts of energy sharing on low voltage distribution networks: Insights into electrification and electricity pricing in Germany

Author

Listed:
  • Lersch, Jonathan
  • Tang, Rui
  • Weibelzahl, Martin
  • Weissflog, Jan
  • Wu, Ziyan

Abstract

The shift towards renewable energy sources, which is especially significant in the residential sector, relies on distributed energy resources (DER) like PV systems, heat pumps, battery storage systems, and electric vehicles. Integrating DERs into low-voltage distribution networks presents challenges, including potential grid instabilities. Energy sharing is a consumer-centric market approach, allowing consumers and prosumers to establish renewable energy communities (RECs) and share energy generated via DERs. Existing literature concerning energy sharing often prioritizes highlighting the benefits it offers to participants, rather than examining its direct impacts on established system boundaries such as distribution grid infrastructure. To this end, we employ a sequential modeling approach to study the integration of energy sharing schemes facilitated by RECs and their impacts on grid performance metrics, such as component loading, voltage magnitudes, and grid reinforcement costs. We examine twelve scenarios reflecting different REC configurations, DER adoption levels, and pricing strategies for both current (2023) and future (2037) contexts in Germany. Our findings indicate that implementing energy sharing not only results in considerable cost savings at the community level (with potential savings of up to 80% compared to scenarios without energy sharing) but also brings about significant reductions in grid asset loading (with decreases in transformer loading of up to 68% and line loading of up to 62%, compared to baseline scenarios). Conversely, we show that energy sharing can significantly influence voltage magnitudes at various nodes within the grid, potentially leading to substantial increases in grid reinforcement costs in future scenarios (i.e., 2037). Our research provides valuable insights for REC participants, regulators, and DSOs to understand the impacts of energy sharing on European low-voltage distribution networks and explore mitigation options, such as grid reinforcement measures.

Suggested Citation

  • Lersch, Jonathan & Tang, Rui & Weibelzahl, Martin & Weissflog, Jan & Wu, Ziyan, 2025. "Assessing the impacts of energy sharing on low voltage distribution networks: Insights into electrification and electricity pricing in Germany," Applied Energy, Elsevier, vol. 378(PA).
    • Handle: RePEc:eee:appene:v:378:y:2025:i:pa:s0306261924021263
    DOI: 10.1016/j.apenergy.2024.124743
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261924021263
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2024.124743?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Inês F. G. Reis & Ivo Gonçalves & Marta A. R. Lopes & Carlos Henggeler Antunes, 2021. "Assessing the Influence of Different Goals in Energy Communities’ Self-Sufficiency—An Optimized Multiagent Approach," Energies, MDPI, vol. 14(4), pages 1-32, February.
    2. Dudjak, Viktorija & Neves, Diana & Alskaif, Tarek & Khadem, Shafi & Pena-Bello, Alejandro & Saggese, Pietro & Bowler, Benjamin & Andoni, Merlinda & Bertolini, Marina & Zhou, Yue & Lormeteau, Blanche &, 2021. "Impact of local energy markets integration in power systems layer: A comprehensive review," Applied Energy, Elsevier, vol. 301(C).
    3. Gjorgievski, Vladimir Z. & Velkovski, Bodan & Francesco Demetrio, Minuto & Cundeva, Snezana & Markovska, Natasa, 2023. "Energy sharing in European renewable energy communities: Impact of regulated charges," Energy, Elsevier, vol. 281(C).
    4. Park, Sung-Won & Zhang, Zhong & Li, Furong & Son, Sung-Yong, 2021. "Peer-to-peer trading-based efficient flexibility securing mechanism to support distribution system stability," Applied Energy, Elsevier, vol. 285(C).
    5. Guo, Rui & Meunier, Simon & Protopapadaki, Christina & Saelens, Dirk, 2023. "A review of European low-voltage distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    6. Candas, Soner & Reveron Baecker, Beneharo & Mohapatra, Anurag & Hamacher, Thomas, 2023. "Optimization-based framework for low-voltage grid reinforcement assessment under various levels of flexibility and coordination," Applied Energy, Elsevier, vol. 343(C).
    7. Hussain, Sadam & Azim, M. Imran & Lai, Chunyan & Eicker, Ursula, 2023. "New coordination framework for smart home peer-to-peer trading to reduce impact on distribution transformer," Energy, Elsevier, vol. 284(C).
    8. Zheng Liu & Maryam Majidi & Haonan Wang & Denis Mende & Martin Braun, 2023. "Time Series Optimization-Based Characteristic Curve Calculation for Local Reactive Power Control Using Pandapower - PowerModels Interface," Energies, MDPI, vol. 16(11), pages 1-24, May.
    9. Dynge, Marthe Fogstad & Crespo del Granado, Pedro & Hashemipour, Naser & Korpås, Magnus, 2021. "Impact of local electricity markets and peer-to-peer trading on low-voltage grid operations," Applied Energy, Elsevier, vol. 301(C).
    10. Sarker, Eity & Seyedmahmoudian, Mehdi & Jamei, Elmira & Horan, Ben & Stojcevski, Alex, 2020. "Optimal management of home loads with renewable energy integration and demand response strategy," Energy, Elsevier, vol. 210(C).
    11. Dorian Frieden & Andreas Tuerk & Ana Rita Antunes & Vasilakis Athanasios & Alexandros-Georgios Chronis & Stanislas d’Herbemont & Mislav Kirac & Rita Marouço & Camilla Neumann & Esteban Pastor Catalayu, 2021. "Are We on the Right Track? Collective Self-Consumption and Energy Communities in the European Union," Sustainability, MDPI, vol. 13(22), pages 1-26, November.
    12. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2020. "Investigating the impact of P2P trading on power losses in grid-connected networks with prosumers," Applied Energy, Elsevier, vol. 263(C).
    13. Freitas, Sara & Santos, Teresa & Brito, Miguel C., 2018. "Impact of large scale PV deployment in the sizing of urban distribution transformers," Renewable Energy, Elsevier, vol. 119(C), pages 767-776.
    14. Madler, Jochen & Harding, Sebastian & Weibelzahl, Martin, 2023. "A multi-agent model of urban microgrids: Assessing the effects of energy-market shocks using real-world data," Applied Energy, Elsevier, vol. 343(C).
    15. Johan Rockström & Joyeeta Gupta & Dahe Qin & Steven J. Lade & Jesse F. Abrams & Lauren S. Andersen & David I. Armstrong McKay & Xuemei Bai & Govindasamy Bala & Stuart E. Bunn & Daniel Ciobanu & Fabric, 2023. "Safe and just Earth system boundaries," Nature, Nature, vol. 619(7968), pages 102-111, July.
    16. Almasalma, Hamada & Claeys, Sander & Deconinck, Geert, 2019. "Peer-to-peer-based integrated grid voltage support function for smart photovoltaic inverters," Applied Energy, Elsevier, vol. 239(C), pages 1037-1048.
    17. Rafi, Fida Hasan Md & Hossain, M.J. & Rahman, Md Shamiur & Taghizadeh, Seyedfoad, 2020. "An overview of unbalance compensation techniques using power electronic converters for active distribution systems with renewable generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 125(C).
    18. Wang, Jianxiao & Zhong, Haiwang & Wu, Chenye & Du, Ershun & Xia, Qing & Kang, Chongqing, 2019. "Incentivizing distributed energy resource aggregation in energy and capacity markets: An energy sharing scheme and mechanism design," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    19. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    20. Long, Chao & Wu, Jianzhong & Zhou, Yue & Jenkins, Nick, 2018. "Peer-to-peer energy sharing through a two-stage aggregated battery control in a community Microgrid," Applied Energy, Elsevier, vol. 226(C), pages 261-276.
    21. Karimi, M. & Mokhlis, H. & Naidu, K. & Uddin, S. & Bakar, A.H.A., 2016. "Photovoltaic penetration issues and impacts in distribution network – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 594-605.
    22. Kabir, M.N. & Mishra, Y. & Ledwich, G. & Xu, Z. & Bansal, R.C., 2014. "Improving voltage profile of residential distribution systems using rooftop PVs and Battery Energy Storage systems," Applied Energy, Elsevier, vol. 134(C), pages 290-300.
    23. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    24. Morsy Nour & José Pablo Chaves-Ávila & Gaber Magdy & Álvaro Sánchez-Miralles, 2020. "Review of Positive and Negative Impacts of Electric Vehicles Charging on Electric Power Systems," Energies, MDPI, vol. 13(18), pages 1-34, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    2. Dynge, Marthe Fogstad & Crespo del Granado, Pedro & Hashemipour, Naser & Korpås, Magnus, 2021. "Impact of local electricity markets and peer-to-peer trading on low-voltage grid operations," Applied Energy, Elsevier, vol. 301(C).
    3. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    4. Hussain, Sadam & Azim, M. Imran & Lai, Chunyan & Eicker, Ursula, 2023. "New coordination framework for smart home peer-to-peer trading to reduce impact on distribution transformer," Energy, Elsevier, vol. 284(C).
    5. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2021. "Cooperative negawatt P2P energy trading for low-voltage distribution networks," Applied Energy, Elsevier, vol. 299(C).
    6. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    7. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    8. Herenčić, Lin & Kirac, Mislav & Keko, Hrvoje & Kuzle, Igor & Rajšl, Ivan, 2022. "Automated energy sharing in MV and LV distribution grids within an energy community: A case for Croatian city of Križevci with a hybrid renewable system," Renewable Energy, Elsevier, vol. 191(C), pages 176-194.
    9. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.
    10. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    11. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    12. Nizami, M.S.H. & Hossain, M.J. & Amin, B.M. Ruhul & Fernandez, Edstan, 2020. "A residential energy management system with bi-level optimization-based bidding strategy for day-ahead bi-directional electricity trading," Applied Energy, Elsevier, vol. 261(C).
    13. Davarzani, Sima & Pisica, Ioana & Taylor, Gareth A. & Munisami, Kevin J., 2021. "Residential Demand Response Strategies and Applications in Active Distribution Network Management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    14. Babagheibi, Mahsa & Jadid, Shahram & Kazemi, Ahad, 2023. "An Incentive-based robust flexibility market for congestion management of an active distribution system to use the free capacity of Microgrids," Applied Energy, Elsevier, vol. 336(C).
    15. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Azim, M. Imran & Morstyn, Thomas & Poor, H. Vincent & Niyato, Dustin & Bean, Richard, 2020. "A coalition formation game framework for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 261(C).
    16. García-Muñoz, Fernando & Dávila, Sebastián & Quezada, Franco, 2023. "A Benders decomposition approach for solving a two-stage local energy market problem under uncertainty," Applied Energy, Elsevier, vol. 329(C).
    17. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    18. Chen, Liudong & Liu, Nian & Li, Chenchen & Zhang, Silu & Yan, Xiaohe, 2021. "Peer-to-peer energy sharing with dynamic network structures," Applied Energy, Elsevier, vol. 291(C).
    19. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    20. Rodrigues, Daniel L. & Ye, Xianming & Xia, Xiaohua & Zhu, Bing, 2020. "Battery energy storage sizing optimisation for different ownership structures in a peer-to-peer energy sharing community," Applied Energy, Elsevier, vol. 262(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:378:y:2025:i:pa:s0306261924021263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.