IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i12p4703-d1170932.html
   My bibliography  Save this article

Key Aspects and Challenges in the Implementation of Energy Communities

Author

Listed:
  • Georgios Yiasoumas

    (PV Technology Laboratory, FOSS Research Centre for Sustainable Energy, Department of Electrical and Computer Engineering, University of Cyprus, Nicosia 1678, Cyprus)

  • Lazar Berbakov

    (Institute Mihajlo Pupin, University of Belgrade, Volgina 15, 11060 Belgrade, Serbia)

  • Valentina Janev

    (Institute Mihajlo Pupin, University of Belgrade, Volgina 15, 11060 Belgrade, Serbia)

  • Alessandro Asmundo

    (Forum per la Finanza Sostenibile ETS (Italian Sustainable Investment Forum), Via Andrea Maria Ampère 61/A, 20131 Milan, Italy)

  • Eneko Olabarrieta

    (R2M Solution Spain, R&D Department, Av. Manoteras 24, Planta 2, 28050 Madrid, Spain)

  • Andrea Vinci

    (Electrical, Electronics and Telecommunication Engineering and Naval Architecture Department, University of Genova, 16145 Genova, Italy)

  • Giovanni Baglietto

    (Electrical, Electronics and Telecommunication Engineering and Naval Architecture Department, University of Genova, 16145 Genova, Italy)

  • George E. Georghiou

    (PV Technology Laboratory, FOSS Research Centre for Sustainable Energy, Department of Electrical and Computer Engineering, University of Cyprus, Nicosia 1678, Cyprus)

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.

Suggested Citation

  • Georgios Yiasoumas & Lazar Berbakov & Valentina Janev & Alessandro Asmundo & Eneko Olabarrieta & Andrea Vinci & Giovanni Baglietto & George E. Georghiou, 2023. "Key Aspects and Challenges in the Implementation of Energy Communities," Energies, MDPI, vol. 16(12), pages 1-24, June.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:12:p:4703-:d:1170932
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/12/4703/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/12/4703/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wenjie Zhang & Hongping Yuan, 2019. "Promoting Energy Performance Contracting for Achieving Urban Sustainability: What is the Research Trend?," Energies, MDPI, vol. 12(8), pages 1-18, April.
    2. Haji Bashi, Mazaher & De Tommasi, Luciano & Le Cam, Andreea & Relaño, Lorena Sánchez & Lyons, Padraig & Mundó, Joana & Pandelieva-Dimova, Ivanka & Schapp, Henrik & Loth-Babut, Karolina & Egger, Christ, 2023. "A review and mapping exercise of energy community regulatory challenges in European member states based on a survey of collective energy actors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 172(C).
    3. Grigorios L. Kyriakopoulos, 2022. "Energy Communities Overview: Managerial Policies, Economic Aspects, Technologies, and Models," JRFM, MDPI, vol. 15(11), pages 1-45, November.
    4. Karunathilake, Hirushie & Hewage, Kasun & Mérida, Walter & Sadiq, Rehan, 2019. "Renewable energy selection for net-zero energy communities: Life cycle based decision making under uncertainty," Renewable Energy, Elsevier, vol. 130(C), pages 558-573.
    5. Cerna, Fernando V. & Pourakbari-Kasmaei, Mahdi & Barros, Raone G. & Naderi, Ehsan & Lehtonen, Matti & Contreras, Javier, 2023. "Optimal operating scheme of neighborhood energy storage communities to improve power grid performance in smart cities," Applied Energy, Elsevier, vol. 331(C).
    6. Geczy, Christopher & Jeffers, Jessica S. & Musto, David K. & Tucker, Anne M., 2021. "Contracts with (Social) benefits: The implementation of impact investing," Journal of Financial Economics, Elsevier, vol. 142(2), pages 697-718.
    7. Uddin, Kotub & Dubarry, Matthieu & Glick, Mark B., 2018. "The viability of vehicle-to-grid operations from a battery technology and policy perspective," Energy Policy, Elsevier, vol. 113(C), pages 342-347.
    8. Itxaso Aranzabal & Julen Gomez-Cornejo & Iraide López & Ander Zubiria & Javier Mazón & Ane Feijoo-Arostegui & Haizea Gaztañaga, 2023. "Optimal Management of an Energy Community with PV and Battery-Energy-Storage Systems," Energies, MDPI, vol. 16(2), pages 1-23, January.
    9. repec:eco:journ2:2017-04-07 is not listed on IDEAS
    10. Takele Ferede Agajie & Ahmed Ali & Armand Fopah-Lele & Isaac Amoussou & Baseem Khan & Carmen Lilí Rodríguez Velasco & Emmanuel Tanyi, 2023. "A Comprehensive Review on Techno-Economic Analysis and Optimal Sizing of Hybrid Renewable Energy Sources with Energy Storage Systems," Energies, MDPI, vol. 16(2), pages 1-26, January.
    11. Marino, Angelica & Bertoldi, Paolo & Rezessy, Silvia & Boza-Kiss, Benigna, 2011. "A snapshot of the European energy service market in 2010 and policy recommendations to foster a further market development," Energy Policy, Elsevier, vol. 39(10), pages 6190-6198, October.
    12. Lowitzsch, Jens & Kreutzer, Kaja & George, Jan & Croonenbroeck, Carsten & Breitschopf, Barbara, 2023. "Development prospects for energy communities in the EU identifying best practice and future opportunities using a morphological approach," Energy Policy, Elsevier, vol. 174(C).
    13. Katsaprakakis, Dimitris Al & Voumvoulakis, Manolis, 2018. "A hybrid power plant towards 100% energy autonomy for the island of Sifnos, Greece. Perspectives created from energy cooperatives," Energy, Elsevier, vol. 161(C), pages 680-698.
    14. Marko Jelić & Marko Batić & Nikola Tomašević, 2021. "Demand-Side Flexibility Impact on Prosumer Energy System Planning," Energies, MDPI, vol. 14(21), pages 1-32, October.
    15. Borge-Diez, David & Icaza, Daniel & Açıkkalp, Emin & Amaris, Hortensia, 2021. "Combined vehicle to building (V2B) and vehicle to home (V2H) strategy to increase electric vehicle market share," Energy, Elsevier, vol. 237(C).
    16. Cagno, Enrico & Franzò, Simone & Storoni, Elena & Trianni, Andrea, 2022. "A characterisation framework of energy services offered by energy service companies," Applied Energy, Elsevier, vol. 324(C).
    17. Francesca Ceglia & Elisa Marrasso & Carlo Roselli & Maurizio Sasso, 2021. "Small Renewable Energy Community: The Role of Energy and Environmental Indicators for Power Grid," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    18. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Georghiou, George E., 2021. "Social arrangements, technical designs and impacts of energy communities: A review," Renewable Energy, Elsevier, vol. 169(C), pages 1138-1156.
    19. Berg, Kjersti & Rana, Rubi & Farahmand, Hossein, 2023. "Quantifying the benefits of shared battery in a DSO-energy community cooperation," Applied Energy, Elsevier, vol. 343(C).
    20. Cisek, Piotr & Taler, Dawid, 2019. "Numerical analysis and performance assessment of the Thermal Energy Storage unit aimed to be utilized in Smart Electric Thermal Storage (SETS)," Energy, Elsevier, vol. 173(C), pages 755-771.
    21. Kirli, Desen & Couraud, Benoit & Robu, Valentin & Salgado-Bravo, Marcelo & Norbu, Sonam & Andoni, Merlinda & Antonopoulos, Ioannis & Negrete-Pincetic, Matias & Flynn, David & Kiprakis, Aristides, 2022. "Smart contracts in energy systems: A systematic review of fundamental approaches and implementations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    22. Valentina Janev & Maria-Esther Vidal & Dea Pujić & Dušan Popadić & Enrique Iglesias & Ahmad Sakor & Andrej Čampa, 2022. "Responsible Knowledge Management in Energy Data Ecosystems," Energies, MDPI, vol. 15(11), pages 1-17, May.
    23. Le, Tay Son & Nguyen, Tuan Ngoc & Bui, Dac-Khuong & Ngo, Tuan Duc, 2023. "Optimal sizing of renewable energy storage: A techno-economic analysis of hydrogen, battery and hybrid systems considering degradation and seasonal storage," Applied Energy, Elsevier, vol. 336(C).
    24. Weinand, Jann & Scheller, Fabian Johannes & McKenna, Russell, 2020. "Reviewing energy system modelling of decentralized energy autonomy," Working Paper Series in Production and Energy 41, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    25. Brunner, Eric J. & Schwegman, David J., 2022. "Commercial wind energy installations and local economic development: Evidence from U.S. counties," Energy Policy, Elsevier, vol. 165(C).
    26. Secchi, Mattia & Barchi, Grazia & Macii, David & Moser, David & Petri, Dario, 2021. "Multi-objective battery sizing optimisation for renewable energy communities with distribution-level constraints: A prosumer-driven perspective," Applied Energy, Elsevier, vol. 297(C).
    27. Praveen Kumar, G. & Ayou, Dereje S. & Narendran, C. & Saravanan, R. & Maiya, M.P. & Coronas, Alberto, 2023. "Renewable heat powered polygeneration system based on an advanced absorption cycle for rural communities," Energy, Elsevier, vol. 262(PA).
    28. Nawaz, Arshad & Zhou, Min & Wu, Jing & Long, Chengnian, 2022. "A comprehensive review on energy management, demand response, and coordination schemes utilization in multi-microgrids network," Applied Energy, Elsevier, vol. 323(C).
    29. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Morstyn, Thomas & McCulloch, Malcolm D. & Poor, H. Vincent & Wood, Kristin L., 2019. "A motivational game-theoretic approach for peer-to-peer energy trading in the smart grid," Applied Energy, Elsevier, vol. 243(C), pages 10-20.
    30. Antonio Ruano & Alvaro Hernandez & Jesus Ureña & Maria Ruano & Juan Garcia, 2019. "NILM Techniques for Intelligent Home Energy Management and Ambient Assisted Living: A Review," Energies, MDPI, vol. 12(11), pages 1-29, June.
    31. Rilwan Usman & Pegah Mirzania & Sahban W. Alnaser & Phil Hart & Chao Long, 2022. "Systematic Review of Demand-Side Management Strategies in Power Systems of Developed and Developing Countries," Energies, MDPI, vol. 15(21), pages 1-24, October.
    32. Xia, Yuanxing & Xu, Qingshan & Li, Fangxing, 2023. "Grid-friendly pricing mechanism for peer-to-peer energy sharing market diffusion in communities," Applied Energy, Elsevier, vol. 334(C).
    33. Jann Michael Weinand & Fabian Scheller & Russell McKenna, 2020. "Reviewing energy system modelling of decentralized energy autonomy," Papers 2011.05915, arXiv.org.
    34. Weinand, Jann Michael & Scheller, Fabian & McKenna, Russell, 2020. "Reviewing energy system modelling of decentralized energy autonomy," Energy, Elsevier, vol. 203(C).
    35. Olamide Jogunola & Augustine Ikpehai & Kelvin Anoh & Bamidele Adebisi & Mohammad Hammoudeh & Haris Gacanin & Georgina Harris, 2017. "Comparative Analysis of P2P Architectures for Energy Trading and Sharing," Energies, MDPI, vol. 11(1), pages 1-20, December.
    36. Francesca Ceglia & Elisa Marrasso & Giovanna Pallotta & Carlo Roselli & Maurizio Sasso, 2022. "The State of the Art of Smart Energy Communities: A Systematic Review of Strengths and Limits," Energies, MDPI, vol. 15(9), pages 1-28, May.
    37. Saveria Olga Murielle Boulanger & Martina Massari & Danila Longo & Beatrice Turillazzi & Carlo Alberto Nucci, 2021. "Designing Collaborative Energy Communities: A European Overview," Energies, MDPI, vol. 14(24), pages 1-17, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diego Peña & Paul Arevalo & Yadyra Ortiz & Franciso Jurado, 2024. "Survey of Optimization Techniques for Microgrids Using High-Efficiency Converters," Energies, MDPI, vol. 17(15), pages 1-24, July.
    2. Hugo Algarvio & António Couto & Fernando Lopes & Ana Estanqueiro, 2024. "Strategic Behavior of Competitive Local Citizen Energy Communities in Liberalized Electricity Markets," Energies, MDPI, vol. 17(8), pages 1-23, April.
    3. Mariuzzo, Ivan & Fina, Bernadette & Stroemer, Stefan & Raugi, Marco, 2024. "Economic assessment of multiple energy community participation," Applied Energy, Elsevier, vol. 353(PA).
    4. Emely Cruz-De-Jesús & Alejandro Marano-Marcolini & José Luis Martínez-Ramos, 2024. "Participation of Energy Communities in Electricity Markets and Ancillary Services: An Overview of Successful Strategies," Energies, MDPI, vol. 17(18), pages 1-18, September.

    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. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    2. Galleguillos-Pozo, R. & Domenech, B. & Ferrer-Martí, L. & Pastor, R., 2021. "Design of stand-alone electrification systems using fuzzy mathematical programming approaches," Energy, Elsevier, vol. 228(C).
    3. Prabatha, Tharindu & Karunathilake, Hirushie & Mohammadpour Shotorbani, Amin & Sadiq, Rehan & Hewage, Kasun, 2021. "Community-level decentralized energy system planning under uncertainty: A comparison of mathematical models for strategy development," Applied Energy, Elsevier, vol. 283(C).
    4. Fonseca, Juan D. & Commenge, Jean-Marc & Camargo, Mauricio & Falk, Laurent & Gil, Iván D., 2021. "Sustainability analysis for the design of distributed energy systems: A multi-objective optimization approach," Applied Energy, Elsevier, vol. 290(C).
    5. Theresa Liegl & Simon Schramm & Philipp Kuhn & Thomas Hamacher, 2023. "Considering Socio-Technical Parameters in Energy System Models—The Current Status and Next Steps," Energies, MDPI, vol. 16(20), pages 1-19, October.
    6. Christoph Schick & Nikolai Klempp & Kai Hufendiek, 2021. "Impact of Network Charge Design in an Energy System with Large Penetration of Renewables and High Prosumer Shares," Energies, MDPI, vol. 14(21), pages 1-26, October.
    7. Yan, Xiaopeng & Chen, Baijin, 2021. "Analysis of a novel energy-efficient system with 3-D vertical structure for hydraulic press," Energy, Elsevier, vol. 218(C).
    8. Ádám Sleisz & Dániel Divényi & Beáta Polgári & Péter Sőrés & Dávid Raisz, 2022. "A Novel Cost Allocation Mechanism for Local Flexibility in the Power System with Partial Disintermediation," Energies, MDPI, vol. 15(22), pages 1-18, November.
    9. Sacha Hodencq & Mathieu Brugeron & Jaume Fitó & Lou Morriet & Benoit Delinchant & Frédéric Wurtz, 2021. "OMEGAlpes, an Open-Source Optimisation Model Generation Tool to Support Energy Stakeholders at District Scale," Energies, MDPI, vol. 14(18), pages 1-30, September.
    10. Anita De Franco & Elisabetta Venco & Roberto De Lotto & Caterina Pietra & Florian Kutzner & Mona Bielig & Melanie Vogel, 2023. "Drivers, Motivations, and Barriers in the Creation of Energy Communities: Insights from the City of Segrate, Italy," Energies, MDPI, vol. 16(16), pages 1-13, August.
    11. Vögele, Stefan & Poganietz, Witold-Roger & Kleinebrahm, Max & Weimer-Jehle, Wolfgang & Bernhard, Jesse & Kuckshinrichs, Wilhelm & Weiss, Annika, 2022. "Dissemination of PV-Battery systems in the German residential sector up to 2050: Technological diffusion from multidisciplinary perspectives," Energy, Elsevier, vol. 248(C).
    12. Matthias Greiml & Florian Fritz & Josef Steinegger & Theresa Schlömicher & Nicholas Wolf Williams & Negar Zaghi & Thomas Kienberger, 2022. "Modelling and Simulation/Optimization of Austria’s National Multi-Energy System with a High Degree of Spatial and Temporal Resolution," Energies, MDPI, vol. 15(10), pages 1-33, May.
    13. Min-Hwi Kim & Deuk-Won Kim & Dong-Won Lee, 2021. "Feasibility of Low Carbon Renewable Energy City Integrated with Hybrid Renewable Energy Systems," Energies, MDPI, vol. 14(21), pages 1-24, November.
    14. Wang, Jing & Kang, Lixia & Liu, Yongzhong, 2022. "A multi-objective approach to determine time series aggregation strategies for optimal design of multi-energy systems," Energy, Elsevier, vol. 258(C).
    15. Rasmus Magni Johannsen & Poul Alberg Østergaard & David Maya-Drysdale & Louise Krog Elmegaard Mouritsen, 2021. "Designing Tools for Energy System Scenario Making in Municipal Energy Planning," Energies, MDPI, vol. 14(5), pages 1-17, March.
    16. Chen, Yi-kuang & Jensen, Ida Græsted & Kirkerud, Jon Gustav & Bolkesjø, Torjus Folsland, 2021. "Impact of fossil-free decentralized heating on northern European renewable energy deployment and the power system," Energy, Elsevier, vol. 219(C).
    17. Backe, Stian & Zwickl-Bernhard, Sebastian & Schwabeneder, Daniel & Auer, Hans & Korpås, Magnus & Tomasgard, Asgeir, 2022. "Impact of energy communities on the European electricity and heating system decarbonization pathway: Comparing local and global flexibility responses," Applied Energy, Elsevier, vol. 323(C).
    18. Zielinski, Michał & Myszkowski, Adam & Pelic, Marcin & Staniek, Roman, 2022. "Low-speed radial piston pump as an effective alternative power transmission for small hydropower plants," Renewable Energy, Elsevier, vol. 182(C), pages 1012-1027.
    19. Fazlur Rashid & Md. Emdadul Hoque & Muhammad Aziz & Talukdar Nazmus Sakib & Md. Tariqul Islam & Raihan Moker Robin, 2021. "Investigation of Optimal Hybrid Energy Systems Using Available Energy Sources in a Rural Area of Bangladesh," Energies, MDPI, vol. 14(18), pages 1-24, September.
    20. Blanco, Herib & Leaver, Jonathan & Dodds, Paul E. & Dickinson, Robert & García-Gusano, Diego & Iribarren, Diego & Lind, Arne & Wang, Changlong & Danebergs, Janis & Baumann, Martin, 2022. "A taxonomy of models for investigating hydrogen energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(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:gam:jeners:v:16:y:2023:i:12:p:4703-:d:1170932. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.