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The energy community and the grid

Author

Listed:
  • Axel Gautier
  • Julien Jacqmin
  • Jean-Christophe Poudou

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)

Abstract

Energy communities involve various agents who decide to invest in renewable production units. This paper examines how these communities interact with the energy system and can decrease its overall cost. First, we show that an energy community can contribute positively to welfare if the electricity produced by the investment is consumed close to its place of production, i.e. if the community has a high degree of collective self-consumption. Second, our analysis identifies the condition on prices and grid tariffs to align the community's interest with welfare maximization. We also show that some of these grid tariffs do not have a negative impact on non-members of the community and could therefore limit potential distributional issues. Third, various internal organizations of the energy communities are feasible. We show that the internal organization impacts the distribution of benefits among members but not the investment and the global efficiency of the community.

Suggested Citation

  • Axel Gautier & Julien Jacqmin & Jean-Christophe Poudou, 2025. "The energy community and the grid," Post-Print hal-04913866, HAL.
    • Handle: RePEc:hal:journl:hal-04913866
    DOI: 10.1016/j.reseneeco.2025.101480
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    References listed on IDEAS

    as
    1. Axel Gautier & Julien Jacqmin & Jean-Christophe Poudou, 2018. "The prosumers and the grid," Journal of Regulatory Economics, Springer, vol. 53(1), pages 100-126, February.
    2. Ibrahim Abada, Andreas Ehrenmann, and Xavier Lambin, 2020. "On the Viability of Energy Communities," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    3. Cortade, Thomas & Poudou, Jean-Christophe, 2022. "Peer-to-peer energy platforms: Incentives for prosuming," Energy Economics, Elsevier, vol. 109(C).
    4. Gautier, Axel & Jacqmin, Julien & Poudou, Jean-Christophe, 2021. "Optimal grid tariffs with heterogeneous prosumers," Utilities Policy, Elsevier, vol. 68(C).
    5. David P. Brown & David E.M. Sappington, 2017. "Designing Compensation for Distributed Solar Generation: Is Net Metering Ever Optimal?," The Energy Journal, , vol. 38(3), pages 1-32, May.
    6. F.G. Reis, Inês & Gonçalves, Ivo & A.R. Lopes, Marta & Henggeler Antunes, Carlos, 2021. "Business models for energy communities: A review of key issues and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    7. Fuentes González, Fabián & Sauma, Enzo & van der Weijde, Adriaan Hendrik, 2022. "Community energy projects in the context of generation and transmission expansion planning," Energy Economics, Elsevier, vol. 108(C).
    8. Jean-Christophe Poudou & Axel Gautier & Julien Jacqmin, 2018. "The prosumers and the grid," Post-Print hal-01810028, HAL.
    9. Norbu, Sonam & Couraud, Benoit & Robu, Valentin & Andoni, Merlinda & Flynn, David, 2021. "Modelling the redistribution of benefits from joint investments in community energy projects," Applied Energy, Elsevier, vol. 287(C).
    10. Inês, Campos & Guilherme, Pontes Luz & Esther, Marín-González & Swantje, Gährs & Stephen, Hall & Lars, Holstenkamp, 2020. "Regulatory challenges and opportunities for collective renewable energy prosumers in the EU," Energy Policy, Elsevier, vol. 138(C).
    11. Abada, Ibrahim & Ehrenmann, Andreas & Lambin, Xavier, 2020. "Unintended consequences: The snowball effect of energy communities," Energy Policy, Elsevier, vol. 143(C).
    12. Bauwens, Thomas & Devine-Wright, Patrick, 2018. "Positive energies? An empirical study of community energy participation and attitudes to renewable energy," Energy Policy, Elsevier, vol. 118(C), pages 612-625.
    13. Florian Hanke & Jens Lowitzsch, 2020. "Empowering Vulnerable Consumers to Join Renewable Energy Communities—Towards an Inclusive Design of the Clean Energy Package," Energies, MDPI, vol. 13(7), pages 1-27, April.
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    Cited by:

    1. Elise Viadere, 2024. "Promoting Energy-sharing Communities: why and how? Lessons from a Belgian Pilot Project," Working Papers ECARES 2024-22, ULB -- Universite Libre de Bruxelles.
    2. Fabra, Natalia & Reguant, Mar, 2024. "The energy transition: A balancing act," Resource and Energy Economics, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Energy communities; decentralized production units; grid regulation;
    All these keywords.

    JEL classification:

    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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