This spring, the European Commission's ETIP SNET platform released a study on the impact of energy communities on the grid. The analysis was followed up in August by the major pan-European CIGRE conference, where study authors discussed their findings with energy experts, including scientists and grid operators. They concluded that well-structured energy communities could benefit the grid if supported by the regulatory framework and other market participants.
The study specifically examined how these communities could operate most effectively within the current energy system and maximize their potential impact on distribution and transmission networks.
The recommended direction is towards establishing "fully integrated energy communities." Such communities can be seen as "friends of the grid": they not only share electricity among members but also provide flexibility for grid operators.
This means they can coordinate changes in production or consumption to support the grid during times of imbalance, helping to stabilize fluctuations. Energy communities aggregate multiple renewable sources, appliances (such as electric vehicles, heat pumps, and water heaters), battery storage, etc. When managed collectively, these resources provide enhanced flexibility to grid operators.
Belgium has also studied the impact of community energy on the grid. Brussels’ regulator Brugel found that when more than 20% of residents in a network area participate in local electricity sharing, they can significantly help balance the grid. By shifting consumption to times of lower demand, consumers not only access better rates but also alleviate grid load, delaying or reducing the need for costly infrastructure upgrades.
In Norway, recent studies have focused on the impact of energy communities on the grid. The first study examined communities in Norway and Spain, assessing how they affect electricity flows across different voltage levels. Communities were categorized into three types based on consumption patterns and member composition: residential, commercial, and mixed. Commercial communities in Spain and mixed communities in Norway showed the best results due to the high overlap between their production and consumption, allowing them to consume electricity at times of peak production.
The second study confirmed the European Commission's assumption that energy communities are a valuable source of flexibility for grid operators. Analyzing network development costs, the study authors argue that collaborating with communities is a viable option to reduce grid investment needs and recommend that operators partner with communities to leverage their flexibility.
Both the European Commission's study and analysis from Belgium and Norway confirm that energy communities hold significant potential to stabilize and enhance the efficiency of the energy grid. Effective collaboration between grid operators and flexibility-providing communities can help balance production and consumption fluctuations, reduce and delay infrastructure investment needs, and lower electricity bills for households.
To achieve fully integrated communities, it is essential to create a suitable regulatory and market framework that enables communities to act as reliable partners in the transition to renewable energy.
What’s the situation in Czechia? Read next article Flexibility and Community Energy: A New Direction for the Czech Electricity Market to find out.
Dear Members of the European Parliament, In the next couple of weeks, various committees in the European Parliament will vote on their proposals to reform the EU Corporate Sustainability Reporting Directive (CSRD). In view of that, the co-signing organisations are calling for broadening the scope of the companies to be covered by the new rules by including all listed SMEs, as well as non-listed SMEs operating in high-risk sectors, subject to proportional rules.
In response to demands from investors and companies, the European Commission presented a proposal for a Corporate Sustainability Due Diligence Directive (CSDDD) in February 2022. The Directive is also a response to France, Germany and Norway adopting legislation on due diligence and attempts to harmonize and introduce one European standard of responsible business conduct.
After several months of delay, today, the European Commission presented its proposal for a Corporate Sustainability Due Diligence Directive in Brussels. The main objective of this new legislation is to integrate into European law international standards such as the UN Guiding Principles on Business and Human Rights - adopted globally over a decade ago - and standards developed and approved by the OECD.
