Empowering energy communities: The curious case of a socially beneficial community-owned solar park

Abstract

Energy communities have increasingly become functional actors in European energy markets. Recently, different designs of the renewable energy trade among the stakeholders of an energy community project have gained traction. However, the connection between those designs and the (re)distribution of the social costs and benefits from the project has remained under-represented. There is a need to investigate the connection in light of the emerging energy regulation innovations. In this context, We conducted a social cost-benefit analysis (SCBA) to evaluate the socioeconomic impact of an ongoing solar park project owned by a local energy community in the Netherlands. The findings of the SCBA reveal a negative socioeconomic impact of the project in its current form. Therefore, we suggest that it is necessary to change the business model underlying the project and propose a recommendation on the existing regulation. To trigger a positive impact, we propose that the energy community is required to shift its revenue stream from trading electricity with grid operators to trading electricity directly with participating residents.

Keywords

• Climate change
• Electricity market
• Solar park
• Energy community
• Social cost-benefit analysis