Qualitative and Quantitative Impact of the National Regulation on the Business Case for Energy Communities and Collective Actions

Abstract

Energy communities (ECs) have emerged across the EU, with the Clean Energy Package providing the legal foundation for the establishment of energy communities. The actual transposition is up to the member states, leading to heterogeneous regulatory approaches. The national frameworks often provide financial support mechanisms like local grid tariffs, along with regulatory limitations on size and membership, which significantly influence the business case for ECs. This paper analyzes the economic feasibility of ECs under different national frameworks in Spain, Portugal, France, Italy, and Austria. Two scenarios were evaluated by means of a case study, consisting of households and two public entities. The first scenario compares national incentives under uniform conditions, while the second considers country-specific factors like PV irradiation and electricity costs. Results show that energy communities can only partially decouple electricity prices from market dynamics. The study concludes that financial incentives lead to adequate financial savings for the members in most countries; however, the level of incentive does not necessarily relate to the number of established energy communities. Electricity grid benefits could be created by promoting demand response measures in the EC.

Keywords

• energy communities
• regulatory framework
• incentive schemes
• economic feasibility
• electricity grid benefits
• market volatility