Integration of Local Energy Communities in Electricity Distribution Grids: FINE project deliverable

Abstract

This report investigates the integration of Local Energy Communities (LECs) into electricity distribution networks, with a focus on enhancing grid flexibility, optimizing resource use, and supporting the transition to renewable energy and increased electrification of demand. The report provides an overview of LECs' potential roles and categorizes them based on their unique characteristics in rural, urban, and industrial settings. Key technical, regulatory, and economic challenges are assessed, alongside the benefits LECs offer, such as improved local resource coordination, increased grid efficiency, and reduced transmission costs. The report evaluates various scenarios for integrating LECs into the grid, exploring cooperative, competitive, and participatory models that account for diverse stakeholder roles. In addition to model-based assessments, the report also offers policy recommendations regarding LECs potential contribution to the energy transition.

Integration of Local Energy Communities in Electricity Distribution Grids: FINE project deliverable