Economic Impacts of Energy Communities - The Use of Separate Lines or DSO Networks in Connecting Shared Energy Resources

Abstract

Energy communities (ECs) are collectives in which multiple customers can utilize different energy resources (ERs), e.g., small-scale energy production and different flexibility resources, together. ECs enable the increase of local renewable energy production and flexibility in the grid, and the customer participation in producing cleaner energy. This paper studies the economic impacts of connecting different ERs to an EC either via a separate line or the distribution system operator (DSO) network. ECs can be profitable if its members, and the ERs, are situated within the same property boundary. However, there are also situations where it is better to connect the ERs to the EC by using separate line crossing the property boundary. These options have different impacts on the EC and different stakeholders. The paper shows that building a short separate line can be profitable, and that the present DSO tariff do not encourage ECs to use a DSO network.