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FINE - Flexible Integration of Local Energy Communities into the Norwegian Electricity Distribution System

What is the impact of introducing Local energy communities

Local energy communities (LEC) can take different forms and be located in different parts of the distribution grid. As a part of the research project Flexible Integration of Local Energy Communities (FINE), we are evaluating each LEC concept according to selected key performance indicators (KPI).

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Illustration of grid, houses, solar and wind power

The performance indicators will evaluate the regulatory and legal aspects, economic indicators, technical implications, and also environmental and social factors. On top of this evaluation, the work package focus is to analyse the fulfilment of the interest of the stakeholders.

In a grid analysis, the active and passive role of the distribution system operator (DSO) for the different LEC scenarios is compared. The possible techno-economic effects of different ways of organising an energy community and the role of the DSO are investigated. Hence, the main dimensions of this analysis are the various energy community concepts and the scenarios for deployment. These dimensions will be assessed for grid planning and especially for grid operation using the KPIs and methodologies developed in the project.

The advantages and disadvantages of making the flexibility activation endogenous in the energy community through a local market (passive DSO) compared to using external price signals to activate the flexibility of an energy community through flexibility markets or other price signals (active DSO) will be assessed. Based on these results, the scalability and replicability of the results will be evaluated to derive possible business models for commercialisation.

By combining the DSOs and the LEC`s perspectives from a social welfare point of view, the most favourable organisation of LECs will be identified. We will also quantify the possible added value compared to a reference scenario based on the status quo. Lastly, recommendations for policymakers, DSOs, and LECs will be derived from the results and the regulation gap addressed.