Energy communities' flexibility in different tax and tariff structures

Energy communities are often referred to as a potential source of flexibility to energy systems. However, the extent remains uncertain and is dependent on both the technologies and market structures present. This study models an energy community under different technical system configurations subject to different electricity tax and electricity grid tariff schemes to determine flexibility potentials and effects on the surrounding energy system. It is found that unless incentivised to reduce electricity grid imports, or that import capacity is otherwise restricted, the electrification of energy communities will significantly increase the electricity import from the surrounding electricity grid and thus increase the required electricity grid capacity. This can largely be negated by restructuring tax and tariff schemes to incentivise flexibility and a more temporally distributed consumption pattern. Most notably, capacity payments prove an effective measure in this regard. The operation of the energy community was generally found to be well-aligned with the operation of a future national 100% renewable energy system, indicating that there are no inherent critical contradictions in the expected operation of this kind of energy community and a surrounding national energy system.

Automated summary

This study models an energy community under different technical system configurations subject to different electricity tax and electricity grid tariff schemes to determine flexibility potentials and effects on the surrounding energy system. It is found that unless incentivised to reduce electricity grid imports, or that import capacity is otherwise restricted, the electrification of energy communities will significantly increase the electricity import from the surrounding electricity grid and thus increase the required electricity grid capacity. Most notably, capacity payments prove an effective measure in this regard.