Community Engagement in The Energy Transition

There are many definitions for community engagement but in its simplest terms community engagement seeks to better engage citizens to achieve long-term and sustainable results, processes, relationships or implementation. It is a strategic process with a specific purpose of working with certain groups of people, who are connected by geographical location, special interest or affiliation to address issues affecting their well-being. 

 

Community engagement is crucial in energy transition in order to achieve the net-zero scenario. Energy transition refers to the global energy sector’s shift from fossil fuels to renewable energy sources, reducing energy-related CO2 emissions. It is the enabler of sustainable development and climate resilience which requires urgent action on a global scale and the realisation of both regional and national commitments. The acceptance and involvement of local communities are very important in this process to distribute clean energy and related technologies. There are different ways of approaches to engage citizens, but the successful ones leverage direct social and economic benefits (e.g., creation of revenues and jobs) (IRENA Coalition for Action, 2020: Stimulating investment in community energy: Broadening the ownership of renewables).

 

In May 2019, the EU has introduced the concept of energy communities in its legislation through the „Clean Energy for All Europeans” package as „citizen energy communities” – Directive (EU) 2019/944 – and „renewable energy communities” – Directive (EU) 2018/2001. Energy communities organize citizen-driven energy actions that support the clean energy transition while increasing energy efficiency, lowering their energy bills and creating local job opportunities. Energy communities can take any form of legal entity and they can act as one entity which makes it easier for its citizens to jointly invest in energy assets and to provide flexibility to the electricity system.

 
Source: Ghiani, E.; Giordano, A.; Nieddu, A.; Rosetti, L.; Pilo, F. Planning of a Smart Local Energy Community: The Case of Berchidda Municipality (Italy). Energies 2019, 12, 4629. https://doi.org/10.3390/en12244629

As the picture shows above, active consumer participation through energy communities (or individually) could include activities such as generating, consuming, sharing or selling electricity or providing flexibility services through Demand Side participation. Demand Side Management (DSM) is a solution that helps to improve the stability and the security of the energy system by optimising the consumption and the generation of electricity. One of its pillars is Demand Side Response (DSR) which refer to change in consumer behaviours to reduce or shift their electricity usage during peak periods to decrease demand on the grid. DSR has many benefits for the consumers, on one side they can reduce their electricity bills and on the other side they usually get rewards or direct payment to shift their consumption. 

 

At Enasco, we provide techno-economic analysis as part of our advisory services and have strong technological knowledge in the energy transition. Our experience enables us to evaluate all available options and identify the most suitable path for your business. Please, let us know if you would like to learn more about community engagement practices.

 

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