Integration of energy communities in distribution grids: Development paths for local energy coordination

Energy Communities (ECs) have received increasing interest in recent years, with diverse perceptions of what they are and how they are expected to interact with existing infrastructure. This is particularly important with regard to the distribution grid. ECs are expected to bring certain benefits in the transition towards a renewables-dominated electricity system, but that requires an awareness and coordination with the power system and particularly the distribution system operator (DSO). This paper intends to structure the discourse on EC integration in the distribution system, by identifying the two most critical factors in the interaction, namely the decentralisation of coordination responsibility, and advancement of active distribution system management. These two factors are used in a 2-by-2 scenario topology to identify four scenarios for local energy coordination that will govern the development of ECs; Reference, Competitive, Cooperative and Participatory. The scenarios imply different DSO-EC interactions and, thus, different conditions for the development of ECs. The scenario were active distribution system management and decentralisation of coordination responsibility are combined (Participatory scenario) is likely to bring most benefits. However, it is also the most complex and requires comprehensive and costly developments at both DSO and ECs. As a consequence, developments should happen step-wise, and the framework presented here can foster a structured discourse for this development. • Defining energy community integration scenarios in electricity distribution grids. • Examining proactive DSO roles utilising energy communities for grid flexibility. • Identifying regulatory and technical requirements for EC-grid integration. • Discusses pathways for EC evolvement based on presented scenario framework. • Participatory energy communities offer high potential but need system adaptations.