Value assessment and design optimization of local energy communities: a Dutch case study

• A stakeholder-informed simulation-based method is proposed to optimize LEC design. • Optimal LEC cuts costs by 66 %, emissions by 60 %, and gives a 41 % return on investment. • LECs outperform individual setups by sharing PV and cutting transformer peak loads. • Cable limits and PV curtailment reduce the full benefit of LEC implementation. • Network upgrades, smart BESS, and flexible HPs unlock LEC’s full potential. Local energy communities (LECs) offer a promising solution to improve the integration of renewable energy and support the energy transition. This study proposes a simulation-based methodology to optimize LEC design and assess its added value over conventional design and operation of (individual) buildings, using Dutch office buildings as a case study. Various LEC design configurations are simulated, considering building retrofits, photovoltaic system sizes, battery energy storage capacities, and heating system types. Additionally, multiple battery control strategies are modeled using a mixed-integer linear programming (MILP) optimization approach and their impact on key performance indicators is evaluated. The best performing LEC design, aligning with stakeholders’ interests, includes the replacement of gas boilers with heat pumps, a 2800 kWh community battery, and PV systems twice the total roof area. This configuration reduces operational costs by 66 % and operational CO₂ by 60 % and achieves a return on investment of 41 %. Furthermore, LECs are found to outperform individual building-level optimization by lowering operational costs up to 8 % , decreasing operational CO₂ up to 7 %, and eliminating contractor peak violations. However, local network cable capacity violations are a significant challenge in the community battery configuration, while individual building-level batteries mitigate these issues more effectively. Considering these limitations, LECs’ full potential for cost and CO₂ emission reductions can be unlocked through advanced community battery control strategies and targeted infrastructure upgrades to ensure a viable and scalable solution for future energy systems.