IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i5p1749-d1342615.html
   My bibliography  Save this article

A Review of Renewable Energy Communities: Concepts, Scope, Progress, Challenges, and Recommendations

Author

Listed:
  • Shoaib Ahmed

    (School of Engineering, University of Basilicata, Via dell’Ateneo Lucano, 10, 85100 Potenza, PZ, Italy)

  • Amjad Ali

    (Interdisciplinary Research Centre for Sustainable Energy Systems (IRC-SES), King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia)

  • Antonio D’Angola

    (School of Engineering, University of Basilicata, Via dell’Ateneo Lucano, 10, 85100 Potenza, PZ, Italy)

Abstract

In recent times, there has been a significant shift from centralized energy systems to decentralized ones. These systems aim to satisfy local energy needs using renewable resources within the community. This approach leads to decreased complexity and costs, improved efficiency, and enhanced local resilience and supports energy independence, thereby advancing the transition toward zero carbon emissions. Community energy plays a pivotal role globally, particularly in European countries, driven by citizen engagement in generating power from renewable sources. The European Union, known for its focus on social innovation and citizen participation, recognizes the essential role of energy communities in its latest energy strategy. The concept for creating local energy communities or community-based energy projects has gained worldwide attention, demonstrating the economic, environmental, and efficiency benefits for using renewable energy sources. However, there is a noticeable gap in research covering all the updated aspects of renewable energy communities. This article provides an in-depth review of energy communities, especially renewable energy communities, exploring their concepts, scope, benefits, and key activities. It also sheds light on their progress by presenting results and analyses. Some countries have shown significant advancement, others are in the initial stages, and a few have partially adopted REC implementation according to the Renewable Energy Directive II. Additionally, it discusses the main challenges and potential recommendations to enhance the growth of renewable energy communities. This work is a valuable resource, emphasizing the importance of citizen involvement and offering insights into various aspects of community energy for sustainable energy transition. It also provides practical insights and valuable information for policymakers, researchers, industry professionals, and community members who are keen on promoting sustainable, community-driven energy systems.

Suggested Citation

  • Shoaib Ahmed & Amjad Ali & Antonio D’Angola, 2024. "A Review of Renewable Energy Communities: Concepts, Scope, Progress, Challenges, and Recommendations," Sustainability, MDPI, vol. 16(5), pages 1-34, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:1749-:d:1342615
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/5/1749/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/5/1749/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lazzari, Florencia & Mor, Gerard & Cipriano, Jordi & Solsona, Francesc & Chemisana, Daniel & Guericke, Daniela, 2023. "Optimizing planning and operation of renewable energy communities with genetic algorithms," Applied Energy, Elsevier, vol. 338(C).
    2. Binod Prasad Koirala & José Pablo Chaves Ávila & Tomás Gómez & Rudi A. Hakvoort & Paulien M. Herder, 2016. "Local Alternative for Energy Supply: Performance Assessment of Integrated Community Energy Systems," Energies, MDPI, vol. 9(12), pages 1-24, November.
    3. Sperling, Karl & Hvelplund, Frede & Mathiesen, Brian Vad, 2011. "Centralisation and decentralisation in strategic municipal energy planning in Denmark," Energy Policy, Elsevier, vol. 39(3), pages 1338-1351, March.
    4. Marco Segreto & Lucas Principe & Alexandra Desormeaux & Marco Torre & Laura Tomassetti & Patrizio Tratzi & Valerio Paolini & Francesco Petracchini, 2020. "Trends in Social Acceptance of Renewable Energy Across Europe—A Literature Review," IJERPH, MDPI, vol. 17(24), pages 1-19, December.
    5. Felice, Alex & Rakocevic, Lucija & Peeters, Leen & Messagie, Maarten & Coosemans, Thierry & Ramirez Camargo, Luis, 2022. "Renewable energy communities: Do they have a business case in Flanders?," Applied Energy, Elsevier, vol. 322(C).
    6. Bianchi, F.R. & Bosio, B. & Conte, F. & Massucco, S. & Mosaico, G. & Natrella, G. & Saviozzi, M., 2023. "Modelling and optimal management of renewable energy communities using reversible solid oxide cells," Applied Energy, Elsevier, vol. 334(C).
    7. Haji Bashi, Mazaher & De Tommasi, Luciano & Le Cam, Andreea & Relaño, Lorena Sánchez & Lyons, Padraig & Mundó, Joana & Pandelieva-Dimova, Ivanka & Schapp, Henrik & Loth-Babut, Karolina & Egger, Christ, 2023. "A review and mapping exercise of energy community regulatory challenges in European member states based on a survey of collective energy actors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 172(C).
    8. Casalicchio, Valeria & Manzolini, Giampaolo & Prina, Matteo Giacomo & Moser, David, 2022. "From investment optimization to fair benefit distribution in renewable energy community modelling," Applied Energy, Elsevier, vol. 310(C).
    9. Gjorgievski, Vladimir Z. & Velkovski, Bodan & Francesco Demetrio, Minuto & Cundeva, Snezana & Markovska, Natasa, 2023. "Energy sharing in European renewable energy communities: Impact of regulated charges," Energy, Elsevier, vol. 281(C).
    10. Weckesser, Tilman & Dominković, Dominik Franjo & Blomgren, Emma M.V. & Schledorn, Amos & Madsen, Henrik, 2021. "Renewable Energy Communities: Optimal sizing and distribution grid impact of photo-voltaics and battery storage," Applied Energy, Elsevier, vol. 301(C).
    11. Vine, Edward & Mills, Evan & Chen, Allan, 2000. "Energy-efficiency and renewable energy options for risk management and insurance loss reduction," Energy, Elsevier, vol. 25(2), pages 131-147.
    12. Frans H. J. M. Coenen & Thomas Hoppe, 2022. "Renewable Energy Communities as a New Actor in Home Energy Savings," Urban Planning, Cogitatio Press, vol. 7(2), pages 108-122.
    13. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    14. Duvignau, Romaric & Heinisch, Verena & Göransson, Lisa & Gulisano, Vincenzo & Papatriantafilou, Marina, 2021. "Benefits of small-size communities for continuous cost-optimization in peer-to-peer energy sharing," Applied Energy, Elsevier, vol. 301(C).
    15. Cosic, Armin & Stadler, Michael & Mansoor, Muhammad & Zellinger, Michael, 2021. "Mixed-integer linear programming based optimization strategies for renewable energy communities," Energy, Elsevier, vol. 237(C).
    16. Bruno Canizes & João Costa & Diego Bairrão & Zita Vale, 2023. "Local Renewable Energy Communities: Classification and Sizing," Energies, MDPI, vol. 16(5), pages 1-26, March.
    17. Walker, Gordon, 2008. "What are the barriers and incentives for community-owned means of energy production and use?," Energy Policy, Elsevier, vol. 36(12), pages 4401-4405, December.
    18. Bernadette Fina & Hans Auer, 2020. "Economic Viability of Renewable Energy Communities under the Framework of the Renewable Energy Directive Transposed to Austrian Law," Energies, MDPI, vol. 13(21), pages 1-31, November.
    19. Herenčić, Lin & Kirac, Mislav & Keko, Hrvoje & Kuzle, Igor & Rajšl, Ivan, 2022. "Automated energy sharing in MV and LV distribution grids within an energy community: A case for Croatian city of Križevci with a hybrid renewable system," Renewable Energy, Elsevier, vol. 191(C), pages 176-194.
    20. Grigorios L. Kyriakopoulos, 2022. "Energy Communities Overview: Managerial Policies, Economic Aspects, Technologies, and Models," JRFM, MDPI, vol. 15(11), pages 1-45, November.
    21. Nejat, Payam & Jomehzadeh, Fatemeh & Taheri, Mohammad Mahdi & Gohari, Mohammad & Abd. Majid, Muhd Zaimi, 2015. "A global review of energy consumption, CO2 emissions and policy in the residential sector (with an overview of the top ten CO2 emitting countries)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 843-862.
    22. Li, Na & Okur, Özge, 2023. "Economic analysis of energy communities: Investment options and cost allocation," Applied Energy, Elsevier, vol. 336(C).
    23. Anita Tatti & Sibilla Ferroni & Martina Ferrando & Mario Motta & Francesco Causone, 2023. "The Emerging Trends of Renewable Energy Communities’ Development in Italy," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    24. Florian Hanke & Jens Lowitzsch, 2020. "Empowering Vulnerable Consumers to Join Renewable Energy Communities—Towards an Inclusive Design of the Clean Energy Package," Energies, MDPI, vol. 13(7), pages 1-27, April.
    25. Fina, Bernadette & Auer, Hans & Friedl, Werner, 2019. "Profitability of PV sharing in energy communities: Use cases for different settlement patterns," Energy, Elsevier, vol. 189(C).
    26. Francesca Ceglia & Elisa Marrasso & Giovanna Pallotta & Carlo Roselli & Maurizio Sasso, 2022. "The State of the Art of Smart Energy Communities: A Systematic Review of Strengths and Limits," Energies, MDPI, vol. 15(9), pages 1-28, May.
    27. Kaygusuz, K., 2011. "Energy services and energy poverty for sustainable rural development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 936-947, February.
    28. Hamza Gribiss & Mohammad Mohsen Aghelinejad & Farouk Yalaoui, 2023. "Configuration Selection for Renewable Energy Community Using MCDM Methods," Energies, MDPI, vol. 16(6), pages 1-23, March.
    29. Tobiloba Somefun & Olawale Popoola & Ademola Abdulkareem & Ayokunle Awelewa, 2022. "Review of Different Methods for Siting and Sizing Distributed Generator," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 16-31, May.
    30. F.G. Reis, Inês & Gonçalves, Ivo & A.R. Lopes, Marta & Henggeler Antunes, Carlos, 2021. "Business models for energy communities: A review of key issues and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monica Musolino & Domenica Farinella, 2025. "Renewable Energy Communities as Examples of Civic and Citizen-Led Practices: A Comparative Analysis from Italy," Land, MDPI, vol. 14(3), pages 1-29, March.
    2. Bouaziz, Mohamed Chahine & El Koundi, Mourad & Ennine, Ghaleb, 2024. "High-resolution solar panel detection in Sfax, Tunisia: A UNet-Based approach," Renewable Energy, Elsevier, vol. 235(C).
    3. Diana D’Agostino & Federico Minelli & Francesco Minichiello, 2025. "HVAC System Energy Retrofit for a University Lecture Room Considering Private and Public Interests," Energies, MDPI, vol. 18(6), pages 1-19, March.
    4. Inês Carvalho & Jorge Sousa & José Villar & João Lagarto & Carla Viveiros & Filipe Barata, 2025. "Optimal Investment and Sharing Decisions in Renewable Energy Communities with Multiple Investing Members," Energies, MDPI, vol. 18(8), pages 1-23, April.
    5. Lepistö, Juhani & Forcan, Jovana & Forcan, Miodrag, 2024. "Exploring optimal market operations and grid effects in an office building energy community: A case study," Renewable Energy, Elsevier, vol. 231(C).
    6. Abdul-Hussein, Mustafa A. & Mohammed, Jamal A.-K. & Abdul-Lateef, Wisam E., 2025. "Design and implementation of pneumatic actuators in a dual-axis solar tracker under the climatic conditions of karbala city," Renewable Energy, Elsevier, vol. 239(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shoaib Ahmed & Amjad Ali & Alessandro Ciocia & Antonio D’Angola, 2024. "Technological Elements behind the Renewable Energy Community: Current Status, Existing Gap, Necessity, and Future Perspective—Overview," Energies, MDPI, vol. 17(13), pages 1-40, June.
    2. Mariuzzo, Ivan & Fina, Bernadette & Stroemer, Stefan & Corinaldesi, Carlo & Raugi, Marco, 2025. "Grid-friendly optimization of energy communities through enhanced multiple participation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 208(C).
    3. Volpato, Gabriele & Carraro, Gianluca & De Giovanni, Luigi & Dal Cin, Enrico & Danieli, Piero & Bregolin, Edoardo & Lazzaretto, Andrea, 2024. "A stochastic optimization procedure to design the fair aggregation of energy users in a Renewable Energy Community," Renewable Energy, Elsevier, vol. 237(PA).
    4. Mariuzzo, Ivan & Fina, Bernadette & Stroemer, Stefan & Raugi, Marco, 2024. "Economic assessment of multiple energy community participation," Applied Energy, Elsevier, vol. 353(PA).
    5. Inês Carvalho & Jorge Sousa & José Villar & João Lagarto & Carla Viveiros & Filipe Barata, 2025. "Optimal Investment and Sharing Decisions in Renewable Energy Communities with Multiple Investing Members," Energies, MDPI, vol. 18(8), pages 1-23, April.
    6. Anita Tatti & Sibilla Ferroni & Martina Ferrando & Mario Motta & Francesco Causone, 2023. "The Emerging Trends of Renewable Energy Communities’ Development in Italy," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    7. Luca Brunelli & Emiliano Borri & Anna Laura Pisello & Andrea Nicolini & Carles Mateu & Luisa F. Cabeza, 2024. "Thermal Energy Storage in Energy Communities: A Perspective Overview through a Bibliometric Analysis," Sustainability, MDPI, vol. 16(14), pages 1-27, July.
    8. Gabriele Volpato & Gianluca Carraro & Enrico Dal Cin & Sergio Rech, 2024. "On the Different Fair Allocations of Economic Benefits for Energy Communities," Energies, MDPI, vol. 17(19), pages 1-26, September.
    9. Elisa Moretti & Ettore Stamponi, 2023. "The Renewable Energy Communities in Italy and the Role of Public Administrations: The Experience of the Municipality of Assisi between Challenges and Opportunities," Sustainability, MDPI, vol. 15(15), pages 1-23, August.
    10. Di Foggia, Giacomo & Beccarello, Massimo, 2024. "Designing New Energy Markets to Promote Renewables," MPRA Paper 121783, University Library of Munich, Germany.
    11. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Georghiou, George E., 2021. "Social arrangements, technical designs and impacts of energy communities: A review," Renewable Energy, Elsevier, vol. 169(C), pages 1138-1156.
    12. Anna Mutule & Olegs Borscevskis & Victor Astapov & Irina Antoskova & Paula Carroll & Evita Kairisa, 2025. "PV Energy Communities in Residential Apartments: Technical Capacities and Economic Viability," Sustainability, MDPI, vol. 17(7), pages 1-21, March.
    13. Georgios Yiasoumas & Lazar Berbakov & Valentina Janev & Alessandro Asmundo & Eneko Olabarrieta & Andrea Vinci & Giovanni Baglietto & George E. Georghiou, 2023. "Key Aspects and Challenges in the Implementation of Energy Communities," Energies, MDPI, vol. 16(12), pages 1-24, June.
    14. Luisa Losada-Puente & José Antonio Blanco & Adina Dumitru & Ioannis Sebos & Aggelos Tsakanikas & Ioanna Liosi & Stelios Psomas & Mariangela Merrone & Diego Quiñoy & Eduardo Rodríguez, 2023. "Cross-Case Analysis of the Energy Communities in Spain, Italy, and Greece: Progress, Barriers, and the Road Ahead," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    15. Nicola Blasuttigh & Simone Negri & Alessandro Massi Pavan, 2025. "Optimal ATECO-Based Clustering and Photovoltaic System Sizing for Industrial Users in Renewable Energy Communities," Energies, MDPI, vol. 18(4), pages 1-29, February.
    16. Vallati, Andrea & Lo Basso, Gianluigi & Muzi, Francesco & Fiorini, Costanza Vittoria & Pastore, Lorenzo Mario & Di Matteo, Miriam, 2024. "Urban energy transition: Sustainable model simulation for social house district," Energy, Elsevier, vol. 308(C).
    17. Volpato, Gabriele & Carraro, Gianluca & Cont, Marco & Danieli, Piero & Rech, Sergio & Lazzaretto, Andrea, 2022. "General guidelines for the optimal economic aggregation of prosumers in energy communities," Energy, Elsevier, vol. 258(C).
    18. Bernadette Fina & Miriam Schwebler & Carolin Monsberger, 2022. "Different Technologies’ Impacts on the Economic Viability, Energy Flows and Emissions of Energy Communities," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    19. Roberta Roberto & Gabriella Ferruzzi & Viviana Negro & Michel Noussan, 2023. "Mapping of Energy Community Development in Europe: State of the Art and Research Directions," Energies, MDPI, vol. 16(18), pages 1-29, September.
    20. Hashemipour, Naser & Crespo del Granado, Pedro & Aghaei, Jamshid, 2021. "Dynamic allocation of peer-to-peer clusters in virtual local electricity markets: A marketplace for EV flexibility," Energy, Elsevier, vol. 236(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:1749-:d:1342615. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.