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The energy community and the grid

Author

Listed:
  • Axel Gautier

  • Julien Jacqmin

  • Jean-Christophe Poudou

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)

Abstract

Energy communities involve various agents who decide to invest in renewable production units. This paper examines how these communities interact with the energy system and can decrease its overall cost. First, we show that an energy community can contribute positively to welfare if the electricity produced by the investment is consumed close to its place of production, i.e. if the community has a high degree of collective self-consumption. Second, our analysis identifies the condition on prices and grid tariffs to align the community's interest with welfare maximization. We also show that some of these grid tariffs do not have a negative impact on non-members of the community and could therefore limit potential distributional issues. Third, various internal organizations of the energy communities are feasible. We show that the internal organization impacts the distribution of benefits among members but not the investment and the global efficiency of the community.

Suggested Citation

  • Axel Gautier & Julien Jacqmin & Jean-Christophe Poudou, 2025. "The energy community and the grid," Post-Print hal-04913866, HAL.
    • Handle: RePEc:hal:journl:hal-04913866
    DOI: 10.1016/j.reseneeco.2025.101480
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    Cited by:

    1. Laura Wangen & Cédric Clastres, 2024. "Economic Trades in Energy Communities and Optimal Allocation," Post-Print hal-04539585, HAL.
    2. Lingcheng Kong & Ao Wang, 2025. "Coordination in Energy Platforms: How Fairness Concerns and Market Power Shape Pricing and Profitability," Sustainability, MDPI, vol. 17(18), pages 1-28, September.
    3. Balegamire, Remy & Gautier, Axel, 2025. "Pricing and sharing rules for energy communities," Utilities Policy, Elsevier, vol. 96(C).
    4. Abada, Ibrahim & Ehrenmann, Andreas & Lambin, Xavier, 2025. "Risk-sharing in energy communities," European Journal of Operational Research, Elsevier, vol. 322(3), pages 870-888.
    5. Elise Viadere, 2024. "Promoting Energy-sharing Communities: why and how? Lessons from a Belgian Pilot Project," Working Papers ECARES 2024-22, ULB -- Universite Libre de Bruxelles.
    6. Fabra, Natalia & Reguant, Mar, 2024. "The energy transition: A balancing act," Resource and Energy Economics, Elsevier, vol. 76(C).

    More about this item

    Keywords

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    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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