To meet future demands for renewable energy production, solar power has an important role. Some of this new production will be installed as large solar parks, yet significant amounts will be installed behind-the-meter in households and on commercial buildings. However, the power grid was historically not designed to accommodate distributed energy production, which involves both technical and economic challenges. Local Energy Communities may be an important tool to solve these challenges and enable the efficient integration of solar energy.
What Are Local Energy Communities (LECs)?
The concept of Local Energy Communities originates from EU directives on electricity market regulation. An energy community is a legal entity designed to empower consumers to actively participate in the green transition. These communities are intended to be open, voluntary, and aimed at achieving their members' goals rather than being driven by commercial profit. While energy communities are envisioned as contributors to the green transition, their integration into the complex power system and electricity market remains uncertain.
Local Solar Power from PV Systems
Solar power is currently the most popular technology associated with Local Energy Communities. Solar panels are easily installed on rooftops and facades, promoting engagement in renewable energy production while potentially lowering electricity bills. Additionally, they use existing space, which is beneficial for preserving nature.
Locally installed solar power is most effective when consumed locally. Energy communities can provide the tools to maximize local solar power utilization through proper incentives and regulations.
Challenges for the Power Grid
So far, small-scale solar power has not posed significant technical challenges for the grid. However, as the adoption of solar power grows to meet national targets, challenges will emerge. Large amounts of solar power in the energy system can lead to voltage regulation issues, declining power quality, and other challenges stemming from electricity flowing upward in the grid instead of downward.
Addressing these challenges requires scalable solutions. For example, fair compensation mechanisms, such as reduced grid fees, must balance the cost of maintaining and upgrading the power grid with providing sufficient incentives for solar panel adoption. Furthermore, large-scale integration of solar power necessitates research into technical, economic, and regulatory solutions.
SINTEF has extensive experience and expertise in integrating solar power into the grid, focusing on:
- Simulating power grids with high shares of solar power and other distributed energy resources.
- Developing technical solutions to manage solar power for improved voltage quality.
- Proposing business models that leverage flexibility for efficient solar power integration.
- Offering regulatory insights on energy communities and their role in integrating solar power and other distributed energy resources in Norway.
- Designing incentives that are both socio-economically beneficial and attractive to end-users.
- Advancing smart grids and control systems for distributed energy resources, with testing capabilities in the Smart Grid Laboratory.
SINTEF collaborates closely with grid companies, technology providers, and energy authorities to shape the role of solar power in the future energy system. Contact us to discuss how solar power can maximize societal benefits.
SINTEF has explored these topics across several projects:
- FINE – Flexible Integration of Local Energy Communities into the Norwegian Electricity Distribution System
- FME CINELDI – Centre for intelligent electricity distribution
- FME ZEN – Zero Emission Neighbourhoods in Smart Cities
- FLXenabler – Flexible heating and cooling and geothermal energy storage as an enabler for decarbonized integrated energy systems
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