top of page
Search

FlexLEC - Flexible Local Energy Communities

  • A.G.
  • Nov 5, 2024
  • 4 min read

Updated: Jan 21


It is common knowledge that the European Union is working relentlessly on the issues of energy transition and climate change. In the process, the organization recognised the importance of local energy communities, defined as “legal entities that empower citizens, small businesses and local authorities to produce, manage and consume their own energy” (European Commission, 2022), as one of the measures to improve access to affordable clean energy for consumers, as well as local participation in the transformation needed for its success (European Commission, 2022). 


Local energy communities are therefore crucial for proper deployment of distributed energy resources (DERs), and subsequent change of the structure of our energy system. 


This article aims at discussing the ways that local energy communities can improve our distribution system, specifically considering grid congestion management measures in Norway.  


Local Energy Communities and Grid Flexibility


Local energy communities (LECs) provide significant benefits for the consumers and prosumers participating in them. Electricity bills reduction, improved citizen participation and cooperation on the local level, job opportunities, as well as increasing consumers’ ability to choose the sources and methods of power generation are some of the benefits of local energy communities (Rozite et al., 2023). From the power system point of view, LECs can lead to “more efficient utilization of local resources and distribution networks, increased innovation opportunities for grid customers, reduction in losses and investment costs in the transmission network, as well as easier access to flexibility in the distribution network” (Taxt, 2020). 


Moreover, the management system for Local Energy Communities has potential to reduce grid congestion and mitigate growing peak demand due to local production and consumption of energy (Rozite et al., 2023). Research has shown that with properly optimized measures to manage the system, local energy communities can positively contribute to grid balancing (Nagpal et al., 2022;  Rocha et al., 2020), making them a viable grid congestion measure.


However, it is crucial to mention that local energy communities are not synonymous with microgrids, meaning that they cannot operate independently from the traditional grid. This may pose an issue when the community produces more electricity than what it consumes, and the surplus energy is inserted back into the grid (Brubæk, 2021). Therefore, it is important to underline that the optimisation of the system is pivotal for local energy communities to act as a supporting measure, rather than hinder the process of proper grid management.


Project FINE - Flexibility in Norwegian Local Energy Communities


In Norway, a notable research project aiming at examining the development of local energy communities in the country is Flexible Integration of Local Energy Communities (FINE) project conducted by SINTEF (Taxt, 2020). 


The initiative investigates possible futures of the local energy communities in Norway, simultaneously considering the role of Distribution System Operators in the process, and recommending frameworks that integrate the communities in an effective and system-compatible manner (Morch, n.d.; Bjarghov, 2024). The FINE project commenced with identifying main potential types of local energy communities, which include rural energy communities with weak grids, urban energy communities, and industrial/business clusters (Taxt, 2020). Moreover, FINE created four scenarios of regulatory frameworks and economic incentives for local energy communities, which were implemented in models to examine their impacts (Taxt, 2020).


The 4-year project concludes this year, and the results are yet to be published. 


In line with SINTEF’s findings, Flexpartner.Energy also recognised the potential of industry parks from the local energy communities perspective, and developed the Flexible Local Energy Communities (FlexLEC) concept.


Industry and FlexLEC project


Flexible Local Energy Communities (FlexLEC) project is an innovative solution for industry parks to gain more power without trading it on the flexibility market.


FlexLEC’s operation is efficient and reliable, as it functions on a simple principle of “energy sharing”. If the companies in the industry park are unable to get more energy from the DSO due to grid constraints or inefficient infrastructure, they can share the energy between themselves. 


In practice, it will work as follows - if Company A needs to use more power on Monday at 8am to 9am, Companies B and C can agree to lower their consumption during that time for monetary compensation. An analogical situation would occur if Company B or C needed more electricity on another occasion. 





In this scenario, all the technical aspects, including flex asset analysis, consumption data, technical platform and support, will be managed by Flexpartner.Energy. The usage of the flexibility in the community will be discussed by participants themselves to ensure that the process is fast, easy and efficient. 


FlexLEC utilizes the concept of local energy communities to allow the companies in the industry park to grow without waiting for the DSO to agree on increasing their energy delivery, or constructing additional infrastructure. It is a process that empowers business owners to enhance their operations, simultaneously improving grid congestion management, and contributing to the energy transition.


If you have any further questions about FlexLEC project, flexibility or flexibility trading, contact us today at post@flexpartner.energy.




References


Brubæk, M.R. (2021). Local energy communities: when neighbourhoods become electricity producers. [online] sintef.com. Available at: https://blog.sintef.com/sintefenergy/local-energy-communities-when-neighbourhoods-become-electricity-producers/ [Accessed 22 Oct. 2024].


European Commission (2022). In focus: Energy communities to transform the EU’s energy system. [online] energy.ec.europa.eu. Available at: https://energy.ec.europa.eu/news/focus-energy-communities-transform-eus-energy-system-2022-12-13_en [Accessed 4 Nov. 2024].


Morch, A. (n.d.). Scenarios for Implementation of Energy Communities in Norway. [online] SINTEF.no. Available at: https://www.sintef.no/en/projects/2020/fine/scenarier-for-implementering-av-energisamfunn-i-norge/scenarier-for-implementering-av-energisamfunn-i-norge/ [Accessed 4 Nov. 2024].


Nagpal, H., Avramidis, I.-I., Capitanescu, F. and Madureira, A.G. (2022). Local Energy Communities in Service of Sustainability and Grid Flexibility Provision: Hierarchical Management of Shared Energy Storage. IEEE Transactions on Sustainable Energy, [online] 13(3), pp.1523–1535. doi:https://doi.org/10.1109/TSTE.2022.3157193.


Rocha, R., Collado, J.V., Soares, T., & Retorta, F. (2020). Local Energy Markets for Energy Communities with Grid Constraints. 17th International Conference on the European Energy Market (EEM), Stockholm, Sweden, pp. 1-6. doi: 10.1109/EEM49802.2020.9221878.


Rozite, V., Prin, M., Laera, S., Oxby, J. and Roussel, A. (2023). Empowering people – the role of local energy communities in clean energy transitions – Analysis. [online] iea.org. Available at: https://www.iea.org/commentaries/empowering-people-the-role-of-local-energy-communities-in-clean-energy-transitions [Accessed 22 Oct. 2024].


Taxt, H. (2020). FINE - Flexible Integration of Local Energy Communities into the Norwegian Electricity Distribution System. [online] SINTEF.no. Available at: https://www.sintef.no/en/projects/2020/fine/ [Accessed 4 Nov. 2024].




Comments

Commenting on this post isn't available anymore. Contact the site owner for more info.
bottom of page