Renewable energy sources, in particular those based on solar radiation, are growing rapidly and are planned to play an instrumental role in building power systems to reach the 2030 and 2050 energy and climate mitigation objectives. However, new actors have been introduced into the energy field, highlighting the importance of the role of citizens and communities in building such energy systems. To outline the significance of citizens in the development of solar energy communities and to describe the benefits of and barriers to their implementation so far, a comprehensive literature review has been carried out based on 64 thoroughly selected, reliable scientific publications (published within 2015–2021), revealing the latest trends, technologies and research in this field. The research focuses on four consumer interest areas: policy, economic, technical and social, covering the following subsections: policy, trading model, economic assessment, business model, energy management, demand response, modelling tools and consumer adoption. Within each subsection the conducted review seeks to answer the questions related to the further development and implementation of PV energy communities, considering consumer needs and revealing the possible solutions.

Community energy projects have gained popularity in recent years, and encouraging citizens to form local energy communities (LEC) is considered an effective tool for raising awareness about renewable energy. Since no single universal method exists for operating LECs, this study investigated the impact that different business models and asset dispatch methods have on LECs’ economic and energy-related indicators. We carried out a case study, which included the development, modelling, and simulation of seven scenarios using mixed-integer linear programming (MILP). To measure and compare the prospective performance of the LECs in each scenario, six key metrics were evaluated and assessed. The authors find that simple, rule-based control systems might be well suited for LECs with a limited number of controllable assets that aim to provide increased levels of self-consumption of up to 3%. We also conclude that when the LEC utilises an energy cooperative business model, the selected asset dispatch method provides only minor differences in LEC performance, while for prosumer communities, the importance of selecting a suitable asset dispatch method is higher. We also conclude that LECs have the potential to significantly increase their economic performance by more than 10% by acting as aggregators and providing grid services directly to system operators.

Energy communities (EnCs) are increasingly promoted as a means to support the decentralisation of energy systems and the integration of renewable energy sources, yet lack popularity and wide adoption. At the same time, demand flexibility is an important mechanism that can support EnCs by bringing additional benefits. Nonetheless, these concepts are often addressed separately or incoherently in policy and research, so the benefits of integrating them remain unclear. This paper aims to bridge these concepts and analyse their interaction. First, it sets the context by analysing legal and policy developments and the research landscape. It presents a systematic literature review of recent peer-reviewed publications, consolidating findings across three thematic areas: benefits and challenges for EnC members and system operators, approaches to enhance flexibility, and enabling factors, such as technical issues and data availability. The paper also outlines suggestions where further research is required to better understand and operationalise demand flexibility at the community level. The review shows that demand flexibility can significantly enhance the economic, environmental, and system-level benefits of EnCs but its integration remains fragmented and uneven. In particular, the complex interactions between internal and external incentives, stakeholder perspectives, technologies, and data availability are still insufficiently explored.

Active customers play a critical role in the successful implementation of support schemes, paving the way for the emergence of an energy community. This analysis explores the cooperation among active customers and the implications for developing energy communities. Furthermore, the motivations for consumers becoming active customers in the context of Latvia are illuminated, while also exploring the broader context of navigating the complex regulatory landscape to promote self-consumption. In contrast to prior studies, which often focus on individual or homogenous group participation, this analysis uniquely examines collaborative frameworks that incorporate varied customer categories and profiles. This approach not only underscores the role of tailored regulatory structures in fostering self-consumption, but also presents practical policy insights for incentivizing community-based energy models. The findings reveal that individual participation of active customers in support schemes only achieves the minimal self-consumption threshold in 47% of cases. In contrast, membership in an energy community significantly increases this rate, reaching 84%. These encouraging results underscore the importance of promoting energy community membership among active customers, which subsequently demonstrates substantial potential when promoted across diverse load profile categories. Additionally, the integration of photovoltaic and wind turbine technologies consistently improves self-consumption values.

This study explores the recent legislative changes allowing prosumers and consumers in Latvia to form energy communities (EnCs). In spite of legal advancements, the absence of supporting regulations and potential barriers, such as the lack of tailored support schemes and forecasting tools, pose challenges. International experiences highlight additional hurdles, including weak stakeholder dialogue and limited EnC modelling tools. To address these issues, the study proposes a prosumer and consumer EnC business model aligned with Latvia’s legislation, emphasising a peer-to-peer (P2P) trading approach. The model incorporates state aid, electricity trader responsibilities, and reinvestment of EnC profits, eliminating the need for a dedicated trading platform. The study introduces a user-friendly planning tool in MS Excel, evaluating economic viability through case studies and scenarios. Findings emphasise the optimisation of EnC effectiveness by adjusting tariffs, minimising initial investment costs, securing external funding, and managing loan durations. The planning tool serves as a universal instrument, offering insights into individual EnC economic indicators based on their unique characteristics. The research provides valuable guidance to stakeholders and policymakers in Latvia’s evolving energy landscape.

The paper presents energy community (EnC) management simulation based on the existing net metering system in Latvia. The selected case studies were used to determine the most common economic indicators: NPV (net present value) and IRR (internal rate of return). Based on the results obtained, the study proposes prerequisites for the introduction of a small-scale EnC management scheme.