To accelerate the energy transition, the EU “Clean Energy for all Europeans” package aims to strengthen the involvement of end consumers in the energy market. To this end, together with so-called “active consumers” and provisions for individual and collective renewable energy self-consumption, two types of energy communities were introduced. The EU framework, however, leaves many details of the transposition process to the national level. The corresponding directives were supposed to be transposed by the end of December 2020 (recast Electricity Market Directive, defining active consumers and citizen energy communities) and by the end of June 2021 (Renewable Energy Directive, defining renewables self-consumption and renewable energy communities). In this paper, we critically discuss major developments of the transposition, including questions of the general distinction of the different concepts, governance and ownership, physical expansion, administrative barriers and the overall integration of energy communities into the energy system. The analysis builds on country case studies as well as on previous work by the authors on the status of the transposition process throughout the EU. The paper shows that the national approaches differ greatly and are at very different stages. While basic provisions are in place in most Member States to meet the fundamental EU requirements, the overall integration into the energy system and market is only partly addressed. This concerns, for instance, the analysis of system impacts of energy communities and measures that would allow and support energy system-friendly behaviour. In addition, several practical hurdles need to be overcome. These often relate to administrative requirements such as complex registration and licensing procedures, the need for the involvement of several institutions, or difficult procedures for access to relevant data. The paper concludes that discussed barriers will need to be carefully addressed if the high expectations for the role of energy communities are to be met.

This paper explores business models for community energy storage (CES) and examines their potential and feasibility at the local level. By leveraging Multi Criteria Decision Making (MCDM) approaches and real-world case studies in Europe and India, it presents insights into CES deployment opportunities, challenges, and best practices. Different business models, including community energy cooperatives, utility–community partnerships, demand response, energy services, and market mechanisms, are analyzed. The proposed method combines the MCDM method PROMETHEE II with the fuzzy set theory to obtain a complete CES business model ranking, addressing project uncertainties. The analysis emphasizes CES’s role in balancing local renewable energy supply and demand, facilitating energy sharing, and achieving energy independence. Findings prioritize models like Community Cooperative, Energy Arbitrage, and Energy Arbitrage Peak Shaving for CES with renewables. Environmental benefits include reduced diesel use and greenhouse gas emissions. Efficient cooperatives are advocated to recover costs and enable competitive energy prices. The paper highlights the need for novel value propositions to boost the energy transition in local communities. This research contributes to the discourse on CES business models, fostering knowledge exchange and promoting effective strategies for sustainable energy systems.

In this paper, we investigate the economic benefits of an energy community investing in small-scale photovoltaics (PVs) when local energy trading is operated amongst the community members. The motivation stems from the open research question on whether a community-operated local energy market can enhance the investment feasibility of behind-the-meter small-scale PVs installed by energy community members. Firstly, a review of the models, mechanisms and concepts required for framing the relevant concepts is conducted, while a clarification of nuances at important terms is attempted. Next, a tool for the investigation of the economic benefits of operating a local energy market in the context of an energy community is developed. We design the local energy market using state-of-the-art formulations, modified according to the requirements of the case study. The model is applied to an energy community that is currently under formation in a Greek municipality. From the various simulations that were conducted, a series of generalizable conclusions are extracted.

Energy Communities have emerged as a key mechanism for promoting citizen participation in the energy transition. In Greece, recent legislation replaced the virtual net-metering scheme with a virtual net-billing framework, introducing new economic and regulatory conditions for shared renewable energy investments. This study develops an optimization tool for determining the optimal PV system size and Demand Response actions for individual EC members under this new framework. The model is constructed to align closely with the current regulatory and legal context, incorporating technical, economic, and policy-related constraints. It uses real electricity production and consumption data from existing Greek ECs, as well as 2024 Day Ahead Market prices, grid fees, and surcharges. The results emphasize the importance of customized sizing strategies and suggest that policy refinements may be needed to ensure equitable participation and maximize community-level benefits.

The paper explores the pivotal role of Energy Communities (ECs) in advancing the energy transition, with a focus on their contributions to climate change mitigation and environmental sustainability in Europe. Energy Communities are emerging as essential drivers of decentralized energy systems that leverage local renewable energy resources. These community-led initiatives enhance energy resilience, reduce carbon emissions, and foster socio-economic development by engaging local stakeholders in the energy value chain. An overview of the current status is presented, examining key legislative frameworks and their impact on the development of Energy Communities. The paper highlights successful examples of ECs, with a particular focus on Europe, illustrating their participation in energy markets, demand response initiatives, and collective self-consumption models. Despite these advancements, challenges persist, including regulatory barriers, lack of technical expertise and limited access to financial resources. Nevertheless, ECs present significant potential to enhance energy independence, improve grid flexibility, and contribute to long-term environmental sustainability. By integrating ECs into broader climate action strategies, the energy transition can be accelerated while ensuring inclusive and equitable access to renewable energy for all communities.