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The economic impact of energy communities on the electricity system and its agents
Koltunov, Maksym
2025
Abstract
Energy communities (ECs) have expanded rapidly across the European Union since the Second Renewable Energy Directive and the Internal Electricity Market Directive came into force. Although extensive research has assessed ECs’ local and member-level economic impacts, their systemic effects on electricity markets remain understudied. This chapter bridges that gap in two parts. First, an exhaustive literature review identifies eight EC business models and maps their divergent impacts on market actors: large fossil-fuel generators and traditional retailers often face competitive pressure, whereas distribution system operators and independent aggregators stand to benefit from scaled-up EC deployment. The effects on non-participating consumers are ambiguous, contingent upon market conditions and a business model of energy community. Second, we apply these findings to Italy’s pioneering EC policy framework, demonstrating its positive characteristics and drawbacks. We then introduce a novel application of Common Pool Resource theory to “shared energy,” revealing how collective governance can reconcile social objectives with financial viability avoiding the “tragedy of energy commons”. Finally, we offer actionable recommendations: selecting the most system-beneficial EC business models and empowering energy service companies as critical enablers of post-subsidy EC deployment.
Publisher
EUT Edizioni Università di Trieste
Source
Maksym Koltunov, "The economic impact of energy communities on the electricity system and its agents" in: "Towards an effective, efficient, and just energy transition / Verso una transizione energetica efficace, efficiente e giusta", EUT Edizioni Università di Trieste, Trieste, 2025, pp. 139-172
Languages
en
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International
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