Business models and the impact of energy communities on the energy transition: lessons learned from the case of France
The need to accelerate the decarbonization of the energy system has sparked growing interest in energy communities. These communities are now identified by institutions as new tools that can contribute to four main policy objectives:
- Increasing renewable energy capacity;
- Mobilizing private capital;
- Providing flexibility to the electrical system;
- Empowering consumers.
In the context of the historically centralized French energy system, we present five business models of energy communities (BMCE) and explore the extent to which they contribute to the four aforementioned policy objectives.
Our analysis shows that, although no energy community business model has yet improved network flexibility, each contributes differently to achieving the other three policy objectives. We also demonstrate that the diffusion of BMCE remains limited due to legal, organizational, and financial barriers.
We propose three recommendations that could help promote the diffusion of BMCE:
- Protecting economic viability;
- Supporting intermediaries facilitating the adoption of BMCE; and
- Encouraging local governments as key actors.
Our findings are intended to guide policymakers by providing information on the types of energy communities that could most significantly contribute to various policy objectives and offering recommendations for their more effective inclusion in energy policy roadmaps.
