Commercial energy communities participating in the balancing market a market simulation for energy communities operating by PV- and battery systems

Abstract

To accelerate the energy transition, business models must be identified for decentralized energy generators that are economically viable at market conditions. This paper analyses the concept of Energy Communities participating in the German energy exchange and the balancing market. With real-world data the simulation model calculates potential revenue streams. The results show that Energy Communities are financially feasible and create an added value for their members starting from 100 participating households. However, investments in local storage systems are essential for the profitable operation. The simulation model shows how Energy Communities can contribute to an increasing share of energy from renewable sources and can create an added financial value. Scenario analyses show the effects of various influencing factors. The results imply to politically strengthen Energy Communities to create a more decentralized and cost-effective grid structure.