Ways to Contribute to Renewable Energy Generation with Self-Consumption and Collectively
Energy Communities aim to reach 100% renewable energy generation, with this goal in mind all members have to contribute individually and collectively to reach the main objective. This transition requires abandoning fossil fuels and using sustainable energy sources. Besides choosing greener sources for everyday energy use, the community must reduce their overall energy consumption. The new system should be collectively owned, and democratic, ensuring a more sustainable way of consuming the energy as a community. Promoting this new transition is fundamental to decarbonizing the economy and addressing the climate emergency. We collected the options on how you can contribute to the change.
Collective Self-Production: Sharing the Generated Energy
One way to contribute is through a network-based model, which allows its members to share and consume the energy generated by the group of the community, this way the group of consumers jointly benefit from renewable energy production facilities located near their supply points. This solution is based on the idea of using your electricity instead of bringing it into the grid. Besides the ecological factors, this solution has its financial benefits, as you don’t have to buy electricity from the grid. This model allows you to share the extra energy, in case you’re producing more than you’re using.
Types of Distribution
There are two primary methods for distributing generated energy, fixed distribution and variable hourly distribution. Each method has its benefits, depending on the energy consumption and daily habits.
Fixed distribution is a simple model that provides 24/7 availability, this straightforward method requires only one coefficient for each supply point. Despite its simplicity, fixed distribution may not always ensure optimal energy usage. For instance, energy demand fluctuates throughout the day and year, and a fixed coefficient might not match these variations, leading to inefficiencies.
Variable hourly distribution allows different energy distributions for each hour. This approach accommodates fluctuating energy usage patterns by adjusting the distribution coefficients hourly. This option is beneficial for settings with seasonal energy use, where the energy consumption can be optimized more efficiently.
The Mechanism of Collective Self-Consumption
The distribution of each member is based on a mutual agreement, documented in the distribution agreement. This agreement specifies, how much generated energy each supply point will receive, whether using fixed or variable distribution. In cases when the variable hourly distribution is chosen, using an energy company’s services is recommended to overcome the complex challenges of managing different coefficients for each hour of the year. The fixed distribution offers a more suitable solution for consistent energy consumption, while variable hourly distribution provides flexibility. The right method depends on specific energy usage patterns, you can benefit from both methods based on the context.
Compensation system
The compensation system allows participants to convert excess generated energy into economic value, which is then directly deducted from their electricity bills. The criteria to qualify for simplified compensation are to generate energy from renewable sources, and the installed power must be equal to or less than 100 kW. The mechanism of the simplified compensation can be:
- Deduction from Grid Usage: The economic value of the surplus energy is subtracted from the economic value of the power drawn from the grid.
- Zero Economic Value: If the value of the surplus energy exceeds the grid energy used, the economic value of the energy term is reduced to zero. Fixed costs will still be included in the electricity bill.
- Inclusion of Fixed Costs: Regardless of the energy generation the monthly fixed costs will be added to the bill.
- Monthly Compensation: Calculated monthly and cannot be rolled over to subsequent months.