Plant the Seeds, Then Tend the Garden: How to Incentivize and Coordinate Energy Communities

Energy communities are expected to deliver a variety of benefits, such as increased uptake of renewable energy, flexibility for overall system or grid optimization, and improved system resilience. Mechanisms to incentivize energy communities and align them with the overall system needs often include direct support schemes, agreements for grid use and connection, decentralized access to markets for flexibility and residual generation, and other administrative requirements. Initially, the focus both in policymaking and research has rightfully been on the enabling factors within the regulatory framework. As energy communities slowly but steadily gain traction across Europe, this focus is expected to shift more toward the coordinating power of the framework. Our article discusses qualitatively which (combinations of) mechanisms are more suitable, depending on the actors involved, the technologies adopted, and the policy objectives to further.