Community participation in electricity markets: The impact of market organisation

Abstract

Energy communities are considered important drivers of the energy transition. While they have mainly focused on collective energy generation, they are increasingly getting involved in the provision and trading of energy and in flexibility services. This change of focus creates opportunities to participate in electricity markets but proves to be challenging because of the current electricity markets serving incumbency. In this study, we conduct an in-depth analysis of how broader market organisation impacts participation of energy communities in electricity markets. Drawing from transition studies and economic market literature, we develop a framework for analysing market organisation. Based on a literature review, observations and semi-structured interviews with communities and market actors, we conclude that, as a result of conflicting community and market logic, communities often adjust their business models to participate in the markets, which could jeopardize their potential to contribute to radical system change.