Typology of future clean energy communities: An exploratory structure, opportunities, and challenges

Abstract

This paper considers the potential significance of ‘clean energy communities’ (CECs) in the transformation of the present socio-technical regimes underlying our centralized energy systems, towards a more distributed and decentralized future. It explains the centralized, distributed, and decentralized sub-structures, embedded in current energy systems and energy markets. We analyze long-term dynamics and possible pathways of this transition, and the co-evolution of energy systems and communities, using an exploratory structure, drawing on insights from transition theories, innovation studies, and social network concepts. This includes analysis of the various forms of CECs – including virtual power plants, peer-to-peer trading, microgrids, and community-scale energy projects – emerging in a number of developed and developing jurisdictions, including Australia. This analysis suggests that low-carbon transition pathways will be varied, driven by social, technological, and organizational contexts, and shaped by institutional change processes, and interaction with the existing regime and incumbent actors. Social and technological entrepreneurs, and utilities, operating within an environment increasingly defined by energy consumers, industry groups, and policy actors, will need to be adaptable and innovative in choosing strategic directions, associated investment decisions, establishing appropriate alliances, and acquiring resources, to meet their goals in this low-carbon energy transition.