Policy Frameworks for Community Energy Storage: A Global Analysis

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Abstract

Background Community energy storage represents a decentralized method for managing energy that allows local communities to store and use renewable energy from sources like solar and wind. Unlike centralized systems controlled by large utilities, it gives communities ownership over their energy resources, reducing reliance on fossil fuels, improving grid reliability, and promoting fair access to clean energy, especially in remote areas. As countries aim to shift toward renewables to combat climate change, community energy storage addresses the variability of these sources by storing excess energy for later use, supporting stable supplies and global goals for sustainable development. This study reviews policy frameworks worldwide, focusing on Europe, North America, Asia, and Australia, to examine how policies support or hinder adoption, using case studies to highlight effective strategies and areas needing improvement. The purpose is to provide insights that help policymakers create better supports for widespread implementation. Results The analysis shows diverse approaches: Europe leads with strong regulations like directives promoting community ownership and incentives such as loans and tax credits, though implementation varies by country. North America features state-level targets and funding in places like California and New York, but lacks national unity, while Canada focuses on pilots. In Asia, efforts emphasize rural stability and renewable integration yet face unclear rules and limited funds. Australia stands out with major funding for community batteries, achieving economic and environmental gains. Common best practices include clear regulations, financial aids, and community involvement, but gaps persist in standardization, high costs, technical barriers, and public acceptance across regions. Conclusions Overall, supportive policies can accelerate community energy storage adoption, enhancing renewable integration and energy equity. By addressing gaps through standardized frameworks, innovative funding, and engagement, policymakers can boost resilience and sustainability. This could significantly advance clean energy transitions, reducing emissions and fostering inclusive growth worldwide.

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