Community Services in Energy Communities: Integrating Economic, Social, and Environmental Indicators for Services Prioritization

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Abstract

Renewable Energy Communities (RECs) are pivotal not only for advancing the energy transition but also for fostering virtuous and resilient local communities. Their potential goes beyond energy production, as they can serve as hubs for collective well-being and cooperation. However, a significant challenge to their success lies in ensuring sufficient member engagement. The financial benefits provided often fail to offer adequate motivation, as community-level incentives, when available, do not always justify participation. That is why a critical factor in enhancing REC value lies in offering captivating and economically viable community services that strengthen members' engagement while providing indirect remuneration. This study evaluates the feasibility of 5 potential community services, including bike sharing, PV system maintenance, tree planting, capacity building, and energy poverty support. The selection and evaluation of these services were informed by a need assessment based on interviews and questionnaires conducted across 17 RECs in Italy, aiming to reflect the real needs of local social groups. For each service, the annual community-level cost and the avoided individual cost are calculated. The environmental and social benefits are also evaluated, and a set of indicators is identified. This approach leads to a prioritization of services that are economically viable for RECs, taking into account also social and environmental benefits at community level. Among the results, bike sharing emerges as the most suitable service for the REC types considered, albeit with the highest investment cost, while tree planting appears as the most aligned with the needs of communities with a stronger focus on social and environmental values. By emphasizing the environmental, social and economic benefits of well-designed community services, this work highlights their crucial role in boosting member participation and engagement, thereby reinforcing the overall sustainability and attractiveness of RECs.

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