Local Energy Communities

“LOCAL INCLUSIVE FUTURE ENERGY platforms”
The ECC directive on common rules for the internal market for electricity (EU) 2019/9441 introduces a new limit for powerplants eligible to receive subsidies as capacity mechanisms in its strategy to phase out subsidies to generation capacity emitting 550gr CO2/kWh or more. In fact the new directive puts the consumer at the centre of the clean energy transition and by creating new rules driving active participation of consumers, whilst providing strong governance for consumer protection.
The paradigm shift ensures development and deployment of the infrastructure enabling intelligent transfer of electricity to where it’s most needed, when it’s most needed without increasing the cost for the consumer. To maximize the impact of this paradigm new energy distribution concepts and systems must be developed to ensure consumer participation and - benefits by the supply of affordable energy whilst helping decarbonising the European energy system.
The new rules contribute to the EU's goal of being the world leader in energy production from renewable energy sources requires more flexibility to accommodate an increasing share of renewable energy in the grid. The shift to renewables and increased electrification is crucial to achieve carbon neutrality by 2050. The new electricity market design will therefore help to achieve the goals set out in the European Green Deal, and contribute to the creation of jobs and growth.
The energy transition can only flourish if communities pursue the ambitions with the same beliefs and feel empowered and rewarded through participation in the all-RES society. This is the foundation for many projects and initiatives in the Netherlands to resolve the challenges associated with fundamental changes in the utilisation of our existing infrastructures to render our society ready for community centric and affordable RES solutions. One such an example is the Local Inclusive Future Energy (LIFE) platform project.
The mission of the LIFE project is to enable the creation of an inclusive energy society where everybody can benefit from the energy transition. This requires a clear understanding of the arguments driving the adaption by residents of sustainable energy solutions and to actively contribute to the reduction of the city’s carbon footprint. But there is a danger that the energy transition results in a social-economic divide between rich and poor. To prevent this undesired divide we need to rethink the energy supply chain fundamentals to balance the citizen’s (future) energy needs against the economic drivers of public and private stakeholders in the energy markets. Inclusive means integrating both the consumer’s and stakeholder’s interests in the design and implementation of the LIFE framework from the start.
When successful it can effectively integrate different types of (local) renewable energy sources while ensuring a sustainable and fair priced supply to the community. The platform must enable optimal management of the existing (multi-)energy infrastructure anticipating demand and thus provide consumers access to sustainable energy (heat and electricity) through smart distribution concepts.
The LIFE project will demonstrate concepts to build the inclusive energy distribution platform. And validate viability of the components through experiments in the Amsterdam Southeast district. This district is the designated Amsterdam Field Lab for the Doughnut Economy. With the ambitions of Amsterdam’s governing bodies clearly focussed on generating energy sustainably, and re-use of raw materials and resources infinitely goals are set to reduce CO2 emissions in Amsterdam by 55% in 2030, and 95% in 2050, to stop using natural gas before 2040 and within the next 10 years have only emission-free transport by road and water. Ultimately in 2050, Amsterdam will be a circular city – everything we produce and consume will be reusable.
For the LIFE project the Southeast district provides a fertile proofing ground as the City Council stated: “We are the first generation to really notice the consequences of climate change and the last generation that can do anything about it. Amsterdam aims to become the green frontrunner in the Netherlands and Europe. In the best traditions of our city, we will ensure that innovation, creativity and business sense are at the forefront of one of the greatest transitions in our history, and that collectively we benefit from a sustainable future that is accessible to all ‘Amsterdammers’. Entrepreneurship, technology and creativity make it possible; participation and custom-made solutions make it achievable; and solidarity makes it affordable for everyone.”
To meet the timeline acceleration requires a new mindset and inspirational cooperation with the city’s residents, its businesses, social organisations and academia. And understanding the dependence on the national government for new regulations and financial support to set the right conditions to ensure that everyone can participate in the energy transition and the move to a circular economy. Amsterdam is aware that the transition can only be executed successfully when all residents are willing to cooperate and work towards positive change receive support from the City through education and advice, subsidies and loan schemes. Thus the City of Amsterdam intends to speed up the process of making the capital city more sustainable – not just to meet international standards, but to transform into a future-proof city.
It is Amsterdam’s vision to be ‘a thriving, regenerative and inclusive city for all citizens, while respecting the planetary boundaries’ makes the city a pioneer of such systemic transformation. In this spirit, the City of Amsterdam has joined the Thriving Cities Initiative (TCI), a collaboration between C40, Circle Economy, and Doughnut Economics Action Lab, which works with cities pursuing such a transformation.
The LIFE project demonstrates a valuable contribution to the Amsterdam Doughnut City initiative and subscribes the importance to respect social and planetary boundaries in a world in which people and planet can thrive in balance with sustainable 21st century prosperity2. Especially with respect to the Doughnut’s Economy social foundation, which is derived from the social priorities in the UN Sustainable Development Goals, LIFE targets conceptual solutions to secure energy for a minimum standard of living to which every citizen has a claim. No one should be left deprived from basic needs, i.e. in the hole in the middle of the Doughnut, falling short on the essentials of life, such as energy. With LIFE Amsterdam is getting closer to become a home to thriving people, in a thriving place, while respecting the wellbeing of all people, and the health of the whole planet!
The municipality of Amsterdam and the Johan Cruijff ArenA have built the Living Lab Southeast together with innovation partners. This Living Lab provides the power to act needed to bring innovation from the drawing board to the real world using existing infrastructure and facilities and actually involve the people of the place. With its large scale energy storage already in operation in the Living Lab proves the Johan Cruijff ArenA brings a unique testbed in the neighbourhood to validate the outcome of the LIFE project and demonstrate the impact on neighbourhood communities. The Living Lab will establish a reference for the role of the traditional energy infrastructure companies and the implications thereof when moving upstream into the consumer driven marketplace, and shifting business models into value transaction technology and processes. With the people of the place each solution can be evaluated on figure of merit tightly associated with the Doughnut principles.
With so many changes going on at once right now, the key to success is to stay in close contact with the citizens and listen how they experience the impact of the energy transition. In the Living Lab we really listen, observe and stay tuned in to what’s going on so that the business can quickly adapt as the transition occurs.
The foundation of the ArenApoort Living Lab a concerted public-private understanding of the grand challenges we face to build a sustainable future, even if that future looks very different than the past. But the joined effort will lead the necessary transition to make emerging technologies transform the industry. Empower the people, just do it and learn together while doing, is a powerful motivator to get consumers to help do things differently and to embrace new technologies, and with understanding the impact resilient people can have when they work together to tackle some of the biggest challenges, the LIFE project partners are convinced the energy transition can lead to a thriving sustainable society.

Sources:

1. EU: https://ec.europa.eu/energy/topics/markets-and-consumers/market-legislation/electricity-market-design_en,
2. Raworth, K. (2017) Doughnut Economics: seven ways to think like a 21st century economist, London: Penguin Random House