The LEC Revolution: Local And Planetary Benefits Of “Micro” Energy Networks

The world’s energy consumption has nearly doubled in the last 30 years, and the rate isn’t going to slow down any time soon. Over the next several decades, experts say our thirst for energy will further accelerate because of the spread of Artificial Intelligence, Big Data and the Internet of Things, whereby physical devices around us will be embedded with sensors and software to gather data and communicate with each other. Such a rising demand — coupled with the need to decarbonise the economy — risks putting excessive pressure on energy supply networks, which means that we should be developing new ways to manage and integrate energy in our centralised national grids.

In the last few years, Local Energy Communities (LECs) have been gaining momentum as a solution to this problem. In their simplest form, LECs are groups of individuals who work together to generate, store, share, buy and sell their own energy within a local micro-network, independent of national grids. An LEC entails installing solar panels or other means to produce green energy, locally. If done well, LECs are able to make communities efficiently green, autonomous and energy-resilient. They can also earn their members money, as LECs are able to sell energy to the grid at times of surpluses.

“This autonomy, as well as the share of local energy production and consumption, will be made possible thanks to digital technologies,” says Marie Gérard, the Strategic Innovation & Disruption Projects Director at ENGIE.

In the next few years, we will see a rise in the use of Energy Management Systems (EMS) — such as the ones developed by tiko and Kiwi Power — BtoB and BtoC digital platforms that connect multiple consumers, producers and appliances. By knowing the different characteristics of each network actor, EMSs can optimise the flow of energy, reacting intelligently and reliably to fluctuations in demand and supply — for example by slightly varying the heating cycle of some facilities — and ultimately, saving consumers money.

Marie Gérard explains that LECs are not part of a distant, utopic future — thanks to EU directives, their time is now, and they could mushroom this decade. “We have a real citizens' movement that is now looking for autonomous energy solutions, and to act on its own scale, through the local, the circular, the renewable,” Marie Gérard says. “What is also very likely is that these LECs will not be limited to electricity but will extend to the hot / cold network and perhaps to the use of new gases: biogas, biomethane, or even hydrogen. Thus, they will gain autonomy while alleviating the grid and limiting the risk of blackout.”

Here’s a taste of some of the latest developments in the LEC sector in Europe:

Magliano Alpi, Italy

This tiny, sleepy village at the foot of the Italian Alps became the first municipality in Italy to set up an LEC based on renewable energy, i.e. a Renewable Energy Community (REC). Thanks to an “unprecedented” mix of new rules and incentives that Italy passed in 2020, Magliano Alpi has already managed to connect seven of its buildings to the REC and its energy flow management platform, which allows authorities to monitor the production and consumption of renewable energy in the network. But Magliano is far from over: according to pv magazine, the goal is for the REC to account for the energy needs of half of the town in the next few years, then expand to cover five other municipalities nearby.

Bostadsrättsföreningen Lyckansberg, Sweden

This housing association in southern Sweden has been producing and managing green energy autonomously for three years. The 85 tenants installed a small solar plant in 2018, and now use the collectively produced solar energy for all domestic purposes, including lighting, laundry cabins and even the traditional saunas. In case of a surplus, they sell their energy online. In case of higher demand, they can buy additional energy from the grid.

Bristol, UK

Another development is underway in southwestern England, where the people-powered Bristol Energy Cooperative said it would develop the UK’s first net-zero domestic housing micro-grid and power it with hydroelectric energy. The not-for-profit cooperative announced it would install two turbines on the River Avon, at a point where some 18 tons of water flow every second. The scheme is expected to produce enough clean energy to power some 250 homes, taking the city one step closer to its pledge of reaching net-zero emissions by 2030. It’s hardly the first such project for the Bristol Energy Cooperative: in the 10 years since its founding, its 600 members have installed 16 solar and battery storage projects in the city, enough to provide clean energy to power around 3,000 of Bristol’s homes.