Assessment of Various Factors Affecting Economic Indicators in Prosumer and Consumer Energy Communities: A Case Study of Latvia

Abstract

Abstract This study explores the recent legislative changes allowing prosumers and consumers in Latvia to form energy communities (EnCs). In spite of legal advancements, the absence of supporting regulations and potential barriers, such as the lack of tailored support schemes and forecasting tools, pose challenges. International experiences highlight additional hurdles, including weak stakeholder dialogue and limited EnC modelling tools. To address these issues, the study proposes a prosumer and consumer EnC business model aligned with Latvia’s legislation, emphasising a peer-to-peer (P2P) trading approach. The model incorporates state aid, electricity trader responsibilities, and reinvestment of EnC profits, eliminating the need for a dedicated trading platform. The study introduces a user-friendly planning tool in MS Excel, evaluating economic viability through case studies and scenarios. Findings emphasise the optimisation of EnC effectiveness by adjusting tariffs, minimising initial investment costs, securing external funding, and managing loan durations. The planning tool serves as a universal instrument, offering insights into individual EnC economic indicators based on their unique characteristics. The research provides valuable guidance to stakeholders and policymakers in Latvia’s evolving energy landscape.