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EU routes for High pEnentration of solaR PV into lOcal nEtworkS

Periodic Reporting for period 1 - EU HEROES (EU routes for High pEnentration of solaR PV into lOcal nEtworkS)

Reporting period: 2017-09-01 to 2019-02-28

The aim of EU HEROES is to enable the continued development of community-owned PV by developing viable community business models that address the concerns of electricity network operators. The project works with communities and network operators to develop approaches that will enable subsidy-free solar PV projects that have a neutral or positive impact on network management.
Objectives:
• To identify at least 7 existing energy communities which illustrate current theory and best practice on grid connection of solar PV and monitor these projects as case studies;
• To actively engage key stakeholders in the project;
• To develop viable business models for community solar PV that address constraints and meet the needs of network operators;
• To support and analyse the implementation of at least 7 pilot projects informed by the business models developed for the project;
• To monitor, evaluate and report on the pilot approaches;
• To deliver training and capacity building to these pilot projects;
• To make policy recommendations based on learning from the project and demonstrate their market potential.
The project was developed within the context of the 2017 winter package of measures within the Renewable Energy Directive and addresses the revised Article 22 on enabling energy communities to generate, consume, store and sell renewable energy. EU HEROES aims to help energy communities to have fair access to energy networks whilst also operating viable social enterprise business models. It also takes into account the challenges faced by network operators in connecting large amounts of solar PV to the electricity network and seeks to identify solutions that benefit communities and network operators.
EU HEROES is now 18 months into a 3 year programme. The evidence base for new business models is currently being developed through:
• Performance monitoring of existing PV sites;
• Testing different connection and business model scenarios;
• Consulting stakeholders, such as communities working on PV projects and electricity network operators.
A business modelling tool has been developed to assist energy communities with planning PV projects and this will be used to support developing community PV projects to pilot the findings of the project. EU HEROES aims to identify replicable models and share those with both energy communities and network operators. Policy recommendations from the project will also be shared.

EU HEROES is using a combination of monitoring existing PV installations and consulting with energy communities and network operators to establish an evidence base for new business models of community PV. The project is then developing and piloting new models for community PV and sharing the learning gained with key stakeholders.
The project is now monitoring a group of 11 existing solar PV installations across 7 countries. The data being reported includes:
i) monthly values of Final Yield Index, Self-Consumption Index, Self-Sufficiency Index, Capacity Utilisation Index, PVs Injection Index and PVs Exploitation Index
ii) typical daily profiles of the energy transactions between the output PVs, local loads and distribution grid.


Business Model Adaptation – Development and Training,
A report has been prepared describing the policy and context for community PV projects in the countries participating in EU HEROES, as well as explaining the business models of the case study projects. Related business models which are of interest were also presented. Cost-benefit analysis and economic feasibility assessments of existing PV business models were carried out.
A financial model for economic analysis of PV business models has been developed, enabling energy communities to assess the viability of solar PV community projects. The model can assess approaches based on self-consumption, Feed-in Tariff (FiT), Net-metering and Power Purchase Agreements (PPA) and allows inclusion of batteries and demand side management. A sensitivity analysis is also included enabling users to easily see the impact of changes to variable factors such as capital cost or PPA value on the business model of their project. Once tested, the model will be made available publically.
The findings from the case studies and business model development will be cross-referenced with findings from the stakeholder engagement work to identify adaptations to existing business models to address the needs of energy communities and network operators.
Community PV projects that are under development have been identified in all seven participating member states. These will be supported as pilot projects under Work Package 5. A website for the project has been established at http://Euheroes.eu and a Twitter feed is also available: @EUHeroes

Other results include two stakeholder engagement/ thematic workshops held in April 2018 in Swansea, Wales and in September 2018 in Athens, Greece which enabled exchange between both energy communities and network operators. In addition CRES have provided information to the Greek Government on how to implement the Clean Energy Package, based on learning from the project and Protech are engaging with the Lithuanian government in a stakeholder workshop at the next partners meeting in April.
"EU HEROES aims to identify examples of innovative business models and approaches that enable energy communities to run viable PV systems that can be easily integrated into energy networks, including in constrained areas. This includes understanding how concepts such as flexibility markets and new technologies around energy storage and management could contribute to developing new models for PV deployment.
Potential impacts:
Strategic Impact: Contribution to new developments of RES Directive especially Article 22 which includes a specific provision for ""jointly acting renewables, self consumers (e.g. block of flats incorporating multiple households and links to energy communities). The Stakeholder Engagement workshop to be held in April in Lithuania will address this. Furthermore EU Heroes will try to focus on providing advice for national policy as well as considering EU policy advice in preparing responses to the ""'Clean Energy Package'.

Market Impact and Socio-economic impact: Acceleration of growth of community PV & increase in citizen engagement with renewable energy and decarbonisation of the EU economy. EU Heroes aims to help energy communities have fair access to energy networks whilst also operating viable social enterprise business models. it also takes into account the challenges faced by network operators in connecting large amounts of solar pv to the electricity network and seeks to identify solutions that benefit both communities and network operators.

Energy and Environmental Impact: Increase in share of renewable energy in EU energy mix and reduced CO2 emissions
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