Network capacity impact on the flexibility of local resources in green energy transition

This study explores the implications of reducing power capacity limits at the Point of Common Coupling (PCC) on residential energy systems, emphasizing the vital roles of both individual prosumers and energy communities in the transition towards distributed energy landscapes. As the integration of renewable energy sources and Home Energy Management Systems become increasingly common, Distribution System Operators (DSOs) encounter significant challenges in maintaining grid stability and operational efficiency. The analysis is structured to first examine individual users with diverse configurations and installation sizes. This initial focus reveals how limiting the power at the PCC restricts the prosumers' local energy exports and grid imports, while simultaneously increasing net operating costs. Following this, the research expands to investigate the collective dynamics of an energy community, with a particular focus on the Community Connection Point (CCP). Employing a Mixed Integer Linear Programming optimization framework implemented in Python, the study demonstrates that strategic reductions in PCC capacity can effectively mitigate peak power demands. However, similarly to single households, this is achieved by the expense of the community, as their operating costs increase, while the exports of local generation and grid imports are restricted. The findings highlight the critical need for DSOs to adopt capacity management strategies that not only enhance grid stability but also empower energy communities to fully leverage their resource utilization. Otherwise, the grid may become a bottleneck for the sustainable energy transition, by hindering the adaption of local generation and preventing the flexible prosumer resources to assist the power system.