With the introduction of Local Energy Communities (LEG), new possibilities are emerging for structuring energy systems at a local level. The concept is straightforward: electricity is generated, shared and consumed within a defined local framework, with the aim of improving efficiency and reducing dependence on external supply.
In practice, however, the value of LEG is not universal. It depends less on the concept itself and more on the structure of the system in which it is applied.
LEG tends to be most effective in configurations where generation and consumption are already closely aligned. This is often the case in geographically concentrated settings, where assets are in close proximity and where load profiles are relatively stable and predictable. In such environments, local energy sharing can improve the utilisation of generation assets and create more coherent energy flows. The benefit is not only economic — operationally, but systems also become easier to manage and more transparent in their behaviour.
At the same time, the effectiveness of LEG is closely linked to underlying system conditions. The balance between generation and demand, the physical proximity of participants and the ability to coordinate operations all play a decisive role. LEG does not create these conditions but builds on them. Where they are present, it can enhance system performance. Where they are not, its impact remains limited.
It is also important to recognise that LEG operates within an existing infrastructure. Grid constraints, regulatory frameworks and technical limitations continue to define what is feasible. Rather than replacing these elements, LEG introduces an additional layer of coordination within them. Its value therefore depends on how well it is integrated into the broader system — including generation, consumption and flexibility components.
From a project perspective, LEG is less about introducing a fundamentally new concept and more about structuring existing elements in a more effective way. It enables a more targeted alignment of energy flows, supports better coordination between participants and can open up more flexible operational models. At the same time, it requires a clear system design and a well-defined operational logic.
Ultimately, LEG expands the available options for structuring energy systems, but it does not create value on its own. The key question is not whether LEG can be applied, but whether the underlying system is suitable for it and how it is embedded into the overall project.
