Participative Renewable Energy Community - How Blockchain-Based Governance Enables a German Interpretation of RED II

Distributed solar photovoltaic generation is less expensive than the retail price of electricity from the grid in most parts of Europe. Growing shares of variable generation place a focus on Renewable Energy Communities (REC) to increase the economic benefits of local energy systems. Civil society could play an influential and necessary role in the development of such communities, the expansion of renewable energy capacity and the provision of flexibility. However, current RECs models still confine tenants to their role as non-participating consumers. This article provides a concept to enable participative RECs within the German regulatory framework through collective self-consumption by including consumers for a fair allocation of renewable electricity using the blockchain technology.