Energy Community Glossary

• Energy Community

An Energy Community (EC) is a collective organization or entity that brings together individuals, businesses, or communities to collaboratively manage and share energy resources within a specific region or locality. The goal/purpose of an EC is to promote cooperation and energy efficiency within the community.

• Self-consumption

A self-consumption entity can be an individual or organization that primarily consumes the energy they generate, typically from renewable sources like solar panels or wind turbines. The goal is to minimize reliance on external energy sources and reduce energy costs by utilizing locally produced, often sustainable, energy.

• Feasibility Study

A Feasibility Study is a comprehensive assessment conducted before embarking on the energy initiative. It examines the project’s viability and potential for success. The goal is to evaluate all the project’s aspects – economic, technical, legal, operational and scheduling – to determine whether it is worth pursuing.

• Business Model

A Business Model is a structured plan that outlines how a company intends to create, deliver, and capture value. It defines the strategy for sustaining operations and curbing costs. The goal is to establish a clear framework for how the energy initiative will operate, including its target audience, revenue streams, and cost structure.

• Financial Plan

A Financial plan is a detailed document that outlines an individual’s or organization’s financial goals, strategies, and forecasts. It covers income, expenses, investments, and savings. The goal is to provide a roadmap for managing finances effectively, achieving financial objectives, and ensuring financial stability.

• Governance Model

A Governance Model encompasses the structure, rules, and processes that define how the energy initiative is managed and decision-making is conducted. It may involve the allocation of authority and responsibility. The goal is to establish a transparent and efficient system for guiding and overseeing the organization’s activities while ensuring accountability and compliance with relevant regulations.

• Energy Storage

Energy Storage encompasses technologies that store excess electricity for later use, such as batteries, pumped hydro storage, and thermal storage. The goal is to ensure a reliable energy supply, manage energy loads, and improve the efficiency and flexibility of the energy system.

• Demand Flexibility

Demand Flexibility refers to the ability of energy consumers to adjust their electricity usage patterns in response to market signals, such as price changes, or incentives. This adjustment can include increasing, decreasing, or shifting electricity usage to different times of the day. The goal is to better match energy demand with supply, reduce electricity costs for consumers, and enhance grid stability and efficiency.

• Demand Response

Demand Response (DR) is a strategy that encourages consumers to reduce or shift their electricity usage during peak demand periods in response to price signals or incentives. The goal is to balance supply and demand, reduce grid stress, and lower electricity costs.

• Carbon Footprint

A Carbon Footprint quantifies the amount of greenhouse gas emissions, primarily carbon dioxide, that an individual, organization, or activity produces. The goal is to measure and understand emissions to enable reduction strategies, supporting environmental sustainability. Do not forget individual actions are not enough without systemic change! 

• Sustainable Development

Sustainable Development is the approach of meeting the needs of the present without compromising the ability of future generations to meet their needs. The goal is to promote economic growth, social inclusivity, and environmental sustainability.

• Energy Audit:

An Energy Audit is a systematic analysis of energy flows in a building, process, or system to identify opportunities for energy savings and efficiency improvements. The goal is to study the patterns of consumption and production to reduce energy consumption, lower costs, and improve operational efficiency.

• Power Purchase Agreement

A Power Purchase Agreement (PPA) is a contract between an energy generator and a buyer to purchase electricity at a predetermined price for a specified period. The goal is to secure a reliable energy supply, manage energy costs, and support renewable energy projects.

• Energy Management System

An Energy Management System (EMS) is a suite of tools and technologies for monitoring, controlling, and optimizing energy usage to improve efficiency and reduce energy costs. The goal is to optimize energy consumption, lower operational costs, and reduce environmental impact.

• Life Cycle Assessment

Life Cycle Assessment (LCA) is a methodology for evaluating the environmental impacts of a product or system over its entire life cycle, from production to disposal. The goal is to identify environmental hotspots, inform decision-making, and promote sustainable practices.

• Regulatory Compliance:

Regulatory Compliance involves adhering to laws, regulations, guidelines, and specifications relevant to the energy initiative’s operations. The goal is to ensure legal compliance, minimize risk, and uphold a positive reputation by adhering to established regulatory standards.

Techno-economic Assessment
A Techno-economic Assessment is an analysis method used to evaluate the technical and economic feasibility of a project or technology, considering aspects like cost, performance, and risks. The goal is to provide insight into the viability and potential economic benefits of a project to inform decision-making and secure funding.