Decentralized energy-sharing model
Basic information
Project Title
Decentralized energy-sharing model
Category
Shaping a circular industrial ecosystem and supporting life-cycle thinking
Project Description
Empowering communities with a decentralized energy-sharing model, we enable neighbors and local businesses to generate, share, and consume clean electricity efficiently—without relying on traditional grids for storage or resale. Through secondary microgrids and smart software, locally produced renewable energy is prioritized, reducing waste and fostering energy justice.
Current stage development
Early concept
Geographical Scope
Local
Project Region
Madrid, Spain
Urban or rural issues
Mainly urban
Physical or other transformations
It refers to other types of transformations (soft investment)
EU Programme or fund
No
Description of the project
Summary
We believe in a community-driven energy-sharing model that empowers neighbors and local businesses to generate, distribute, and consume their own clean electricity without relying on traditional power grids for storage or resale. In this system, instead of feeding excess energy back into the general electricity network, it is shared among nearby buildings through secondary microgrids, ensuring that locally produced renewable energy is used efficiently before drawing from the main grid. This decentralized approach maximizes the use of locally generated energy and minimizes waste. Our proposal aims to provide secondary microgrids and software systems that enable local energy transfers and measurements.
The model promotes energy justice by making clean electricity more affordable, sustainable, and accessible to all, while reducing reliance on fluctuating market prices. By decentralizing energy production and distribution, we empower local communities to take control of their own energy needs, fostering fairness and affordability. Furthermore, it strengthens community bonds as participants become both producers and consumers of energy, working collaboratively to manage and benefit from their shared energy resources.
This approach prioritizes autonomy, fairness, and resilience, creating a more cooperative and self-sustaining energy ecosystem. By fostering local energy independence, we can help build stronger, more sustainable communities that are less vulnerable to external energy disruptions.
This model goes beyond traditional self-sufficiency, promoting a more interconnected and efficient energy distribution system.
The model promotes energy justice by making clean electricity more affordable, sustainable, and accessible to all, while reducing reliance on fluctuating market prices. By decentralizing energy production and distribution, we empower local communities to take control of their own energy needs, fostering fairness and affordability. Furthermore, it strengthens community bonds as participants become both producers and consumers of energy, working collaboratively to manage and benefit from their shared energy resources.
This approach prioritizes autonomy, fairness, and resilience, creating a more cooperative and self-sustaining energy ecosystem. By fostering local energy independence, we can help build stronger, more sustainable communities that are less vulnerable to external energy disruptions.
This model goes beyond traditional self-sufficiency, promoting a more interconnected and efficient energy distribution system.
Key objectives for sustainability
Sustainability and New Societal Models
Participants can not only reduce their carbon footprint by consuming local solar energy, but also maximizing efficiency and minimizing waste through this shift from individual self-sufficiency toward a collective, interconnected energy model.
Participants can not only reduce their carbon footprint by consuming local solar energy, but also maximizing efficiency and minimizing waste through this shift from individual self-sufficiency toward a collective, interconnected energy model.
Key objectives for aesthetics and quality
While we do not aim to be active actors in the aesthetic development, we fully support and encourage neighbors to take ownership of this aspect. By giving communities the autonomy to decide, we ensure that the energy infrastructure aligns with their vision, creating a more vibrant, sustainable, and aesthetically pleasing environment, shaped entirely by the people who live there.
This model fosters a stronger sense of connection and collaboration among neighbors and local businesses by creating a shared energy network. By collectively generating, distributing, and consuming clean electricity, participants become the sole stakeholders in managing their energy resources. This self-sufficient system not only empowers the community with greater control over its energy costs and sustainability efforts but also reinforces social bonds. Neighbors are no longer just consumers but active contributors to a local energy ecosystem, encouraging trust, cooperation, and a shared commitment to a cleaner, more affordable future.
This model fosters a stronger sense of connection and collaboration among neighbors and local businesses by creating a shared energy network. By collectively generating, distributing, and consuming clean electricity, participants become the sole stakeholders in managing their energy resources. This self-sufficient system not only empowers the community with greater control over its energy costs and sustainability efforts but also reinforces social bonds. Neighbors are no longer just consumers but active contributors to a local energy ecosystem, encouraging trust, cooperation, and a shared commitment to a cleaner, more affordable future.
Key objectives for inclusion
Our model prioritizes accessibility by providing self-generated energy, such as solar power, to a broader population, including those who may not be able to afford their own installations. It promotes affordability and cost reduction for consumers by enabling peer-to-peer energy sharing, reducing dependence on the traditional electricity grid and lowering overall energy costs. The system is designed with inclusive design and minimal infrastructure adjustments, making it easy to implement for a wide range of users without the need for expensive modifications. Additionally, it fosters community empowerment and shared governance, promoting a decentralized energy system where local communities have greater control over their energy production, distribution, and consumption, thus strengthening local ownership and decision-making power in the energy landscape.
How Citizens benefit
As this is still a very early concept, no actual interaction has happened with the civil society beyond informal chats with friends and neighbours. Throughout these, it was made clear to us that there is a high interest from both the energy purchasers and producers in finding a common solution that connects them.
However, we strongly believe that citizens should be actively involved in more advanced stages of the product design, and various engagement strategies must be followed to ensure its accessibility and acceptance.
Community consultations and workshops would need to be conducted with neighbors and building owners to understand their energy needs, concerns, and expectations regarding implementation. Pilot testing and user feedback would play a crucial role, allowing small-scale trials to assess feasibility and social acceptance, leading to system refinements. Additionally, collaboration with neighborhood associations and local organizations is helpful to promote adoption and ensure the model benefits as many people as possible.
Finally, transparency and continuous communication are key through informational materials, meetings, online platforms, and brochures, keeping the community informed and engaged throughout the project’s development.
However, we strongly believe that citizens should be actively involved in more advanced stages of the product design, and various engagement strategies must be followed to ensure its accessibility and acceptance.
Community consultations and workshops would need to be conducted with neighbors and building owners to understand their energy needs, concerns, and expectations regarding implementation. Pilot testing and user feedback would play a crucial role, allowing small-scale trials to assess feasibility and social acceptance, leading to system refinements. Additionally, collaboration with neighborhood associations and local organizations is helpful to promote adoption and ensure the model benefits as many people as possible.
Finally, transparency and continuous communication are key through informational materials, meetings, online platforms, and brochures, keeping the community informed and engaged throughout the project’s development.
Physical or other transformations
It refers to other types of transformations (soft investment)
Innovative character
Our system prioritizes decentralized energy distribution by using microgrids that enable localized energy management, reducing dependency on vulnerable national grids and fostering a more flexible, resilient infrastructure. Through a peer-to-peer energy-sharing model, neighbors and local businesses can directly share excess energy, eliminating the need for intermediaries and promoting a more equitable distribution of renewable energy within communities. This system enhances efficiency by ensuring that energy is consumed locally first before drawing from the main grid, thereby minimizing waste commonly associated with overburdened national grids. The integration of advanced software tools allows for real-time tracking of energy production, consumption, and transfers, optimizing usage and ensuring that local energy resources are maximized for the most efficient energy use possible.
Disciplines/knowledge reflected
The design and development of our prototype draws on three key fields:
Renewable Energy Engineering: Mar's expertise in renewable energy engineering and technologies is central to the design of our decentralized microgrids. As we develop the prototype, her insights will guide the integration of wind and solar energy, ensuring that the system is both efficient and adaptable to local conditions, with the goal of reducing reliance on traditional power grids.
Data Science and Software Development: Guillermo's role in developing the software systems for the prototype is crucial. By designing tools to track energy production, consumption, and sharing, his work will enable real-time data analytics, allowing the system to optimize energy use locally. His contribution ensures that the prototype will be flexible, transparent, and capable of adapting as data is gathered.
Strategy and Community Integration: Fernando’s strategic input is key in shaping the business model and community governance framework for the prototype. As the project progresses, his expertise will ensure the model is economically viable, with a focus on empowering local communities to take ownership of the energy-sharing system. He’ll help align the prototype’s development with long-term sustainability goals, fostering inclusivity and economic benefits for all stakeholders.
The added value of this interdisciplinary collaboration in the prototype phase is that it enables us to create a holistic and scalable solution. By combining engineering, data science, and strategic planning, we can develop a system that is technically sound, socially inclusive, and economically sustainable, ready to be tested and refined in real-world scenarios.
Renewable Energy Engineering: Mar's expertise in renewable energy engineering and technologies is central to the design of our decentralized microgrids. As we develop the prototype, her insights will guide the integration of wind and solar energy, ensuring that the system is both efficient and adaptable to local conditions, with the goal of reducing reliance on traditional power grids.
Data Science and Software Development: Guillermo's role in developing the software systems for the prototype is crucial. By designing tools to track energy production, consumption, and sharing, his work will enable real-time data analytics, allowing the system to optimize energy use locally. His contribution ensures that the prototype will be flexible, transparent, and capable of adapting as data is gathered.
Strategy and Community Integration: Fernando’s strategic input is key in shaping the business model and community governance framework for the prototype. As the project progresses, his expertise will ensure the model is economically viable, with a focus on empowering local communities to take ownership of the energy-sharing system. He’ll help align the prototype’s development with long-term sustainability goals, fostering inclusivity and economic benefits for all stakeholders.
The added value of this interdisciplinary collaboration in the prototype phase is that it enables us to create a holistic and scalable solution. By combining engineering, data science, and strategic planning, we can develop a system that is technically sound, socially inclusive, and economically sustainable, ready to be tested and refined in real-world scenarios.
Methodology used
The project begins with technical assessments to design secondary microgrids and software systems tailored to the community’s requirements, ensuring compliance with existing regulatory frameworks.
Next, the project moves into the pilot testing phase, where small-scale trials are conducted in selected neighborhoods to evaluate the system's functionality, efficiency, and social acceptance. Real-time data analytics will be integrated into the software to optimize energy production, consumption, and sharing during this phase. Feedback from participants will guide refinements to both the technical infrastructure and governance model.
The scaling phase involves collaboration with local technical experts for infrastructure adjustments, such as installing additional cables and meters, while fostering partnerships with regional energy cooperatives to promote knowledge-sharing and adoption in other communities.
Finally, the project transitions into a sustained operation phase, where the decentralized energy-sharing system is fully implemented, monitored, and maintained by empowered local communities. Continuous improvements will be made based on performance data and user feedback, ensuring long-term sustainability and replicability in other contexts.
Next, the project moves into the pilot testing phase, where small-scale trials are conducted in selected neighborhoods to evaluate the system's functionality, efficiency, and social acceptance. Real-time data analytics will be integrated into the software to optimize energy production, consumption, and sharing during this phase. Feedback from participants will guide refinements to both the technical infrastructure and governance model.
The scaling phase involves collaboration with local technical experts for infrastructure adjustments, such as installing additional cables and meters, while fostering partnerships with regional energy cooperatives to promote knowledge-sharing and adoption in other communities.
Finally, the project transitions into a sustained operation phase, where the decentralized energy-sharing system is fully implemented, monitored, and maintained by empowered local communities. Continuous improvements will be made based on performance data and user feedback, ensuring long-term sustainability and replicability in other contexts.
How stakeholders are engaged
The project is designed to operate within existing regulatory frameworks, ensuring compliance with current legislation.
At the local level, building owners, residents, and neighborhood associations will be the primary stakeholders, as they will participate in the adoption and management of the system through private agreements and minor infrastructure adjustments. On another hand, local technical experts and electricians will play a key role in implementing the necessary modifications, such as installing additional cables and meters, ensuring safe and efficient energy sharing. This would imply a boost in employment for local communities.
At the regional level, energy cooperatives and local sustainability initiatives may provide support by facilitating knowledge-sharing and promoting the model to interested communities. Since the project does not require changes to national energy regulations, utility companies and regulatory bodies will have limited involvement, mainly ensuring that the system operates within permitted self-consumption and peer-to-peer sharing guidelines. This streamlined approach reduces complexity while allowing for a scalable and community-driven implementation of decentralised energy sharing.
At the local level, building owners, residents, and neighborhood associations will be the primary stakeholders, as they will participate in the adoption and management of the system through private agreements and minor infrastructure adjustments. On another hand, local technical experts and electricians will play a key role in implementing the necessary modifications, such as installing additional cables and meters, ensuring safe and efficient energy sharing. This would imply a boost in employment for local communities.
At the regional level, energy cooperatives and local sustainability initiatives may provide support by facilitating knowledge-sharing and promoting the model to interested communities. Since the project does not require changes to national energy regulations, utility companies and regulatory bodies will have limited involvement, mainly ensuring that the system operates within permitted self-consumption and peer-to-peer sharing guidelines. This streamlined approach reduces complexity while allowing for a scalable and community-driven implementation of decentralised energy sharing.
Global challenges
These are the main relevant current global challenges that could be addressed with this project:
> Climate Change: By promoting renewable energy and reducing reliance on fossil fuels, the project directly contributes to decarbonisation and aligns with global net-zero targets.
> Energy Justice: It tackles energy poverty by providing affordable and accessible clean energy to underserved communities, fostering inclusivity and equity.
> Utilities Oligopoly: The decentralised model challenges the dominance of utility incumbents by empowering communities to produce and share their own energy, reducing dependency on monopolistic grids.
> Grid Resilience: Localised microgrids enhance energy resilience by minimising reliance on vulnerable national grids, ensuring stability during disruptions.
> Economic Barriers: The project lowers costs for participants through peer-to-peer sharing and avoids the high infrastructure investments required for centralised grid upgrades.
> Climate Change: By promoting renewable energy and reducing reliance on fossil fuels, the project directly contributes to decarbonisation and aligns with global net-zero targets.
> Energy Justice: It tackles energy poverty by providing affordable and accessible clean energy to underserved communities, fostering inclusivity and equity.
> Utilities Oligopoly: The decentralised model challenges the dominance of utility incumbents by empowering communities to produce and share their own energy, reducing dependency on monopolistic grids.
> Grid Resilience: Localised microgrids enhance energy resilience by minimising reliance on vulnerable national grids, ensuring stability during disruptions.
> Economic Barriers: The project lowers costs for participants through peer-to-peer sharing and avoids the high infrastructure investments required for centralised grid upgrades.
Learning transferred to other parties
> Decentralized Microgrid Technology: The secondary microgrid system, designed for local energy sharing, can be adapted to different geographic locations and community setups with minimal infrastructure changes, making it highly transferable.
> Peer-to-Peer Energy Sharing Model: The governance framework and software enabling direct energy exchanges between participants can be implemented in various contexts, fostering community-driven energy ecosystems globally.
> Community Engagement Processes: The methodology of involving stakeholders through consultations, workshops, and pilot testing can be replicated to ensure social acceptance and tailored solutions in diverse communities.
> Sustainability Practices: The focus on maximizing local renewable energy use and reducing reliance on traditional grids can be applied to other regions aiming to enhance energy efficiency and lower carbon footprints.
Interdisciplinary Collaboration: The integration of renewable energy engineering, data science, and strategic planning provides a replicable model for designing holistic, scalable, and inclusive energy-sharing systems.
The project will carefully monitor local renewable energy sources, such as sunlight availability, which directly impact the feasibility and efficiency of solar energy production. Additionally, community-specific social dynamics and levels of trust among participants may not be easily transferable to other contexts, requiring tailored engagement strategies for each new location.
> Peer-to-Peer Energy Sharing Model: The governance framework and software enabling direct energy exchanges between participants can be implemented in various contexts, fostering community-driven energy ecosystems globally.
> Community Engagement Processes: The methodology of involving stakeholders through consultations, workshops, and pilot testing can be replicated to ensure social acceptance and tailored solutions in diverse communities.
> Sustainability Practices: The focus on maximizing local renewable energy use and reducing reliance on traditional grids can be applied to other regions aiming to enhance energy efficiency and lower carbon footprints.
Interdisciplinary Collaboration: The integration of renewable energy engineering, data science, and strategic planning provides a replicable model for designing holistic, scalable, and inclusive energy-sharing systems.
The project will carefully monitor local renewable energy sources, such as sunlight availability, which directly impact the feasibility and efficiency of solar energy production. Additionally, community-specific social dynamics and levels of trust among participants may not be easily transferable to other contexts, requiring tailored engagement strategies for each new location.
Next steps
In the first year, our focus will be on developing, promoting, and implementing the concept through a structured approach:<br />
<br />
> Site Selection (Months 1-3): Identify and approach a residential community or industrial warehouses as the first real prototype. Conduct stakeholder meetings to align expectations and secure participation. Assess regulatory requirements and technical feasibility.<br />
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> Team Formation & System Development (Months 4-6): Hire specialized technical staff (engineers, software developers, energy consultants). Develop the software platform for real-time energy tracking and transfers. Finalize microgrid design and procure key equipment (batteries, inverters, smart meters).<br />
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> Pilot Deployment & Testing (Months 7-9): Install the microgrid infrastructure, if applicable, and integrate the software system. Conduct preliminary tests to validate energy-sharing efficiency. Train community participants on system usage and benefits.<br />
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> Evaluation & Scaling Strategy (Months 10-12): Monitor performance, optimize system functionality, and analyze impact. Promote results to attract investors, policymakers, and new participants. Develop a roadmap for expansion to additional communities.<br />
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This structured approach ensures a smooth transition from concept to real-world implementation while maximizing community engagement and system efficiency
Infrastructure or public space
No
Political support
No
Monetary value awarded
No
