energysharing

Energy sharing is a system in which electricity or other energy services produced at one location are made available to others for consumption. It typically involves distributed energy resources such as rooftop solar photovoltaic systems, small wind turbines, or energy storage, and operates within or alongside the electric grid. The goal is to improve resource use, reduce energy costs, and increase grid resilience by enabling closer coordination of supply and demand at the local level.

Practices include microgrids and virtual power plants that aggregate multiple DERs to provide capacity or respond to grid signals, and peer-to-peer or community energy trading platforms that allow prosumers to sell excess generation to neighbors or other participants. These arrangements can be supported by smart meters, real-time data, dynamic pricing, and digital platforms, and may use mechanisms such as net metering, feed-in tariffs, or time-of-use tariffs for settlements.

Common models include community solar projects, energy cooperatives, and neighborhood sharing schemes, as well as commercial or municipal programs that optimize energy use across buildings. Regulatory and technical frameworks—metering, grid connection rules, certification, cyber security, and interoperability standards—strongly influence adoption and design.

Benefits often cited include lower energy bills, better utilization of local resources, reduced transmission losses, and increased resilience during outages. Challenges include regulatory restrictions, cost and access to DERs, complex governance, data privacy, and the need for trusted platforms and robust cyber security.