How, When, and Where? Assessing Renewable Energy Self-Sufficiency at the Neighborhood Level

Self-sufficient decentralized systems challenge the centralized energy paradigm. Although scholars have assessed specific locations and technological aspects, it remains unclear how, when, and where energy self-sufficiency could become competitive. To address this gap, we develop a techno-economic model for energy self-sufficient neighborhoods that integrates solar photovoltaics (PV), conversion, and storage technologies. We assess the cost of 100% self-sufficiency for both electricity and heat, comparing different technical configurations for a stylized neighborhood in Switzerland and juxtaposing these findings with projections on market and technology development. We then broaden the scope and vary the neighborhood's composition (residential share) and geographic position (along different latitudes). Regarding how to design self-sufficient neighborhoods, we find two promising technical configurations. The "PV-battery-hydrogen" configuration is projected to outperform a fossil-fueled and grid-connected reference configuration when energy prices increase by 2.5% annually and cost reductions in hydrogen-related technologies by a factor of 2 are achieved. The "PV-battery" configuration would allow achieving parity with the reference configuration sooner, at 21% cost reduction. Additionally, more cost-efficient deployment is found in neighborhoods where the end-use is small commercial or mixed and in regions where seasonal fluctuations are low and thus allow for reducing storage requirements.