Energy Communities as Enablers of Local Token Economies: An Exploratory Analysis in Italy

In the dynamic landscape of Local Energy Communities (LECs), blockchain technologies emerge as valuable tools for tracking and managing integrated energy flows. Simultaneously, blockchain facilitates the establishment of Token Economies (TEs), fostering the growth of local economies and facilitating the management of local exchanges of products and services. The potential benefits of using blockchain in both LECs and TEs applications underscores the importance of exploring their collaborative development. This study pioneers the examination of an LEC supported by a TE within the Italian context. The study models the operations of an LTE and conducts economic sustainability analyses using a bespoke mathematical model; this research offers valuable insights into the determinants of the project's success. Moreover, it quantifies the financial backing required by an LTE to nurture the project's development.