Cost Allocation in Integrated Community Energy Systems—Social Acceptance

Na Li, Rudi Hakvoort and Zofia Lukszo
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Na Li: Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands
Rudi Hakvoort: Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands
Zofia Lukszo: Faculty of Technology, Policy and Management, Delft University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands

Sustainability, 2021, vol. 13, issue 17, 1-24

Abstract: Integrated community energy systems (ICESs) are a good representative of local energy systems by integrating local distributed energy resources and local communities. It is proposed that costs should be allocated in a socially acceptable manner since there is no regulation in ICESs. In this paper, social acceptance is conceptualized from the dimension of community acceptance considering procedural and distributive justice. A fair process increases the understanding and the acceptance of the cost allocation outcomes, and a fair outcome leads to the acceptance of the cost allocation procedure. This approach adopted the multi-criteria decision-making technique to evaluate social acceptance to select a cost allocation method that was socially acceptable to local community members. The results show that our approach is unique and useful when multiple decision-making groups have to decide together upon the cost allocation method. It is able to provide quantitative results and optimal decisions from a multi-group decision-making perspective. The methodology developed in this research can be applied to any local community energy system to select a cost allocation method. Furthermore, the obtained results can be used by decision-makers to support them in the decision-making process. Based on our approach, policy implications are also analyzed to support the success of cost allocation in ICESs.

Keywords: integrated community energy systems; cost allocation; social acceptance; distributive justice; procedural justice; multi-criteria decision-making (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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