Local Energy Communities in Spain: Economic Implications of the New Tariff and Variable Coefficients

Álvaro Manso-Burgos, David Ribó-Pérez, Manuel Alcázar-Ortega and Tomás Gómez-Navarro
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Álvaro Manso-Burgos: IIE, Universitat Politècnica de València, Camí de Vera s/n, 46022 València, Spain
David Ribó-Pérez: IIE, Universitat Politècnica de València, Camí de Vera s/n, 46022 València, Spain
Manuel Alcázar-Ortega: IIE, Universitat Politècnica de València, Camí de Vera s/n, 46022 València, Spain
Tomás Gómez-Navarro: IIE, Universitat Politècnica de València, Camí de Vera s/n, 46022 València, Spain

Sustainability, 2021, vol. 13, issue 19, 1-18

Abstract: The European Union advocates for legislative support to local energy communities. Measures include the promotion of dynamic energy allocation and discriminatory electricity tariffs such as the recent Spanish framework. However, the impact of these normative changes is not yet evaluated. This paper inquires into the impact of dynamic allocation coefficient and different electricity tariffs on the profitability of local energy communities. To do so, a linear optimisation model is developed and applied to real consumer data in Spain around a variable capacity photovoltaic generation plant. Comparing the economic performance of the static or variable power allocation under the effect of changing electricity tariffs. While both measures are beneficial, the new electricity tariffs result in larger profitability increases than the planned variable coefficients. The combination of measures allows for profitability improvements of up to 25% being complementary measures. However, installations that maximise the potential for electricity generation are still not as profitable due to the low purchase price of surplus energy. While discriminatory electricity price tariffs and variable allocation coefficients are positive measures, further measures are needed for these communities to install generation plants as large as the potential that each case allows.

Keywords: local energy communities; self-consumption; variable coefficients; electricity tariff; prosumers; Spain (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 (4)

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