Community Battery for Collective Self-Consumption and Energy Arbitrage: Independence Growth vs. Investment Cost-Effectiveness

Mattia Pasqui (), Lorenzo Becchi, Marco Bindi, Matteo Intravaia, Francesco Grasso, Gianluigi Fioriti and Carlo Carcasci
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Mattia Pasqui: Department of Industrial Engineering (DIEF), University of Florence (UNIFI), 50121 Florence, Italy
Lorenzo Becchi: Department of Information Engineering (DINFO), University of Florence (UNIFI), 50121 Florence, Italy
Marco Bindi: Department of Information Engineering (DINFO), University of Florence (UNIFI), 50121 Florence, Italy
Matteo Intravaia: Department of Information Engineering (DINFO), University of Florence (UNIFI), 50121 Florence, Italy
Francesco Grasso: Department of Information Engineering (DINFO), University of Florence (UNIFI), 50121 Florence, Italy
Gianluigi Fioriti: Department of Information Engineering (DINFO), University of Florence (UNIFI), 50121 Florence, Italy
Carlo Carcasci: Department of Industrial Engineering (DIEF), University of Florence (UNIFI), 50121 Florence, Italy

Sustainability, 2024, vol. 16, issue 8, 1-19

Abstract: Integrating a grid-connected battery into a renewable energy community amplifies the collective self-consumption of photovoltaic energy and facilitates energy arbitrage in the electricity markets. However, how much can energy independence really increase? Is it a cost-effective investment? The answer to these questions represents a novelty in the literature due to the innovative nature of the asset under consideration and the market and regulatory framework in which it is evaluated. Employing a net present value assessment, our analysis incorporated aging effects and conducts sensitivity analyses across various parameters: the number of community customers, electricity market prices, battery cost and size, and the decision to engage in energy arbitrage. Each scenario underwent a 20-year hourly simulation using an aging-aware rolling-horizon 24 h-looking-ahead scheduling, optimized with mixed-integer linear programming. Simulations conducted on the Italian market indicate that dedicating a battery solely to collective self-consumption is the most efficient solution for promoting a community’s energy independence, but it lacks economic appeal. However, integrating energy arbitrage, despite slight compromises in self-sufficiency and battery longevity, halves the payback period and enhances the attractiveness of larger battery investments. The net present value is contingent upon the battery size, customer number, and market prices. Nevertheless, if the battery cost does not exceed 200 EUR/kWh, the investment becomes cost-effective across all scenarios.

Keywords: renewable energy community; battery energy storage system; scheduling; aging; collective self-consumption; energy arbitrage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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