EconPapers    
Economics at your fingertips  
 

Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users

Davide Fioriti, Antonio Frangioni and Davide Poli

Applied Energy, 2021, vol. 299, issue C, No S0306261921007376

Abstract: Energy communities (ECs) are essential tools to meet the Energy Transition goals but, to fully unleash their potential, they require a coordinated operation and design that the community itself may be ill-equipped to manage. Aggregators and Energy Service COmpanies (ESCOs) can perform this support role, but only provided that their goals are aligned to those of the community, not to incur in the agency problem. In this study, we propose a business model for aggregators of ECs, and its optimization problem, accounting for all crucial aspects: (i) alleviating the risk of the agency problem, (ii) fairly distributing the reward awarded to the EC, (iii) estimating the fair payment for the aggregator services, and (iv) defining appropriate exit clauses ruling what happens when a user leaves the EC. A mathematical model is developed, employing several fair game-theoretic reward distribution schemes, some of which are proposed here for the first time. A case study is developed, and results show that the aggregator enables reducing costs by 16% and improving renewable penetration and self/shared consumption by 35%–51% with respect to the base case. Our results suggest that the aggregator fair retribution is around 16%–24% the added benefit produced with respect to the base case, and that stable reward distribution schemes, such as Shapley/Core, Variance/Core or Nucleolus, are stable and recommended. Moreover, the results highlight the unwanted effect that some non-cooperative ECs may have an added benefit without providing any positive effect to the power system. Our work provides a methodology and preliminary results that can help policy makers and developers in tailoring national-level policies and market-offerings.

Keywords: Mixed integer linear programming (MILP); Hybrid renewable/citizenship energy community system (REC/CEC); Coalition and cooperative game theory; Peer-to-Peer market (P2P) and microgrid; Coalition stability and robustness; Peak power and demand side management (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261921007376
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:299:y:2021:i:c:s0306261921007376

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2021.117328

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-10-02
Handle: RePEc:eee:appene:v:299:y:2021:i:c:s0306261921007376