From investment optimization to fair benefit distribution in renewable energy community modelling

Valeria Casalicchio, Giampaolo Manzolini, Matteo Giacomo Prina and David Moser

Applied Energy, 2022, vol. 310, issue C, No S030626192101672X

Abstract: Energy communities are becoming a key topic in the decarbonization process as they can simultaneously guarantee economic, environmental, and social benefits. In this paper, an integrated method for the implementation of a linear bottom-up optimization model has been developed in order to address these aspects of an energy community: (i) definition of the dispatch and the best technology mix; (ii) assessment of the role of the Demand Side Management; (iii) definition of an original and fair method to allocate the benefit among the participants and of a Fairness Index to compare different business models. The developed method has been applied to an illustrative case study through the implementation of the Italian regulatory framework definitions and costs. The outcomes highlight how Demand Side Management and the energy community composition of the energy community impact on the overall investment: a case study, with heterogeneous composition and characterized by a 20% of flexible load, presents a reduction of 13% in photovoltaic and 93% in storage system capacity with respect to the case without Demand Side Management. The renewable source consumption with a more homogeneous case study decreases by around 20%–33% and bill savings by around 30%. These results impact also on each participant contribution, which underpins the introduced fair distribution method. Leading thus to a different and more proper distribution of the benefit, in order to guarantee everyone the fairest economic return. Moreover, a Fairness Index has been introduced to assess the consistency of other Business Models with respect to the fair distribution.

Keywords: Energy System Modelling; Oemof; Renewable Energy Community; Demand Side Management; Business Models; Benefit Allocation (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030626192101672X
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:310:y:2022:i:c:s030626192101672x

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.2021.118447

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 ().