Assessment of Power System Asset Dispatch under Different Local Energy Community Business Models

Tarmo Korõtko (), Freddy Plaum, Tobias Häring, Anna Mutule, Roberts Lazdins, Olegs Borščevskis, Argo Rosin and Paula Carroll
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Tarmo Korõtko: Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia
Freddy Plaum: FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia
Tobias Häring: FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia
Anna Mutule: Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia
Roberts Lazdins: Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia
Olegs Borščevskis: Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia
Argo Rosin: FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia
Paula Carroll: College of Business, University College Dublin, D04 V1W8 Dublin, Ireland

Energies, 2023, vol. 16, issue 8, 1-23

Abstract: Community energy projects have gained popularity in recent years, and encouraging citizens to form local energy communities (LEC) is considered an effective tool for raising awareness about renewable energy. Since no single universal method exists for operating LECs, this study investigated the impact that different business models and asset dispatch methods have on LECs’ economic and energy-related indicators. We carried out a case study, which included the development, modelling, and simulation of seven scenarios using mixed-integer linear programming (MILP). To measure and compare the prospective performance of the LECs in each scenario, six key metrics were evaluated and assessed. The authors find that simple, rule-based control systems might be well suited for LECs with a limited number of controllable assets that aim to provide increased levels of self-consumption of up to 3%. We also conclude that when the LEC utilises an energy cooperative business model, the selected asset dispatch method provides only minor differences in LEC performance, while for prosumer communities, the importance of selecting a suitable asset dispatch method is higher. We also conclude that LECs have the potential to significantly increase their economic performance by more than 10% by acting as aggregators and providing grid services directly to system operators.

Keywords: local energy community; asset dispatch; optimisation; energy management; battery energy storage; renewable energy sources; power system flexibility (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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