IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v310y2022ics030626192101672x.html
   My bibliography  Save this article

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

Author

Listed:
  • Casalicchio, Valeria
  • Manzolini, Giampaolo
  • Prina, Matteo Giacomo
  • Moser, David

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.

Suggested Citation

  • Casalicchio, Valeria & Manzolini, Giampaolo & Prina, Matteo Giacomo & Moser, David, 2022. "From investment optimization to fair benefit distribution in renewable energy community modelling," Applied Energy, Elsevier, vol. 310(C).
    • Handle: RePEc:eee:appene:v:310:y:2022:i:c:s030626192101672x
    DOI: 10.1016/j.apenergy.2021.118447
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030626192101672X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2021.118447?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Faidra Kotarela & Anastasios Kyritsis & Nick Papanikolaou, 2020. "On the Implementation of the Nearly Zero Energy Building Concept for Jointly Acting Renewables Self-Consumers in Mediterranean Climate Conditions," Energies, MDPI, vol. 13(5), pages 1-29, February.
    2. Prina, Matteo Giacomo & Lionetti, Matteo & Manzolini, Giampaolo & Sparber, Wolfram & Moser, David, 2019. "Transition pathways optimization methodology through EnergyPLAN software for long-term energy planning," Applied Energy, Elsevier, vol. 235(C), pages 356-368.
    3. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    4. Fina, Bernadette & Auer, Hans & Friedl, Werner, 2020. "Cost-optimal economic potential of shared rooftop PV in energy communities: Evidence from Austria," Renewable Energy, Elsevier, vol. 152(C), pages 217-228.
    5. Tang, Yanyan & Zhang, Qi & Mclellan, Benjamin & Li, Hailong, 2018. "Study on the impacts of sharing business models on economic performance of distributed PV-Battery systems," Energy, Elsevier, vol. 161(C), pages 544-558.
    6. Fleischhacker, Andreas & Lettner, Georg & Schwabeneder, Daniel & Auer, Hans, 2019. "Portfolio optimization of energy communities to meet reductions in costs and emissions," Energy, Elsevier, vol. 173(C), pages 1092-1105.
    7. Alessia Arteconi & Fabio Polonara, 2018. "Assessing the Demand Side Management Potential and the Energy Flexibility of Heat Pumps in Buildings," Energies, MDPI, vol. 11(7), pages 1-19, July.
    8. Fina, Bernadette & Auer, Hans & Friedl, Werner, 2019. "Profitability of PV sharing in energy communities: Use cases for different settlement patterns," Energy, Elsevier, vol. 189(C).
    9. Quddus, Md Abdul & Shahvari, Omid & Marufuzzaman, Mohammad & Usher, John M. & Jaradat, Raed, 2018. "A collaborative energy sharing optimization model among electric vehicle charging stations, commercial buildings, and power grid," Applied Energy, Elsevier, vol. 229(C), pages 841-857.
    10. Karunathilake, Hirushie & Hewage, Kasun & Prabatha, Tharindu & Ruparathna, Rajeev & Sadiq, Rehan, 2020. "Project deployment strategies for community renewable energy: A dynamic multi-period planning approach," Renewable Energy, Elsevier, vol. 152(C), pages 237-258.
    11. Korkas, Christos D. & Baldi, Simone & Michailidis, Iakovos & Kosmatopoulos, Elias B., 2016. "Occupancy-based demand response and thermal comfort optimization in microgrids with renewable energy sources and energy storage," Applied Energy, Elsevier, vol. 163(C), pages 93-104.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Wen & Yang, Bo & Ji, Jiong & Liu, Xiaorui, 2023. "Green finance development drives renewable energy development: Mechanism analysis and empirical research," Renewable Energy, Elsevier, vol. 215(C).
    2. Mattia Pasqui & Lorenzo Becchi & Marco Bindi & Matteo Intravaia & Francesco Grasso & Gianluigi Fioriti & Carlo Carcasci, 2024. "Community Battery for Collective Self-Consumption and Energy Arbitrage: Independence Growth vs. Investment Cost-Effectiveness," Sustainability, MDPI, vol. 16(8), pages 1-19, April.
    3. Przemysław Ogarek & Michał Wojtoń & Daniel Słyś, 2023. "Hydrogen as a Renewable Energy Carrier in a Hybrid Configuration of Distributed Energy Systems: Bibliometric Mapping of Current Knowledge and Strategies," Energies, MDPI, vol. 16(14), pages 1-18, July.
    4. Wątróbski, Jarosław & Bączkiewicz, Aleksandra & Sałabun, Wojciech, 2022. "New multi-criteria method for evaluation of sustainable RES management," Applied Energy, Elsevier, vol. 324(C).
    5. Dorahaki, Sobhan & Rashidinejad, Masoud & Fatemi Ardestani, Seyed Farshad & Abdollahi, Amir & Salehizadeh, Mohammad Reza, 2023. "An integrated model for citizen energy communities and renewable energy communities based on clean energy package: A two-stage risk-based approach," Energy, Elsevier, vol. 277(C).
    6. Roberta Roberto & Gabriella Ferruzzi & Viviana Negro & Michel Noussan, 2023. "Mapping of Energy Community Development in Europe: State of the Art and Research Directions," Energies, MDPI, vol. 16(18), pages 1-29, September.
    7. Zhou, Yuekuan, 2022. "Incentivising multi-stakeholders’ proactivity and market vitality for spatiotemporal microgrids in Guangzhou-Shenzhen-Hong Kong Bay Area," Applied Energy, Elsevier, vol. 328(C).
    8. Anita Tatti & Sibilla Ferroni & Martina Ferrando & Mario Motta & Francesco Causone, 2023. "The Emerging Trends of Renewable Energy Communities’ Development in Italy," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    9. Myriam Caratù & Valerio Brescia & Ilaria Pigliautile & Paolo Biancone, 2023. "Assessing Energy Communities’ Awareness on Social Media with a Content and Sentiment Analysis," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    10. Mayer, Martin János & Biró, Bence & Szücs, Botond & Aszódi, Attila, 2023. "Probabilistic modeling of future electricity systems with high renewable energy penetration using machine learning," Applied Energy, Elsevier, vol. 336(C).
    11. Emmanuel N. Efthymiou & Sofia Yfanti & George Kyriakarakos & Panagiotis L. Zervas & Panagiotis Langouranis & Konstantinos Terzis & George M. Stavrakakis, 2022. "A Practical Methodology for Building a Municipality-Led Renewable Energy Community: A Photovoltaics-Based Case Study for the Municipality of Hersonissos in Crete, Greece," Sustainability, MDPI, vol. 14(19), pages 1-31, October.
    12. Shoaib Ahmed & Amjad Ali & Antonio D’Angola, 2024. "A Review of Renewable Energy Communities: Concepts, Scope, Progress, Challenges, and Recommendations," Sustainability, MDPI, vol. 16(5), pages 1-34, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Backe, Stian & Zwickl-Bernhard, Sebastian & Schwabeneder, Daniel & Auer, Hans & Korpås, Magnus & Tomasgard, Asgeir, 2022. "Impact of energy communities on the European electricity and heating system decarbonization pathway: Comparing local and global flexibility responses," Applied Energy, Elsevier, vol. 323(C).
    2. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Georghiou, George E., 2021. "Social arrangements, technical designs and impacts of energy communities: A review," Renewable Energy, Elsevier, vol. 169(C), pages 1138-1156.
    3. Sima, Catalina Alexandra & Popescu, Claudia Laurenta & Popescu, Mihai Octavian & Roscia, Mariacristina & Seritan, George & Panait, Cornel, 2022. "Techno-economic assessment of university energy communities with on/off microgrid," Renewable Energy, Elsevier, vol. 193(C), pages 538-553.
    4. Francesca Ceglia & Elisa Marrasso & Carlo Roselli & Maurizio Sasso, 2021. "Small Renewable Energy Community: The Role of Energy and Environmental Indicators for Power Grid," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    5. Roberts, Mike B. & Sharma, Arijit & MacGill, Iain, 2022. "Efficient, effective and fair allocation of costs and benefits in residential energy communities deploying shared photovoltaics," Applied Energy, Elsevier, vol. 305(C).
    6. Zwickl-Bernhard, Sebastian & Auer, Hans, 2021. "Open-source modeling of a low-carbon urban neighborhood with high shares of local renewable generation," Applied Energy, Elsevier, vol. 282(PA).
    7. Roberto Gerundo & Alessandra Marra, 2022. "A Decision Support Methodology to Foster Renewable Energy Communities in the Municipal Urban Plan," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    8. Guilherme Pontes Luz & Rodrigo Amaro e Silva, 2021. "Modeling Energy Communities with Collective Photovoltaic Self-Consumption: Synergies between a Small City and a Winery in Portugal," Energies, MDPI, vol. 14(2), pages 1-26, January.
    9. Volpato, Gabriele & Carraro, Gianluca & Cont, Marco & Danieli, Piero & Rech, Sergio & Lazzaretto, Andrea, 2022. "General guidelines for the optimal economic aggregation of prosumers in energy communities," Energy, Elsevier, vol. 258(C).
    10. Bernadette Fina & Miriam Schwebler & Carolin Monsberger, 2022. "Different Technologies’ Impacts on the Economic Viability, Energy Flows and Emissions of Energy Communities," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    11. Fina, Bernadette & Roberts, Mike B. & Auer, Hans & Bruce, Anna & MacGill, Iain, 2021. "Exogenous influences on deployment and profitability of photovoltaics for self-consumption in multi-apartment buildings in Australia and Austria," Applied Energy, Elsevier, vol. 283(C).
    12. Roberts Lazdins & Anna Mutule & Diana Zalostiba, 2021. "PV Energy Communities—Challenges and Barriers from a Consumer Perspective: A Literature Review," Energies, MDPI, vol. 14(16), pages 1-20, August.
    13. Ginger Zhe Jin & Andrew Kato & John A. List, 2010. "That’S News To Me! Information Revelation In Professional Certification Markets," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 104-122, January.
    14. Hongpeng Guo & Zhihao Lv & Junyi Hua & Hongxu Yuan & Qingyu Yu, 2021. "Design of Combined Auction Model for Emission Rights of International Forestry Carbon Sequestration and Other Pollutants Based on SMRA," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    15. Güth, W., 1997. "Boundedly Rational Decision Emergence -A General Perspective and Some Selective Illustrations-," SFB 373 Discussion Papers 1997,29, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    16. Lau, Stephanie, 2011. "Investment incentives in bilateral trading," Games and Economic Behavior, Elsevier, vol. 73(2), pages 538-552.
    17. Paul Pezanis-Christou & Abdolkarim Sadrieh, 2003. "Elicited bid functions in (a)symmetric first-price auctions," Working Papers 85, Barcelona School of Economics.
    18. Ewerhart, Christian & Cassola, Nuno & Valla, Natacha, 2012. "Overbidding in fixed rate tenders: The role of exposure risk," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 539-549.
    19. Scott Fay & Robert Zeithammer, 2017. "Bidding for Bidders? How the Format for Soliciting Supplier Participation in NYOP Auctions Impacts Channel Profit," Management Science, INFORMS, vol. 63(12), pages 4324-4344, December.
    20. Franziska Voelckner, 2006. "An empirical comparison of methods for measuring consumers’ willingness to pay," Marketing Letters, Springer, vol. 17(2), pages 137-149, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:310:y:2022:i:c:s030626192101672x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.