IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v319y2022ics0306261922006006.html
   My bibliography  Save this article

Evaluating the impact of regulation on the path of electrification in Citizen Energy Communities with prosumer investment

Author

Listed:
  • Golla, Armin
  • Röhrig, Nicole
  • Staudt, Philipp
  • Weinhardt, Christof

Abstract

The success of incentives for investments in sustainable residential energy technologies depends on individual households actively participating in the energy transition by investing in electrification and by becoming prosumers. This willingness is influenced by the return on investments in electrification and preferences towards environmental sustainability. Returns on investment can be supported by a preferential regulation of Citizen Energy Communities, i.e. a special form of a microgrid regulation. However, the exact effect of such regulation is debated and therefore analyzed in this study. We propose a multi-periodic community development model that determines household investment decisions over a long time horizon, with heterogeneous individual preferences in regards to sustainability and heterogeneous energy consumption profiles. We consider that investment decisions which increase individual utility might be delayed due to inertia in the decision process. Decisions are determined in our model based on individual preferences using a multi-objective evolutionary algorithm embedded in an energy system simulation. In a case study, we investigate the development of a neighborhood in Germany consisting of 30 households in regards to community costs and community emissions with and without Citizen Energy Community regulation as proposed by the European Union. We find that Citizen Energy Community regulation always reduces community costs and emissions, while heterogeneous distributions of economic and ecologic preferences within the community lead to higher gains. Furthermore, we find that decision inertia considerably slows down the transformation process. This shows that policymakers should carefully consider who to target with Citizen Energy Community regulation and that subsidies should be designed such that they counterbalance delayed private investment decisions.

Suggested Citation

  • Golla, Armin & Röhrig, Nicole & Staudt, Philipp & Weinhardt, Christof, 2022. "Evaluating the impact of regulation on the path of electrification in Citizen Energy Communities with prosumer investment," Applied Energy, Elsevier, vol. 319(C).
    • Handle: RePEc:eee:appene:v:319:y:2022:i:c:s0306261922006006
    DOI: 10.1016/j.apenergy.2022.119241
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922006006
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.119241?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. Liu, Xuezhi & Wu, Jianzhong & Jenkins, Nick & Bagdanavicius, Audrius, 2016. "Combined analysis of electricity and heat networks," Applied Energy, Elsevier, vol. 162(C), pages 1238-1250.
    2. Ableitner, Liliane & Tiefenbeck, Verena & Meeuw, Arne & Wörner, Anselma & Fleisch, Elgar & Wortmann, Felix, 2020. "User behavior in a real-world peer-to-peer electricity market," Applied Energy, Elsevier, vol. 270(C).
    3. Saeed Abdul-Ganiyu & David A Quansah & Emmanuel W Ramde & Razak Seidu & Muyiwa S. Adaramola, 2020. "Investigation of Solar Photovoltaic-Thermal (PVT) and Solar Photovoltaic (PV) Performance: A Case Study in Ghana," Energies, MDPI, vol. 13(11), pages 1-17, May.
    4. McKenna, R. & Bertsch, V. & Mainzer, K. & Fichtner, W., 2018. "Combining local preferences with multi-criteria decision analysis and linear optimization to develop feasible energy concepts in small communities," European Journal of Operational Research, Elsevier, vol. 268(3), pages 1092-1110.
    5. Wang, Haichao & Duanmu, Lin & Lahdelma, Risto & Li, Xiangli, 2017. "Developing a multicriteria decision support framework for CHP based combined district heating systems," Applied Energy, Elsevier, vol. 205(C), pages 345-368.
    6. Chamley, Christophe & Gale, Douglas, 1994. "Information Revelation and Strategic Delay in a Model of Investment," Econometrica, Econometric Society, vol. 62(5), pages 1065-1085, September.
    7. 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).
    8. Peter Alstone & Dimitry Gershenson & Daniel M. Kammen, 2015. "Decentralized energy systems for clean electricity access," Nature Climate Change, Nature, vol. 5(4), pages 305-314, April.
    9. Mathiesen, B.V. & Lund, H. & Connolly, D. & Wenzel, H. & Østergaard, P.A. & Möller, B. & Nielsen, S. & Ridjan, I. & Karnøe, P. & Sperling, K. & Hvelplund, F.K., 2015. "Smart Energy Systems for coherent 100% renewable energy and transport solutions," Applied Energy, Elsevier, vol. 145(C), pages 139-154.
    10. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    11. Liu, Xuezhi & Yan, Zheng & Wu, Jianzhong, 2019. "Optimal coordinated operation of a multi-energy community considering interactions between energy storage and conversion devices," Applied Energy, Elsevier, vol. 248(C), pages 256-273.
    12. Sandri, Serena & Schade, Christian & Mußhoff, Oliver & Odening, Martin, 2010. "Holding on for too long? An experimental study on inertia in entrepreneurs' and non-entrepreneurs' disinvestment choices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 30-44, October.
    13. Warneryd, Martin & Håkansson, Maria & Karltorp, Kersti, 2020. "Unpacking the complexity of community microgrids: A review of institutions’ roles for development of microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    14. Pfenninger, Stefan & Staffell, Iain, 2016. "Long-term patterns of European PV output using 30 years of validated hourly reanalysis and satellite data," Energy, Elsevier, vol. 114(C), pages 1251-1265.
    15. Popovski, Eftim & Fleiter, Tobias & Santos, Hugo & Leal, Vitor & Fernandes, Eduardo Oliveira, 2018. "Technical and economic feasibility of sustainable heating and cooling supply options in southern European municipalities-A case study for Matosinhos, Portugal," Energy, Elsevier, vol. 153(C), pages 311-323.
    16. Greenleaf, Eric A & Lehmann, Donald R, 1995. "Reasons for Substantial Delay in Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(2), pages 186-199, September.
    17. Herrando, María & Markides, Christos N., 2016. "Hybrid PV and solar-thermal systems for domestic heat and power provision in the UK: Techno-economic considerations," Applied Energy, Elsevier, vol. 161(C), pages 512-532.
    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. Zhongwei Zhu & Tingyu Qian & Lei Liu, 2023. "Evolutionary Simulation of Carbon-Neutral Behavior of Urban Citizens in a “Follow–Drive” Perspective," Sustainability, MDPI, vol. 15(13), pages 1-28, July.
    2. Ahmed Abouaiana, 2022. "Rural Energy Communities as Pillar towards Low Carbon Future in Egypt: Beyond COP27," Land, MDPI, vol. 11(12), pages 1-18, December.
    3. 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).
    4. 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.

    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. Ray, Manojit & Chakraborty, Basab, 2019. "Impact of evolving technology on collaborative energy access scaling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 110(C), pages 13-27.
    2. 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).
    3. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    4. Fridgen, Gilbert & Keller, Robert & Körner, Marc-Fabian & Schöpf, Michael, 2020. "A holistic view on sector coupling," Energy Policy, Elsevier, vol. 147(C).
    5. Gayo-Abeleira, Miguel & Santos, Carlos & Javier Rodríguez Sánchez, Francisco & Martín, Pedro & Antonio Jiménez, José & Santiso, Enrique, 2022. "Aperiodic two-layer energy management system for community microgrids based on blockchain strategy," Applied Energy, Elsevier, vol. 324(C).
    6. Talan, Amogh & Rao, Amar & Sharma, Gagan Deep & Apostu, Simona-Andreea & Abbas, Shujaat, 2023. "Transition towards clean energy consumption in G7: Can financial sector, ICT and democracy help?," Resources Policy, Elsevier, vol. 82(C).
    7. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.
    8. Chen, Dongwen & Hu, Xiao & Li, Yong & Abbas, Zulkarnain & Wang, Ruzhu & Li, Dehong, 2023. "Nodal conservation principle of potential energy flow analysis for energy flow calculation in energy internet," Energy, Elsevier, vol. 263(PA).
    9. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    10. Chen, Dongwen & Li, Yong & Abbas, Zulkarnain & Li, Dehong & Wang, Ruzhu, 2022. "Network flow calculation based on the directional nodal potential method for meshed heating networks," Energy, Elsevier, vol. 243(C).
    11. Herenčić, Lin & Kirac, Mislav & Keko, Hrvoje & Kuzle, Igor & Rajšl, Ivan, 2022. "Automated energy sharing in MV and LV distribution grids within an energy community: A case for Croatian city of Križevci with a hybrid renewable system," Renewable Energy, Elsevier, vol. 191(C), pages 176-194.
    12. Yeh, Wei-Chang & He, Min-Fan & Huang, Chia-Ling & Tan, Shi-Yi & Zhang, Xianyong & Huang, Yaohong & Li, Li, 2020. "New genetic algorithm for economic dispatch of stand-alone three-modular microgrid in DongAo Island," Applied Energy, Elsevier, vol. 263(C).
    13. Hannah Mareike Marczinkowski & Poul Alberg Østergaard & Søren Roth Djørup, 2019. "Transitioning Island Energy Systems—Local Conditions, Development Phases, and Renewable Energy Integration," Energies, MDPI, vol. 12(18), pages 1-20, September.
    14. 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).
    15. Brown, T. & Schlachtberger, D. & Kies, A. & Schramm, S. & Greiner, M., 2018. "Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable European energy system," Energy, Elsevier, vol. 160(C), pages 720-739.
    16. Salla Annala & Lurian Klein & Luisa Matos & Sirpa Repo & Olli Kilkki & Arun Narayanan & Samuli Honkapuro, 2021. "Framework to Facilitate Electricity and Flexibility Trading within, to, and from Local Markets," Energies, MDPI, vol. 14(11), pages 1-20, May.
    17. Liu, Xuezhi & Mancarella, Pierluigi, 2016. "Modelling, assessment and Sankey diagrams of integrated electricity-heat-gas networks in multi-vector district energy systems," Applied Energy, Elsevier, vol. 167(C), pages 336-352.
    18. Lombardi, Francesco & Rocco, Matteo Vincenzo & Colombo, Emanuela, 2019. "A multi-layer energy modelling methodology to assess the impact of heat-electricity integration strategies: The case of the residential cooking sector in Italy," Energy, Elsevier, vol. 170(C), pages 1249-1260.
    19. Huang, Yujia & Sun, Qiuye & Li, Yushuai & Sun, Chenghao & Chen, Zhe, 2023. "Damping technique empowered robust energy flow calculation for integrated energy systems," Applied Energy, Elsevier, vol. 343(C).
    20. Østergaard, Poul Alberg & Andersen, Anders N. & Sorknæs, Peter, 2022. "The business-economic energy system modelling tool energyPRO," Energy, Elsevier, vol. 257(C).

    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:319:y:2022:i:c:s0306261922006006. 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.