IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i19p5007-d418109.html
   My bibliography  Save this article

Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries

Author

Listed:
  • Johannes Radl

    (Institute of Energy Systems and Electrical Drives, TU Wien, Gußhausstraße 25-29/E37003, 1040 Vienna, Austria)

  • Andreas Fleischhacker

    (Institute of Energy Systems and Electrical Drives, TU Wien, Gußhausstraße 25-29/E37003, 1040 Vienna, Austria)

  • Frida Huglen Revheim

    (Institute of Energy Systems and Electrical Drives, TU Wien, Gußhausstraße 25-29/E37003, 1040 Vienna, Austria)

  • Georg Lettner

    (Institute of Energy Systems and Electrical Drives, TU Wien, Gußhausstraße 25-29/E37003, 1040 Vienna, Austria)

  • Hans Auer

    (Institute of Energy Systems and Electrical Drives, TU Wien, Gußhausstraße 25-29/E37003, 1040 Vienna, Austria)

Abstract

The economic value of photovoltaic (PV) systems depends on country-specific conditions. This study investigates the impact of grid fees, solar irradiance and local consumption on the profitability and penetration of PV systems and batteries in renewable energy communities. The linear optimization model calculates the optimal investments into PV and storages applied on a test community, which represents the European housing situation. The comparison of eight countries considers individual heat and cooling demands as well as sector coupling. Results show that renewable energy communities have the potential to reduce electricity costs due to community investments and load aggregation but do not necessarily lead to more distributed PV. Besides full-load hours, the energy component of electricity tariffs has the highest impact on PV distribution. Under current market conditions, battery energy storage systems are rarely profitable for increasing PV self-consumption but there is potential with power pricing. Renewable energy communities enable individuals to be a prosumer without the necessity of owning a PV system. This could lead to more (community) PV investments in the short term. Hence, it hinders investments in a saturated PV market.

Suggested Citation

  • Johannes Radl & Andreas Fleischhacker & Frida Huglen Revheim & Georg Lettner & Hans Auer, 2020. "Comparison of Profitability of PV Electricity Sharing in Renewable Energy Communities in Selected European Countries," Energies, MDPI, vol. 13(19), pages 1-24, September.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:19:p:5007-:d:418109
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/19/5007/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/19/5007/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephan Nagl, Michaela Fursch, and Dietmar Lindenberger, 2013. "The Costs of Electricity Systems with a High Share of Fluctuating Renewables: A Stochastic Investment and Dispatch Optimization Model for Europe," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    2. Wouter Schram & Atse Louwen & Ioannis Lampropoulos & Wilfried van Sark, 2019. "Comparison of the Greenhouse Gas Emission Reduction Potential of Energy Communities," Energies, MDPI, vol. 12(23), pages 1-23, November.
    3. Gui, Emi Minghui & Diesendorf, Mark & MacGill, Iain, 2017. "Distributed energy infrastructure paradigm: Community microgrids in a new institutional economics context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1355-1365.
    4. Fuentes, E. & Arce, L. & Salom, J., 2018. "A review of domestic hot water consumption profiles for application in systems and buildings energy performance analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1530-1547.
    5. Claudia Rahmann & Benjamin Mac-Clure & Vijay Vittal & Felipe Valencia, 2017. "Break-Even Points of Battery Energy Storage Systems for Peak Shaving Applications," Energies, MDPI, vol. 10(7), pages 1-13, June.
    6. Roberts, Mike B. & Bruce, Anna & MacGill, Iain, 2019. "Impact of shared battery energy storage systems on photovoltaic self-consumption and electricity bills in apartment buildings," Applied Energy, Elsevier, vol. 245(C), pages 78-95.
    7. Amjad Ali & Wuhua Li & Rashid Hussain & Xiangning He & Barry W. Williams & Abdul Hameed Memon, 2017. "Overview of Current Microgrid Policies, Incentives and Barriers in the European Union, United States and China," Sustainability, MDPI, vol. 9(7), pages 1-28, June.
    8. Hahnel, Ulf J.J. & Herberz, Mario & Pena-Bello, Alejandro & Parra, David & Brosch, Tobias, 2020. "Becoming prosumer: Revealing trading preferences and decision-making strategies in peer-to-peer energy communities," Energy Policy, Elsevier, vol. 137(C).
    9. 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.
    10. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    11. Skoplaki, E. & Palyvos, J.A., 2009. "Operating temperature of photovoltaic modules: A survey of pertinent correlations," Renewable Energy, Elsevier, vol. 34(1), pages 23-29.
    12. Hackbarth, André & Löbbe, Sabine, 2020. "Attitudes, preferences, and intentions of German households concerning participation in peer-to-peer electricity trading," Energy Policy, Elsevier, vol. 138(C).
    13. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    14. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    15. An, Jongbaek & Lee, Minhyun & Yeom, Seungkeun & Hong, Taehoon, 2020. "Determining the Peer-to-Peer electricity trading price and strategy for energy prosumers and consumers within a microgrid," Applied Energy, Elsevier, vol. 261(C).
    16. Fan, Yuling & Xia, Xiaohua, 2017. "A multi-objective optimization model for energy-efficiency building envelope retrofitting plan with rooftop PV system installation and maintenance," Applied Energy, Elsevier, vol. 189(C), pages 327-335.
    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. Lubov Petrichenko & Antans Sauhats & Illia Diahovchenko & Irina Segeda, 2022. "Economic Viability of Energy Communities versus Distributed Prosumers," Sustainability, MDPI, vol. 14(8), pages 1-24, April.
    2. Janota, Lukáš & Vávrová, Kamila & Weger, Jan & Knápek, Jaroslav & Králík, Tomáš, 2023. "Complex methodology for optimizing local energy supply and overall resilience of rural areas: A case study of Agrovoltaic system with Miscanthus x giganteus plantation within the energy community in t," Renewable Energy, Elsevier, vol. 212(C), pages 738-750.
    3. 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.
    4. Andreolli, Francesca & D'Alpaos, Chiara & Kort, Peter, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," FEEM Working Papers 330498, Fondazione Eni Enrico Mattei (FEEM).
    5. Neska, Ewa & Kowalska-Pyzalska, Anna, 2022. "Conceptual design of energy market topologies for communities and their practical applications in EU: A comparison of three case studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Sebastian Zwickl-Bernhard & Hans Auer, 2021. "Citizen Participation in Low-Carbon Energy Systems: Energy Communities and Its Impact on the Electricity Demand on Neighborhood and National Level," Energies, MDPI, vol. 14(2), pages 1-22, January.
    7. Rozmysław Mieński & Przemysław Urbanek & Irena Wasiak, 2021. "Using Energy Storage Inverters of Prosumer Installations for Voltage Control in Low-Voltage Distribution Networks," Energies, MDPI, vol. 14(4), pages 1-21, February.
    8. Nima Narjabadifam & Javanshir Fouladvand & Mustafa Gül, 2023. "Critical Review on Community-Shared Solar—Advantages, Challenges, and Future Directions," Energies, MDPI, vol. 16(8), pages 1-25, April.
    9. 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.
    10. Felice, Alex & Rakocevic, Lucija & Peeters, Leen & Messagie, Maarten & Coosemans, Thierry & Ramirez Camargo, Luis, 2022. "Renewable energy communities: Do they have a business case in Flanders?," Applied Energy, Elsevier, vol. 322(C).
    11. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    12. Christian Pfeiffer & Markus Puchegger & Claudia Maier & Ina V. Tomaschitz & Thomas P. Kremsner & Lukas Gnam, 2020. "A Case Study of Socially-Accepted Potentials for the Use of End User Flexibility by Home Energy Management Systems," Sustainability, MDPI, vol. 13(1), pages 1-19, December.
    13. Gjorgievski, Vladimir Z. & Velkovski, Bodan & Francesco Demetrio, Minuto & Cundeva, Snezana & Markovska, Natasa, 2023. "Energy sharing in European renewable energy communities: Impact of regulated charges," Energy, Elsevier, vol. 281(C).
    14. Ana Ogando-Martínez & Xela García-Santiago & Saúl Díaz García & Fernando Echevarría Camarero & Gonzalo Blázquez Gil & Pablo Carrasco Ortega, 2023. "Optimization of Energy Allocation Strategies in Spanish Collective Self-Consumption Photovoltaic Systems," Sustainability, MDPI, vol. 15(12), pages 1-17, June.
    15. Francesca Ceglia & Elisa Marrasso & Giovanna Pallotta & Carlo Roselli & Maurizio Sasso, 2022. "The State of the Art of Smart Energy Communities: A Systematic Review of Strengths and Limits," Energies, MDPI, vol. 15(9), pages 1-28, May.
    16. Robin Sudhoff & Sebastian Schreck & Sebastian Thiem & Stefan Niessen, 2022. "Operating Renewable Energy Communities to Reduce Power Peaks in the Distribution Grid: An Analysis on Grid-Friendliness, Different Shares of Participants, and Economic Benefits," Energies, MDPI, vol. 15(15), pages 1-18, July.
    17. Min-Hwi Kim & Deuk-Won Kim & Dong-Won Lee & Jaehyeok Heo, 2021. "Experimental Analysis of Bi-Directional Heat Trading Operation Integrated with Heat Prosumers in Thermal Networks," Energies, MDPI, vol. 14(18), pages 1-18, September.
    18. Bernadette Fina & Hubert Fechner, 2021. "Transposition of European Guidelines for Energy Communities into Austrian Law: A Comparison and Discussion of Issues and Positive Aspects," Energies, MDPI, vol. 14(13), pages 1-14, June.
    19. Fernando V. Cerna & Mahdi Pourakbari-Kasmaei & Luizalba S. S. Pinheiro & Ehsan Naderi & Matti Lehtonen & Javier Contreras, 2021. "Intelligent Energy Management in a Prosumer Community Considering the Load Factor Enhancement," Energies, MDPI, vol. 14(12), pages 1-24, June.

    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. Andreolli, Francesca & D'Alpaos, Chiara & Kort, Peter, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," FEEM Working Papers 330498, Fondazione Eni Enrico Mattei (FEEM).
    2. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    3. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    4. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    5. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    7. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    8. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    9. Antoine Boche & Clément Foucher & Luiz Fernando Lavado Villa, 2022. "Understanding Microgrid Sustainability: A Systemic and Comprehensive Review," Energies, MDPI, vol. 15(8), pages 1-29, April.
    10. Seyedhossein, Seyed Saeed & Moeini-Aghtaie, Moein, 2022. "Risk management framework of peer-to-peer electricity markets," Energy, Elsevier, vol. 261(PB).
    11. Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    12. van Leeuwen, Gijs & AlSkaif, Tarek & Gibescu, Madeleine & van Sark, Wilfried, 2020. "An integrated blockchain-based energy management platform with bilateral trading for microgrid communities," Applied Energy, Elsevier, vol. 263(C).
    13. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    14. 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).
    15. Alexandra Lüth & Jens Weibezahn & Jan Martin Zepter, 2020. "On Distributional Effects in Local Electricity Market Designs—Evidence from a German Case Study," Energies, MDPI, vol. 13(8), pages 1-26, April.
    16. Milad Afzalan & Farrokh Jazizadeh, 2021. "Quantification of Demand-Supply Balancing Capacity among Prosumers and Consumers: Community Self-Sufficiency Assessment for Energy Trading," Energies, MDPI, vol. 14(14), pages 1-21, July.
    17. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    18. Georgarakis, Elena & Bauwens, Thomas & Pronk, Anne-Marie & AlSkaif, Tarek, 2021. "Keep it green, simple and socially fair: A choice experiment on prosumers’ preferences for peer-to-peer electricity trading in the Netherlands," Energy Policy, Elsevier, vol. 159(C).
    19. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    20. Castellini, Marta & Di Corato, Luca & Moretto, Michele & Vergalli, Sergio, 2021. "Energy exchange among heterogeneous prosumers under price uncertainty," Energy Economics, Elsevier, vol. 104(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:gam:jeners:v:13:y:2020:i:19:p:5007-:d:418109. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.