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

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 S