[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v41y2020i1p113-150.html
   My bibliography  Save this article

On the Viability of Energy Communities

Author

Listed:
  • Ibrahim Abada
  • Andreas Ehrenmann
  • Xavier Lambin
Abstract
Following the development of decentralized production technologies, energy communities have become a topic of increased interest. While the potential benefits have been described, we use the framework of cooperative game theory to test the ability of such communities to adequately share the gains. Indeed, despite the potential value created by such coalitions, there is no guarantee that they will be viable: a subset of participants may find it profitable to exit the community and create another one of their own. We take the case of a neighborhood, having access to a limited resource—e.g. a shared roof or piece of land—which they can exploit if they invest in some renewable production capacity. By joining the community, participants also enjoy aggregation gains in the form of reduced network fees. We find conditions depending on the structure of renewable installation costs, on the magnitude of the aggregation effect and coordination costs and, most importantly, on the chosen sharing rule, under which the whole energy community is stable. In particular, we show that standard sharing rules often fail to enable communities to form and we suggest the adoption of slightly more sophisticated rules. Efficiency could require the intervention of a local planner or a change in network tariff structures.

Suggested Citation

  • Ibrahim Abada & Andreas Ehrenmann & Xavier Lambin, 2020. "On the Viability of Energy Communities," The Energy Journal, , vol. 41(1), pages 113-150, January.
    • Handle: RePEc:sae:enejou:v:41:y:2020:i:1:p:113-150
    DOI: 10.5547/01956574.41.1.iaba
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.41.1.iaba
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.41.1.iaba?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
    ---><---

    References listed on IDEAS

    as
    1. Kellner, Florian, 2016. "Allocating greenhouse gas emissions to shipments in road freight transportation: Suggestions for a global carbon accounting standard," Energy Policy, Elsevier, vol. 98(C), pages 565-575.
    2. Comodi, Gabriele & Giantomassi, Andrea & Severini, Marco & Squartini, Stefano & Ferracuti, Francesco & Fonti, Alessandro & Nardi Cesarini, Davide & Morodo, Matteo & Polonara, Fabio, 2015. "Multi-apartment residential microgrid with electrical and thermal storage devices: Experimental analysis and simulation of energy management strategies," Applied Energy, Elsevier, vol. 137(C), pages 854-866.
    Full references (including those not matched with items on IDEAS)

    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. Ibrahim Abada, Andreas Ehrenmann, and Xavier Lambin, 2020. "On the Viability of Energy Communities," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    2. Ibrahim Abada & Andreas Ehrenmann & Xavier Lambin, 2018. "Unintended consequences: The snowball effect of energy communities," Working Papers EPRG 1812, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Abada, I. & Ehrenmann, A. & Lambin, X., 2017. "On the viability of energy communities," Cambridge Working Papers in Economics 1740, Faculty of Economics, University of Cambridge.
    4. Abada, Ibrahim & Ehrenmann, Andreas & Lambin, Xavier, 2020. "Unintended consequences: The snowball effect of energy communities," Energy Policy, Elsevier, vol. 143(C).
    5. Osorio, J.D. & Rivera-Alvarez, A. & Swain, M. & Ordonez, J.C., 2015. "Exergy analysis of discharging multi-tank thermal energy storage systems with constant heat extraction," Applied Energy, Elsevier, vol. 154(C), pages 333-343.
    6. Coelho, Vitor N. & Coelho, Igor M. & Coelho, Bruno N. & Cohen, Miri Weiss & Reis, Agnaldo J.R. & Silva, Sidelmo M. & Souza, Marcone J.F. & Fleming, Peter J. & Guimarães, Frederico G., 2016. "Multi-objective energy storage power dispatching using plug-in vehicles in a smart-microgrid," Renewable Energy, Elsevier, vol. 89(C), pages 730-742.
    7. Dario Garozzo & Giuseppe Marco Tina, 2020. "Evaluation of the Effective Active Power Reserve for Fast Frequency Response of PV with BESS Inverters Considering Reactive Power Control," Energies, MDPI, vol. 13(13), pages 1-16, July.
    8. Xiaoxuan Wei & Meng Ye & Liang Yuan & Wei Bi & Weisheng Lu, 2022. "Analyzing the Freight Characteristics and Carbon Emission of Construction Waste Hauling Trucks: Big Data Analytics of Hong Kong," IJERPH, MDPI, vol. 19(4), pages 1-21, February.
    9. Ahmad Khan, Aftab & Naeem, Muhammad & Iqbal, Muhammad & Qaisar, Saad & Anpalagan, Alagan, 2016. "A compendium of optimization objectives, constraints, tools and algorithms for energy management in microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1664-1683.
    10. McKenna, Russell & Merkel, Erik & Fichtner, Wolf, 2017. "Energy autonomy in residential buildings: A techno-economic model-based analysis of the scale effects," Applied Energy, Elsevier, vol. 189(C), pages 800-815.
    11. Weitzel, Timm & Glock, Christoph H., 2018. "Energy management for stationary electric energy storage systems: A systematic literature review," European Journal of Operational Research, Elsevier, vol. 264(2), pages 582-606.
    12. Setlhaolo, Ditiro & Sichilalu, Sam & Zhang, Jiangfeng, 2017. "Residential load management in an energy hub with heat pump water heater," Applied Energy, Elsevier, vol. 208(C), pages 551-560.
    13. Pinciroli, Luca & Baraldi, Piero & Compare, Michele & Zio, Enrico, 2023. "Optimal operation and maintenance of energy storage systems in grid-connected microgrids by deep reinforcement learning," Applied Energy, Elsevier, vol. 352(C).
    14. Correa-Florez, Carlos Adrian & Michiorri, Andrea & Kariniotakis, Georges, 2018. "Robust optimization for day-ahead market participation of smart-home aggregators," Applied Energy, Elsevier, vol. 229(C), pages 433-445.
    15. Zichong Lyu & Dirk Pons & Yilei Zhang, 2023. "Emissions and Total Cost of Ownership for Diesel and Battery Electric Freight Pickup and Delivery Trucks in New Zealand: Implications for Transition," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    16. Szodrai, Ferenc & Lakatos, Ákos & Kalmár, Ferenc, 2016. "Analysis of the change of the specific heat loss coefficient of buildings resulted by the variation of the geometry and the moisture load," Energy, Elsevier, vol. 115(P1), pages 820-829.
    17. Yan, Zhe & Zhang, Yongming & Liang, Runqi & Jin, Wenrui, 2020. "An allocative method of hybrid electrical and thermal energy storage capacity for load shifting based on seasonal difference in district energy planning," Energy, Elsevier, vol. 207(C).
    18. Tilsted, Joachim Peter & Bjørn, Anders & Majeau-Bettez, Guillaume & Lund, Jens Friis, 2021. "Accounting matters: Revisiting claims of decoupling and genuine green growth in Nordic countries," Ecological Economics, Elsevier, vol. 187(C).
    19. Zerbino, Pierluigi & Stefanini, Alessandro & Aloini, Davide & Dulmin, Riccardo & Mininno, Valeria, 2021. "Curling linearity into circularity: The benefits of formal scavenging in closed-loop settings," International Journal of Production Economics, Elsevier, vol. 240(C).
    20. David Vérez & Emiliano Borri & Alicia Crespo & Gabriel Zsembinszki & Belal Dawoud & Luisa F. Cabeza, 2021. "Experimental Study of a Small-Size Vacuum Insulated Water Tank for Building Applications," Sustainability, MDPI, vol. 13(10), pages 1-11, May.

    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:sae:enejou:v:41:y:2020:i:1:p:113-150. 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: SAGE Publications (email available below). General contact details of provider: .

    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.