EURO 2024 Copenhagen
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1074. Efficient Incentive Policies of Renewable Energy Communities

Invited abstract in session WA-2: New Advances in Italian Energy Markets, stream OR in Banking, Finance and Insurance: New Tools for Risk Management.

Wednesday, 8:30-10:00
Room: Glassalen (building: 101)

Authors (first author is the speaker)

1. Alessandra Ruffini
Department of Economics and Management, University of Brescia
2. Paolo Falbo
Department of Economics and Management, University of Brescia
3. Carlos Ruiz
Universidad Carlos III de Madrid

Abstract

In 2018, the EU issued a Directive on Renewable Energy Communities (REC). REC implementation will increase RES-based electricity supply and decrease GHG emissions.
National Governments are financing ecological transition with incentives, and a relevant amount of funds is reserved for REC. Anyway, the success of these investments depends on people's, firms' and municipalities' choice to join a REC. A direct economic advantage of joining a REC is that members can share an incentive tariff calculated on self-produced and self-consumed electricity.
In our work, we face the problem of maximizing self-consumption to promote RECs diffusion. For this purpose, we develop a bi-level problem with a policymaker and one REC. We consider a particular kind of REC composed of households (HS), that can install photovoltaic plants (PV), and a biogas plant (BG), because these are the most common technologies in agricultural and urban contexts.
At the upper level, the central authority maximizes REC’s self-consumption by financing investment in RES plants. At the lower level, the BG and HS interact in the same REC, maximizing their profits subject to capacity and budget constraints.
We developed two versions of this model to have results independent from the iteration order and to reach a Nash Equilibrium. Results are obtained through historical scenario simulation using Italy’s data from 2017 to 2021 and developed in Pyomo with Gurobi Optimizer.

Keywords

Status: accepted

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