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Virtual net-billing: A fair energy sharing method for collective self-consumption

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  • Gjorgievski, Vladimir Z.
  • Cundeva, Snezana
  • Markovska, Natasa
  • Georghiou, George E.

Abstract

This paper proposes an energy sharing method for collective self-consumption called virtual net-billing. The proposed method enables the members of an energy community to fairly share energy in real-time, based on their individual contribution. To achieve this, a mathematical model is developed, which separates the total self-consumption of the community into a portion caused by behind-the-meter self-consumption and a portion caused by the energy sharing. The properties of the proposed method are explored analytically, using cooperative game theory, and through simulations of 600 hypothetical energy communities, developed using real-world data. To assess the fairness of the proposed method, a theoretical framework is developed, which consists of three mutually non-exclusive definitions and three numerical indicators. Using this framework, the method is compared to five existing energy sharing methods from the scientific literature. The results indicate that virtual net-billing provides the lowest trade-off between fairness and computation complexity compared to the existing methods, which makes it suitable for large energy communities and easy implementation in real-world settings.

Suggested Citation

  • Gjorgievski, Vladimir Z. & Cundeva, Snezana & Markovska, Natasa & Georghiou, George E., 2022. "Virtual net-billing: A fair energy sharing method for collective self-consumption," Energy, Elsevier, vol. 254(PB).
    • Handle: RePEc:eee:energy:v:254:y:2022:i:pb:s0360544222011495
    DOI: 10.1016/j.energy.2022.124246
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    Cited by:

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    2. Steffen Limmer, 2023. "Empirical Study of Stability and Fairness of Schemes for Benefit Distribution in Local Energy Communities," Energies, MDPI, vol. 16(4), pages 1-16, February.
    3. 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).
    4. Laura Wangen & Cédric Clastres, 2024. "Cost Allocation in Energy Communities," Post-Print hal-04575008, HAL.
    5. Chen, Yujia & Pei, Wei & Ma, Tengfei & Xiao, Hao, 2023. "Asymmetric Nash bargaining model for peer-to-peer energy transactions combined with shared energy storage," Energy, Elsevier, vol. 278(PB).
    6. Dasí-Crespo, Daniel & Roldán-Blay, Carlos & Escrivá-Escrivá, Guillermo & Roldán-Porta, Carlos, 2023. "Evaluation of the Spanish regulation on self-consumption photovoltaic installations. A case study based on a rural municipality in Spain," Renewable Energy, Elsevier, vol. 204(C), pages 788-802.
    7. Kılkış, Şiir & Ulpiani, Giulia & Vetters, Nadja, 2024. "Visions for climate neutrality and opportunities for co-learning in European cities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 195(C).

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