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

Author

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  • 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
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    References listed on IDEAS

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    5. 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.
    6. 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).
    7. Domenig, Christoph & Scheller, Fabian & Gunkel, Phillipp Andreas & Hermann, Julian & Bergaentzlé, Claire-Marie & Lopes, Marta A.R. & Barnes, Jake & McKenna, Russell, 2024. "Overcoming the landlord–tenant dilemma: A techno-economic assessment of collective self-consumption for European multi-family buildings," Energy Policy, Elsevier, vol. 189(C).
    8. 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.
    9. Du, Hua & Han, Qi & de Vries, Bauke & Sun, Jun, 2024. "Community solar PV adoption in residential apartment buildings: A case study on influencing factors and incentive measures in Wuhan," Applied Energy, Elsevier, vol. 354(PA).
    10. 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).
    11. 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).
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. 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.

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