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Biomass-Based Renewable Energy Community: Economic Analysis of a Real Case Study

Author

Listed:
  • Francesca Ceglia

    (DING, Department of Engineering, University of Sannio, 82100 Benevento, Italy)

  • Elisa Marrasso

    (DING, Department of Engineering, University of Sannio, 82100 Benevento, Italy)

  • Carlo Roselli

    (DING, Department of Engineering, University of Sannio, 82100 Benevento, Italy)

  • Maurizio Sasso

    (DING, Department of Engineering, University of Sannio, 82100 Benevento, Italy)

  • Guido Coletta

    (Ricerca Sul Sistema Energetico, 20134 Milan, Italy)

  • Luigi Pellegrino

    (Ricerca Sul Sistema Energetico, 20134 Milan, Italy)

Abstract

Renewable energy communities are catalysts of social innovation, the citizens’ engagement in energy actions, and the exploitation of local resources. Thus, this paper defines a model for analyzing and optimally sizing energy systems serving renewable energy communities. Then, the proposed and replicable model was tailored to the economic feasibility analysis of a renewable energy community in the municipality of Tirano (Northern Italy). An energy audit was carried out to identify the electricity production and consumption within the perimeter of the primary substation and the thermal energy demand of the existing district heating network. The technical features of the energy conversion systems serving the renewable energy community were determined: an organic Rankine cycle biomass-based cogeneration plant, a mini-hydro plant, and a distributed photovoltaic system. Moreover, several different scenarios have been identified, in terms of cogeneration operating mode, photovoltaic penetration, and thermal energy economic value. The results show that, moving from 4.22 MW to 5.22 MW of photovoltaic peak power, the annual renewable electricity production increases by 10.1%. In particular, the simple pay back ranges between 4.90 and 4.98 years and the net present value between EUR 12.4 and 13.3 M for CHP operating at full power mode, considering that thermal energy available from the cogeneration unit is sold at EUR 49.2/MWh. These outcomes demonstrate the economic feasibility of wood-biomass-based renewable energy communities, which may help to enlarge the contribution of renewable technologies other than photovoltaic.

Suggested Citation

  • Francesca Ceglia & Elisa Marrasso & Carlo Roselli & Maurizio Sasso & Guido Coletta & Luigi Pellegrino, 2022. "Biomass-Based Renewable Energy Community: Economic Analysis of a Real Case Study," Energies, MDPI, vol. 15(15), pages 1-24, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:15:p:5655-:d:880105
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    References listed on IDEAS

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    1. Francesca Ceglia & Adriano Macaluso & Elisa Marrasso & Carlo Roselli & Laura Vanoli, 2020. "Energy, Environmental, and Economic Analyses of Geothermal Polygeneration System Using Dynamic Simulations," Energies, MDPI, vol. 13(18), pages 1-34, September.
    2. Okoye, Chiemeka Onyeka & Oranekwu-Okoye, Blessing Chioma, 2018. "Economic feasibility of solar PV system for rural electrification in Sub-Sahara Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2537-2547.
    3. Fioriti, Davide & Frangioni, Antonio & Poli, Davide, 2021. "Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users," Applied Energy, Elsevier, vol. 299(C).
    4. Świerzewski, Mateusz & Kalina, Jacek, 2020. "Optimisation of biomass-fired cogeneration plants using ORC technology," Renewable Energy, Elsevier, vol. 159(C), pages 195-214.
    5. Francesca Ceglia & Elisa Marrasso & Carlo Roselli & Maurizio Sasso, 2021. "Small Renewable Energy Community: The Role of Energy and Environmental Indicators for Power Grid," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    6. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Georghiou, George E., 2021. "Social arrangements, technical designs and impacts of energy communities: A review," Renewable Energy, Elsevier, vol. 169(C), pages 1138-1156.
    7. Aste, Niccolò & Caputo, Paola & Del Pero, Claudio & Ferla, Giulio & Huerto-Cardenas, Harold Enrique & Leonforte, Fabrizio & Miglioli, Alessandro, 2020. "A renewable energy scenario for a new low carbon settlement in northern Italy: Biomass district heating coupled with heat pump and solar photovoltaic system," Energy, Elsevier, vol. 206(C).
    8. Lund, Henrik & Østergaard, Poul Alberg & Connolly, David & Mathiesen, Brian Vad, 2017. "Smart energy and smart energy systems," Energy, Elsevier, vol. 137(C), pages 556-565.
    9. Nicola Franzoi & Alessandro Prada & Sara Verones & Paolo Baggio, 2021. "Enhancing PV Self-Consumption through Energy Communities in Heating-Dominated Climates," Energies, MDPI, vol. 14(14), pages 1-17, July.
    10. Mandelli, Stefano & Brivio, Claudio & Colombo, Emanuela & Merlo, Marco, 2016. "A sizing methodology based on Levelized Cost of Supplied and Lost Energy for off-grid rural electrification systems," Renewable Energy, Elsevier, vol. 89(C), pages 475-488.
    11. 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.
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    1. Ceglia, Francesca & Marrasso, Elisa & Roselli, Carlo & Sasso, Maurizio, 2023. "Energy and environmental assessment of a biomass-based renewable energy community including photovoltaic and hydroelectric systems," Energy, Elsevier, vol. 282(C).
    2. Francesco Calise & Francesco Liberato Cappiello & Luca Cimmino & Maria Vicidomini, 2024. "A Dynamic Analysis of Biomethane Reforming for a Solid Oxide Fuel Cell Operating in a Power-to-Heat System Integrated into a Renewable Energy Community," Energies, MDPI, vol. 17(13), pages 1-21, June.
    3. Ewelina Olba-Zięty & Jakub Jan Zięty & Mariusz Jerzy Stolarski, 2023. "External Environmental Costs of Solid Biomass Production against the Legal and Political Background in Europe," Energies, MDPI, vol. 16(10), pages 1-27, May.
    4. Myriam Caratù & Valerio Brescia & Ilaria Pigliautile & Paolo Biancone, 2023. "Assessing Energy Communities’ Awareness on Social Media with a Content and Sentiment Analysis," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    5. González, Arnau & Arranz-Piera, Pol & Olives, Borja & Ivancic, Aleksandar & Pagà, Conrad & Cortina, Marc, 2023. "Thermal energy community-based multi-dimensional business model framework and critical success factors investigation in the mediterranean region of the EU," Technology in Society, Elsevier, vol. 75(C).

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