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Assessment of Power System Asset Dispatch under Different Local Energy Community Business Models

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  • Tarmo Korõtko

    (Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia
    FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia)

  • Freddy Plaum

    (FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia
    Department of Electrical Power Engineering and Mechatronics, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia)

  • Tobias Häring

    (FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia
    Department of Electrical Power Engineering and Mechatronics, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia)

  • Anna Mutule

    (Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia)

  • Roberts Lazdins

    (Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia)

  • Olegs Borščevskis

    (Institute of Physical Energetics, Smart Grid Research Centre, LV-1006 Riga, Latvia)

  • Argo Rosin

    (FinEst Centre for Smart Cities, Tallinn University of Technology, Ehitajate Road 5, 19086 Tallinn, Estonia)

  • Paula Carroll

    (College of Business, University College Dublin, D04 V1W8 Dublin, Ireland)

Abstract

Community energy projects have gained popularity in recent years, and encouraging citizens to form local energy communities (LEC) is considered an effective tool for raising awareness about renewable energy. Since no single universal method exists for operating LECs, this study investigated the impact that different business models and asset dispatch methods have on LECs’ economic and energy-related indicators. We carried out a case study, which included the development, modelling, and simulation of seven scenarios using mixed-integer linear programming (MILP). To measure and compare the prospective performance of the LECs in each scenario, six key metrics were evaluated and assessed. The authors find that simple, rule-based control systems might be well suited for LECs with a limited number of controllable assets that aim to provide increased levels of self-consumption of up to 3%. We also conclude that when the LEC utilises an energy cooperative business model, the selected asset dispatch method provides only minor differences in LEC performance, while for prosumer communities, the importance of selecting a suitable asset dispatch method is higher. We also conclude that LECs have the potential to significantly increase their economic performance by more than 10% by acting as aggregators and providing grid services directly to system operators.

Suggested Citation

  • Tarmo Korõtko & Freddy Plaum & Tobias Häring & Anna Mutule & Roberts Lazdins & Olegs Borščevskis & Argo Rosin & Paula Carroll, 2023. "Assessment of Power System Asset Dispatch under Different Local Energy Community Business Models," Energies, MDPI, vol. 16(8), pages 1-23, April.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:8:p:3476-:d:1124694
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    References listed on IDEAS

    as
    1. Roberts Lazdins & Anna Mutule & Diana Zalostiba, 2021. "PV Energy Communities—Challenges and Barriers from a Consumer Perspective: A Literature Review," Energies, MDPI, vol. 14(16), pages 1-20, August.
    2. Alireza Nouri & Shafi Khadem & Anna Mutule & Christina Papadimitriou & Rad Stanev & Mattia Cabiati & Andrew Keane & Paula Carroll, 2022. "Identification of Gaps and Barriers in Regulations, Standards, and Network Codes to Energy Citizen Participation in the Energy Transition," Energies, MDPI, vol. 15(3), pages 1-29, January.
    3. August Wierling & Valeria Jana Schwanitz & Jan Pedro Zeiß & Celine Bout & Chiara Candelise & Winston Gilcrease & Jay Sterling Gregg, 2018. "Statistical Evidence on the Role of Energy Cooperatives for the Energy Transition in European Countries," Sustainability, MDPI, vol. 10(9), pages 1-25, September.
    4. Brown, Donal & Hall, Stephen & Davis, Mark E., 2019. "Prosumers in the post subsidy era: an exploration of new prosumer business models in the UK," Energy Policy, Elsevier, vol. 135(C).
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