Optimal Planning and Operation of a Residential Energy Community under Shared Electricity Incentives

Energy communities (ECs) are becoming increasingly common entities in power distribution networks. To promote local consumption of renewable energy sources, governments are supporting members of ECs with strong incentives on shared electricity. This policy encourages investments in the residential sector for building retrofit interventions and technical equipment renovations. In this paper, a general EC is modeled as an energy hub, which is deemed as a multi-energy system where different energy carriers are converted or stored to meet the building energy needs. Following the standardized matrix modeling approach, this paper introduces a novel methodology that aims at jointly identifying both optimal investments (planning) and optimal management strategies (operation) to supply the EC's energy demand in the most convenient way under the current economic framework and policies. Optimal planning and operating results of five refurbishment cases for a real multi-family building are found and discussed, both in terms of overall cost and environmental impact. Simulation results verify that investing in building thermal efficiency leads to progressive electrification of end uses. It is demonstrated that the combination of improvements on building envelope thermal performances, photovoltaic (PV) generation, and heat pump results to be the most convenient refurbishment investment, allowing a 28% overall cost reduction compared to the benchmark scenario. Furthermore, incentives on shared electricity prove to stimulate higher renewable energy source (RES) penetration, reaching a significant reduction of emissions due to decreased net energy import.

Automated summary

Energy communities (ECs) are increasingly common entities in power distribution networks, supported by government incentives for local consumption of renewable energy sources. This paper proposes a methodology to identify optimal investments and management strategies for supplying ECs' energy demand efficiently. Investments in building thermal efficiency lead to progressive electrification of end uses, demonstrating the potential for cost reduction and environmental impact mitigation.