Individual vs. community: Economic assessment of energy management systems under different regulatory frameworks

Abstract

In the context of the increasing popularity of self-sufficient communities around the globe, this study aims to compare the economic performance of energy management in two distinct situations: whether it is conducted individually or collectively within a community. After setting the context and completing a literature review, a research gap concerning the influence of regulatory frameworks in the economic results is identified. Therefore, this work presents this comparison under several frameworks employed to promote renewable energy, in order to provide a more realistic point of view and deliver insights in policy making. To this end, a mixed integer linear program (MILP) is developed, and the formulation of three key regulatory schemes is embedded into it: feed-in tariff, net metering, and self-consumption schemes. A what-if analysis is performed in order to take into account different combinations of rewarding parameters for each regulatory framework, as well as different profiles of consumption for the individual case. Results show that energy management within a community improves the overall average benefit of the customers up to 0.44 €/day·dwelling, for all of the studied frameworks except feed-in-tariff and some instances of type-B self-consumption, which can reduce it up to -0.87 €/day·dwelling. The conclusions determine fundamental differences between regulatory schemes and their suitability to promote collective or individual facilities, and emphasize the need to design a set of policies that take into account the habits of consumption of the individuals to foster effectively energy communities.