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Local energy communities optimization considering cost and greenhouse gases minimization

S. Barja-Martinez, M. Aragues-Penalba, A. Sumper, R. Villafafila-Robles

TL;DR

The paper addresses optimizing Local Energy Communities (LECs) in Spain to minimize costs and greenhouse gas emissions within the EU regulatory framework. It presents a modular optimization framework for a Renewable Energy Community (REC) consisting of four office buildings, a centralized photovoltaic (PV) system, and a Li-ion battery energy storage system (BESS), evaluated under two objective modes: price-based cost minimization and environment-based emission minimization. The approach uses an energy-balance model with distribution/sharing coefficients and scenarios to quantify trade-offs between cost and emissions, supported by a 2022 case study with hourly data and grid emission factors. Results show that price-based optimization can reduce costs by up to ~23% but may increase emissions (~20%), while environment-based optimization reduces emissions (~6%) and can also lower costs (~18%), illustrating clear trade-offs and the potential for LECs to enhance energy security and local resilience despite regulatory and technical challenges.

Abstract

Local Energy Communities (LECs) facilitate consumer involvement in local electricity generation and distribution, offering a significant opportunity for society to participate in the energy transition. This paper presents the optimization of a renewable energy community in Spain, consisting of four office buildings, a collectively owned centralized photovoltaic system, and a Li-ion battery storage system. The case study assesses the performance and feasibility of the proposed solutions. The results indicate a 6% reduction in emissions and a 20% reduction in electricity costs, demonstrating the potential of LECs to enhance energy security by saving costs and emission while mitigating the vulnerability of local areas to power outages and disruptions

Local energy communities optimization considering cost and greenhouse gases minimization

TL;DR

The paper addresses optimizing Local Energy Communities (LECs) in Spain to minimize costs and greenhouse gas emissions within the EU regulatory framework. It presents a modular optimization framework for a Renewable Energy Community (REC) consisting of four office buildings, a centralized photovoltaic (PV) system, and a Li-ion battery energy storage system (BESS), evaluated under two objective modes: price-based cost minimization and environment-based emission minimization. The approach uses an energy-balance model with distribution/sharing coefficients and scenarios to quantify trade-offs between cost and emissions, supported by a 2022 case study with hourly data and grid emission factors. Results show that price-based optimization can reduce costs by up to ~23% but may increase emissions (~20%), while environment-based optimization reduces emissions (~6%) and can also lower costs (~18%), illustrating clear trade-offs and the potential for LECs to enhance energy security and local resilience despite regulatory and technical challenges.

Abstract

Local Energy Communities (LECs) facilitate consumer involvement in local electricity generation and distribution, offering a significant opportunity for society to participate in the energy transition. This paper presents the optimization of a renewable energy community in Spain, consisting of four office buildings, a collectively owned centralized photovoltaic system, and a Li-ion battery storage system. The case study assesses the performance and feasibility of the proposed solutions. The results indicate a 6% reduction in emissions and a 20% reduction in electricity costs, demonstrating the potential of LECs to enhance energy security by saving costs and emission while mitigating the vulnerability of local areas to power outages and disruptions
Paper Structure (17 sections, 9 equations, 10 figures, 8 tables)

This paper contains 17 sections, 9 equations, 10 figures, 8 tables.

Table of Contents

  1. Introduction
  2. LEC regulation
  3. Spanish regulatory framework
  4. Methodology
  5. LEC optimization
  6. Objective functions
  7. LEC constraints
  8. Case study and results
  9. Energy Community specifications
  10. Grid GWP calculation
  11. Results
  12. LEC baseline consumption
  13. Price-based approach
  14. Environment-based approach
  15. Low grid GWP
  16. ...and 2 more sections

Figures (10)

  • Figure 1: Comparative assessment of the progress for enabling regulation frameworks for RECs in the diverse European countries following a traffic light grading system in which red stands for bad transposition and green for best practices Guo2022. Source: REScoop.
  • Figure 2: LEC methodology.
  • Figure 3: Methodology employed to calculate the hourly global warming potential of the grid.
  • Figure 4: Case study local energy community simplified scheme.
  • Figure 5: Generation sources energy mix sharing for the case study.
  • ...and 5 more figures