This study is concerned with the national transposition of the European Renewable Energy Directive into Austrian law. The objective is to estimate the economic viability for residential customers ...when participating in a renewable energy community (REC), focused on PV electricity sharing. The developed simulation model considers the omission of certain electricity levies as well as the obligatory proximity constraint being linked to grid levels, thus introducing a stepwise reduction of per-unit grid charges as an incentive to keep the inner-community electricity transfer as local as possible. Results show that cost savings in residential RECs cover a broad range from 9 EUR/yr to 172 EUR/yr. The lowest savings are gained by customers without in-house PV systems, while owners of a private PV system make the most profits due to the possibility of selling as well as buying electricity within the borders of the REC. Generally, cost savings increase when the source is closer to the sink, as well as when more renewable electricity is available for inner-community electricity transfer. The presence of a commercial customer impacts savings for households insignificantly, but increases local self-consumption approximately by 10%. Despite the margin for residential participants to break even being narrow, energy community operators will have to raise a certain participation fee. Such participation fee would need to be as low as 2.5 EUR/month for customers without in-house PV systems in a purely residential REC, while other customers could still achieve a break-even when paying 5 EUR/month to 6.7 EUR/month in addition. Those results should alert policy makers to find additional support mechanisms to enhance customers’ motivations to participate if RECs are meant as a concept that should be adopted on a large scale.
In this work, the main research question is how a high penetration of energy communities (ECs) affects the national electricity demand in the residential sector. Thus, the existing building stock of ...three European regions/countries, namely, the Iberian Peninsula, Norway, and Austria, is analyzed and represented by four different model energy communities based on characteristic settlement patterns. A tailor-made, open-source model optimizes the utilization of the local energy technology portfolio, especially small-scale batteries and photovoltaic systems within the ECs. Finally, the results on the national level are achieved by upscaling from the neighborhood level. The findings of different 2030 scenarios (building upon narrative storylines), which consider various socio-economic and techno-economic determinants of possible future energy system development, identify a variety of modification potentials of the electricity demand as a result of EC penetration. The insights achieved in this work highlight the important contributions of ECs to low-carbon energy systems. Future work may focus on the provision of future local energy services, such as increasing cooling demand and/or high shares of electric vehicles, further enhancement of the upscaling to the national level (i.e., considering the distribution network capacities), and further diversification of EC composition beyond the residential sector.
Given the ongoing transformation of the transport sector toward electrification, expansion of the current charging infrastructure is essential to meet future charging demands. The lack of ...fast-charging infrastructure along highways and motorways is a particular obstacle for long-distance travel with battery electric vehicles (BEVs). In this context, we propose a charging infrastructure allocation model that allocates and sizes fast-charging stations along high-level road networks while minimizing the costs for infrastructure investment. The modeling framework is applied to the Austrian highway and motorway network, and the needed expansion of the current fast-charging infrastructure in place is modeled under different future scenarios for 2030. Within these, the share of BEVs in the car fleet, developments in BEV technology and road traffic load changing in the face of future modal shift effects are altered. In particular, we analyze the change in the requirements for fast-charging infrastructure in response to enhanced driving range and growing BEV fleets. The results indicate that improvements in the driving range of BEVs will have limited impact and hardly affect future costs of the expansion of the fast-charging infrastructure. On the contrary, the improvements in the charging power of BEVs have the potential to reduce future infrastructure costs.
The economic value of photovoltaic (PV) systems depends on country-specific conditions. This study investigates the impact of grid fees, solar irradiance and local consumption on the profitability ...and penetration of PV systems and batteries in renewable energy communities. The linear optimization model calculates the optimal investments into PV and storages applied on a test community, which represents the European housing situation. The comparison of eight countries considers individual heat and cooling demands as well as sector coupling. Results show that renewable energy communities have the potential to reduce electricity costs due to community investments and load aggregation but do not necessarily lead to more distributed PV. Besides full-load hours, the energy component of electricity tariffs has the highest impact on PV distribution. Under current market conditions, battery energy storage systems are rarely profitable for increasing PV self-consumption but there is potential with power pricing. Renewable energy communities enable individuals to be a prosumer without the necessity of owning a PV system. This could lead to more (community) PV investments in the short term. Hence, it hinders investments in a saturated PV market.
This paper investigates a possible future business case for green hydrogen production from hydropower. The main research question is to find the trade-offs for a run-of-river hydropower plant owner ...between the currently prevailing business model of wholesale electricity trading and, alternatively, production of green hydrogen. Hence, a bi-level optimization framework between a hydropower plant owner (H2 producer and price setter) and a transportation firm (H2 consumer) is developed. The empirical scaling of the numerical example describes Central Western European wholesale electricity market settings. Results indicate that the current market environment and price setup do not allow for profitable green hydrogen production as yet. However, an increasing CO2 price as the key determining parameter leads to improved competitiveness and expected profitability of the business case studied in this work. In the numerical example examined, a CO2 price above 245EUR /t triggers profitability, when green hydrogen production is competing with a future electricity contract price of 45EUR /MWh.
•Future business case of green hydrogen production from hydropower.•Non-cooperative game between a hydropower plant owner and a transportation firm.•Trade-offs between electricity trading and hydrogen production.•Numerical example of the Central Western European wholesale electricity market.•CO2 price above 245EUR/t triggers profitability.
To ensure broad application of renewable and energy-efficient energy systems in buildings and neighborhoods, profitable business models are vital. Energy supply contracting helps building residents ...to overcome the barrier of high upfront investment costs while additionally reducing risks related to energy-saving mechanisms. This study examines profitability for energy contractors in a variety of business cases that simultaneously ensure energy cost savings for the residents. A mixed-integer linear optimization model is developed for a neighborhood energy community, consisting of three buildings with diverse usages. In the process, the optimum capacities of building-attached and building-integrated photovoltaics, a heat pump and a gas-fired mini combined heat and power unit are determined to cover the energy community’s electricity and heat load. Results show that cross-domain contracting within energy communities is highly profitable for both, the contractor and the residents, while the extent depends on the accounting method, assumed interest rate and depreciation time. The additional application of energy-efficiency measures in/on the buildings, constituting a combination of energy supply and energy performance contracting, further increases profitability. The investigation of several sensitivities shows that high grid energy costs for electricity and gas enhance profitability of local energy technologies, leading to an increase in optimal technology capacities.
Combatting climate change necessitates a substantial global increase in renewable electricity capacity. Many low-income and lower-middle-income countries suffer from unfavorable green financing ...conditions. Fifteen of these countries possess substantial natural gas reserves. To overcome green financing constraints in such countries, we propose an integrated energy contract that awards a renewable energy project in parallel with an upstream natural gas project to interested energy companies. The state returns from the natural gas project provide a guarantee for renewable energy investments, reducing their associated risks. We conduct Monte Carlo simulations for each of the targeted countries after populating the input parameters for the upstream natural gas and renewable energy projects, including forecasting country-specific natural gas prices. When accounting for 10% of their existing natural gas reserves in the proposed contract, Nigeria, Myanmar, and Indonesia can achieve more than 60% of their 2030 renewable energy target capacity additions while countries with low access to electricity can significantly upscale their installed capacities. The guarantee mechanism provides protection levels exceeding 96% on renewable energy investments. The proposed contract enables the considered countries to increase their renewable energy capacities while inducing economic development.
The rapid expansion of renewable energies has the potential to decarbonize the electricity supply. This is more challenging in difficult-to-electrify sectors. The use of hydrogen provides a massive ...potential for this issue. However, expanding hydrogen production increases electricity demand while providing additional flexibility to the electricity market. This paper mainly aims to analyze the economic effects of this sector coupling between the European electricity and national hydrogen markets. The developed energy market model jointly considers both markets to reach an overall welfare optimum. A novel modeling approach allows the interaction of these markets without the need for several iterative optimization runs. This allows for a detailed analysis of various market participants’ changes in consumer and producer surpluses. The optimization is conducted in 13 connected Central European countries to account for various power plant fleets, generation mixes, and electricity prices. Results show an overall welfare increase of EUR 4 to 28 billion in 2030 and an EUR 5 to 158 billion increase in 2040. However, there is a surplus shift from consumers to producers. The consumer surplus is reduced by up to EUR 44 billion in 2030 and EUR 60 billion while producers benefit to achieve the overall welfare benefits. The reduction of consumer surplus changes if significant price peaks occur. Fuel cell applications can avoid these price peaks, resulting in a surplus shift from thermal power plants to consumers. Hence, consumer surplus can increase by up to EUR 146 billion in the respective 2040 scenarios. Pink hydrogen accounts for a sizable portion of total hydrogen production, up to 58 percent in 2030 and up to 30 percent in 2040. As a result, nuclear power plants that are nearly entirely allocated in France stand to benefit greatly from this sector coupling. Additional efforts could be made to address the link between hydrogen and natural gas prices. Furthermore, the potential for cross-border hydrogen trade and the implementation of national legal and regulatory frameworks could be assessed.
Electric vehicles represent a necessary alternative for wheeled transportation to meet the global and national targets specified in the Paris Agreement of 2016. However, the high concentration of ...electric vehicles exposes their harmful effects on the power grid. This reflects negatively on electricity market prices, making the charging of electric vehicles less cost-effective. This study investigates the economic potential of different charging strategies for an existing office site in Austria with multiple charging infrastructures. For this purpose, a proper mathematical representation of the investigated case study is needed in order to define multiple optimization problems that are able to determine the financial potential of different charging strategies. This paper presents a method to implement electric vehicles and stationary battery storage in optimization problems with the exclusive use of linear relationships and applies it to a real-life use case with measured data to prove its effectiveness. Multiple aspects of four charging strategies are investigated, and sensitivity analyses are performed. The results show that the management of the electric vehicles charging processes leads to overall costs reduction of more than 30% and an increase in specific power-related grid prices makes the charging processes management more convenient.
Urban areas have been responsible for the majority of the European Union (EU)-wide primary energy demand and CO2 emissions. To address this issue, the European Union introduced the concept of ...Positive Energy Districts (PEDs). PEDs are required to have an annual positive primary energy balance. However, if directly addressed in the literature, this energy balance only includes annually fixed primary energy factors and often neglects grid impacts. To bridge this gap, this work proposes a mathematical optimisation approach for PEDs, working towards an open-source model. The model’s main novelty is an hourly primary energy balance constraint. The performed case study on the island La Palma for both an urban and a rural neighbourhood show that the PED concept has a higher net present value (NPV) than solely buying electricity from the grid in all feasible cases. Depending on the space available for PV installations, the NPV increases between 29 and 31% and 25–27% for the rural and urban PED scenarios, respectively. However, in the scenarios with reduced grid impact, the NPV decreases due to the expensive battery installations. Comparing the significantly fossil-based electricity grid mix of La Palma with the renewable-based one of El Hierro shows that the primary energy-based optimisation has more room for flexibility in the high renewable mix. While the dynamic primary energy balance constraint appears promising for operational optimisation, the allocation of correct primary energy factors is crucial.
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