A fair dynamic incentive allocation method for virtual energy sharing in renewable energy communities that rewards members’ virtuosity and engagement
Year: 2025
Type: article
Abstract: The development of renewable energy communities is essential for the energy transition and is strongly supported by European policies promoting local renewable energy initiatives. However, implementing fair economic allocation methods remains a significant challenge, as these must maximize the benefits of local renewable generation and encourage efficient electricity sharing. Addressing this issue is necessary for advancing the effectiveness and equity of renewable energy communities across Europe. This work proposes a novel economic incentive model aiming to equitably allocates rewards among users in electricity-sharing initiatives. The method uses a reward system based on daily evaluations of two factors: a similarity factor, measuring each user's alignment with renewable generation profiles, and a utilization factor, assessing the renewable energy exploited to meet their load. A case study of four members in a standard Italian multifamily residential building demonstrates the model's effectiveness. Results show that users' virtuous behaviours positively impact energy efficiency and economic returns. The findings highlight this method's potential to enhance community engagement, foster cooperation, and drive renewable energy adoption. This study provides a robust framework integrating economic principles with renewable energy use, showcasing the viability of innovative incentive mechanisms to promote equitable, sustainable energy practices and support the global energy transition.
Source: Renewable Energy
Author: M. Bilardo
Institution: Politecnico di Torino
Language: English
Topic: Smart Grid Energy Management
Subfield: Electrical and Electronic Engineering
Field: Engineering
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $4,460
OpenAlex ID: W4411276083