Designing circular economy strategies in distributed generation for small- and medium-sized enterprises using Monte Carlo simulation

Abstract

The circular economy (CE) strategies in energy communities enable firms to efficiently manage the excess of photovoltaic energy they produce, and thereby enhance their sustainability. Thus, the present research aims to compare the economic and financial profitability and greenhouse gas (GHG) emissions of shared photovoltaic self-consumption versus individual self-consumption in the region of Extremadura (Spain). Six firms with complementary energy profiles were selected, analyzing their hourly energy consumption. In addition, the Monte Carlo method was used to generate 30,000 simulations, reducing the uncertainty caused by the variability of the firms' energy consumption. The results show that collective generation covers the energy needs more efficiently, reducing the cost of energy consumed by 14.38% and generating better cost–benefit ratio. They also show that the CE strategy of the energy community allows firms to obtain a considerable reduction of GHG emissions associated with the photovoltaic energy consumed.