Impact of different regulatory approaches in renewable energy communities: A quantitative comparison of european implementations

Abstract

Recently, the uptake of renewable energy has surged in distribution networks, particularly due to the cost-effectiveness and modular nature of photovoltaic systems. This has paved the way to a new era of user engagement, embodied by individual and collective self-consumption, and promoted by the EU Directive 2018/2001, which advocates for the establishment of Renewable Energy Communities. However, the transposition of this directive varies across Member States, resulting in specific rules for each country. In this work, the impact that different energy sharing models have on the same community is quantitatively assessed. The policy analysis focuses on the regulation of two countries, Italy and Portugal, chosen for the specular ways in which their models operate, respectively virtually and physically. The analysis is supported by a suite of tools which includes two optimization problems for community's operations, one for each analysed regulation, and a set of consumer protection mechanisms, to ensure no member is losing money while in community. Results demonstrate that the sharing model impacts community's optimal operations, optimal battery size and configuration, and members' benefit. As these models are sensitive to different variables, personalized interventions at national level are required.