A Game Theoretic Approach for Energy Sharing in the Italian Renewable Energy Communities

Abstract

With the Clean Energy Package, the European Union introduced the concept of Renewable Energy Communities: groups of citizens, small and medium enterprises and local authorities that decide to join forces to equip themselves with systems to produce and share energy from renewable energy sources. The Italian legislation recently started an experimental phase in which renewable energy communities receive an incentivising tariff for the energy produced and shared within the community. This paper faces the problem of creating a new renewable energy community in two steps. First, a mathematical model of the energy flows among the members of the community is characterised according to the Italian schema. This model is used to find the optimal portfolio for the energy community, given energy requests and local source availability. Secondly, the Shapley value, a particular solution of cooperative games known to be the most fair method to allocate costs and profits of shared infrastructures, is proposed to distribute benefits among community members. The methodology has been applied to a case study based on a real low voltage network, and the economics for consumers and producers in participating to the project have been evaluated. The proposed solution, simulated adopting real economic parameters defined in the Italian regulatory framework, results to be economically viable from the point of view of the investors with a profitability index of 1.36 and, at the same time, aligned with the social purposes of the energy communities.