Renewable energy communities, digitalization and information

34 Pages Posted: 6 Dec 2022

See all articles by Dirk Bergemann

Dirk Bergemann

Yale University - Cowles Foundation - Department of Economics; Yale University - Cowles Foundation

Marina Bertolini

University of Padua

Marta Castellini

University of Padua, Department of civil, environmental and architectural engineering; Fondazione Eni Enrico Mattei (FEEM), Milan

Michele Moretto

University of Padua, Dep of Economics and Management

Sergio Vergalli

University of Brescia - Department of Economics; Fondazione Eni Enrico Mattei (FEEM), Milan

Date Written: December 2, 2022

Abstract

In this work we study the case of agents willing to engage in a Renewable Energy Community (REC). The municipality – being the promoter of the REC – burdens all the investment costs (RE plants, storage, local grid interventions) and entrusts an aggregator of its operation paying a fixed tariff. The latter, acting as a monopolist, is also the sole supplier of energy for the REC’s members. The management of the REC requires the collection of energy data from the members to assure its efficient operation on the side of the self-consumption and exchange of energy within it. Such data allow also the identification of the agents’ preferences across energy devices and are an additional source of revenues for the aggregator thanks to their sell to third parts. This behaviour translates into a dis-utility the agents, which we call privacy cost. In such a framework, we consider also uncertainty on the side of the investment cost. On the basis of the outcomes of our model, we are able to study the effect of data collection policy performed by the aggregator on the size of the REC, while also accounting for agents’ valuation and the role of uncertainty on the investment cost side.

Keywords: Smart Grids, Renewable Energy Sources, Renewable Energy Communities, Prosumers, Peer to Peer Energy Trading, Information, Privacy Costs

JEL Classification: Q42, C61, D81

Suggested Citation

Bergemann, Dirk and Bertolini, Marina and Castellini, Marta and Moretto, Michele and Vergalli, Sergio, Renewable energy communities, digitalization and information (December 2, 2022). FEEM Working Paper No. 37, Available at SSRN: https://ssrn.com/abstract=4294765 or http://dx.doi.org/10.2139/ssrn.4294765

Dirk Bergemann

Yale University - Cowles Foundation - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States
203-432-3592 (Phone)
203-432-2128 (Fax)

HOME PAGE: http://www.econ.yale.edu/~dirk/

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

Marina Bertolini

University of Padua ( email )

Via 8 Febbraio
Padova, Vicenza 2-35122
Italy

Marta Castellini (Contact Author)

University of Padua, Department of civil, environmental and architectural engineering ( email )

Via Venezia, 1
Padova, PD 35131
Italy

Fondazione Eni Enrico Mattei (FEEM), Milan ( email )

Corso Magenta 63
20123 Milan
Italy

HOME PAGE: http://https://linktr.ee/martacastellini

Michele Moretto

University of Padua, Dep of Economics and Management ( email )

via Del Santo 33
Padova, 35123
Italy
+39 049 8274265 (Phone)
+39 049 8274211 (Fax)

Sergio Vergalli

University of Brescia - Department of Economics ( email )

Via San Faustino 74B
Brescia, 25122
Italy

Fondazione Eni Enrico Mattei (FEEM), Milan ( email )

Corso Magenta 63
20123 Milan
Italy

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