Abstract
Renewable Energy Communities are an important strategy of the EU, to promote and optimize the distributed deployment of renewable generation systems. At current incentives and costs, RECs that share the energy produced by PV/battery systems are expected to take the lion's share of distributed generation. In this paper, we highlight some important critical issues in electric system management that could result from the deployment of RECs if PV/battery system generation cannot meet the entire community demand. Thus, we show how a flexible PV system (PV/battery systems able to provide firm/dispatchable generation) can be cost-effectively dimensioned to supply 24/365 96%–97 % of the demand of a residential users' community. We demonstrate that flexible PV systems of 1/10 MWp with 1.2/12 MWh of storage capacity can supply communities of 142/1420 residential users at a least production cost of 0.12/0.096 €/kWh. We further provide two business models based on power purchase agreement to demonstrate that, at these production costs, fully solar RECs are currently techno-economically feasible and provide mutual benefits to both flexible PV producers and REC members. Suitable virtual corporate PPAs can reduce the electric bill of the REC members by 11%–5% without requiring any investments and increase the producer incomes by 18%–22 %.