Evaluating the interplay of community behaviour and microgrid design through optimisation modelling in local energy markets

This paper introduces an innovative method for integrating social dynamics into the design of community microgrids using Mixed-Integer Linear Programming (MILP). Traditional microgrid optimisations frequently overlook the intricate interactions between socio-economic factors and technical performance. Our proposed methodology addresses this gap by incorporating a Social Capital Index (SCI) to guide the selection of Business Model Archetypes (BMAs), ensuring that microgrid designs not only meet technical specifications but also resonate with community values and behaviours. We introduce and apply socially focused Key Performance Indicators (KPIs) to evaluate the impact of microgrid operations on community engagement, equity, and governance. The effectiveness of the proposed approach is demonstrated through an experimental case study with real-world data from Australia. The study reveals how various BMAs influence both the operational efficiency and social outcomes of community microgrids, providing valuable insights for developing more sustainable and inclusive energy systems. This research advances the understanding of the social implications of microgrid technologies, establishing a foundation for future research into energy solutions that are both technically and socially inclusive. • Integration of social capital into community microgrid design using MILP. • Evaluation of different business models' impact on microgrid operations and community. • Development seven KPIs to assess socio-economic and technical microgrid performance. • Demonstration of complex interplay between individual and collective energy interests. • Bridging technical optimisation and social inclusivity for sustainable energy systems.