A fair dynamic incentive allocation method for virtual energy sharing in renewable energy communities that rewards members’ virtuosity and engagement

The development of renewable energy communities is essential for the energy transition and is strongly supported by European policies promoting local renewable energy initiatives. However, implementing fair economic allocation methods remains a significant challenge, as these must maximize the benefits of local renewable generation and encourage efficient electricity sharing. Addressing this issue is necessary for advancing the effectiveness and equity of renewable energy communities across Europe. This work proposes a novel economic incentive model aiming to equitably allocates rewards among users in electricity-sharing initiatives. The method uses a reward system based on daily evaluations of two factors: a similarity factor, measuring each user's alignment with renewable generation profiles, and a utilization factor, assessing the renewable energy exploited to meet their load. A case study of four members in a standard Italian multifamily residential building demonstrates the model's effectiveness. Results show that users' virtuous behaviours positively impact energy efficiency and economic returns. The findings highlight this method's potential to enhance community engagement, foster cooperation, and drive renewable energy adoption. This study provides a robust framework integrating economic principles with renewable energy use, showcasing the viability of innovative incentive mechanisms to promote equitable, sustainable energy practices and support the global energy transition.

Authors

Publication Details

Journal
Renewable Energy
Published
2025-06-13
DOI
https://doi.org/10.1016/j.renene.2025.123756
Citations
5
Primary Topic
Smart Grid Energy Management
Type
article
Field-Weighted Citation Impact
3.65

Funders

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article

A fair dynamic incentive allocation method for virtual energy sharing in renewable energy communities that rewards members’ virtuosity and engagement

Matteo Bilardo
5 citations
Renewable Energy
Smart Grid Energy Management
3.65
article

A fair dynamic incentive allocation method for virtual energy sharing in renewable energy communities that rewards members’ virtuosity and engagement

Matteo Bilardo
article en
5 citations

Abstract

The development of renewable energy communities is essential for the energy transition and is strongly supported by European policies promoting local renewable energy initiatives. However, implementing fair economic allocation methods remains a significant challenge, as these must maximize the benefits of local renewable generation and encourage efficient electricity sharing. Addressing this issue is necessary for advancing the effectiveness and equity of renewable energy communities across Europe. This work proposes a novel economic incentive model aiming to equitably allocates rewards among users in electricity-sharing initiatives. The method uses a reward system based on daily evaluations of two factors: a similarity factor, measuring each user's alignment with renewable generation profiles, and a utilization factor, assessing the renewable energy exploited to meet their load. A case study of four members in a standard Italian multifamily residential building demonstrates the model's effectiveness. Results show that users' virtuous behaviours positively impact energy efficiency and economic returns. The findings highlight this method's potential to enhance community engagement, foster cooperation, and drive renewable energy adoption. This study provides a robust framework integrating economic principles with renewable energy use, showcasing the viability of innovative incentive mechanisms to promote equitable, sustainable energy practices and support the global energy transition.

Renewable EnergyVol. 255
Ministero dell’Istruzione, dell’Università e della Ricerca
Affordable and clean energy
Openalex Percentile: Top 7%
Smart Grid Energy Management
3.65
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A fair dynamic incentive allocation method for virtual energy sharing in renewable energy communities that rewards members’ virtuosity and engagement — Matteo Bilardo · Renewable Energy (2025) | TGRS Research Map | TGRS