Feasibility study of a renewable energy community using stochastic methods: a case-study in Genoa city

Renewable energy communities (RECs) provide a novel approach to organizing the production-consumption of renewable energy, involving multiple stakeholders who generate and utilize electricity from renewable sources (commonly wind turbines or solar panels). The REC's economic feasibility depends on sociotechnical factors that are location-dependent and determine costs and benefits. A significant advantage is the shared energy, which balances the energy production and consumption. Approximate estimations of shared energy can be derived from monthly-based models; a more comprehensive analysis requires an hourly-based model. This study develops a stochastic methodology to assess the feasibility of RECs under uncertainty. The approach combines Monte Carlo simulations with hourly energy balance and economic evaluation. The methodology is applied to a condominium-scale case in Genoa, Italy, as a representative example, but can be generalized to other urban contexts. The proposed case study involves a cluster of private buildings with a PV infrastructure and some apartments (consumers) that participate in the REC. This analysis aims to assess the feasibility of the REC under various scenarios, considering factors such as installed power capacity and the number of apartments comprising the community. The results of this study provide valuable insights into the viability of forming a REC in private buildings, offering a methodology for stakeholders involved in sustainable energy planning. The proposed approach can be extrapolated to other locations by selecting the proper parameters. • Stochastic methods to assess Renewable Energy Communities (RECs) in urban areas. • Monte Carlo model evaluates hourly energy and economics for a Genoa REC. • The model incorporated uncertainty in production, consumption, and costs. • REC adoption enhances self-consumption and improves NPV and payback. • Findings support REC policies and design under EU incentive frameworks.