How can we improve the economic viability of energy communities in Mediterranean urban settings?
This article, published in Applied Energy by the team of the Urban Energy Transition Chair at UPV in collaboration with KTH Royal Institute of Technology, answers this key question by applying an optimisation model to a simulated energy community in Catarroja (Valencia).
🔗 https://doi.org/10.1016/j.apenergy.2025.126172
The study analyses the economic performance of a community combining photovoltaic generation with four flexible technologies:
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Battery energy storage systems (BESS)
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Electric vehicles (EVs)
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Air-source heat pumps (ASHPs)
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Electric water heaters (EWHs)
Different scenarios of electricity prices, electrification levels and investment strategies are simulated. The linear programming model allows assessing the profitability and sensitivity of each technology under Mediterranean, cooling-dominated conditions.
🔍 Key findings:
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All technologies are more profitable when combined with solar generation, due to better use of electricity.
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The profitability of electric vehicles is especially relevant due to their high capital costs.
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Electrifying thermal uses (heating, cooling, DHW) greatly improves viability.
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Dynamic allocation coefficients can increase profitability by up to 4%.
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Phased investments (rather than one-time) allow more flexible financial strategies.
The article offers concrete recommendations for designing, operating, and regulating urban energy communities to enhance flexibility and electrification.
