Valuing investments in domestic PV-Battery Systems under uncertainty

Possible Ways of Extending the Biogas Plants Lifespan after the Feed-In Tariff Expiration

“…In this scenario, due to the uncertainty over electricity prices, the discount rate is the adjusted rate of return. The discount rate is equal to r = 6% and has been calculated according to the Capital Asset Pricing Model [90]. In 2028, the investment NPV in 2028 would be highly negative:…”

“…After the phasing out of the current incentive scheme, the plant's owner has the opportunity to feed electricity into the grid at the current market price. In accordance with recent contributions in the literature focusing on the Italian electricity market [88][89][90], the authors assume the Single National Price (PUN) as a proxy for the electricity price. The PUN is set in the Italian Power Exchange and calculated as the average of hourly prices in the different market zones into which the Italian electricity market is divided into.…”

“…The main assumption in considering the time series of past energy prices for price forecasts resides is that the stochastic process underlying the price dynamics is Markovian (i.e., memory less). In fact, it can be demonstrated that the PUN evolves over time according to a Geometric Brownian Motion [88,90,93].…”

Renewable energy communities, digitalization and information

“…Both ξ and γ turns out to be functions of the number members m, the REC size. While it is likely that ξ ′ (m) < 0, since the higher is m, the RE plant size associated to each agent decreases together with the self consumption level [Andreolli et al, 2022], the exchange P2P γ increases with m. When m = 0, each agent consumes autonomously, with no energy exchange and with a self-consumed energy that is a quota of the overall plant production. The higher the number of participants to the REC, the higher the efficiency of the single load, meaning that REC members satisfy better their energy needs, thanks to the exchange P2P.…”

Does P2P Trading Favor Investments in PV-Battery Systems?

“…Due to the increase in DERs market supply, in many EU Countries, self-consumption has been promoted to alleviate the pressure placed by distributed power plants on utility grids (Rodrigues et al, 2020). An increase in self-consumption can be indeed beneficial for (i) energy users to reduce energy costs and (ii) for grid managers to reduce management costs of power networks (Roberts et al, 2019;Koskela et al,2019;Castellini et al 2021a; Andreolli et al, 2022). In this regard, battery energy storage systems represent useful technologies to significantly increase self-consumption and, in turn, reduce supply-demand mismatches.…”