2025
Authors
Agrela J.C.; Soares T.; Villar J.; Rezende I.;
Publication
International Conference on the European Energy Market Eem
Abstract
The increasing integration of renewable energy sources and decentralized generation requires demand-side flexibility to improve grid stability and balance local energy flows. Local Flexibility Markets (LFMs) provide a framework for optimizing flexibility transactions within energy communities. This paper presents a model for quantifying and pricing residential resources flexibility, enabling prosumers to submit bids in an LFM managed by the Community Manager. The methodology relies on a linear optimization problem, where a Home Energy Management System first determines optimal consumption baselines. Then an iterative sensitivity analysis estimates upward, and downward flexibility bands and sets offer prices per resource. The market operates as two asymmetric voluntary pools, clearing flexibility offers and requests. Results show that Battery Energy Storage Systems and Electric Vehicles provide the most effective flexibility, significantly reducing energy costs. Future research should improve pricing mechanisms and scalability to support LFM adoption in different residential settings.
2025
Authors
Moran J.P.; Faria A.S.; Soares T.; Villar J.; Pinto T.; Petruzzi G.E.; Bovera F.; Macedo L.H.;
Publication
International Conference on the European Energy Market Eem
Abstract
Renewable energy resources are crucial for addressing global economic and environmental challenges. Energy communities, which unite consumers to pursue shared energy goals, present a promising solution for reducing energy costs and enhancing sustainability. This study analyzes the optimal sizing and operation of energy community resources, formulating the problem as mixed-integer linear programming (MILP) models. Two tools are employed: one for daily operation, calculating energy setpoints for community assets such as battery energy storage systems (BESS) and electric vehicles (EVs), and another for sizing photovoltaic (PV) panels and BESS capacities to minimize costs while optimizing local energy trades. Due to the high computational demands of MILP, three optimization methods are compared: deterministic, hybrid particle swarm optimization (PSO), and evolutionary PSO (EPSO). The hybrid PSO method handles binary and continuous variables efficiently, while EPSO introduces diversity to improve solution quality in complex scenarios. These metaheuristic approaches address the trade-off between solution accuracy and computational effort, providing reliable tools for decision-makers in energy communities.
2025
Authors
Ramalho, E; Lima, F; López-Maciel, M; Madaleno, M; Villar, J; Dias, MF; Botelho, A; Meireles, M; Robaina, M;
Publication
RENEWABLE & SUSTAINABLE ENERGY REVIEWS
Abstract
Electricity generation from wind energy is one of the main drivers of decarbonization in energy systems. However, installing wind farm facilities may have beneficial and harmful impacts on the habitat of living beings. This study reviews the literature based on economic analysis to identify the main externalities related to the installation of wind farms and the economic methodologies used to assess these externalities, filling an existent literature gap. A systematic literature review followed the Preferred Reporting Items on Systematic Reviews and Meta-analysis standards. A total of 33 studies were identified, most of them carried out in Europe. The studies cover 24 years, between 1998 and 2022. The externalities associated with wind electricity generation are classified into three categories: the impact on well-being, the impact of wind turbines, and the impacts of avoided externalities. Most studies (24 out of 33) determine economic values by stated preference methods through choice experiments, discrete choice experiments, and contingent valuation. Revealed preference methods were identified in 5 studies using hedonic pricing and travel cost techniques. The challenges and limitations of this analysis in terms of externalities identification and their assessment are also discussed, concluding that additional updated review studies are needed since the latest ones were published in 2016 and 2017. Moreover, it gives insights to policymakers and academics on a more complete approach they can use to evaluate the impacts of decarbonization, which, apart from the technological view, also considers and estimates the socio-economic and environmental perspectives.
2025
Authors
Villar, JV; Mello, J;
Publication
Towards Future Smart Power Systems with High Penetration of Renewables
Abstract
Energy communities (EC) and collective self-consumption (CSC) systems can make a significant contribution to reducing dependence on fossil fuels and energy costs. They create mechanisms for the active participation of end-consumers in the energy system by becoming self-producers of renewable electricity and adapting their energy behavior to the needs of the system. CSC also alleviates energy poverty by reducing the energy costs of vulnerable members. The CSC is still in its early stages, and regulation is being developed in several countries along with pilot projects to test different rules and incentives. This chapter discusses the most relevant common definitions of CSC and EC so far, as well as the main challenges in relation to energy sharing rules and the management of EC and CSC. © 2025 Elsevier B.V., All rights reserved.
2025
Authors
Carvalho, I; Sousa, J; Villar, J; Lagarto, J; Viveiros, C; Barata, F;
Publication
Energies
Abstract
The Renewable Energy Communities (RECs) and self-consumption frameworks defined in Directive (EU) 2023/2413 and Directive (EU) 2024/1711 are currently being integrated into national regulations across EU member states, adapting legislation to incorporate these new entities. These regulations establish key principles for individual and collective self-consumption, outlining operational rules such as proximity constraints, electricity sharing mechanisms, surplus electricity management, grid tariffs, and various organizational aspects, including asset sizing, licensing, metering, data exchange, and role definitions. This study introduces a model tailored to optimize investment and energy-sharing decisions within RECs, enabling multiple members to invest in solar photovoltaic (PV) and wind generation assets. The model determines the optimal generation capacity each REC member should install for each technology and calculates the energy shared between members in each period, considering site-specific constraints on renewable deployment. A case study with a four-member REC is used to showcase the model’s functionality, with simulation results underscoring the benefits of CSC over ISC. © 2025 by the authors.
2025
Authors
Rodrigues, L; Coelho, F; Mello, J; Villar, J;
Publication
Current Sustainable/Renewable Energy Reports
Abstract
Purpose of Review: This paper reviews the flexibility-centric value chain (FCVC) and analyses how coordinating digital platforms along the FCVC is essential for enabling FCVC activities and supporting key actors. Based on the FCVC, the digital infrastructure needed to support flexibility provision in power systems is reviewed, with special focus on the role of energy communities (ECs) as emerging relevant actors and potential aggregators of its members. Recent Findings: We review the Grid Data and Business Network (GDBN), a platform developed by the authors to support the FCVC, with special focus on those stages of the FCVC not properly supported by existing solutions. It also analyses platforms used in local flexibility markets (LFMs), and it presents the RECreation digital platform designed to manage ECs to support the participation in flexibility markets. Summary: Digital platforms are necessary for scaling flexibility services. The GDBN offers a comprehensive approach by enabling the FCVC and facilitating interoperability with existing platforms dedicated to specific segments, such as ECs and LFMs. By addressing current limitations in platform integration, this paper contributes to a clearer understanding of how digital tools can enable an efficient flexibility ecosystem. © The Author(s) 2025.
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