Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322184 
Year of Publication: 
2025
Series/Report no.: 
Quaderni - Working Paper DSE No. 1204
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
In addition to self-production and individual disconnection from the national grid, the ongoing decentralization of the electricity market increasingly relies on energy-sharing mechanisms such as energy communities (ECs). This paper presents a parsimonious model that captures key features of the ECs, focusing on how cost and benefit allocation among community members influences net producers' energy contributions and, consequently, the total amount of energy shared within the community. The model accounts for heterogeneity among net producers in terms of residual generation capacity and distinguishes between two net consumer groups with different energy needs. It also incorporates crucial factors such as participation fees, the distribution of economic benefits among market participants, and the impact of sharing congestion externalities. The analysis shows how different sharing rules affect total energy exchange within the community and, in turn, the welfare distribution among participants.
Subjects: 
(Renewable) Energy Communities
Energy Sharing
Market Decentralization
Energy Production and Consumption
Capacity Constraints
Congestion Externalities
Incentive Design
JEL: 
D16
D25
D70
L50
L94
O42
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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