Cost-Optimized Heat and Power Supply for Residential Buildings: The Cost-Reducing Effect of Forming Smart Energy Neighborhoods

The Clean Energy for all Europeans Package by the EU aims, among other things, to enable collective self-consumption for various forms of energy. This step towards more prosumer-based and decentralized energy systems comes at a time when energy planning at a neighborhood scale is on the rise in many countries. It is widely assumed that-from a prosumer's cost-perspective-shared conversion and storage technologies supplying more than a single building can be advantageous. However, it is not clear whether this is the case generally or only under certain conditions. By analyzing idealized building clusters at different degrees of urbanization (DOU), a linear-optimization approach is used to study the cost difference between shared energy infrastructure (smart energy neighborhoods, SENs) and individually planned buildings. This procedure is carried out for various emission reduction targets. The results show, that with higher emission reduction targets the advantage of SENs increases within rural environments and can reach up to 16%. Nevertheless, there are constellations in which the share of energetic infrastructure among buildings does not lead to any economic advantages. For example, in the case of building clusters with less than four buildings, almost no cost advantage is found. The result of this study underlines the importance of energy system planning within the process of urban planning.

Automated summary

The study uses a linear optimization approach to analyze the cost difference between shared energy infrastructure (smart energy neighborhoods, SENs) and individually planned buildings in idealized building clusters at different degrees of urbanization. With higher emission reduction targets, the advantage of SENs increases within rural environments and can reach up to 16%. However, there are scenarios where sharing energy infrastructure among buildings does not lead to economic advantages, such as in clusters with less than four buildings.