The transition to sustainable energy systems requires increasing attention to the challenge of energy poverty. In this context, Renewable Energy Communities (RECs) are emerging as promising tools for promoting both decarbonization and social equity. This study aims to develop and test a new benefit-sharing model within RECs, designed to support vulnerable consumers through differentiated pricing mechanisms and targeted allocation of incentives. The methodology is based on a discounted cash flow analysis implemented in dedicated Python-based software (S-REC), which simulates energy, economic, and social flows within a REC configuration that includes prosumers and consumers with varying levels of vulnerability. The results show that the proposed benefit-sharing model improves both economic performance and social equity. Across the scenarios analyzed, the Net Present Value per unit of installed capacity (NPV/Size) ranges from 2680 €/kW to 5064 €/kW, the Profitability Index (PI) increases from 2.22 to 3.30, the Internal Rate of Return (IRR) varies between 32 % and 70 %, and the Discounted Payback Time (DPBT) decreases from 5 to 2 years. In addition, vulnerable households reduce their annual energy expenditure below the 10 % energy poverty threshold through differentiated tariffs and targeted incentive transfers. The model also demonstrates that tailored redistribution mechanisms are more effective than uniform allocation approaches in directing support to households experiencing energy poverty. These findings suggest that RECs can serve as effective energy welfare tools, combining economic efficiency with social inclusion and contributing to a more just and resilient energy transition.
Renewable energy communities and energy poverty: A novel benefit-sharing model based on differentiated pricing and incentive allocation / D'Adamo, I., D'Agostino, L., Gastaldi, M.. - In: ENERGY NEXUS. - ISSN 2772-4271. - 23:September 2026(2026). [10.1016/j.nexus.2026.100773]
Renewable energy communities and energy poverty: A novel benefit-sharing model based on differentiated pricing and incentive allocation
D'Adamo, Idiano;
2026
Abstract
The transition to sustainable energy systems requires increasing attention to the challenge of energy poverty. In this context, Renewable Energy Communities (RECs) are emerging as promising tools for promoting both decarbonization and social equity. This study aims to develop and test a new benefit-sharing model within RECs, designed to support vulnerable consumers through differentiated pricing mechanisms and targeted allocation of incentives. The methodology is based on a discounted cash flow analysis implemented in dedicated Python-based software (S-REC), which simulates energy, economic, and social flows within a REC configuration that includes prosumers and consumers with varying levels of vulnerability. The results show that the proposed benefit-sharing model improves both economic performance and social equity. Across the scenarios analyzed, the Net Present Value per unit of installed capacity (NPV/Size) ranges from 2680 €/kW to 5064 €/kW, the Profitability Index (PI) increases from 2.22 to 3.30, the Internal Rate of Return (IRR) varies between 32 % and 70 %, and the Discounted Payback Time (DPBT) decreases from 5 to 2 years. In addition, vulnerable households reduce their annual energy expenditure below the 10 % energy poverty threshold through differentiated tariffs and targeted incentive transfers. The model also demonstrates that tailored redistribution mechanisms are more effective than uniform allocation approaches in directing support to households experiencing energy poverty. These findings suggest that RECs can serve as effective energy welfare tools, combining economic efficiency with social inclusion and contributing to a more just and resilient energy transition.| File | Dimensione | Formato | |
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Note: https://doi.org/10.1016/j.nexus.2026.100773
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