The cost of CO2 emissions abatement in a micro energy community in a Belgian context

Abstract

This paper investigates and quantifies the benefits and the cost of CO₂ emissions abatement of a Micro Energy Community (MEC) in a tiny residential cluster of three houses in a Belgian context. A simulation-based comparative analysis is performed of two individual and two MEC concepts, i.e. a reference scenario, an individual electrification scenario, an electricity sharing scenario, and an energy community scenario. A deterministic dynamic white-box modelling approach, including optimal control, is used, considering heat for space heating and domestic hot water, and electricity for electrical appliances. The energy system that achieves the greatest emission reduction at the lowest cost, has a collective heat pump and a photovoltaic installation sized based on the plug load demand. This system reduces the annual CO₂ emissions by 11.48 tons at a cost of 179 EUR/ton CO₂ considering 2021 dynamic retail electricity prices with a median of 251 EUR/MWh and a fixed retail gas price of 64 EUR/MWh. However, the results are strongly dependent on the gas-electricity price ratio. The highest value of the retail gas price in 2021 leads to a negative CO₂ emissions abatement cost of 154 EUR/ton CO₂, putting energy community concepts on the radar for a cost-effective energy transition.