Challenges of renewable energy communities on small Mediterranean islands: A case study on Ponza island

Italy has reconsidered incentives on Renewable Energy Sources (RES) to implement the EU clean energy transition and Renewable Energy Communities (REC). Legislation on RECs shifted the focus of incentives from production to self-consumptions. In this paper, the REC model is studied in a minor island disconnected from the national grid, with strongly seasonal energy load and water demand. This is a typical Mediterranean scenario where energy demand is covered by Diesel gensets and water supply is provided with tankers. The implementation of RES is investigated, exploiting the current REC model of incentives. Two sub-optimal REC configurations were defined using time-dependent simulations on pyRES, an in-house code for energy systems. Results show the economical unfeasibility of REC when there is a poor mix of users. In contrast, REC can achieve economic profitability including industrial demand of a desalination unit (DES). The increase of self-consumption guaranteed from the DES allows to increase the NPV of the community and results in major cuts in CO2 emissions (60% of those related to water supply and 10% of those from Diesel gensets) and a reduction of fuel costs of 22%. This method can be applied to investigate the performance of a REC in a local environment and help stakeholders in planning the expansions of RECs on the territory.