A cooperative game theory framework for revenues redistribution in renewable energy communities

Renewable energy communities will be able to play a key role in the energy transition to climate neutrality. The development of energy communities requires an approach that combines technical, economic, and social expertise to address the many facets; in fact, energy communities aim to improve the use of locally generated renewable energy by promoting widespread community participation, thereby fostering environmental and social sustainability. Stakeholders include citizens, government agencies, and local businesses, facilitating the sharing of local energy production, stimulating the economy through local reinvestment of revenues, and reducing emissions by shortening the electricity supply chain. Many countries in the European Union, such as Italy, have identified a system of public incentives to attract all categories of stakeholders. At this time, the equitable distribution of economic benefits poses significant challenges, and cooperative game theory approaches can provide a technical solution that can improve the interest and number of participants involved. This paper examines the application of Shapley value, with an approach derived from cooperative game theory, for equitable benefit sharing among members of an energy community. A case study designed to fit the Italian scenario is presented to validate the applicability of the methodology. The framework evaluates each member's contribution proposing a scalable model for meritocratic revenue sharing that can improve the cooperation and efficiency of internal redistribution of energy community revenues.