Fairness of Energy Distribution Mechanisms in Collective Self-Consumption Schemes

TL;DR

This paper evaluates the fairness of various energy distribution mechanisms in local energy markets within European energy communities, introducing a new fairness indicator and analyzing their performance through simulations.

Contribution

It provides a detailed real-world framework for collective self-consumption in France, reviews fairness indicators, and compares mechanisms using a novel scalable fairness metric.

Findings

Glass-filling with prioritization yields highest fairness.

Double auction and pro rata schemes promote meritocracy.

Average savings reach 12% with 40% PV uptake.

Abstract

In several European countries, regulatory frameworks now allow households to form energy communities and trade energy locally via local energy markets (LEMs). While multiple mechanisms exist to allocate locally produced energy among members, their fairness remains insufficiently understood despite energy justice being a key concern for communities. This paper first provides a thorough description of the collective self-consumption process in France, offering a real world framework for researchers. We then review the main types of fairness relevant to LEMs and identify appropriate indicators for each, including a new scalable indicator to evaluate meritocratic fairness. Using simulations across 250 randomly generated residential communities of 20 households, we assess and compare fairness across different LEM distribution mechanisms. Results show that average financial savings reach 12% with 40% PV uptake. Among the four widely used LEM mechanisms assessed, glass-filling with prioritization yields the highest egalitarian and min max fairness. Double auction and pro rata schemes promote meritocracy, while standard glass filling offers a strong balance across fairness objectives.