Energy Allocation and Settlement in Collective Self-Consumption

Energy allocation rules are one of the core aspects of collective self-consumption (CSC) regulations. It allows final consumers to share their surplus generation with other CSC members, while keeping their full rights as consumers, i.e., maintaining a supply contract with the retailers of their choice. Some European Union member states regulations use allocation coefficients so that local allocations are integrated with wholesale settlement and directly affect the retailers' billing. Several AC methods have been proposed so far, each one adapted to distribution system operators' settlement procedures with specific rules that can impact the benefits that each CSC member obtain. This paper analyses, assesses and compares two relevant AC methods, namely pre-delivery fixed AC and post-delivery dynamic AC, by developing a settlement formulation for a community with members with flexible assets and different opportunity costs. AC policy recommendations based on findings are provided.