Community-based adoption and diffusion of micro-grids: Analysis of the Italian case with agent-based model

Abstract

The electricity generation and distribution system in many developed economies is based primarily on the centralised grid. However, there is a need to shift from this traditional system to a newly more decentralised electricity system. This paper explores possible scenarios of adoption and diffusion of Micro-Grids (MGs) in Italy. An agent-based model is formulated to simulate the diffusion process as function of regional factors, subsidies and people’s attitude. It assumes that MGs are purchased directly by communities of neighbours, which benefit from cost sharing. Results show high dependence of the diffusion process on regional factors: electricity demand, renewable potential and population. The model confirms that subsidies boost diffusion, mainly when they are regional-based rather than national-based. Higher green attitude accelerates diffusion and reduces environmental impact of the electricity system.