Economic Effects of Micro- and Mini-Distributed Photovoltaic Generation for the Brazilian Distribution System

Vanderlei Affonso Martins, David Alves Castelo Branco and Michelle Carvalho Metanias Hallack
Additional contact information
Vanderlei Affonso Martins: Energy Planning Program (PPE/COPPE/UFRJ), Federal University of Rio de Janeiro, Rio de Janeiro 21941-914, Brazil
David Alves Castelo Branco: Energy Planning Program (PPE/COPPE/UFRJ), Federal University of Rio de Janeiro, Rio de Janeiro 21941-914, Brazil
Michelle Carvalho Metanias Hallack: Inter-American Development Bank, Energy Division, Washington, DC 20577, USA

Energies, 2022, vol. 15, issue 3, 1-25

Abstract: The micro- and mini-distributed generation (MMDG) has significantly increased after the normative resolution No. 482/2012 in Brazil; the installed capacity surpassed 7 GW in 2021. In the international context, a similar event was observed, whose process generated a cross-subsidy for other consumers, in addition to other problems that affect the economic balance of concessionaires. To mitigate this issue, the National Electric Energy Agency (ANEEL) is in the process of revising current rules. Thus, this study estimates the weight of this decision, through a methodology adapted from international assessment models, based on information from the Brazilian regulatory system. In order to achieve it, this paper presents metrics to define the potential market MMDG, based on the consumption patterns of consumers. Then, through time series analysis, the MMDG demand curve is estimated under two scenarios up to 2030. Finally, the economic impact on tariff adjustments and revisions, and their effect on the electric power concessionaires are evaluated. In the distribution companies of the Enel Group alone, economic losses are estimated at USD 1.2 billion by 2030; 53% of this will be passed on to consumers’ tariffs. Thus, based on international experiences, it can be concluded that the best model is the adequate grid remuneration.

Keywords: incentive regulation; grid connection; renewable energy; distributed generation; economic effects; solar energy; Brazilian regulatory system (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/3/737/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/3/737/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:3:p:737-:d:728842

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().