Assessment of Regulatory and Market Challenges in the Economic Feasibility of a Nanogrid: A Brazilian Case

Fernando A. Assis (), Francisco C. R. Coelho (), José Filho C. Castro (), Antonio R. Donadon, Ronaldo A. Roncolatto, Pedro A. C. Rosas, Vittoria E. M. S. Andrade, Rafael G. Bento, Luiz C. P. Silva, João G. I. Cypriano and Osvaldo R. Saavedra
Additional contact information
Fernando A. Assis: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
Francisco C. R. Coelho: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
José Filho C. Castro: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
Antonio R. Donadon: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
Ronaldo A. Roncolatto: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
Pedro A. C. Rosas: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
Vittoria E. M. S. Andrade: Electrical Engineering Department, IATI—Advanced Institute of Technology and Innovation, Recife 50751-310, Brazil
Rafael G. Bento: CPFL Energy, Campinas 13088-900, Brazil
Luiz C. P. Silva: Electrical Engineering Department, UNICAMP—Campinas State University, Campinas 13083-970, Brazil
João G. I. Cypriano: Electrical Engineering Department, UNICAMP—Campinas State University, Campinas 13083-970, Brazil
Osvaldo R. Saavedra: Instituto de Energia Elétrica, UFMA—Federal Univerisity of Maranhão, Av. dos Portugueses s/n, Bacanga, São Luís 65080-040, Brazil

Energies, 2024, vol. 17, issue 2, 1-18

Abstract: Microgrids have emerged as a popular solution for electric energy distribution due to their reliability, sustainability, and growing accessibility. However, their implementation can be challenging, particularly due to regulatory and market issues. Building smaller-scale microgrids, also known as nanogrids, can present additional challenges, such as high investment costs that need to be justified by local demands. To address these challenges, this work proposes an economic feasibility assessment model that is applied to a real nanogrid under construction in the Brazilian electrical system, with electric vehicle charging stations as its main load. The model, which takes into account uncertainties, evaluates the economic viability of constructing a nanogrid using economic indicators estimated by the Monte Carlo simulation method, with the system operation represented by the OpenDSS software. The model also considers aspects of energy transactions within the net-metering paradigm, with energy compensation between the nanogrid and the main distribution network, and investigates how incentives can impact the viability of these microgrids.

Keywords: economic evaluation; microgrid; regulatory framework; Monte Carlo simulation; nanogrid; uncertainty (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: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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