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Economic Feasibility of Photovoltaic Micro-Installations Connected to the Brazilian Distribution Grid in Light of Proposed Changes to Regulations

Author

Listed:
  • Gabriel Nasser Doyle de Doile

    (Renewable Energy Graduate Program, Federal University of Paraiba, João Pessoa 58051-900, Brazil)

  • Paulo Rotella Junior

    (Department of Production Engineering, Federal University of Paraiba, João Pessoa 58051-900, Brazil
    Faculty of Finance and Accounting, Prague University of Economics and Business, 13067 Prague, Czech Republic)

  • Priscila França Gonzaga Carneiro

    (Renewable Energy Graduate Program, Federal University of Paraiba, João Pessoa 58051-900, Brazil)

  • Rogério Santana Peruchi

    (Department of Production Engineering, Federal University of Paraiba, João Pessoa 58051-900, Brazil)

  • Luiz Célio Souza Rocha

    (Department of Management, Federal Institute of Education, Science and Technology-North of Minas Gerais, Almenara 39900-000, Brazil)

  • Karel Janda

    (Faculty of Finance and Accounting, Prague University of Economics and Business, 13067 Prague, Czech Republic
    Institute of Economic Studies, Faculty of Social Sciences, Charles University, 11000 Prague, Czech Republic)

  • Giancarlo Aquila

    (Institute of Production and Management Engineering, Federal University of Itajuba, Itajuba 35903-087, Brazil)

Abstract

Brazil is currently undergoing changes to regulations on distributed generation (DG), specifically for solar energy micro-generation. The changes proposed by the Brazilian Regulatory Agency suggest that only the cost of energy be compensated to investors. The service costs and other charges related to energy tariffs must be divided among consumers. Investors with existing installations and class entities have contested these proposals, calling them “sun-fees”. To date, no scientific papers have been published discussing these changes. The new regulations propose an end to cross subsidies, where all consumers (even those who do not have DG) pay for the transmission and distribution systems. This study compares the economic feasibility of micro-generation before and after implementing the new standards proposed by the regulatory agency. We used data on average electrical energy demand, energy price, and solar radiation in different regions. The national averages were used as a base comparison with other scenarios. The results show that projects are viable for all analyzed scenarios, however, after implementing the proposed changes, the discounted payback time is extended. This, however, does not make projects unfeasible.

Suggested Citation

  • Gabriel Nasser Doyle de Doile & Paulo Rotella Junior & Priscila França Gonzaga Carneiro & Rogério Santana Peruchi & Luiz Célio Souza Rocha & Karel Janda & Giancarlo Aquila, 2021. "Economic Feasibility of Photovoltaic Micro-Installations Connected to the Brazilian Distribution Grid in Light of Proposed Changes to Regulations," Energies, MDPI, vol. 14(6), pages 1-14, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:6:p:1529-:d:514305
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    References listed on IDEAS

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    2. de Doile, Gabriel Nasser Doyle & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & Janda, Karel & Aquila, Giancarlo & Peruchi, Rogério Santana & Balestrassi, Pedro Paulo, 2022. "Feasibility of hybrid wind and photovoltaic distributed generation and battery energy storage systems under techno-economic regulation," Renewable Energy, Elsevier, vol. 195(C), pages 1310-1323.
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