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Distributed Photovoltaic Power Generation: Possibilities, Benefits, and Challenges for a Widespread Application in the Mexican Residential Sector

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  • Hancevic, Pedro
  • Nuñez, Héctor
  • Rosellón, Juan

Abstract

Mexico plans to implement a national program to support the adoption of distributed photovoltaic generation (DPVG) among qualified households. The main objectives of such a program would be to reduce the burden of the substantial federal energy subsidy and increase the share of renewable energy sources used to generate electricity. In this paper we assess the current conditions under which the Mexican residential electricity sector operates, and quantify the potential effects that the massive adoption of DPV systems would have on household expenditure and welfare, subsidy reduction, pollution and water resource usage. Based on the positive results in terms of both economic and environmental effects, our paper provides a significant support for further design and implementation of a DPVG program.

Suggested Citation

  • Hancevic, Pedro & Nuñez, Héctor & Rosellón, Juan, 2017. "Distributed Photovoltaic Power Generation: Possibilities, Benefits, and Challenges for a Widespread Application in the Mexican Residential Sector," Research Department working papers 1027, CAF Development Bank Of Latinamerica.
  • Handle: RePEc:dbl:dblwop:1027
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    Cited by:

    1. Hancevic, Pedro Ignacio & Lopez-Aguilar, Javier Alejandro, 2019. "Energy efficiency programs in the context of increasing block tariffs: The case of residential electricity in Mexico," Energy Policy, Elsevier, vol. 131(C), pages 320-331.
    2. Xin-gang, Zhao & Yi-min, Xie, 2019. "The economic performance of industrial and commercial rooftop photovoltaic in China," Energy, Elsevier, vol. 187(C).
    3. Xu, Xinkuo & Guan, Chengmei & Jin, Jiayu, 2018. "Valuing the carbon assets of distributed photovoltaic generation in China," Energy Policy, Elsevier, vol. 121(C), pages 374-382.
    4. Sarah A. Elariane & Jean Dubé, 2019. "Is Smart Housing a Good Deal? An Answer Based on Monte Carlo Net Present Value Analysis," Sustainability, MDPI, Open Access Journal, vol. 11(15), pages 1-29, August.

    More about this item

    Keywords

    Energía; Investigación socioeconómica;

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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