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

Author

Listed:
  • 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. Wang, Yongli & Gao, Mingchen & Wang, Jingyan & Wang, Shuo & Liu, Yang & Zhu, Jinrong & Tan, Zhongfu, 2021. "Measurement and key influencing factors of the economic benefits for China’s photovoltaic power generation: A LCOE-based hybrid model," Renewable Energy, Elsevier, vol. 169(C), pages 935-952.
    2. Gutiérrez-Meave, Raúl & Rosellón, Juan & Sarmiento, Luis, 2021. "The Effect of Changing Marginal-Cost to Physical-Order Dispatch in the Power Sector," RFF Working Paper Series 21-19, Resources for the Future.
    3. Shali Wang & Jiaxi Wu & Yunan Peng & Jane Xu & Lisa Leinonen & Yuyu Wang & Zheng Meng, 2022. "Influence of Residential Photovoltaic Promotion Policy on Installation Intention in Typical Regions of China," Sustainability, MDPI, vol. 14(14), pages 1-30, July.
    4. 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.
    5. Hancevic, Pedro I. & Sandoval, Hector H., 2023. "Solar panel adoption among Mexican small and medium-sized commercial and service businesses," Energy Economics, Elsevier, vol. 126(C).
    6. 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.
    7. Rafael C. Borges & Carlos H. Beuter & Vitória C. Dourado & Murilo E. C. Bento, 2024. "Internet of Things Application in an Automated Irrigation Prototype Powered by Photovoltaic Energy," Energies, MDPI, vol. 17(9), pages 1-18, May.
    8. Xin-gang, Zhao & Yi-min, Xie, 2019. "The economic performance of industrial and commercial rooftop photovoltaic in China," Energy, Elsevier, vol. 187(C).
    9. Pedro I. Hancevic & Hector H. Sandoval, 2023. "Solar Panel Adoption in SMEs in Emerging Countries," Working Papers 222, Red Nacional de Investigadores en Economía (RedNIE).
    10. Qi Zhao & Xiaoyue Liu & Shijie Gu & Jin Tao & Wende Wu & Shuang Ma & Hongwen Jin, 2024. "Experimental Study on a Photovoltaic Direct-Drive and Municipal Electricity-Coupled Electric Heating System for a Low-Energy Building in Changchun, China," Energies, MDPI, vol. 17(9), pages 1-25, April.
    11. Peprah, Forson & Gyamfi, Samuel & Effah-Donyina, Eric & Amo-Boateng, Mark, 2023. "The pathway for electricity prosumption in Ghana," Energy Policy, Elsevier, vol. 177(C).
    12. Wang, Xiaozhen & Zheng, Ying & Jiang, Zihao & Tao, Ziyang, 2021. "Influence mechanism of subsidy policy on household photovoltaic purchase intention under an urban-rural divide in China," Energy, Elsevier, vol. 220(C).
    13. Consolación Quintana-Rojo & Fernando-Evaristo Callejas-Albiñana & Miguel-Ángel Tarancón & Isabel Martínez-Rodríguez, 2020. "Econometric Studies on the Development of Renewable Energy Sources to Support the European Union 2020–2030 Climate and Energy Framework: A Critical Appraisal," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    14. McRae, Shaun D. & Wolak, Frank A., 2021. "Retail pricing in Colombia to support the efficient deployment of distributed generation and electric stoves," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    15. Martínez-Cruz, Adán L. & Núñez, Héctor M., 2021. "Tension in Mexico's energy transition: Are urban residential consumers in Aguascalientes willing to pay for renewable energy and green jobs?," Energy Policy, Elsevier, vol. 150(C).
    16. Sarah A. Elariane & Jean Dubé, 2019. "Is Smart Housing a Good Deal? An Answer Based on Monte Carlo Net Present Value Analysis," Sustainability, MDPI, vol. 11(15), pages 1-29, August.
    17. Biao Tao & Can Wang, 2024. "Promoting distributed photovoltaic adoption: An evolutionary game model approach for stakeholder coordination," PLOS ONE, Public Library of Science, vol. 19(6), pages 1-25, June.

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    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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