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.
Highlights
Fossil fuels are still predominant in energy grids worldwide, and countries have sought out other solutions, to help abate the environmental impacts arising from using fossil fuels; solutions that are more sustainable and energy efficient [1]
It is important to note that the investment recoup time goes from 8 to 12 years with the 43% reduction for the entire Brazilian scenario (BR)
The before and after scenarios ographic regions, in light of changes proposed by ANEEL
Summary
Fossil fuels are still predominant in energy grids worldwide, and countries have sought out other solutions, to help abate the environmental impacts arising from using fossil fuels; solutions that are more sustainable and energy efficient [1]. Data from the International Energy Agency (IEA) show that renewable energy sources account for only 25% of the total energy consumed worldwide, while fossil fuel and nuclear energy consumption account for 65 and 10%, respectively [2]. Of all energy produced from renewable resources. This justifies inquiry into studying and developing other renewable alternatives. Information from the European Photovoltaic Industry Association (EPIA) [3], shows that solar photovoltaic energy (PV) and all the technology involved in its generation has progressed and is expected to become the most widely used renewable energy source. Given the positive outlook for solar-PV energy, governments have moved to developing mechanisms, regulations and public policies to encourage investment in this energy source [4]
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