IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v159y2020icp1084-1098.html
   My bibliography  Save this article

The economic impact on residential fees associated with the expansion of grid-connected solar photovoltaic generators in Brazil

Author

Listed:
  • José de Castro Vieira, Samuel
  • Tapia Carpio, Lucio Guido

Abstract

The main objective of this study is analyze the economic impact on residential fees under transition to distributed photovoltaic generation systems connected to the distribution networks in Brazil. We conducted several analyses, including assessing the Brazilian context through a cash flow competitiveness analysis, to characterize the effects that tariffs have on energy transitions in Brazil. In this context, our research estimates: i) the increase in fees for non-migrating consumers; ii) the revenue eviction of the distribution companies; and iii) the decrease in collection of government taxes under a net metering strategy adopted to encourage energy transition in Brazil. By analyzing the impacts on tariff scenario estimates, the results show that the period between 2023 and 2030 is crucial from a Brazilian energy policy perspective. In addition, we concluded that the use of the net metering model, currently applied in Brazil, could cause residential fee increases of 22–47% by 2035.

Suggested Citation

  • José de Castro Vieira, Samuel & Tapia Carpio, Lucio Guido, 2020. "The economic impact on residential fees associated with the expansion of grid-connected solar photovoltaic generators in Brazil," Renewable Energy, Elsevier, vol. 159(C), pages 1084-1098.
    • Handle: RePEc:eee:renene:v:159:y:2020:i:c:p:1084-1098
    DOI: 10.1016/j.renene.2020.06.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148120309101
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2020.06.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Audenaert, Amaryllis & De Boeck, Liesje & De Cleyn, Sven & Lizin, Sebastien & Adam, Jean-François, 2010. "An economic evaluation of photovoltaic grid connected systems (PVGCS) in Flanders for companies: A generic model," Renewable Energy, Elsevier, vol. 35(12), pages 2674-2682.
    2. Orioli, Aldo & Di Gangi, Alessandra, 2015. "The recent change in the Italian policies for photovoltaics: Effects on the payback period and levelized cost of electricity of grid-connected photovoltaic systems installed in urban contexts," Energy, Elsevier, vol. 93(P2), pages 1989-2005.
    3. Aquila, Giancarlo & Pamplona, Edson de Oliveira & Queiroz, Anderson Rodrigo de & Rotela Junior, Paulo & Fonseca, Marcelo Nunes, 2017. "An overview of incentive policies for the expansion of renewable energy generation in electricity power systems and the Brazilian experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1090-1098.
    4. Carstens, Danielle Denes dos Santos & Cunha, Sieglinde Kindl da, 2019. "Challenges and opportunities for the growth of solar photovoltaic energy in Brazil," Energy Policy, Elsevier, vol. 125(C), pages 396-404.
    5. Talavera, D.L. & Nofuentes, G. & Aguilera, J., 2010. "The internal rate of return of photovoltaic grid-connected systems: A comprehensive sensitivity analysis," Renewable Energy, Elsevier, vol. 35(1), pages 101-111.
    6. Frank M. Bass & Trichy V. Krishnan & Dipak C. Jain, 1994. "Why the Bass Model Fits without Decision Variables," Marketing Science, INFORMS, vol. 13(3), pages 203-223.
    7. Duke, Richard & Williams, Robert & Payne, Adam, 2005. "Accelerating residential PV expansion: demand analysis for competitive electricity markets," Energy Policy, Elsevier, vol. 33(15), pages 1912-1929, October.
    8. Mitscher, Martin & Rüther, Ricardo, 2012. "Economic performance and policies for grid-connected residential solar photovoltaic systems in Brazil," Energy Policy, Elsevier, vol. 49(C), pages 688-694.
    9. Audenaert, Amaryllis & De Boeck, Liesje & De Cleyn, Sven & Lizin, Sebastien & Adam, Jean-Franois, 2010. "An economic evaluation of photovoltaic grid connected systems (PVGCS) in Flanders for companies: a generic model," Working Papers 2010/16, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    10. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    11. Ferreira, Agmar & Kunh, Sheila S. & Fagnani, Kátia C. & De Souza, Tiago A. & Tonezer, Camila & Dos Santos, Geocris Rodrigues & Coimbra-Araújo, Carlos H., 2018. "Economic overview of the use and production of photovoltaic solar energy in brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 181-191.
    12. McHenry, Mark P., 2012. "Are small-scale grid-connected photovoltaic systems a cost-effective policy for lowering electricity bills and reducing carbon emissions? A technical, economic, and carbon emission analysis," Energy Policy, Elsevier, vol. 45(C), pages 64-72.
    13. Lau, K.Y. & Muhamad, N.A. & Arief, Y.Z. & Tan, C.W. & Yatim, A.H.M., 2016. "Grid-connected photovoltaic systems for Malaysian residential sector: Effects of component costs, feed-in tariffs, and carbon taxes," Energy, Elsevier, vol. 102(C), pages 65-82.
    14. Dantas, Guilherme de A. & de Castro, Nivalde J. & Brandão, Roberto & Rosental, Rubens & Lafranque, Alexandre, 2017. "Prospects for the Brazilian electricity sector in the 2030s: Scenarios and guidelines for its transformation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 997-1007.
    15. de Faria, Haroldo & Trigoso, Federico B.M. & Cavalcanti, João A.M., 2017. "Review of distributed generation with photovoltaic grid connected systems in Brazil: Challenges and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 469-475.
    16. Passey, Robert & Spooner, Ted & MacGill, Iain & Watt, Muriel & Syngellakis, Katerina, 2011. "The potential impacts of grid-connected distributed generation and how to address them: A review of technical and non-technical factors," Energy Policy, Elsevier, vol. 39(10), pages 6280-6290, October.
    17. Picciariello, Angela & Vergara, Claudio & Reneses, Javier & Frías, Pablo & Söder, Lennart, 2015. "Electricity distribution tariffs and distributed generation: Quantifying cross-subsidies from consumers to prosumers," Utilities Policy, Elsevier, vol. 37(C), pages 23-33.
    18. Sivaraman, Deepak & Horne, Ralph E., 2011. "Regulatory potential for increasing small scale grid connected photovoltaic (PV) deployment in Australia," Energy Policy, Elsevier, vol. 39(2), pages 586-595, February.
    19. Bakhshi, Reza & Sadeh, Javad, 2018. "Economic evaluation of grid–connected photovoltaic systems viability under a new dynamic feed–in tariff scheme: A case study in Iran," Renewable Energy, Elsevier, vol. 119(C), pages 354-364.
    20. Simshauser, Paul, 2016. "Distribution network prices and solar PV: Resolving rate instability and wealth transfers through demand tariffs," Energy Economics, Elsevier, vol. 54(C), pages 108-122.
    21. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    22. Rüther, Ricardo & Zilles, Roberto, 2011. "Making the case for grid-connected photovoltaics in Brazil," Energy Policy, Elsevier, vol. 39(3), pages 1027-1030, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. D'Adamo, Idiano & Mammetti, Marco & Ottaviani, Dario & Ozturk, Ilhan, 2023. "Photovoltaic systems and sustainable communities: New social models for ecological transition. The impact of incentive policies in profitability analyses," Renewable Energy, Elsevier, vol. 202(C), pages 1291-1304.
    2. de Jesus, Ábio Xavier Cardoso & Pinheiro Neto, Daywes & Domingues, Elder Geraldo, 2023. "Computational tool for technical-economic analysis of photovoltaic microgeneration in Brazil," Energy, Elsevier, vol. 271(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. de Oliveira, Lucas Guedes & Aquila, Giancarlo & Balestrassi, Pedro Paulo & de Paiva, Anderson Paulo & de Queiroz, Anderson Rodrigo & de Oliveira Pamplona, Edson & Camatta, Ulisses Pessin, 2020. "Evaluating economic feasibility and maximization of social welfare of photovoltaic projects developed for the Brazilian northeastern coast: An attribute agreement analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    2. Brito, Thiago Luis Felipe & Islam, Towhidul & Stettler, Marc & Mouette, Dominique & Meade, Nigel & Moutinho dos Santos, Edmilson, 2019. "Transitions between technological generations of alternative fuel vehicles in Brazil," Energy Policy, Elsevier, vol. 134(C).
    3. Sommerfeldt, Nelson & Madani, Hatef, 2017. "Revisiting the techno-economic analysis process for building-mounted, grid-connected solar photovoltaic systems: Part one – Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1379-1393.
    4. Oliva H., Sebastian, 2017. "Residential energy efficiency and distributed generation - Natural partners or competition?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 932-940.
    5. Felipe Moraes do Nascimento & Julio Cezar Mairesse Siluk & Fernando de Souza Savian & Taís Bisognin Garlet & José Renes Pinheiro & Carlos Ramos, 2020. "Factors for Measuring Photovoltaic Adoption from the Perspective of Operators," Sustainability, MDPI, vol. 12(8), pages 1-29, April.
    6. Rosa, Carmen Brum & Rigo, Paula Donaduzzi & Rediske, Graciele & Moccellin, Ana Paula & Mairesse Siluk, Julio Cezar & Michels, Leandro, 2021. "How to measure organizational performance of distributed generation in electric utilities? The Brazilian case," Renewable Energy, Elsevier, vol. 169(C), pages 191-203.
    7. Oliva H., Sebastian & MacGill, Iain & Passey, Rob, 2016. "Assessing the short-term revenue impacts of residential PV systems on electricity customers, retailers and network service providers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1494-1505.
    8. Krishnan, Trichy V. & Feng, Shanfei & Jain, Dipak C., 2023. "Peak sales time prediction in new product sales: Can a product manager rely on it?," Journal of Business Research, Elsevier, vol. 165(C).
    9. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Review of hybrid, plug-in hybrid, and electric vehicle market modeling Studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 190-203.
    10. Kurdgelashvili, Lado & Shih, Cheng-Hao & Yang, Fan & Garg, Mehul, 2019. "An empirical analysis of county-level residential PV adoption in California," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 321-333.
    11. Peters, Kay & Albers, Sönke & Kumar, V., 2008. "Is there more to international Diffusion than Culture? An investigation on the Role of Marketing and Industry Variables," EconStor Preprints 27678, ZBW - Leibniz Information Centre for Economics.
    12. Guseo, Renato & Schuster, Reinhard, 2021. "Modelling dynamic market potential: Identifying hidden automata networks in the diffusion of pharmaceutical drugs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).
    13. Wang, Yue & Das, Ridoy & Putrus, Ghanim & Kotter, Richard, 2020. "Economic evaluation of photovoltaic and energy storage technologies for future domestic energy systems – A case study of the UK," Energy, Elsevier, vol. 203(C).
    14. Hongmin Li, 2020. "Optimal Pricing Under Diffusion-Choice Models," Operations Research, INFORMS, vol. 68(1), pages 115-133, January.
    15. Laciana, Carlos E. & Rovere, Santiago L. & Podestá, Guillermo P., 2013. "Exploring associations between micro-level models of innovation diffusion and emerging macro-level adoption patterns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(8), pages 1873-1884.
    16. Xu, Mei & Xie, Pu & Xie, Bai-Chen, 2020. "Study of China's optimal solar photovoltaic power development path to 2050," Resources Policy, Elsevier, vol. 65(C).
    17. Dalla Valle, Alessandra & Furlan, Claudia, 2011. "Forecasting accuracy of wind power technology diffusion models across countries," International Journal of Forecasting, Elsevier, vol. 27(2), pages 592-601.
    18. Singhal, Shakshi & Anand, Adarsh & Singh, Ompal, 2020. "Studying dynamic market size-based adoption modeling & product diffusion under stochastic environment," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    19. Herrera, Milton M. & Dyner, Isaac & Cosenz, Federico, 2019. "Assessing the effect of transmission constraints on wind power expansion in northeast Brazil," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    20. Christos Michalakelis & Georgia Dede & Dimitris Varoutas & Thomas Sphicopoulos, 2010. "Estimating diffusion and price elasticity with application to telecommunications," Netnomics, Springer, vol. 11(3), pages 221-242, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:159:y:2020:i:c:p:1084-1098. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.