IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v145y2021ics1364032121001155.html
   My bibliography  Save this article

A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam

Author

Listed:
  • Junlakarn, Siripha
  • Kittner, Noah
  • Tongsopit, Sopitsuda
  • Saelim, Supawan

Abstract

Globally, policies designed for high penetration of distributed photovoltaics (DPV) primarily have shifted from mainly encouraging investment through subsidies to addressing equity and stakeholder concerns on retail tariffs and utility revenue impacts. Net metering and feed-in tariffs now serve as the main policy mechanisms to support distributed PV in the U.S. and Europe, although modifications are ongoing to alleviate concerns over consumer inequity and the financial health of utilities. Retail tariff design and utility revenue impacts are now at the forefront of the debate for ASEAN countries formulating new policies and incentives for PV deployment. This paper discusses experiences of DPV development in the Philippines, Thailand, and Vietnam. These countries have ongoing efforts to adjust their DPV programs to match a rapidly dynamic and evolving DPV market and incorporate new technology capabilities such as blockchain-based peer-to-peer solar energy trading platforms. The paper also presents a quantitative analysis of customer economics under various competing compensation mechanisms and analyzes the remaining barriers to DPV market expansion in these three countries. Net billing could achieve more economically equitable policy design for other Southeast Asian countries looking to make solar electricity broadly accessible for all.

Suggested Citation

  • Junlakarn, Siripha & Kittner, Noah & Tongsopit, Sopitsuda & Saelim, Supawan, 2021. "A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:rensus:v:145:y:2021:i:c:s1364032121001155
    DOI: 10.1016/j.rser.2021.110820
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032121001155
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2021.110820?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. Komiyama, Ryoichi & Fujii, Yasumasa, 2019. "Optimal integration assessment of solar PV in Japan’s electric power grid," Renewable Energy, Elsevier, vol. 139(C), pages 1012-1028.
    2. Huang, Yu Wen & Kittner, Noah & Kammen, Daniel M., 2019. "ASEAN grid flexibility: Preparedness for grid integration of renewable energy," Energy Policy, Elsevier, vol. 128(C), pages 711-726.
    3. Dacuycuy, Connie B., 2017. "Energy Consumption, Weather Variability, and Gender in the Philippines: A Discrete/Continuous Approach," Discussion Papers DP 2017-06, Philippine Institute for Development Studies.
    4. Tongsopit, Sopitsuda & Junlakarn, Siripha & Wibulpolprasert, Wichsinee & Chaianong, Aksornchan & Kokchang, Phimsupha & Hoang, Nghia Vu, 2019. "The economics of solar PV self-consumption in Thailand," Renewable Energy, Elsevier, vol. 138(C), pages 395-408.
    5. Dorband, Ira Irina & Jakob, Michael & Steckel, Jan Christoph, 2020. "Unraveling the political economy of coal: Insights from Vietnam," Energy Policy, Elsevier, vol. 147(C).
    6. Hughes, Larry & Bell, Jeff, 2006. "Compensating customer-generators: a taxonomy describing methods of compensating customer-generators for electricity supplied to the grid," Energy Policy, Elsevier, vol. 34(13), pages 1532-1539, September.
    7. Tongsopit, Sopitsuda & Kittner, Noah & Chang, Youngho & Aksornkij, Apinya & Wangjiraniran, Weerin, 2016. "Energy security in ASEAN: A quantitative approach for sustainable energy policy," Energy Policy, Elsevier, vol. 90(C), pages 60-72.
    8. Kittner, Noah & Gheewala, Shabbir H. & Kammen, Daniel M., 2016. "Energy return on investment (EROI) of mini-hydro and solar PV systems designed for a mini-grid," Renewable Energy, Elsevier, vol. 99(C), pages 410-419.
    9. Tongsopit, Sopitsuda & Moungchareon, Sunee & Aksornkij, Apinya & Potisat, Tanai, 2016. "Business models and financing options for a rapid scale-up of rooftop solar power systems in Thailand," Energy Policy, Elsevier, vol. 95(C), pages 447-457.
    10. Yugo Tanaka & Andrew Chapman & Shigeki Sakurai & Tetsuo Tezuka, 2017. "Feed-in Tariff Pricing and Social Burden in Japan: Evaluating International Learning through a Policy Transfer Approach," Social Sciences, MDPI, vol. 6(4), pages 1-16, October.
    11. Eleonora Riva Sanseverino & Hang Le Thi Thuy & Manh-Hai Pham & Maria Luisa Di Silvestre & Ninh Nguyen Quang & Salvatore Favuzza, 2020. "Review of Potential and Actual Penetration of Solar Power in Vietnam," Energies, MDPI, vol. 13(10), pages 1-25, May.
    12. Tongsopit, Sopitsuda & Greacen, Chris, 2013. "An assessment of Thailand's feed-in tariff program," Renewable Energy, Elsevier, vol. 60(C), pages 439-445.
    13. Sopitsuda Tongsopit & Sunee Moungchareon & Apinya Aksornkij & Tanai Potisat, . "Business Models and Financing Options for a Rapid Scale-up of Rooftop Solar Power Systems in Thailand," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 4, pages 79-136, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Pacudan, Romeo, 2018. "Feed-in tariff vs incentivized self-consumption: Options for residential solar PV policy in Brunei Darussalam," Renewable Energy, Elsevier, vol. 122(C), pages 362-374.
    15. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    16. Dufo-López, Rodolfo & Bernal-Agustín, José L., 2015. "A comparative assessment of net metering and net billing policies. Study cases for Spain," Energy, Elsevier, vol. 84(C), pages 684-694.
    17. Do, Thang Nam & Burke, Paul J. & Baldwin, Kenneth G.H. & Nguyen, Chinh The, 2020. "Underlying drivers and barriers for solar photovoltaics diffusion: The case of Vietnam," Energy Policy, Elsevier, vol. 144(C).
    18. Dusonchet, L. & Telaretti, E., 2015. "Comparative economic analysis of support policies for solar PV in the most representative EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 986-998.
    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. Yu, Ying & Yamaguchi, Kensuke & Thuy, Truong Dang & Kittner, Noah, 2022. "Will the public in emerging economies support renewable energy? Evidence from Ho Chi Minh City, Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    2. Thiti Jittayasotorn & Muthiah Sadidah & Takahiro Yoshida & Takuro Kobashi, 2023. "On the Adoption of Rooftop Photovoltaics Integrated with Electric Vehicles toward Sustainable Bangkok City, Thailand," Energies, MDPI, vol. 16(7), pages 1-17, March.
    3. William Philip Wall & Bilal Khalid & Mariusz Urbański & Michal Kot, 2021. "Factors Influencing Consumer’s Adoption of Renewable Energy," Energies, MDPI, vol. 14(17), pages 1-19, August.
    4. Eko Supriyanto & Jayan Sentanuhady & Wisnu Hozaifa Hasan & Ariyana Dwiputra Nugraha & Muhammad Akhsin Muflikhun, 2022. "Policy and Strategies of Tariff Incentives Related to Renewable Energy: Comparison between Indonesia and Other Developing and Developed Countries," Sustainability, MDPI, vol. 14(20), pages 1-17, October.
    5. A. K. Pandey & B. Kalidasan & R. Reji Kumar & Saidur Rahman & V. V. Tyagi & Krismadinata & Zafar Said & P. Abdul Salam & Dranreb Earl Juanico & Jamal Uddin Ahamed & Kamal Sharma & M. Samykano & S. K. , 2022. "Solar Energy Utilization Techniques, Policies, Potentials, Progresses, Challenges and Recommendations in ASEAN Countries," Sustainability, MDPI, vol. 14(18), pages 1-26, September.
    6. Khairul Eahsun Fahim & Liyanage C. De Silva & Fayaz Hussain & Sk. A. Shezan & Hayati Yassin, 2023. "An Evaluation of ASEAN Renewable Energy Path to Carbon Neutrality," Sustainability, MDPI, vol. 15(8), pages 1-27, April.

    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. Kittner, Noah & Gheewala, Shabbir H. & Kammen, Daniel M., 2016. "Energy return on investment (EROI) of mini-hydro and solar PV systems designed for a mini-grid," Renewable Energy, Elsevier, vol. 99(C), pages 410-419.
    2. Methee Srikranjanapert & Siripha Junlakarn & Naebboon Hoonchareon, 2021. "How an Integration of Home Energy Management and Battery System Affects the Economic Benefits of Residential PV System Owners in Thailand," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    3. Diaz-Rainey, Ivan & Tulloch, Daniel J. & Ahmed, Iftekhar & McCarten, Matthew & Taghizadeh-Hesary, Farhad, 2021. "An Energy Policy for ASEAN? Lessons from the EU Experience on Energy Integration, Security, and Decarbonization," ADBI Working Papers 1217, Asian Development Bank Institute.
    4. Suntiti Yoomak & Theerasak Patcharoen & Atthapol Ngaopitakkul, 2019. "Performance and Economic Evaluation of Solar Rooftop Systems in Different Regions of Thailand," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    5. Wichsinee Wibulpolprasert & Umnouy Ponsukcharoen & Siripha Junlakarn & Sopitsuda Tongsopit, 2021. "Preliminarily Screening Geographical Hotspots for New Rooftop PV Installation: A Case Study in Thailand," Energies, MDPI, vol. 14(11), pages 1-30, June.
    6. Chaianong, Aksornchan & Tongsopit, Sopitsuda & Bangviwat, Athikom & Menke, Christoph, 2019. "Bill saving analysis of rooftop PV customers and policy implications for Thailand," Renewable Energy, Elsevier, vol. 131(C), pages 422-434.
    7. Tongsopit, Sopitsuda & Junlakarn, Siripha & Wibulpolprasert, Wichsinee & Chaianong, Aksornchan & Kokchang, Phimsupha & Hoang, Nghia Vu, 2019. "The economics of solar PV self-consumption in Thailand," Renewable Energy, Elsevier, vol. 138(C), pages 395-408.
    8. Pereira da Silva, Patrícia & Dantas, Guilherme & Pereira, Guillermo Ivan & Câmara, Lorrane & De Castro, Nivalde J., 2019. "Photovoltaic distributed generation – An international review on diffusion, support policies, and electricity sector regulatory adaptation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 30-39.
    9. Aquila, Giancarlo & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & Balestrassi, Pedro Paulo & Pamplona, Edson de Oliveira & Nakamura, Wilson Toshiro, 2024. "Net metering rolling credits vs. net billing buyback: An economic analysis of a policy option proposal for photovoltaic prosumers," Renewable Energy, Elsevier, vol. 232(C).
    10. Li, Yan & Zhang, Qi & Wang, Ge & McLellan, Benjamin & Liu, Xue Fei & Wang, Le, 2018. "A review of photovoltaic poverty alleviation projects in China: Current status, challenge and policy recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 214-223.
    11. Andrea A. Eras-Almeida & Miguel A. Egido-Aguilera & Philipp Blechinger & Sarah Berendes & Estefanía Caamaño & Enrique García-Alcalde, 2020. "Decarbonizing the Galapagos Islands: Techno-Economic Perspectives for the Hybrid Renewable Mini-Grid Baltra–Santa Cruz," Sustainability, MDPI, vol. 12(6), pages 1-47, March.
    12. Georgios C. Christoforidis & Ioannis P. Panapakidis & Theofilos A. Papadopoulos & Grigoris K. Papagiannis & Ioannis Koumparou & Maria Hadjipanayi & George E. Georghiou, 2016. "A Model for the Assessment of Different Net-Metering Policies," Energies, MDPI, vol. 9(4), pages 1-24, April.
    13. Chaianong, Aksornchan & Bangviwat, Athikom & Menke, Christoph & Breitschopf, Barbara & Eichhammer, Wolfgang, 2020. "Customer economics of residential PV–battery systems in Thailand," Renewable Energy, Elsevier, vol. 146(C), pages 297-308.
    14. Tantisattayakul, Thanapol & Kanchanapiya, Premrudee, 2017. "Financial measures for promoting residential rooftop photovoltaics under a feed-in tariff framework in Thailand," Energy Policy, Elsevier, vol. 109(C), pages 260-269.
    15. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    16. Coria, Gustavo & Penizzotto, Franco & Pringles, Rolando, 2019. "Economic analysis of photovoltaic projects: The Argentinian renewable generation policy for residential sectors," Renewable Energy, Elsevier, vol. 133(C), pages 1167-1177.
    17. Schleich, Joachim & Tu, Gengyang & Faure, Corinne & Guetlein, Marie-Charlotte, 2021. "Would you prefer to rent rather than own your new heating system? Insights from a discrete choice experiment among owner-occupiers in the UK," Energy Policy, Elsevier, vol. 158(C).
    18. Yu, Ying & Yamaguchi, Kensuke & Thuy, Truong Dang & Kittner, Noah, 2022. "Will the public in emerging economies support renewable energy? Evidence from Ho Chi Minh City, Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    19. Ramírez, F. Javier & Honrubia-Escribano, A. & Gómez-Lázaro, E. & Pham, Duc T., 2017. "Combining feed-in tariffs and net-metering schemes to balance development in adoption of photovoltaic energy: Comparative economic assessment and policy implications for European countries," Energy Policy, Elsevier, vol. 102(C), pages 440-452.
    20. Sakah, Marriette & Diawuo, Felix Amankwah & Katzenbach, Rolf & Gyamfi, Samuel, 2017. "Towards a sustainable electrification in Ghana: A review of renewable energy deployment policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 544-557.

    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:rensus:v:145:y:2021:i:c:s1364032121001155. 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.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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.