Low Voltage Tariffs in the Context of Decentralized on Grid Photovoltaic Generation

HIGHLIGHTS

• Business model for electrical energy distribution utilities.

• Distributed photovoltaic generation impacts in current Brazilian tariffs.

• Binomial tariffs for Brazilian costumers at low voltage.

Abstract

Distributed photovoltaic generation (DPVG) has become a worldwide trend and is experiencing great growth in Brazil, although at a later rate than most of the more developed countries. Brazil has an incentive tariff for distributed electricity generation based on a compensation system, i.e. net metering, therefore DPVG is becoming increasingly popular for low voltage consumers. However, the business model of Brazilian electrical energy distribution utilities is primarily a function of the trade and distribution of energy in addition to the maintenance and expansion of the distribution grid. The objective of this study was to evaluate the business model of electric power distribution utilities and to propose possible improvements in order to make it more robust and maintain the viability of electric distribution utilities, in a context of increased utilization of distributed energy resources. Data and tariff compositions from a Brazilian distribution utility at low voltage were studied. Considering different consumptions possibilities, the annual tariff costs for different types of consumers were simulated, the percentages of tariff reduction for the consumers and for the utilities, if these consumers opted for DPVG. Finally, based on tariff proposals for other countries, a tariff was proposed. With the proposed binomial tariff, which includes charging demand and energy consumption, there was greater attractiveness for smaller consumers to adopt DPVG and reduced bills for consumers with less demand, making the system fairer and more balanced.

Keywords:
decentralized energy resources; electricity tariffs; electricity sector; externalities