Impact of regulatory changes on economic feasibility of distributed generation solar units in Brazil
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F21%3A10434787" target="_blank" >RIV/00216208:11230/21:10434787 - isvavai.cz</a>
Alternative codes found
RIV/61384399:31110/21:00056993
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=UJbcUPJh2p" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=UJbcUPJh2p</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.seta.2021.101660" target="_blank" >10.1016/j.seta.2021.101660</a>
Alternative languages
Result language
angličtina
Original language name
Impact of regulatory changes on economic feasibility of distributed generation solar units in Brazil
Original language description
In 2019, the Brazilian National Electric Energy Agency proposed that the cost of accessing the electrical grid should be shared among all consumers. This would do away with cross-subsidies, where normal consumers without installed solar distributed generation (DG) units effectively cover the costs of access to the grid for consumers with DG units. The economic viability of the two scenarios were compared, one before and the other after the proposed changes, to understand how this legislature will affect the viability of DG projects. This was achieved by studying all five geographic regions covering the entire Brazilian territory by analyzing data on average solar radiation, demand, and energy prices. After the proposed rule changes, in the general Brazilian scenario, the net present value (NPV) had a reduction of 39.74% and internal rate of return of 26.85%, while the worst happened with Discounted Payback, which rose 52.89%. Stochastic analysis was conducted by varying the investment costs, demand, and energy prices for the solar DG units. The probability of NPV greater than zero was reduced by 2.41% on average after rule changes. Lastly, a stochastic analysis for the national scenario by varying the discount rate was conducted, and a positive NPV probability of 79.60% was found. The study indicates that there is a statistically significant reduction in economic viability for solar DG units when the new regulation proposed is enacted, while the payback period is increased, and other financial indicators are reduced in all analyzed regions. It was confirmed that solar radiation is not the decisive factor in determining the economic viability of solar DG production.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
<a href="/en/project/GX19-26812X" target="_blank" >GX19-26812X: Frontiers in Energy Efficiency Economics and Modelling - FE3M</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Sustainable Energy Technologies and Assessments
ISSN
2213-1388
e-ISSN
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Volume of the periodical
48
Issue of the periodical within the volume
December
Country of publishing house
GB - UNITED KINGDOM
Number of pages
12
Pages from-to
1-12
UT code for WoS article
000723223500001
EID of the result in the Scopus database
2-s2.0-85117249304