remaining renewable and clean: some regulatory challenges ... · current mechanism: considers all...
TRANSCRIPT
Current mechanism:
Considers all tariff
components.
Possible mechanisms:
Different
combinations of tariff
components.
In case of interest, please contact:
[email protected]; [email protected]; [email protected]
Remaining Renewable and Clean:
Some Regulatory Challenges
of the Electrical Energy Sector in BrazilWadaed Uturbey, Ana Lopes, Heinz Ahn
Reference Materials• NREL-2017 “Next-Generation Performance-Based Regulation, Emphasizing
Utility Performance to Unleash Power Sector Innovation” Technical Report
NREL/TP-6A50-68512, September 2017
• BRASIL-2018 and 2019, ANEEL, Avaliações de Impacto e Resultado
Regulatório, Technical notes nº 27/SRM/SGT/SPE/SRD-2019/ANEEL and
nº 0004/2018-SRD/SCG/SMA/ANEEL
KeywordsRegulation, electricity
sector, energy transition,
operational costs, quality
of service, Brazil
AcknowledgementGefördert vom DAAD aus Mitteln des
Bundesministeriums für Bildung und
Forschung (BMBF)
Financed in part by the Coordenação
de Aperfeiçoamento de Pessoal de
Nível Superior - Brasil (CAPES)
BRAZILIAN ELECTRICITY MATRIX TODAY
More than 165 GW of installed generation capacity.
High proportion of renewables: Hydroelectric 63%, biomass 9%,
wind 9% and solar PV 1.2%.
However: Environmental requirements prevent the utilization of
most of the remaining hydro potential.
Peak resources: Not clearly specified in the report; the demand
management pilot project implemented in 2017-2018 failed to
contract demand reductions to cope with wind variability in the
northeast region, and thermal generators were used.
Possible consequences, if not appropriately managed:
More expensive energy and decrease of the quality of service.
Official projection for the
participation of each
generation source
(EPE: PDE-2027)
Hydro
Thermal
Small hydro + Wind
+ Bio + PV
Peak resources
DISTRIBUTED ENERGY RESOURCES
Net metering mechanism available since 2012; applied only for
grid-connected generation in consumers’ facilities and without
storage (DG).
>> More than 120,000 engaged consumers and more than 1 GW
of installed distributed generation.
The future of net-metering: Proposal to modify low voltage tariffs.
The monomial tariff will be gradually transformed to binomial or
trinomial. Compensation by net metering will consider only
volumetric components. Therefore, the attractivity of distributed
generation will significantly decrease.
Tariff composition: Network + Energy (includes some system
charges) + System charges + Levies
Projection of Installed DG under different mechanisms of tariff compensation in net
metering (ANEEL 2018)
TRANSMISSION AND DISTRIBUTION
Regulated monopolies, but different regulatory environments
>> TSOs operate in a less risky environment than DSOs.
In both segments, incentive regulation by benchmarking models (DEA) is
applied to evaluate the operational costs efficiency.
The quality of the service is one of the aspects included in the benchmarking
models that is neither completely understood nor well represented.
Quality of service – Distribution (source: ANEEL 2019)
Quality of service – Transmission (source: Brazilian ISO at www.ons.org.br)
THE DISCUSSION
The analysis evidenced: important regulatory
modifications should be carried out to attain the
challenges imposed by distributed resources and
alternative renewables and, simultaneously, improving
(or, at least, maintaining) the quality of service.
▪ Flexibility requirements: Under the (yet quite small)
presence of wind generation, they are not clearly
understood. Further growth of solar is expected,
increasing the challenge.
▪ DERs: Net metering will be a barrier for deployment.
▪ Distribution: Quality of service has improved in the
average, but many operators have worsened.
▪ Transmission: The north and northeast regions
perform worst in quality of service. Those are regions
with low demand and significant renewable
generation potential not yet developed.0
0,5
1
1,5
2
2,5
2013 2014 2015 2016 2017 2018
Frequency of interruptions
System
SE/CO
South
Northeast
North
0
50
100
150
200
250
2013 2014 2015 2016 2017 2018
Duration of interruptions
Number of installed DG (Millions)
SAIDI SAIFI SAIDI-limit SAIFI-limit
Aggregated quality indexes and the regulatory
maximum limitsOperators performance
Eventual regulatory barriers to the
development of the sector and the possibility
of effectively unlocking the expected grow of
distributed resources and alternative
renewable energies.