Analysis identifies technical and regulatory changes to support even higher penetration levels of distributed generation.
In August 2012, the National Agency of Electrical Energy (ANEEL), the Brazilian regulatory electricity agency, regulated the electricity generation connected to the distribution network (grid tie) through net metering, a power compensation model. The model enables customers who deploy generation systems based on alternative energy sources (such as solar, wind or biomass) with up to 5 MW to get benefits from the energy surplus generated and injected into the distribution network.
After a few years of this regulatory framework, distributed generation (DG) in Brazil has grown rapidly, with predominance in photovoltaic (PV) sources, which has created various technical and economic challenges.
DG is growing annually in Brazil, driven by regulatory changes and a significant reduction of technology and deployment costs, mainly in PV equipment. As of May 2017, there were 9959 registered DG connections to the distribution system, with an installed capacity of 108.6 MW. PV accounts for almost 99% of DG registrations, with about 75 MW of capacity.
Most of the installations — totaling 7930 — are on residential properties, with 1508 commercial installations and 210 industrial installations. National projections estimate PV DG in Brazil has the potential for 1.2 million consumer units producing their own energy by 2024.
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