Distributed Generation:

International Experiences and Comparative Analyses

October 17 Tuesday


October 17, 2017, 8:30 - 17:00


CBPF - Centro Brasileiro de Pesquisas Físicas, Auditório Oliveira Castro, Dr. Xavier Sigaud, 150 - Urca, Rio de Janeiro, Brazil



A workshop with experts will address issues such as the tendency of decentralization of electrical systems, impacts in the micro generation electric network and its economic-financial consequences for distributors.

Also available in Deutsch, Español, Português

In line with the need to mitigate greenhouse gases emissions, several countries have implemented consistent incentive policies to alternative sources of power generation over the past few years. As a consequence, there are significant investments in these sources and a considerable reduction in their costs. This process has already been verified with wind energy and is currently underway with photo-voltaic solar energy, the latter characterized by its ability to micro-generation in the consumer units themselves.

If the diffusion of renewable sources alone already poses challenges to the operators of the electrical systems derived from the intermittency of these sources, the tendency of decentralization of the system potentiates the existing challenges. In this sense, the expansion of the micro generation needs to be judiciously examined. In the technical field, the introduction of bidirectional energy flows may require modifications to the network operating standards. Nevertheless, issues such as voltage and current control, protection and losses may require investments in the network in order to adapt it. At the same time, as more consumers install micro-generation systems, the market for distribution utilities tends to decline.

The benefits of promoting a decentralized and renewable-based electricity system are unquestionable. However, it is necessary to know that there are direct and indirect costs involved. In this way, it is necessary to compare the magnitude of the benefits with the existing costs and, in addition, the adequate allocation of the same among the different stakeholders involved.

Thus, given the regulatory guidelines and business models traditionally in force in the electricity sector, the diffusion of micro-generation represents a risk to the distribution companies' economic equilibrium. By contrast, holders of micro-generation systems will continue to use the services of the distribution network. At the same time, such diffusion may result in higher consumer expenditures for those who do not install photo-voltaic systems, see the occurrence of possible tariff increases in order to try to reestablish the financial and economic equilibrium of the distributors.

This is already a problem in countries with reasonable levels of micro-generation systems. Thus, it is now possible to identify some adjustments that are being implemented. For example, many countries are implementing specific energy fees for consumers holding photo-voltaic installations.

In summary, a careful analysis of how the diffusion of alternative and renewable sources should be processed in order to effectively promote an efficient and sustainable electricity system is needed. Considering that this will only be possible with the existence of economic attractiveness for the realization of investment in the sector, it is noticeable the need to correctly allocate the different benefits and costs existing between the different agents. At the limit, it is possible to question the pertinence of opting for larger projects in detriment to the logic of decentralized micro generation.

Given the problems presented, a workshop with experts, jointly organized by EKLA-KAS and the Electricity Sector Study Group (GESEL, in its Portuguese acronym) of the Institute of Economics of the Federal University of Rio de Janeiro (IE/UFRJ) will address the following issues:

  1. The role of alternative and renewable sources in the electricity sector;
  2. The tendency of decentralization of electrical systems;
  3. Impacts in the micro generation electric network;
  4. Economic-financial consequences of micro generation for distributors;
  5. Distortions in the allocation of distributors' costs among different types of consumers;
  6. International experience of regulatory adjustments;
  7. Micro generation prospects in Brazil;
  8. Alternatives for integration of alternative and renewable sources.

Registration information by email gesel@gesel.ie.ufrj.br

Limited availability.


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Contact person

Karina Marzano Franco

Project Manager

Karina Marzano Franco
Phone +55 21 2220 5441
Fax +55 21 2220 5448
Languages: Português,‎ Deutsch,‎ English,‎ Español,‎ Français