Photovoltaic electricity production in Brazil: A stochastic economic viability analysis for small systems in the face of net metering and tax incentives

Rocha, Luiz Célio Souza; Áquila, Giancarlo; Pamplona, Edson de Oliveira; Paiva, Anderson Paulo de; Chieregatti, Bruno; Lima, João Paulo da Silveira Nogueira

doi:10.1016/j.jclepro.2017.09.018

Cited by 54 publications

(31 citation statements)

References 46 publications

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“…For Jo and Jang [34], this cost is 0.2% of the cost of investment, annually. Rocha et al [87] consider that the system had annual operating and maintenance costs of 0.5% of the investment cost.…”

Section: Operation and Maintenance Costsmentioning

confidence: 99%

“…According to Vale et al [103], the discount rate varies mainly with the business risk, opportunity cost, and liquidity, and each company generally has its own economic parameter to analyze the project. The WACC was applied in Rocha et al [87] to calculate the discount rate used in the feasibility analysis of the PV microgeneration system. Conversely, Okoye and Oranekwu-Okoye [78] use the risk-adjusted discount rate (RADR) method to incorporate the project risk in the capital budget decision process.…”

Section: Discount Ratementioning

confidence: 99%

“…It was also reinforced that the electricity export tax greatly affects the financial viability of a project. According to Rocha et al [87], the tax exemption meets the objective of encouraging the development of productive sectors, such as the PV industry and, in addition, the subsidy indirectly contributes to improving the quality of life of the population, providing support for cleaner energy production.…”

Section: Incentive Policiesmentioning

confidence: 99%

“…According to Hammad et al [88], the inflation rate is a percentage that should be considered as an interest rate in the increase in the electricity tariff, and as a reference for calculating the discount rate. For Rocha et al [87], the cash flow is derived from variables such as the interest rate, the value of the energy sold to the concessionaire, and the cost of purchasing the equipment, which may vary during the life of the project. This variation brings uncertainty involved in each variable, and, when considered together, can increase the risk of the project, so it is proposed to include this uncertainty to evaluate the NPV.…”

Section: Inflation Ratementioning

confidence: 99%

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Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

et al. 2020

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The introduction of environmental impact targets around the world has highlighted the need to adopt alternative sources of energy, which can supply the demand and mitigate the damage caused to the environment. Solar energy is one of the main sources of alternative energy, and is considered an abundant source of clean energy. However, to facilitate and encourage investors interested in the installation of photovoltaic energy systems for electricity production, it is essential to evaluate the factors that impact the economic viability of the projects. Therefore, the objective of this research is to present a systematic analytical framework, in order to identify and analyze the main factors that impact the financial feasibility of projects for the installation of photovoltaic energy plants. For this purpose, a systematic literature review was carried out, analyzing the main studies related to the topic and identifying the main factors that may financially affect investments in photovoltaic energy systems. From this review, 29 influencing factors were identified and separated into five categories, namely, location, economic, political, climatic and environmental, and technical factors. The main factors highlighted are the investment cost, power generation, operation and maintenance costs, solar radiation, lifetime, energy tariff, efficiency, electricity consumption, and interest and taxes. The results may assist policy makers, investors, researchers, and other stakeholders to identify the key factors that are being examined in the literature, and to evaluate which ones should be considered in their study to ensure the sustainable development of power generation through the solar source.

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Section: Operation and Maintenance Costsmentioning

confidence: 99%

Section: Discount Ratementioning

confidence: 99%

Section: Incentive Policiesmentioning

confidence: 99%

Section: Inflation Ratementioning

confidence: 99%

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Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

et al. 2020

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“…The theme two emphasized on the roles of key sectors in mitigating climate change, including energy, transport, and construction. Plenty of actions were took for decarbonization in energy system, such as developing renewable energy (Rocha et al, 2017;Waheed et al, 2018) and improving energy efficiency (Waheed et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Cities: The core of climate change mitigation

Guan

Liu

et al. 2019

Journal of Cleaner Production

235

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Cities, the core of the global climate change mitigation and strategic low-carbon development, are shelters to more than half of the world population and responsible for three quarters of global energy consumption and greenhouse gas (GHG). This special volume (SV) provides a platform that promotes multi-and interdisciplinary analyses and discussions on the climate change mitigation for cities. All papers are divided into several themes, including GHG emission inventory and accounting, climate change and urban sectors, climate change and sustainable development, and strategies and mitigation action plans. First, this SV provides methods for constructing emission inventory from both production and consumption perspectives. These methods are useful to improve the comprehensiveness and accuracy of carbon accounting for international cities. Second, the climate change affects urban sectors from various aspects; simultaneously, GHG emissions caused by activities in urban sectors affect the climate system. This SV focuses on mitigation policies and assessment in energy, transport, construction, and service sectors. Third, climate change mitigation of cities is closely connected to urban sustainable development. This SV explores the relationships between climate change mitigation

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The impact of the COVID‐19 pandemic on the economic viability of distributed photovoltaic systems in Brazil

Rediske

Lorenzoni

Rigo

et al. 2022

Env Prog and Sustain Energy

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Electricity consumption in Brazil increases significantly, making feasibility studies to diversify the Brazilian electricity mix with other renewable sources become essential. However, the electricity market continues to be primarily driven by government or regulatory incentives and economic status. With the coronavirus pandemic since the beginning of 2020, the market has been undergoing significant changes that cause uncertainty in consumer investments in grid‐connected photovoltaic systems. This article presents an economic feasibility analysis of photovoltaic system installation for the Brazilian residential sector, estimating a cash and term investment and comparing the viability of the investment before the global pandemic (December 2019) with the pandemic scenario (April 2021) for each of the 27 Brazilian capitals. The baseline scenario for economic feasibility analysis calculations considered a power system of 4 kW. The results show that the effects of the pandemic in the electricity market were positive in the feasibility of investing in grid‐connected photovoltaic systems. Also, financing the system increases the chances of profitability. The current scenario is possibly the most attractive ever experienced by potential investors. However, this favorable scenario could decline in the coming years due to climatic and governmental factors.

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Photovoltaic electricity production in Brazil: A stochastic economic viability analysis for small systems in the face of net metering and tax incentives

Cited by 54 publications

References 46 publications

Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments

Cities: The core of climate change mitigation

The impact of the COVID‐19 pandemic on the economic viability of distributed photovoltaic systems in Brazil

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