Contributions to evaluate technical and economic benefits of distributed generation for low-income citizens
Document typeMaster thesis
Rights accessOpen Access
Power generation at or near the consumers characterizes the Distributed Generation (DG). The use of renewable resources to provide energy close to the end users has changed the perspectives for the future power system. The traditional model of central generation, away from most of the consumers, is not seen as the only solution for energy generation in big scale anymore. This fact can affect citizens positively and create improvements for society, especially for those who belong to social classes with low earnings. The present study contributes to the evaluation of the potential economic and technical benefits that distributed generation can create to low-income households. First, it presents the economic benefits detailed in the literature and case studies of different countries of the world. It also evaluates the financial impact of electricity non-technical losses in Brazil. After that, it proposes a pioneer analysis of potential economic and technical benefits that the insertion of DG in low-income communities can create, including the reduction of commercial losses, and alternatives to allow viable financing. Assessments of the benefits that DG can create for low-income consumers are scarce, but the case studies presented in this work show relevant results regarding that matter. Besides that, this study indicates that the development of DG in low-income communities of Brazil could generate relevant economic and technical benefits, and it could work as an alternative method to reduce non-technical losses. The massive insertion of DG in households with lower earnings depends on affordable loans, which depend on integrated actions uniting Government, Distribution Utilities (DU) and Society.