Distributed generation of photovoltaic solar energy: impacts of ANEEL`s new regulation proposal on investment attractiveness

Abstract

Purpose – The production of photovoltaic solar energy has gained international prominence, being the subject of government policies aimed at its development. The purpose of this study is to analyze the profitability of a shared photovoltaic solar energy project, located in the national territory, resulting from changes in regulatory framework of the sector represented by different tariff levels.Design/methodology/approach – It is a quantitative study based on corporate finance as its theoretical-conceptual substrate. Simulations were carried out using different energy price and tariff scenarios.Findings - The results reveal that, under current conditions, distributed photovoltaic solar energy generation is financially very attractive to investors. In addition, it was found that significant changes in the tariff regime for this type of energy might prevent new investments in the segment. Practical implications – The evidence suggests caution in changing the legal framework of a segment that is still incipient in the country, which generates clean and renewable energy, and with enormous growth potential.Originality/value - The study presents, in a systematic way, the possible impacts of changes in the price and tariff scenarios on the attractiveness of investment in the distributed generation of photovoltaic solar energy generation. In this sense, it can be easily adapted to evaluate industrial plant projects of different sizes in regions with distinct levels of solar irradiation.