The Impacts of Photovoltaic Electricity Self-Consumption on Value - - PowerPoint PPT Presentation

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The Impacts of Photovoltaic Electricity Self-Consumption on Value - - PowerPoint PPT Presentation

The Impacts of Photovoltaic Electricity Self-Consumption on Value Transfers Between Private and Public Stakeholders in France. Jonathan Richard Ludovic Roulot Ecole Centrale de Nantes and Pontificia Universidad Catlica de Chile Mail:


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SLIDE 1

The Impacts of Photovoltaic Electricity Self-Consumption on Value Transfers Between Private and Public Stakeholders in France.

Jonathan Richard Ludovic Roulot

Ecole Centrale de Nantes and Pontificia Universidad Católica de Chile Mail: jroulot@uc.cl

Ricardo Raineri Bernain

Pontificia Universidad Católica de Chile

35th USAEE/IAEE North American Conference Riding the Energy Cycles Royal Sonesta Hotel, Nov. 2017, Houston, Texas, USA

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SLIDE 2

The Impacts of Photovoltaic Electricity Self-Consumption

  • n Value Transfers Between Private and Public

Stakeholders in France.

  • Electric Prosumers
  • Modeling Pattern
  • Main study elements and hypothesis
  • Photovoltaic Production and Load Profiles
  • Simulations Results
  • Conclusions

2

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SLIDE 3

Photovoltaic Electricity Prosumers

A new Business Model

Utilities

Mandatory Purchase Tariff Through the public grid

The economic lever for the user remains the most important among several levers. ▪ Increase of electricity prices ▪ Decrease in the cost of photovoltaic systems ▪ Decrease in the mandatory purchase tariff

Full Injection

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SLIDE 4

Photovoltaic Electricity Prosumers

A new Business Model

4

Utilities

Mandatory Purchase Tariff Through the public grid

The economic lever for the user remains the most important among several levers. ▪ Increase of electricity prices ▪ Decrease in the cost of photovoltaic systems ▪ Decrease in the mandatory purchase tariff

Prosumers

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SLIDE 5

Photovoltaic Electricity Prosumers

A new Business Model

Utilities

Mandatory Purchase Tariff Through the public grid

Prosumers

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SLIDE 6

Photovoltaic Electricity Prosumers

Legislative context and goals

2015 2016 2017

Law for Energy Transition and Green Economic Growth (LTECV) 17th August 2015 Law for Electric Self- Consumption 24th February 2017 Order n°2016-1019 for Self- Consumption 27th July 2016 Presentation of the European Commission Green Energy Package 30th November 2016 Deadline of Requests for Proposals of Self-Consumption Projects (CRE)

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SLIDE 7

Photovoltaic Electricity Prosumers

Legislative context and goals

7

2015 2016 2017

Law for Energy Transition and Green Economic Growth (LTECV) 17th August 2015 Law for Electric Self- Consumption 24th February 2017 Order n°2016-1019 for Self- Consumption 27th July 2016 Presentation of the European Commission Green Energy Package 30th November 2016 Deadline of Requests for Proposals of Self-Consumption Projects (CRE)

▪ Energy transition and EnR development ▪ Management of the support policy and its cost ▪ Decentralization of the energy industry ▪ Participating citizens and local territories ▪ Setting up of a framework for the changes of the photovoltaic sector, and visibility for economic stakeholders

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SLIDE 8

Which stakeholder would benefit or suffer the most from the value transfers caused by photovoltaic electricity self-consumption compared to photovoltaic full injection?

French State

Photovoltaic User

Other citizens

Distribution System Operator

Utilities Municipalities Departments / Counties Transport System Operator

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SLIDE 9

Modeling Pattern

Self-Consumption Rate Economic Valuation Scheme Taxation Inputs General Inputs Load Profile Photovoltaic Electricity Production Profile Annual Electric Consumption Photovoltaic System Size Investment Required Electric Flows

Value Transfers Project Cost Project Income VAN

TURPE and Supply Tariffs CAPEX and OPEX Capacity of storage

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SLIDE 10

Study Framework

Electric Bill Structure

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Tariff for using public electricity grids (Fixed + Variable) mainly covers the costs of operations and investment of ENEDIS, the distribution system operator. It covers the costs necessary to the production of electricity or its purchase, the management of contracts and the mark-up of the utility. ▪ CSPE (Contribution to Public Electric Services): allows the State to cover charges of the electric public services assumed by historic suppliers (ex: EDF) like the mandatory purchase

  • f photovoltaic electricity or the tariff equalization.

▪ TCFE (Tax on Electric Final Consumption) split in a municipal tax (TCCFE) and a departmental tax (TDCFE). ▪ CTA (Contribution for Transmission) covers the pension of workers in the electric industry. ▪ VAT (Value Added Taxes): for the State. TURPE 5 HTA-BT Electricity Supply Taxes

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SLIDE 11

Study Framework

Electric Bill Structure – Without PV

11

100 200 300 400 500 600 700 800 900 €

792

200 400 600 800 1000 1200 1400 1600 1800 €

1639

2000 4000 6000 8000 10000 12000 14000 16000 €

14181

20000 40000 60000 80000 100000 120000 140000 €

118486

Household Commerce Small and Medium Business Industry

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SLIDE 12

Study Framework

The Economic Valuation Scheme

= 0

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SLIDE 13

Study Framework

The Economic Valuation Scheme

= 0

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SLIDE 14

Study Framework

The Economic Valuation Scheme

= 0 = 0

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SLIDE 15

Main Hypothesis

  • Investment made in 2017, in the South of France (Marseille) with

superimposed systems.

  • PV system size determined by the unitary PV production, the load profile

and the annual consumption.

  • TURPE 5 HTA-BT simplified.
  • Annual increase of the whole electric bill = 2%
  • Real discount rate = 4%
  • Electric self-consumption brings negligible costs or benefits to the electric grid

in comparison with the same development of decentralized photovoltaic systems, which are based on full injection.

  • The situation of RTE, the transmission system operator, is negligible in this

study.

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SLIDE 16

Photovoltaic Production and Load Profiles

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0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 kW Daily Hours

Winter Week / Weekend Summer Week / Weekend Mid-Season Week / Weekend

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 kW Daily Hours

Winter Summer Week / Weekend Mid-Season Week / Weekend

Household Commerce

5 10 15 20 25 30 35 40 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 kW Daily Hours

Winter Summer Week / Weekend Mid-Season Week / Weekend

Small and Medium Business

50 100 150 200 250 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 kW Daily Hours

Winter Summer Week / Weekend Mid-Season Week / Weekend

Industry

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SLIDE 17

Simulations Results

Annual Gain of Transferred Values

(With PV Self-Consumption compared to With PV Full Injection)

17

  • 34
  • 29

280

  • 71

146

  • 4
  • 8
  • 2
  • 61
  • 45

68

  • 326

214

  • 400
  • 300
  • 200
  • 100

100 200 300 400 State (TVA and CTA) State (CSPE collected) State (CSPE spent) State (Premiums spent) State (Total) Department, County (TDCFE) Municipality (TCCFE) Utility (Mark-up) ENEDIS (TURPE collected) User (Total) User (Subsidy and TVA Investment) User (Electricity Sales) User (Savings on Electric Bill) €/MWh_selfconsumed

  • 1
  • 29

222

  • 60

132

  • 4
  • 8
  • 2
  • 54
  • 55

60

  • 268

154

  • 300
  • 200
  • 100

100 200 300 State (TVA and CTA) State (CSPE collected) State (CSPE spent) State (Premiums spent) State (Total) Department, County (TDCFE) Municipality (TCCFE) Utility (Mark-up) ENEDIS (TURPE collected) User (Total) User (Subsidy and TVA Investment) User (Electricity Sales) User (Savings on Electric Bill) €/MWh_selfconsumed

Household Commerce

French State Utility Department Municipality Distribution System Operator User

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SLIDE 18

Simulations Results

Annual Gain of Transferred Values

(With PV Self-Consumption compared to With PV Full Injection)

18

  • 2
  • 29

102

  • 6

65

  • 1
  • 3
  • 2
  • 38

2 6

  • 149

144

  • 200
  • 150
  • 100
  • 50

50 100 150 200 State (TVA and CTA) State (CSPE collected) State (CSPE spent) State (Premiums spent) State (Total) Department, County (TDCFE) Municipality (TCCFE) Utility (Mark-up) ENEDIS (TURPE collected) User (Total) User (Subsidy and TVA Investment) User (Electricity Sales) User (Savings on Electric Bill) €/MWh_selfconsumed

  • 29

11

  • 18
  • 2
  • 15

60

  • 57

117

  • 100
  • 50

50 100 150 State (TVA and CTA) State (CSPE collected) State (CSPE spent) State (Premiums spent) State (Total) Department, County (TDCFE) Municipality (TCCFE) Utility (Mark-up) ENEDIS (TURPE collected) User (Total) User (Subsidy and TVA Investment) User (Electricity Sales) User (Savings on Electric Bill) €/MWh_selfconsumed

Small and Medium Business

Industry ▪ Benefits for the user. ▪ Shortfall in each situation for the distribution system operator. ▪ Shortfall for the French State with projects above 100 kWp.

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SLIDE 19

Simulations Results

Household Commerce Small and Medium Business Minimizing Mandatory Purchase Tariff for surplus (€/kWh) 0,15 0,15 0,13 Retail Market Price on 25 years (€/kWh) 0,21 0,19 0,15

How to minimize the delta between the higher positive and negative value transfer by stakeholder, given a mandatory purchase tariff for full injection?

 To reach this minimum, the Mandatory Purchase Tariff for the surplus of self- consumption appears lower than the Retail Market Price (and above the Wholesale Market Price).  Not possible for projects of big industries.  Competitiveness of Self-Consumption on Full Injection

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SLIDE 20

Simulations Results

Profitability and Competitiveness

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Household Commerce Small and Medium Business Industry Self-Consumption Rate 30% 50% 70% 30% 50% 70% 50% 70% 90% 70% 90% 100 % Peak Power (kWp) 5 3 2 12 7 4 88 56 36 551 356 192 VAN Full Injection (in €) VAN Self- Consumption (in €)

VAN > 0 VAN < 0 Competitiveness of Self- Consumption

▪ Profitable with difficulty for Household ▪ Easily profitable for projects with a big installation and high electric demand (above 36kWp) ▪ Competitive with difficulty for Household and Commerce ▪ Competitive dependent on the specificity of the projects for small and medium business profiles ▪ Easily competitive for projects of industry profiles

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SLIDE 21

To Add and Conclude

▪ Photovoltaic self-consumption with an oversized system, rather than a high self- consumption rate, is less profitable and not competitive compared to full injection. ▪ The distribution system operator, ENEDIS, would suffer from shortfall for every project of self-consumption compared to full injection. ▪ Apart from installations in industry profiles, the French State would benefit from savings. ▪ The user get benefit from the value transfers in the case of profiles with a high electric load and a photovoltaic installation sized for a high self-consumption rate.

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SLIDE 22

Thank you for your attention !