Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia
As the cost of solar photovoltaic (PV) falls, their potential for transforming modern electricity generation increases. Solar PV provides a simpler way of producing clean and affordable energy, which makes it an attractive investment. Great investments in solar PV have occurred in industrialized cou...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2018-10-01
|
| Series: | Energies |
| Subjects: | |
| Online Access: | http://www.mdpi.com/1996-1073/11/10/2614 |
| _version_ | 1828115233417199616 |
|---|---|
| author | Monica Castaneda Sebastian Zapata Andres Aristizabal |
| author_facet | Monica Castaneda Sebastian Zapata Andres Aristizabal |
| author_sort | Monica Castaneda |
| collection | DOAJ |
| description | As the cost of solar photovoltaic (PV) falls, their potential for transforming modern electricity generation increases. Solar PV provides a simpler way of producing clean and affordable energy, which makes it an attractive investment. Great investments in solar PV have occurred in industrialized countries, but government efforts to promote this technology have not been effective in nonindustrialized countries. Despite this, some of these countries may have a high solar PV potential, such as Colombia, where policies to encourage solar PV are only just starting to take place. Therefore, this paper proposes a simulation model to assess different policies—feed-in tariff, net metering, and capital subsidy—to promote solar PV investments in the Colombian residential sector. Policies are assessed considering the criteria of efficiency and effectiveness. Simulation results suggest that (i) net metering is the most efficient policy with a cost indicator of 20,298 USD/MW; (ii) feed-in tariff is the most effective policy as it reaches the highest level of avoided CO2 emissions—4,792,823 million tons of CO2—and a meaningful PV installed capacity of 7522 MW; (iii) capital subsidy is the least efficient policy as it has the highest cost indicator of 509,616 USD/MW. |
| first_indexed | 2024-04-11T12:35:51Z |
| format | Article |
| id | doaj.art-acde242f21214fe4afb0892661389468 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-11T12:35:51Z |
| publishDate | 2018-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-acde242f21214fe4afb08926613894682022-12-22T04:23:37ZengMDPI AGEnergies1996-10732018-10-011110261410.3390/en11102614en11102614Assessing the Effect of Incentive Policies on Residential PV Investments in ColombiaMonica Castaneda0Sebastian Zapata1Andres Aristizabal2Department of Engineering, Natural Sciences and Engineering Faculty, Universidad Jorge Tadeo Lozano, Bogota 110311, ColombiaDepartment of Engineering, Natural Sciences and Engineering Faculty, Universidad Jorge Tadeo Lozano, Bogota 110311, ColombiaDepartment of Engineering, Natural Sciences and Engineering Faculty, Universidad Jorge Tadeo Lozano, Bogota 110311, ColombiaAs the cost of solar photovoltaic (PV) falls, their potential for transforming modern electricity generation increases. Solar PV provides a simpler way of producing clean and affordable energy, which makes it an attractive investment. Great investments in solar PV have occurred in industrialized countries, but government efforts to promote this technology have not been effective in nonindustrialized countries. Despite this, some of these countries may have a high solar PV potential, such as Colombia, where policies to encourage solar PV are only just starting to take place. Therefore, this paper proposes a simulation model to assess different policies—feed-in tariff, net metering, and capital subsidy—to promote solar PV investments in the Colombian residential sector. Policies are assessed considering the criteria of efficiency and effectiveness. Simulation results suggest that (i) net metering is the most efficient policy with a cost indicator of 20,298 USD/MW; (ii) feed-in tariff is the most effective policy as it reaches the highest level of avoided CO2 emissions—4,792,823 million tons of CO2—and a meaningful PV installed capacity of 7522 MW; (iii) capital subsidy is the least efficient policy as it has the highest cost indicator of 509,616 USD/MW.http://www.mdpi.com/1996-1073/11/10/2614feed-in tariffnet meteringcapital subsidyPV adoptionefficiencyeffectivenessCO2 emissions |
| spellingShingle | Monica Castaneda Sebastian Zapata Andres Aristizabal Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia Energies feed-in tariff net metering capital subsidy PV adoption efficiency effectiveness CO2 emissions |
| title | Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia |
| title_full | Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia |
| title_fullStr | Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia |
| title_full_unstemmed | Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia |
| title_short | Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia |
| title_sort | assessing the effect of incentive policies on residential pv investments in colombia |
| topic | feed-in tariff net metering capital subsidy PV adoption efficiency effectiveness CO2 emissions |
| url | http://www.mdpi.com/1996-1073/11/10/2614 |
| work_keys_str_mv | AT monicacastaneda assessingtheeffectofincentivepoliciesonresidentialpvinvestmentsincolombia AT sebastianzapata assessingtheeffectofincentivepoliciesonresidentialpvinvestmentsincolombia AT andresaristizabal assessingtheeffectofincentivepoliciesonresidentialpvinvestmentsincolombia |