Self-supply and regulated tariffs: Dynamic equilibria between photovoltaic market evolution and rate structures to ensure network sustainability

This research analyses the impacts of substantial changes in energy production driven by self-supply through Photovoltaic (PV) adoption. Three different regulatory design options are analysed with a model developed to estimate the evolution of self-supply deployment as a function of price by: (i) starting with the actual tariff structure and parameters; (ii) introducing a new network usage component for rate-payer energy suppliers, and (iii) evolving towards higher allowed revenues recovered through fixed charges under the tariff. The results of the analysis suggest that gradual transitions toward higher fixed Network Access charges do not dissuade PV deployment.