The impact of residential photovoltaic power on electricity sales revenues in Cape Town,South Africa |
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| Affiliation: | 1. Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences, A-1180 Vienna, Austria;2. Energy Institute, University College London, 14 Upper Woburn Place, London, United Kingdom;3. Energy Research Centre, University of Cape Town, Rondebosch 7701, Cape Town, South Africa;4. Energy Planning Program, Universidade Federal de Rio de Janeiro, Ilha do Fundão, Rio de Janeiro, Brazil;1. University of Utah S.J. Quinney College of Law, United States;2. School of Public and Environmental Affairs, Indiana University, United States;1. The Brew-Hammond Energy Centre, College of Engineering, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana;2. Faculty of Environmental Sciences and Natural Resource Management, Norwegian University of Life Science, Ås, Norway;3. Department of Mechanical Engineering, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana;1. Instituto de Investigación Multidisciplinar en Ciencia y Tecnología, Universidad de La Serena, La Serena 1720170, Chile;2. University of Technology Sydney, Institute for Sustainable Futures, Sydney, NSW 2007, Australia;1. LBJ School of Public Affairs, The University of Texas at Austin, USA;2. Jackson School of Geosciences, The University of Texas at Austin, USA;3. Mechanical Engineering Department, The University of Texas at Austin, USA |
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| Abstract: | In South Africa, electricity is provided as a public service by municipalities. The combination of (a) rising electricity rates, (b) decreasing photovoltaic technology costs, and (c) a progressive tariff system (under which wealthier households support low tariff rates for indigent residents) leads to incentives for high-income households to cover part of their electricity demand by self-produced photovoltaic (solar) electricity. This development is simulated with hourly load profiles and radiation data, and an optimization model for a case study in Cape Town through the year 2030. Results indicate that the majority of higher-income residents are incentivized to invest in photovoltaic power production by 2020 and additionally use home battery systems by 2028. This leads to a steadily increasing gap between revenues and expenditure needs in the budget of the municipality. The budget gap can be reduced by replacing the energy-based tariff with a revenue-neutral fixed network-connection fee implementation of which is particularly effective in reducing incentives to invest in storage. |
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| Keywords: | South Africa Residential photovoltaic Public revenues |
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