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
The Impacts of Photovoltaic Electricity Self-Consumption on 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
Photovoltaic Electricity Prosumers A new Business Model Full Injection Mandatory Purchase Tariff Utilities 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
Photovoltaic Electricity Prosumers A new Business Model Prosumers Mandatory Purchase Tariff Utilities 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 4
Photovoltaic Electricity Prosumers A new Business Model Prosumers Mandatory Purchase Tariff Utilities Through the public grid
Photovoltaic Electricity Prosumers Legislative context and goals Law for Energy Transition and Green Economic Growth (LTECV) 17 th August 2015 Order n 2016-1019 for Self- Consumption 27 th July 2016 Law for Electric Self- Consumption 24 th February 2017 2015 2016 2017 Deadline of Requests for Proposals of Self-Consumption Projects (CRE) Presentation of the European Commission Green Energy Package 30 th November 2016
Photovoltaic Electricity Prosumers Legislative context and goals Law for Energy Transition and Green Economic Growth (LTECV) 17 th August 2015 Order n 2016-1019 for Self- Consumption 27 th July 2016 Law for Electric Self- Consumption 24 th February 2017 2015 2016 2017 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 Presentation of the European Commission Green Energy Package 30 th November 2016 7
Which stakeholder would benefit or suffer the most from the value transfers caused by photovoltaic electricity self-consumption compared to photovoltaic full injection? Other citizens French State Photovoltaic User Distribution System Operator Transport System Operator Municipalities Departments / Counties Utilities
Modeling Pattern CAPEX and OPEX Load Profile Annual Electric Consumption Photovoltaic Electricity Production Profile Self-Consumption Rate Capacity of storage Photovoltaic System Size Investment Required Electric Flows Economic Valuation Scheme Value Transfers Project Cost Project Income VAN Taxation Inputs General Inputs TURPE and Supply Tariffs
Study Framework Electric Bill Structure TURPE 5 HTA-BT Tariff for using public electricity grids (Fixed + Variable) mainly covers the costs of operations and investment of ENEDIS, the distribution system operator. Electricity Supply It covers the costs necessary to the production of electricity or its purchase, the management of contracts and the mark-up of the utility. Taxes 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 of 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. 10
Study Framework Electric Bill Structure Without PV Household Commerce Small and Medium Business Industry 900 792 1800 1639 16000 14181 140000 118486 800 1600 14000 120000 700 600 500 400 300 200 1400 1200 1000 800 600 400 12000 10000 8000 6000 4000 100000 80000 60000 40000 100 200 2000 20000 0 0 0 0 11
Study Framework The Economic Valuation Scheme = 0
Study Framework The Economic Valuation Scheme = 0
Study Framework The Economic Valuation Scheme = 0 = 0
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.
kw kw kw kw 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Photovoltaic Production and Load Profiles Winter Household Summer Week / Weekend Mid-Season Week / Weekend 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 Daily Hours 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Winter Week / Weekend Commerce Summer Week / Weekend Mid-Season Week / Weekend 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 Daily Hours 40 35 30 25 Winter Small and Medium Business Summer Week / Weekend Mid-Season Week / Weekend 250 200 150 Winter Industry Mid-Season Week / Weekend 20 15 10 100 50 Summer Week / Weekend 5 0 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 Daily Hours 0 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 0 6 12 18 Daily Hours 16
Commerce Household Simulations Results Annual Gain of Transferred Values (With PV Self-Consumption compared to With PV Full Injection) User (Savings on Electric Bill) User (Electricity Sales) User (Subsidy and TVA Investment) User (Total) ENEDIS (TURPE collected) Utility (Mark-up) Municipality (TCCFE) Department, County (TDCFE) State (Total) State (Premiums spent) State (CSPE spent) State (CSPE collected) State (TVA and CTA) User (Savings on Electric Bill) User (Electricity Sales) User (Subsidy and TVA Investment) User (Total) ENEDIS (TURPE collected) Utility (Mark-up) Municipality (TCCFE) Department, County (TDCFE) State (Total) State (Premiums spent) State (CSPE spent) State (CSPE collected) State (TVA and CTA) -326-45 -61-2 -8-4 -71-29 -34 68 146 214 280-400 -300-200 -100 0 100 200 300 400-268 /MWh_selfconsumed -55-54 -60-2 -8-4 -29-1 60 132 154 222-300 -200-100 0 100 200 300 /MWh_selfconsumed French State Utility Department Municipality User Distribution System Operator 17
Industry Small and Medium Business Simulations Results Annual Gain of Transferred Values (With PV Self-Consumption compared to With PV Full Injection) User (Savings on Electric Bill) User (Electricity Sales) User (Subsidy and TVA Investment) User (Total) ENEDIS (TURPE collected) Utility (Mark-up) Municipality (TCCFE) Department, County (TDCFE) State (Total) State (Premiums spent) State (CSPE spent) State (CSPE collected) State (TVA and CTA) User (Savings on Electric Bill) User (Electricity Sales) User (Subsidy and TVA Investment) User (Total) ENEDIS (TURPE collected) Utility (Mark-up) Municipality (TCCFE) Department, County (TDCFE) State (Total) State (Premiums spent) State (CSPE spent) State (CSPE collected) State (TVA and CTA) -149-38 -29-2 -3-1 -6-2 6 2 65 102 144-200 -150-100 -50 0 50 100 150 200-57 -29-15 -18 /MWh_selfconsumed -2 0 0 0 0 0 11 60 117-100 -50 0 50 100 150 /MWh_selfconsumed Benefits for the user. Shortfall in each situation for the distribution system operator. Shortfall for the French State with projects above 100 kwp. 18
Simulations Results How to minimize the delta between the higher positive and negative value transfer by stakeholder, given a mandatory purchase tariff for full injection? Household Commerce Small and Medium Business Minimizing Mandatory Purchase Tariff for surplus ( /kwh) Retail Market Price on 25 years ( /kwh) 0,15 0,15 0,13 0,21 0,19 0,15 To reach this minimum, the Mandatory Purchase Tariff for the surplus of selfconsumption 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
Simulations Results Profitability and Competitiveness 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 Self-Consumption Rate Household Commerce Small and Medium Business Industry 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 20
To Add and Conclude Photovoltaic self-consumption with an oversized system, rather than a high selfconsumption 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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