Considered one of the most economical and sustainable forms, distributed energy generation is nothing more than a nomenclature used to characterize an electrical generation system installed next to or close to the consumer.
In Brazil this term ended up being very related to Resolution 482/2012, who advanced with the Law 14.300 / 2022 e Resolution 1.059/2023 and which has net metering as the central form of operation of these projects in the ACR (Regulated Contracting Environment).
However, more recently the operation of solar projects with the load in the ACL (Free Contracting Environment) takes into other regulations, but it is still a distributed solar project.
In recent years, this modality has been part of a series of modernizations promoted in the Brazilian electricity sector to expand the ways in which people consume energy.
It basically opposes centralized generation – which corresponds to the use of large projects (such as hydroelectric, thermoelectric, wind and solar plants) far from consumption centers, which requires the transportation of energy generated on site by long-distance transmission lines.
In the case of distributed energy generation, considering the 1.000 Resolution, the modality is divided into two groups: microgeneration and minigeneration.
In microgeneration, the installed energy system has a power of less than or equal to 75 kW. This group generally includes homes and commercial establishments.
In the case of mining, the generating plant has an installed power greater than 75 kW and less than or equal to 3 MW, being a common application in remote generation projects, which, through the aggregation of loads, serve more than one generating unit.
What are the types of distributed generation?
Within distributed energy generation, according to Resolution 1.000, there are four well-defined business modalities with their own peculiarities. They are:
Generation close to the load
This is the best-known form of distributed generation. In this case, the energy system is installed at the same address and at the same connection point to the distribution network as the consumer unit.
A classic example of this is the installation of a solar energy system on the roof of a home or commercial establishment to generate energy from sunlight, aiming to reduce the cost of the electricity bill.
In these locations, the energy generated is only used to reduce the consumption of the property itself, making it impossible to transfer excess energy credits to other units.
shared generation
It is one of the most affordable ways for consumers to have clean energy generation systems in their home or business.
This modality is characterized by the possibility of a group of individuals or legal entities, through a consortium or cooperative, to share energy from a larger solar farm, often built by third parties who aim to invest in the plant to rent it to the group of consumers.
For this to work, interested consumers must all be in the same concession area, where the plant was built.
Those who participate in this type of business model save both on the initial investment, which is shared with others, and on the electricity bill, which is also lower.
Remote self-consumption
In this model, the same legal entity or individual can generate energy on a property through the installation of a renewable energy plant and distribute the surplus credit (leftover energy that was not used).
In other words, the credits can be deducted from the electricity bill of the unit in which the consumer is located as well as that of other properties, as long as they are all under the same ownership and within the distributor's service area.
This modality is recommended to serve, for example, a company that has a solar energy system installed and wants to use the surplus to reduce the electricity bills of its branches.
In the case of residential consumers, a good example is a person who lives in the city and has a holiday home in the countryside or on the beach, where they can install their photovoltaic system.
Thus, each month, the energy generated there is injected into the grid and converted into credits that will then be used to reduce the consumer's home consumption in the city.
Projects with multiple consumer units
The modality is made up of consumer units that are located in the same place, but use electrical energy independently.
This method is very commonly used in residential or commercial condominiums, where participants (condominium owners) come together to invest in a distributed generation system to be installed on site, that is, in a common area of the development.
The system can therefore be used to serve common areas of the condominium, in addition to generating credits that will be distributed to condominium owners according to their participation and used by them to reduce consumption in their respective units.
For example, Henrique, Daiana and Rubens are neighbors and live in the same building. This residential development has a distributed generation system to reduce the consumption of the residents. Therefore, a percentage (fraction) of the project's energy injection will be allocated to each of them.
What are the advantages of distributed energy generation?
Distributed energy generation has a series of advantages from an economic, environmental and social point of view for the consumer, such as:
Loss reduction
With the decentralization of generation, energy can be produced at the very location where it will be consumed or close to consumption centers. This avoids the need to transport energy over long distances, which reduces losses and makes the electrical system more efficient, in addition to avoiding high investments in transmission lines.
Expansion of investments
Distributed energy generation encourages people and companies to produce their own energy. Investment is made with own capital or financed, boosting local economies, given that investments are made in a decentralized manner.
Expansion of the energy matrix
Distributed energy generation allows for the rapid expansion of the country's electricity supply, which leads to reduced costs and increased availability of electricity in the country.
Clean energy
Distributed energy generation encourages the use of clean and alternative sources, making electricity generation more environmentally friendly.
Job creation
By encouraging the installation of hundreds of thousands of small electricity generators, distributed energy generation spreads investments, creates local jobs and moves various sectors of the economy, from manufacturing to the installation of systems.
The rules of distributed energy generation
The figure of distributed energy generation was created in 2004 in Brazil through Federal Government Decree Law 5163, but it was not very accessible to all consumers.
The modality only began to become accessible in April 2012, when the ANEEL (National Electric Energy Agency) created Normative Resolution 482, allowing the general population access to micro and mini distributed generation systems.
In practice, the decision meant that Brazilians with an active CNPJ or F were authorized to generate their own energy from renewable sources, such as solar energy on rooftops.
The decision regulated the connections of mini and micro distributed energy generation and introduced the SCEE (Electric Energy Compensation System).
In 2015, through Normative Resolution 697, the Agency revised the current legislation, expanding the capacity of mini-generations from 1 MW to 5 MW and allowing the advancement of other types of distributed generation for consumers, such as shared generation.
However, despite having well-defined rules, as a result of the increasing growth of the photovoltaic source in the country, including the strengthening of entities and associations, one of the major issues that began to bother was the lack of rules related to energy compensation for the future and legislation that would provide greater legal security for DG participants.
RES 687/2015 already provided for a review of the rules in 2019, ANEEL carried out the entire discussion process for the new GD rules, including Public Consultation and Public Hearing. The Public Hearings related to the new GD rules broke records in of the number of participants.
Finally in October 2019 after discussing a series of alternatives for offsetting credits to ANEEL published a Technical Note choosing the worst alternative, in addition to which the transition rule defined that all GD participants would migrate to the new compensation rule in 2030.
This result created a great revolt in the sector, leading to the discussion in Congress in November 2019, paralyzing the process led by ANEEL.
Discussions on the new DG rules took place through Bill 5.829, to address the creation of the legal and regulatory framework for the sector. In early 2020, the COVID-19 pandemic led Congress to new priorities, leaving this discussion aside for a while.
The discussion lasted for many years, until it was voted on and approved by the Chamber of Deputies and the Senate in the second half of 2021, being sanctioned by then-president Jair Bolsonaro in January 2022. The text thus became Law (the famous Law 14.300).
After being approved in Brasília (DF), the text was forwarded for a technical and feasibility analysis by the ANEEL. The body approved the document, through Regulation 1.059, in February 2023, and the consolidation of Resolution 1.000.
What sources can be used in distributed energy generation?
Distributed energy generation can employ solar energy, wind, biomass or small hydroelectric plants.
Photovoltaic systems installed on the roofs of homes and businesses are examples of distributed generators, as they correspond to mini or micro-plants that generate energy for self-consumption.
Distributed generators operate in parallel with the traditional electrical grid. This means that the consumer is simultaneously powered by the electricity grid and their own generator.
Among all sources, solar photovoltaic is the most suitable for distributed generation, as it is possible to generate electrical energy in any area where it is possible to install solar s, such as on roofs, parking lots or even on the ground.
How does distributed generation work in Brazil?
In Brazil, the way distributed energy generation is implemented is through SCEE and works as follows: the generating units produce energy, and the surplus is injected into the grid, generating credits with the distributor. On the energy bill, the distributor offsets the credits, generating a reduction in energy costs.
Thus, if all or part of the electricity generated, for example, by a photovoltaic system is not used, the consumer automatically s a credit balance with the concessionaire that supplies him/her. This credit can be used in the energy bill for the next period. If necessary, the credit can be offset in up to 60 months.
The energy generated by the solar system goes to the home's distribution . If, at the time the energy is being generated, there is consumption at the location (lights on, shower, television), this energy supplies these loads, we call this phenomenon of generating energy and consuming it at the same time simultaneity.
From a physical point of view, if the energy generation exceeds the local self-consumption, the energy is exported to the grid, and will probably be consumed by neighboring loads. When the energy required by the residence is greater than what the solar generator is producing, this supplement will be imported from the grid, this consumption will appear on the energy bill later.
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Conclusion
As we have seen, distributed energy generation in Brazil plays an important role in democratizing the population's access to cheaper, cleaner and more efficient energy. This method already supplies energy everywhere, being present in the countryside, in cities, in commerce, in industry and in the consumer's home.
Thus, distributed energy generation not only drives the Brazilian economy – with the generation of green jobs, public and private investments, and broadly benefits our entire population. It is no wonder, for example, that nine in every 10 Brazilians have already expressed the desire to generate their own energy, according to data updated by Ibope.
