Assessing the effect of incentive policies on residential pv investments in Colombia
Registro en:
instname:Universidad de Bogotá Jorge Tadeo Lozano
reponame:Repositorio Institucional de la Universidad de Bogotá Jorge Tadeo Lozano
Autor
Castaneda, Monica
Zapata, Sebastian
Aristizabal, Andres
Institución
Resumen
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.