Track N | Energy Management Around the Globe
The Dominican Republic Power Sector has been in crisis since the Reform in 1999. The Reform aims to promote private investment in Generation and distribution activities. The problem is related to the high losses of the electric utilities, due to the lack of commercial management and energy stealing from users. As 2016, the total losses in distribution companies were above 31%, resulting in financial losses and to all parties of the power sector. One of the issues increasing the systematic problem in the power sector is the stealing of electricity from users aggregated in neighborhoods with losses higher than 50% of the electricity serve in those areas. To cover the economical deficit of Distribution Companies (state owned), the government has to put in subsidy above 1,000 Million dollars (USD) per year, that include a social subsidy (around 30%) but also the complementary funds to pay the generation bills and cover the non-technical losses of the system. The solutions consider for stealing, are based on network solutions y telemetry, with capital expenditures per user above the 700 dollars (USD/user). The estimated number of informal users of electricity is around 600,000, resulting in more than 450 Million dollars of investment, for a period of seven years. Taking the equivalent annual cost of investments and the average cost of subsidy in USD/kWh, result in 0.101 USD/kWh. Other action that can be done for this problem, is to empower those illegal users, by given the possibility of producing their one energy, and exporting to the grid of the Discos. For that, the energy balance between the Discos and users should benefit the Discos, without cost. For example, in Santo Domingo, each kW of solar PV can produce per year, around 1,500 kWh. And with the decreasing cost of this technology, the Levelized cost of production around 0.096 USD/kWh. This proposal aims to demonstrate the possibility of reducing the level of subsidies and losses of the system, providing solar PV to the illegal users for self-production. That means that the Discos will give Solar Panel to those illegal users, instead of the deployment of distribution grid and telemetry, that in the experience should be accompanied with commercial actions to have success. Of course, the installed capacity will be rooftop (in some places) and utility scale in other. With the electricity produce the Discos will supply the illegal users, eliminating the actual subsidy and reducing the level of investments in the Grid. The selected capacity is 2.5 kW per user for self-production and the analysis of the optimal location of the generation is considered, to promote a reduction of technical losses of the distribution system. Also, the developed of the electric cooperative will need it to promote the social inclusion of all users in the system. The required investment is 1,500 Million dollars. Of course, with these, the government will avoid the 1,000 Million dollars per years for the Power Sector Sustainability. With a simple approach this solution result in saving of 665 Million dollars (Net present Value), and the reduction almost of the 50% of the actual losses.
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