Low Voltage Non-Isolated Microgrid Integration for Increased Reliability in Brazil: an Economic Perspective for Utilities
Abstract
Low voltage non-isolated microgrids, integrated into distribution grids considering the intentional islanding of distributed energy resources, can be an interesting alternative to improve the distribution system reliability, especially considering the need of increased service continuity in several regions. This paper discusses a possible business model for the integration of non-isolated microgrids employed by distribution utilities, considering the current regulatory framework in Brazil, and the incentives for improved reliability. First, key characteristics of power distribution reliability in the Brazilian context are briefly introduced, followed by a description of the current regulatory framework on the incentives for improved reliability and the possible adoption of non-wire alternatives in power distribution planning. Second, a detailed economic analysis of microgrid integration is presented, considering several scenarios for a utility in Brazil, making it possible to identify the main factors that influence the feasibility of microgrid integration from both technical and economic perspectives. The data used for the analysis carried out in this paper is open and can be obtained from the regulatory agency database, while the methodology developed in this paper can be also applied to different scenarios worldwide.
Keywords
Power distribution planning, Low voltage Microgrids, Reliability, Distributed Energy Resources, Economic Analysis