Bi-level optimization of electricity tariffs and PV distributed generation investments

Distributed Generation (DG) is providing end consumers the possibility to satisfy part of their electricity consumption by using their own small-scale power generators. To regulate DG, new regulation schemes are needed, being net metering one of the most used. However, regulators appreciate that net metering could jeopardize the incomes to cover the regulated activities' cost. This paper proposes a mathematical bi-level model to obtain the evolution of the access tariffs and their corresponding incomes needed to cover the regulated costs, as well as the optimal DG investment of the consumers under a net metering regulation, in a simplified framework.