Financial impact of solar distributed generation's growth on distribution companies revenue

Several countries around the world experienced growth on the electricity distributed generation by renewable sources in the past years. Brazil is endowed with the fundamental characteristics for the economical feasibility of distributed generation systems: excellent natural resources and high retail electricity tariffs. Given these conditions, it is expected an increasing share of the participation of distributed generation sources in the Brazilian electricity mix over the next years. This expansion brings technical, economical and regulatory challenges for the energy companies, especially for the utilities companies. It is expected for these companies to experience a revenue loss, caused by the retail market customers' self-generation and the net-metering system. Therefore, this study intends to forecast the economical trend of the growth of distributed generation systems connected to the grid, and evaluate the impacts on the generation, transmission and distribution sectors.