Proposals for Regulatory Framework Modifications for Microgrid Insertion–The Brazil Use Case

This work presents a detailed view on how the current policy scenario for the electricity sector in Brazil is prepared to absorb the concept of microgrids in both its technical and commercial scope. The main focus is on how we can move towards consistent and fair regulation in which all parties involved in the distributed generation sector are satisfied with their duties and rights. The current regulation framework does not explicitly tackle microgrids, but allows them to be connected into the distribution grid. However, the adoption of microgrids could be wider and fairer for their stakeholders through deeper technical understanding and consequent proposals for improvements to that regulation. Based on the assumption that the concept of microgrids has benefits for the environment and society, the intention of this work is to contribute to policy analysis that serve to leverage the insertion of microgrids in the context of the Brazilian energy sector. Thus, our main objective is that stakeholders are able to guide themselves and find proper implementation of their projects and realize the technical, societal and commercial benefits. The focus of the article is limited to microgrids inserted within the coverage area of distribution utilities. Therefore, the power grid is available to the connection, as long as it is operational. Nevertheless, the possibilities of islanded operation are explored. More than the availability of the grid under normal operation conditions, raising levels of interaction and cooperation for mutual gain and how the grid-microgrid relationship could be improved is the main focus. Finally, numerical simulations with the analysis of an actual deployment of a microgrid in a residential condominium in Brazil are used to illustrate the impacts of the proposals.