2021 Volume 42 Issue 3 Pages 108-118
Residential solar photovoltaic (PV) system has been in widespread use since the FIT program which began in 2012 and has phased out after 2019. The problem of decreasing collection of wheeling charge and the associated disparity in cost burden is a problem caused by the massive introduction of residential PV. The current wheeling charge system is mainly based on a pay-as-you-go system. Therefore, when residential PV is installed in large numbers, the demand for grid electricity decreases. As a result, there will be a shortfall in the collection of wheeling charge by transmission and distribution (T&D) sectors. This results in an increase in the price of the wheeling charge. This leads to an increase in the cost burden for households without residential PV installations. On the other hand, households with residential PV installations will be able to reduce the cost burden of the transmission tariff. This is the problem of cost-sharing disparity. This study develops a bottom-up energy model based on a cost-effective technology selection. By assuming various wheeling charge systems, the authors analyzed the optimal wheeling charge system not causing the cost burden gap problem. A result reveals that the current wheeling charge system requires an increase in the unit price of the wheeling charge and causes cost burden disparity problems. The solution to this problem is to increase the basic rate ratio and to introduce a partial generation charge.
