IEEE Power & Energy Magazine - July/August 2015 - 85

table 3. A summary of the distribution pricing structure.

United
Kingdom

Germany

Spain

Brazil

Chile

India

Retail market-
Consumers can
choose their own
supplier

Yes

Yes-but only if
demand ≥ 3 MW

Yes-but
only if
demand ≥
2 MW

Yes-restricted
consumers

Charges set for
annual use of the
system

Yes-further
converted
into hourly
charges

Yes

Time period tariff

Peak and off
peak

Time-differentiated
tariff for consumer
over night

LV-flat tariff,
two or three time
periods

EHV/MV-time
of use

Flat tariffs

MV-three or six
time periods

LV-flat tariffs

Flat tariffs,
except for
high-value
consumers

Yes-
subsidization
of wheeling
charges and
energy banking

EHV-six time
periods
Specific tariff
for distributed
generation (feedin-tariff)

Yes-
renewable
obligation
certificate

Yes-avoided
network charges
of higher voltage
levels

Yes-flat feed-intariffs and UoS
charges for DG

In Brazil, since 2009 a locational tariff has been set to
generation connected to 138 and 88 kV networks. Other generations embedded at the distribution grid pay an average
consumer tariff.
In India, renewable energy is predominantly available
in the form of distributed generation. To promote renewable generation, a two-pronged strategy via demand and
supply has been adopted. On the demand side, accounting for specific resource availability, state electricity
regulatory commissions require distribution utilities
to purchase a minimum percentage (from 2 to 10%) of
renewable energy. On the supply side, competitive bidding has been set as the preferential route for renewable power purchase, but because there are few renewable power developers, encouraging rates are not being
offered. The subsidization of wheeling rates and energy
banking has also been offered to encourage renewable
power. The central electricity regulatory commission is
also contemplating free-wheeling for renewable power on
an interstate transmission network, to allow access to the
highest-paying bidder.
In Germany, distributed generation is recompensed for
avoided transmission network charges, which are avoided by
feeding into the distribution network. Renewable generation
receives a feed-in tariff. The level of the tariff is dependent
on technology and the size of the generator.
In Spain, renewable generation and CHP receive a feedin tariff, depending on the technology and the size of the
generator, although recently these tariffs have been reduced
and, in some cases, eliminated. These incentives are updated
by the regulator and are the same for all the generators in
july/august 2015

Yes-locational
tariff only for
generation
connected to
138/88 kV

Spain; there are no locational signals. As mentioned, DGs
pay a flat € 0.5/MWh UoS charge.
In Chile, there is no feed-in tariff for any generation. As
of 2010, a minimum nonconventional renewable energy
quota requirement was set for contracts, including all
renewables except hydro generation over 20 MW, starting
from 5% and growing to 20% by 2025. While exception
of transmission wheeling tariffs is given to this energy, no
exception is made for distribution charges.
In China, there is no specific tariff for distributed generation or microgeneration.

figure 6. Completed installation for home-area energy
storage to work together with photovoltaic generation and
a local DC network. (Source: Western Power Distribution,
United Kingdom.)
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