Mayr D., Schmid E., Trollip H., Zeyringer M., Schmidt J.
Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences, Vienna, Austria; Energy Institute, University College London, 14 Upper Woburn Place, London, United Kingdom; Energy Research Centre, University of Cape Town, Rondebosch, Cape Town, South Africa; Energy Planning Program, Universidade Federal de Rio de Janeiro, Ilha do Fundão, Rio de Janeiro, Brazil
Mayr, D., Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences, Vienna, Austria, Energy Research Centre, University of Cape Town, Rondebosch, Cape Town, South Africa; Schmid, E., Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences, Vienna, Austria; Trollip, H., Energy Research Centre, University of Cape Town, Rondebosch, Cape Town, South Africa; Zeyringer, M., Energy Institute, University College London, 14 Upper Woburn Place, London, United Kingdom; Schmidt, J., Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences, Vienna, Austria, Energy Planning Program, Universidade Federal de Rio de Janeiro, Ilha do Fundão, Rio de Janeiro, Brazil
In South Africa, electricity is provided as a public service by municipalities. The combination of (a) rising electricity rates, (b) decreasing photovoltaic technology costs, and (c) a progressive tariff system (under which wealthier households support low tariff rates for indigent residents) leads to incentives for high-income households to cover part of their electricity demand by self-produced photovoltaic (solar) electricity. This development is simulated with hourly load profiles and radiation data, and an optimization model for a case study in Cape Town through the year 2030. Results indicate that the majority of higher-income residents are incentivized to invest in photovoltaic power production by 2020 and additionally use home battery systems by 2028. This leads to a steadily increasing gap between revenues and expenditure needs in the budget of the municipality. The budget gap can be reduced by replacing the energy-based tariff with a revenue-neutral fixed network-connection fee implementation of which is particularly effective in reducing incentives to invest in storage. © 2015 Elsevier Ltd.