Renewable Energy Use for Buildings Decarbonization Causes Inequity in Consumers? Comparative Analysis of Spain, Mexico, and Colombia

Abstract

Building decarbonization strategy with Distributed renewable energy sources (DRES) is applied and extended worldwide for its climate change mitigation benefits, however, it generates debate regarding equity in sharing electric system operation costs. To analyze DRES effects on equity, it is conducted a case study, in which same residential consumer is evaluated in three different markets (Spain, Mexico, Colombia). We analyze not only electrical system technical variables, but we also include society’s economic, social, technological, and environmental characteristics. Next, energy, economic, and environmental benefits are obtained in each the three case studies, analyzing the impact of using DERS on equity to recover electric system operating costs. We also evaluate whether tariff mechanisms are equitable to motivate all consumers participation, as well as whether all consumers have equal opportunity for using DERS. We conclude that tariff mechanisms in Mexico and Colombia lead to inequity to recover market operating costs, favoring large consumers with high incomes. Furthermore, tariff mechanisms discourage the use of DERS by small and medium consumers due to economic, social, and technological aspects. In Spain, inequity arises due to increased difficulty for some consumers to use DERS, i.e., consumers in apartment buildings.

Keywords

• building decarbonization
• distributed renewable energy sources
• equity
• electric tariffs
• net metering
• net billing