A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam

Friday, September 6 2024

(a) Energy Research Institute, Chulalongkorn University, Thailand

(b) Department of Environmental Sciences and Engineering, Gillings School of Global Public Health, University of North Carolina at Chapel Hill, USA

(c) Department of City and Regional Planning, University of North Carolina at Chapel Hill, USA

(d) Formerly at the Policy Institute for Energy, Environment, and the Economy, University of California Davis, USA

(e) USAID Clean Power Asia Implemented By Abt Associates Inc., USA
Globally, policies designed for high penetration of distributed photovoltaics (DPV) primarily have shifted from mainly encouraging investment through subsidies to addressing equity and stakeholder concerns on retail tariffs and utility revenue impacts. Net metering and feed-in tariffs now serve as the main policy mechanisms to support distributed PV in the U.S. and Europe, although modifications are ongoing to alleviate concerns over consumer inequity and the financial health of utilities. Retail tariff design and utility revenue impacts are now at the forefront of the debate for ASEAN countries formulating new policies and incentives for PV deployment. This paper discusses experiences of DPV development in the Philippines, Thailand, and Vietnam. These countries have ongoing efforts to adjust their DPV programs to match a rapidly dynamic and evolving DPV market and incorporate new technology capabilities such as blockchain-based peer-to-peer solar energy trading platforms. The paper also presents a quantitative analysis of customer economics under various competing compensation mechanisms and analyzes the remaining barriers to DPV market expansion in these three countries. Net billing could achieve more economically equitable policy design for other Southeast Asian countries looking to make solar electricity broadly accessible for all.

Cite

Junlakarn, S., Kittner, N., Tongsopit, S., Saelim, S. 2021. A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam. Renewable and Sustainable Energy Reviews Volume 145, 2021.

Keyword(s)

Compensation Mechanisms, Distributed Photovoltaics, Equity, Solar Policy, Southeast Asia

Author(s)

Siripha Junlakarn (a), Noah Kittner (b) (c), Sopitsuda Tongsopit (d) (e), Supawan Saelim (e)

Country(ies)

Philippines, Thailand, Vietnam

Publisher

Elsevier, Science Direct

Published Date

DOI

10.1016/j.rser.2021.110820

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