Regulation of distributed microgeneration and minigeneration of electric power in Brazil

estimation of subsidy distribution

Abstract

This work estimates the distribution index of the subsidy applied to the distributed micro and minigeneration market, resulting from the allocation of costs of the Electric Energy Compensation System (SCEE), dealt with in Normative Resolution No. 482/2012, of the National Agency de Energia Elétrica (ANEEL), revoked by Normative Resolution No. 1,059/2023. The hypothesis is that the current rule created regressive subsidies, as large consumers are especially benefited. Based on the ANEEL database, the study focused on the State of Minas Gerais, given the greater representation of the distributed generation market in Brazil and because it makes the computational problem more manageable and on the consumer units of legal entities participating in the SECS. Once the subsidy was quantified, it was possible to cross-check with data from the Annual Social Information List (RAIS 2019), which showed higher subsidies for larger companies. After that, conventional inequality indicators were applied, obtaining the Lorenz Curve for the companies' gross income before and after the subsidy and the Concentration Curves. As a result, the study presented the Kakwani Index at 0.42, indicating the regression of the subsidy and the allocative inefficiency in the sector.