TY - GEN
T1 - The Role of Electricity Tariffs in the Adoption of Residential PV Systems and Carbon Emissions in Brunei Darussalam
AU - Hamdani, Nuramanina
AU - Muhamad, Nor Asiah
AU - Petra, Rafidah
AU - Ang, Swee Peng
AU - Khalil, Ashraf
PY - 2024
Y1 - 2024
N2 - The residential sector in Brunei is the highest electricity consumer due to the cheap electricity tariff. The high consumption, primarily generated from natural gas, causes environmental harm. The government implemented a net-metering program to encourage the residents to adopt PV systems, but cheap tariffs hinder the adoption. Hence, this study aims to learn the role of electricity tariffs in adopting PV systems and consequently study the effects on the carbon footprint. This study calculated the sizes of the most cost beneficial PV systems under four electricity tariff structures: (1) current tariff, increasing block tariff (IBT), (2) previous tariff, decreasing block tariff (DBT), (3) proposed IBT tariff (mild), (4) proposed IBT tariff (aggressive). Then, economic feasibility and environmental studies were conducted. Lastly, this study investigated what the results would mean nationwide. The study found that under the current IBT and DBT, it is highly infeasible for the residents to install PV systems in terms of both economic and environmental. Under the mild IBT, the PV systems were calculated to have a payback period (PB) of 25 years and a return on investment (ROI) between -9.8% and 0.1%. On a positive note, the pollutant gas emissions can be reduced by 173,541kg/year nationwide, (14%) of the current emissions. Under the aggressive IBT scheme, the PB is between 18.02 and 22.93 years, and the ROI is between -1.8% and 1.7%. The total gas pollution in the country can be reduced by 254,212kg/year nationwide, 21% of the current emissions. Nationwide, implementing the mild IBT or the aggressive IBT can motivate the residents to install PV systems which could generate between 240 MW and 376 MW. Based on the results, although it is highly infeasible for the residents to install PV systems under all the tariff structures, there is a positive outcome in reducing carbon emissions and reaching the national renewable energy goal.
AB - The residential sector in Brunei is the highest electricity consumer due to the cheap electricity tariff. The high consumption, primarily generated from natural gas, causes environmental harm. The government implemented a net-metering program to encourage the residents to adopt PV systems, but cheap tariffs hinder the adoption. Hence, this study aims to learn the role of electricity tariffs in adopting PV systems and consequently study the effects on the carbon footprint. This study calculated the sizes of the most cost beneficial PV systems under four electricity tariff structures: (1) current tariff, increasing block tariff (IBT), (2) previous tariff, decreasing block tariff (DBT), (3) proposed IBT tariff (mild), (4) proposed IBT tariff (aggressive). Then, economic feasibility and environmental studies were conducted. Lastly, this study investigated what the results would mean nationwide. The study found that under the current IBT and DBT, it is highly infeasible for the residents to install PV systems in terms of both economic and environmental. Under the mild IBT, the PV systems were calculated to have a payback period (PB) of 25 years and a return on investment (ROI) between -9.8% and 0.1%. On a positive note, the pollutant gas emissions can be reduced by 173,541kg/year nationwide, (14%) of the current emissions. Under the aggressive IBT scheme, the PB is between 18.02 and 22.93 years, and the ROI is between -1.8% and 1.7%. The total gas pollution in the country can be reduced by 254,212kg/year nationwide, 21% of the current emissions. Nationwide, implementing the mild IBT or the aggressive IBT can motivate the residents to install PV systems which could generate between 240 MW and 376 MW. Based on the results, although it is highly infeasible for the residents to install PV systems under all the tariff structures, there is a positive outcome in reducing carbon emissions and reaching the national renewable energy goal.
KW - Brunei Darussalam
KW - Residential sector
KW - Rooftop PV system
KW - Electricity tariff
KW - Carbon footprint
KW - Economic feasibility
KW - Renewable energy
U2 - 10.3233/ATDE240340
DO - 10.3233/ATDE240340
M3 - Article in proceedings
T3 - Advances in Transdisciplinary Engineering
SP - 402
EP - 412
BT - Power, Energy and Electrical Engineering
A2 - Deng, Mingcong
PB - IOS Press
T2 - 14<sup>th</sup> International Conference on Power, Energy and Electrical Engineering
Y2 - 24 February 2024 through 26 February 2024
ER -
