Economic Mechanisms to Promote Distributed Resource Supply in a Colombian Microgrid: System Dynamics Approach

The use of renewable resources to generate electricity has brought about an increase in the installation of renewable energy generation facilities near consumption areas. They are known as Distributed Resources. The operation of the Distributed Resources in islanded mode is allowed as long as it is based on Std. IEEE 1547.4 – 2011 known as islanded Micro Grid. However, the penetration of Distributed Resources and operation by Micro Grids into the Colombian power system has not progressed in any meaningful way due to the lack of both a regulatory framework and a scale economy.

This paper presents a system dynamics model that would facilitate the promotion of Distributed Resources, by including a worldwide incentive like Renewable Energy Premium Tariff and support services associated to the distribution and transmission system performance improvement, in a specific operative area of the Colombian power system, namely, Caldas, Quindío and Risaralda (CQR). The proposed mechanisms would be an efficient way of promoting the use of renewable energies in Colombia while increasing the resources portfolio. This, in turn, would improve the energy supply security and avoid blackouts of the electric power system. Thus, the diffusion model could become an additional tool that would allow the Colombian regulator to examine remunerative policies that foster Micro Grids implementation in Colombia.