Role of Regulation in Energy Access - Revision history

Ranisha at 15:03, 2 May 2018

2018-05-02T15:03:11Z

Ranisha at 15:00, 2 May 2018

2018-05-02T15:00:11Z

Ranisha at 14:55, 2 May 2018

2018-05-02T14:55:44Z

Ranisha at 14:45, 2 May 2018

2018-05-02T14:45:09Z

Ranisha at 07:57, 2 May 2018

2018-05-02T07:57:48Z

Johanna: /* Further Information */

2018-05-01T09:25:27Z

Further Information

Johanna: /* Further Information */

2018-05-01T09:15:48Z

Further Information

Johanna at 09:13, 1 May 2018

2018-05-01T09:13:51Z

Johanna at 08:35, 1 May 2018

2018-05-01T08:35:23Z

Ranisha at 19:21, 30 April 2018

2018-04-30T19:21:25Z

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 *[[Typical Regulations for the Installation and Operation of Small Hydro Power Plants|Typical Regulations for the Installation and Operation of Small Hydro Power Plants]]
 *[[Policies and Regulations for the Energy-Agriculture Nexus|Policies and Regulations for the Energy-Agriculture Nexus]]
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 Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;and [http://www.wame2015.org/ World Access to Modern Energy]
 [[Category:Cooking_Energy]]

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 Furthermore, while the cost of electricity service is higher where the population is dispersed, some form of financial support (subsidy) may be needed to cover the difference between the efficient costs of supply and what consumers can afford to pay, which could be estimated as equal to the tariff available to grid-connected consumers. In the case of very poor consumers, the reference level can be identified in the '''“social” tariff''', if such a tariff has been introduced to the benefit of poor consumers in the areas connected to the national grid, as is the case in some countries.
-One last item that is worth highlighting is the role of the regulator in setting certain '''technical standards'''. An important technical challenge of off-grid electrification is assuring that '''local systems are compatible with one another and with the existing grid''', since inter-connection may be necessary at a later stage. Planning for future interconnection prevents investments from becoming obsolete and stranded, creates a common market for spare parts and can help prevent a locally dominant operator from thwarting competition when it arises.
+One last item that is worth highlighting is the role of the regulator in setting certain '''technical standards'''. An important technical challenge of off-grid electrification is assuring that '''[[Legal Aspects of Grid Interconnection|local systems are compatible with one another and with the existing grid]]''', since inter-connection may be necessary at a later stage. Planning for future interconnection prevents investments from becoming obsolete and stranded, creates a common market for spare parts and can help prevent a locally dominant operator from thwarting competition when it arises.
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 Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;and [http://www.wame2015.org/ World Access to Modern Energy]
 [[Category:Energy_Access]]

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 === The role of regulation in areas served by the national distribution grid ===
 <br/>
-The fact that a grid is present does not ensure universal access to the population of the area.<span style="font-size: 0.85em">&nbsp;</span>
+[[File:Minigrid Means Impact.jpg|border|right|300px|Connecting to the grid]]
 When the '''cost of connection''' is an obstacle to access by the poor, some improvement can be achieved by merging the connection charge and the energy tariff into a pay-as-you-go system. This is usually affordable to people with limited resources while preserving the economic stability of the electricity company. Such arrangements can be introduced on a contractual basis by the supplying company within the existing regulatory framework, provided it is not too inflexible, or even promoted by the regulator itself.<span style="font-size: 0.85em">&nbsp;</span>
-Integration of '''illegal connections''' into legal and safe systems can be promoted by combining an accurate monitoring of the area, easier bureaucratic procedures, repression of illegality, and affordable service contracts.<span style="font-size: 0.85em">&nbsp;</span>
+Integration of '''illegal connections''' into legal and safe systems can be promoted by combining an accurate monitoring of the area, easier bureaucratic procedures, repression of illegality, and affordable service contracts.
 Areas not yet served by the grid may be accessed if the '''grid is extended'''. Wherever the networks can be extended by private operators or by state-owned operators subject to budget constraints, good regulation can improve the conditions for new investment. In general, uncertainty increases the cost of capital and hinders investment decisions, otherwise profitable at normal levels of risk. Uncertainty may regard the '''duration of concessions''' if too short, or possible decisions to modify it; changes in the '''level of tariffs''' and in other conditions imposed on business by the institution in charge of regulation; or possible political decisions to change the '''ownership of industrial assets''' (nationalisation). Consequently, a stable and sound regulatory framework makes investment more attractive while protecting consumers.
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 Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;and [http://www.wame2015.org/ World Access to Modern Energy]
 [[Category:Cooking_Energy]]

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 === The role of regulation where access to electricity is based on the diffusion of off-grid solutions such as isolated mini-grids or individual home systems. ===
 <br/>
-{|
+[[File:Grid densification Congo powers tech revolution while mired in energy poverty.JPG|left| border|300px]]
 Access to electricity is possible even outside the reach of large, national or regional networks, as an increasing share of the electricity supply is provided by stand-alone systems or by isolated mini-grids connecting consumers with local generation, often based on renewable sources of energy. Any plan to provide universal access to electricity today must include such systems, since a vast majority of the people currently without access live in rural areas with very low population density.
 |}
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 = Role of regulation in access to clean cooking =
 <br/>
 In addressing access to '''clean cooking, energy regulation is less important''' than in the case of electricity. Here we are not dealing with a public service provided by a network but rather with'''a product '''(or rather two products, the stove and the fuel), which in principle can be '''supplied within a free market'''.
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 Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;and [http://www.wame2015.org/ World Access to Modern Energy]
 [[Category:Energy_Access]]

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 = Overview =
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 === The role of regulation where access to electricity is based on the diffusion of off-grid solutions such as isolated mini-grids or individual home systems. ===
 <br/>
-Access to electricity is possible even outside the reach of large, national or regional networks, as an increasing share of the electricity supply is provided by stand-alone systems or by isolated mini-grids connecting consumers with local generation, often based on renewable sources of energy. Any plan to provide universal access to electricity today must include such systems, since a vast majority of the people currently without access live in rural areas with very low population density.<span style="font-size: 0.85em">&nbsp;</span>
+{|
 When considering possible'''regulation of rural electrification''', and in particular off-grid electrification, three fundamental facts should be kept in mind. Each of them raises issues, and the issues are interlinked. Yet, it is useful to mention each one individually.
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 Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;and [http://www.wame2015.org/ World Access to Modern Energy]
 [[Category:Cooking_Energy]]

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 = Further Information =
 *'''[[:Portal:Energy Access|Energy Access Portal]]'''

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 = Overview =
+<br/>
 '''Regulation is an activity performed by the state''', and most often the '''task of regulation is granted to an institution''' (authority, agency, office) that has been given a degree of '''independence with regard to government''', in order to execute this task as effectively as possible.
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 In developing countries, one basic task is to provide universal access to electricity and to some form of clean cooking and heating. In organizing policies to achieve this goal, government has to face a few fundamental choices. According to the choices taken, the '''regulatory framework takes shape in order to perform its duty''' as well as possible.
+<br/>
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 = Role of regulation in access to electricity =
 == 1. Electrification by grid extension or off-grid development ==
+<br/>
 One basic choice, in regards to electricity, is between '''extending the national grid or relying on local isolated systems''' for the provision of electrification. This choice will depend on the geographic conditions and population density in the areas that need to be electrified, as well as the suitability of various technology options and business models.
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+<br/>
 === The role of regulation in areas served by the national distribution grid ===
+<br/>
 The fact that a grid is present does not ensure universal access to the population of the area.<span style="font-size: 0.85em">&nbsp;</span>
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 {{Go to Top}}
+<br/>
 === The role of regulation where access to electricity is based on the diffusion of off-grid solutions such as isolated mini-grids or individual home systems. ===
+<br/>
 Access to electricity is possible even outside the reach of large, national or regional networks, as an increasing share of the electricity supply is provided by stand-alone systems or by isolated mini-grids connecting consumers with local generation, often based on renewable sources of energy. Any plan to provide universal access to electricity today must include such systems, since a vast majority of the people currently without access live in rural areas with very low population density.<span style="font-size: 0.85em">&nbsp;</span>
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+<br/>
 == 2. The role of government and what markets can do ==
+<br/>
 A second basic choice for the Government is to decide on the '''ownership of the electrification'''. Should electrification be done using '''state-owned entities exclusively''', or rather using a combination of '''existing local utilities''' (whether government – or privately owned), '''multinational companies, local or foreign-based non-profits, and small local firms'''. This is a matter of preferential orientation and favourable conditions can be established by Government intervention to favour the chosen orientation.
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+<br/>
 = Role of regulation in access to clean cooking =
+<br/>
 In addressing access to '''clean cooking, energy regulation is less important''' than in the case of electricity. Here we are not dealing with a public service provided by a network but rather with'''a product '''(or rather two products, the stove and the fuel), which in principle can be '''supplied within a free market'''.
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 = Further Information =
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 = References =
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 *Energy Poor, Pippo Ranci, Matteo Leonardi, Laura Susani, Il Mulino, 2017
-<br/>&nbsp;{{Access_Footer}}
+<br/>{{Access_Footer}}
+<br/>
 Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;and [http://www.wame2015.org/ World Access to Modern Energy]
 [[Category:Energy_Access]]