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PRAYAS ENERGY GROUP Clean Energy, Good Governance & Electricity Regulation 20 – 21 May 2010 Cape Town Context • Forum of regulators from India, Indonesia, Thailand, Philippines, Singapore in March 2008 in Singapore – Asian Development Bank program to enhance effectiveness of regulation in the electricity sector; Dialogue on clean energy and regulatory governance in June 2010 • 2010 Forum: major developing country economies of India, Brazil, South Africa, and Mexico Regulation and Clean Energy • Context for electricity regulation – Global process of restructuring and reform – Specific country contexts • Broadening context – Social and environmental concerns – Global climate change • Regulators are stakeholders in international decisions • Many efforts to grapple with clean energy Motivation and Objectives • An exchange of experiences with clean energy • Explore the role of regulatory governance in promoting clean energy • Discuss practical measures to implement clean energy programs Tradeoffs and Synergies • Systems are set up to promote conventional options – Megawatts vs. “Negawatts • Promoting clean technology vs. increasing quality access – Intermittency of many RE technologies • Tensions between additional costs of clean energy and affordability – Reasonable costs? • e.g. Low cost of coal vs. higher upfront costs of renewables – Evolving potential of clean energy options • New technologies e.g. concentrating solar • Environmental and social impacts of conventional vs. clean technologies – Local issues vs. global climate change? Balancing Interests… The Importance of Governance • Regulatory decisions involve judgment – Incomplete information – Multiple solutions – Competing interests • Needs regulatory credibility (in addition to technical capacity) – Robust decision making process – “input” vs. “output” credibility Clean Energy and Regulatory Governance • • • • Clarity of mandate Completeness and accessibility of information Depth of stakeholder engagement Capacity – – – – Regulators Government Civil society Industry