WRI Publications Feed: Electricity Governance Initiative

Grounding Green Power: Bottom-Up Perspectives on Smart Renewable Energy Policy in Developing Countries

Maggie Barron — Tue, 24 May 2011 12:51:13 -0400

Watch the summary interview with Lead Author Lutz Weischer

This paper was published by the German Marshall Fund of the United States in cooperation with the Heinrich Boell Foundation and the World Resources Institute.

Developing Countries in the Renewable Energy Transformation

In order to meet the intensifying climate challenge, the global energy system must undergo a fundamental transformation, with a rapid increase of renewable energy worldwide. Developing countries are at the forefront of this challenge, since they are expected to add around 80 percent of all new electric generation capacity worldwide in the next two decades.

The deployment of energy from renewable sources is accelerating in developing countries, and already accounts for a higher percentage of electricity generation than in the developed world. In 2008, non-OECD nations generated 21 percent of their electricity from renewable sources including large-scale hydroelectric power (compared with 17 percent in OECD countries), according to International Energy Agency (IEA) statistics. However, this figure must more than double by 2035, to 46 percent, in order to meet the IEA’s “450 scenario,” which outlines a climate friendly pathway for meeting global energy demands.

Transforming the energy system on this scale will require significantly increased support from developed countries, channeled through both bilateral assistance and multilateral institutions, as well as philanthropic initiatives. Our conclusions, derived from a series of case studies and a comprehensive review of existing literature, suggest that donors should deploy financial support more effectively by moving beyond a project-by-project approach to one that creates the right environment for investments in scaled-up, nationwide deployment.

This working paper seeks to assist in this process, by identifying key components of smart renewable energy policy in developing countries, focusing on the power sector. It also provides recommendations for maximizing the effectiveness of international support for deployment of renewable energies, drawn from these on-the-ground experiences in developing countries.

About this Working Paper

Chapter 1 introduces the approach and methodology taken in this paper and describes the key concepts we address. The second chapter discusses what developing countries are already doing to deploy renewable energy sources, and how they can be supported in scaling up such efforts. It also introduces a set of principles of smart renewable energy policy to propel such a transformation, developed by the World Resources Institute. These are based on insights drawn from case studies of existing renewable energy policies in 12 countries in Africa, Asia, and Latin America as well as from existing literature.

The following five chapters each examine one key element of smart renewable energy policy, discuss lessons learned, and identify needs for international support. These cover planning and strategy (Chapter 3), well-designed generation-based incentives (Chapter 4), an enabling policy and regulatory framework (Chapter 5), attractive financing conditions (Chapter 6), and the necessary technical environment (Chapter 7). Our findings and recommendations are summarized in Chapter 8.

Principles of Smart Renewable Energy Policy

We define smart renewable energy policy as the set of rules, regulations, and government actions that lead to an increased share of renewables in total electricity consumption in line with a country’s development objectives. Smart renewable energy policy encourages private investment, achieves its objectives in a cost-effective way, promotes continuous innovation, and is designed through transparent, accountable, and participatory processes.

Presentation

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The Electricity Governance Toolkit: Benchmarking Best Practice And Promoting Accountability In The Electricity Sector

admin — Fri, 01 Jun 2007 00:00:00 -0400

This framework assesses the extent to which decision making processes in national electricity sectors are transparent, allow for public participation, remain accountable to the public interest and permit access to redress. In addition, the toolkit seeks to assess institutional capacity to adequately meet the requirements of good process.

The indicator toolkit comprises a set of qualitative research questions, whose answers generate indicators that assess decision-making processes in order to develop a metric to conceptualize good governance. Sound understanding of the decision chain and potential points for leverage and mutual benefit is critical for effective civil society engagement in the electricity sector. By approaching the social, environmental and economic challenges confronting the electricity sector through questions of governance, we can address these issues from the root of their causes.

Empowering People: A Governance Analysis of Electricity; India, Indonesia, Philippines, Thailand

admin — Sun, 01 Apr 2007 00:00:00 -0400

Policymakers, regulators, citizens, and the international community are grappling with the challenges of providing access to reliable and affordable electricity, and addressing major environmental challenges. The advent and rapid spread of a new “standard model” for electricity reform built around private ownership and competition, in the context of significant need for investment, have all left their mark on the electricity sector. But fundamental questions of public interests and sustainable development have not been adequately addressed.

After a decade of experimentation it is now clear that the problem as well as the solution lies less in ownership of the electricity industry, and more in how the sector is governed. This research report makes the case for greater attention to governance of electricity -the processes, institutions, and actors that determine how decisions are made - in order to meet the challenges of sustainable energy. On the whole, policy and regulation are more likely to be successful if they are open to public scrutiny. The report is based on assessments of electricity governance in India, Indonesia, Thailand, and the Philippines that were completed in 2005 using the WRI-Prayas-NIPFP Electricity Governance Indicator (EGI) Toolkit as a common research methodology.

The Electricity Governance Initiative (EGI) is a collaborative undertaking of the World Resources Institute and Prayas Energy Group (India). We work with civil society, policymakers, regulators, and other electricity sector actors to promote the open, transparent, and accountable decision-making processes that are necessary to reach a sustainable energy future.

Governing the Power Sector: An Assessment of Electricity Governance in Thailand

admin — Sun, 01 Oct 2006 00:00:00 -0400

Summary Report From the Forum on Electricity Governance

admin — Fri, 31 Mar 2006 23:00:00 -0500

The Electricity Governance Initiative: Philippines Pilot Assessment

admin — Tue, 28 Mar 2006 23:00:00 -0500

The Philippines assessment was completed by Green Independent Power Producers in partnership with the Action for Economic Reforms, and the Development Academy of the Philippines. The study includes analysis of the role of the new Electricity Regulatory Commission of the Philippines, and the electricity reform process.

Electricity Governance in India: An Analysis of Institutions and Practice

admin — Wed, 01 Feb 2006 23:00:00 -0500

This study was completed by the Center for Policy Research (New Delhi) Citizen Consumer and Civic Action Group (Chennai), The Center for Environmental Concerns (Hyderabad), and Praja (New Delhi). The assessment looks at policy processes at the central level in India, and electricity regulatory processes in the Indian States of Haryana, Andhra Pradesh and Tamil Nadu.

Electricity Governance in Indonesia: Assessment Report

admin — Wed, 01 Feb 2006 23:00:00 -0500

The Indonesia assessment was completed by the Indonesian Institute for Energy Economics, in partnership with the Indonesian Centre for Environmental Law, Institut Bisnis dan Ekonomi Kerakyatan, Pelangi, Working Group on Power Sector Restructuring (WGPSR), and WWF Indonesia. The study includes analysis of the process by which the Indonesian Electricity Reform Law was developed.