LATEST NEWS >
ECA Director, Nick Haralambopoulos, delivered a seminar on setting allowed revenues in the regulated segments of the gas sector in the context of the 6th Energy Regulators Regional Association (ERRA) Training Course on Natural Gas Market Regulation, that took place on 12-16 November 2018 in Budapest, Hungary. The session was attended by 21 participants from 11 countries and covered all key elements of the revenue setting task, including the many methodological issues and options associated with the various cost ‘building blocks’. The ERRA Chairman later thanked Nick for his “outstanding presentation… which was well received by the participants”.
Wastewater is one of the biggest untapped resource that can provide clean water, energy and other products such as fertilizers, when properly managed and treated. The World Bank has engaged ECA to investigate what policy, institutional and regulatory (PIR) incentives are needed to support and encourage efficient investments in wastewater treatment capacity, plus waste-to-resource technologies, in a manner that promotes environmental sustainability at the basin level and financial sustainability of water utilities. Our work will look at existing literature concerning wastewater management, plus reuse and how this fits in to circular economy. We will also review what has been done in practice, what policy, institutional and regulatory mechanisms have successfully created the incentives for wastewater reuse, and how this can be applied in Latin American Countries as well as in other regions and countries.
On 20 November, ECA presented the draft methodology for calculating tariffs for ancillary services such as voltage control and black start that might be procured under a regulated process, if needed for a transitional period. Rob Barnett presented to the National Energy and Utilities Regulatory Commission (NEURC) and state enterprise NPC “Ukrenergo” in the Ukraine under the framework of EU4Energy technical assistance. The new methodology will ensure efficient cost allocation in the procurement of ancillary services and effective functioning of electricity markets.
ECA has the pleasure of hosting five officials from EWURA (the mainland Tanzania electricity regulator) and ZURA (the Zanzibar electricity regulator) at our offices in London for a two week capacity building programme. Our capacity building team is presenting on a range of regulatory issues in the electricity sector including tariff calculation and design, allowed returns, asset valuation, market design, and PPA review.
ECA recently concluded a study entitled “Methodologies and parameters used to determine the allowed or target revenue of transmission system operators” for the Agency for the Cooperation of Energy Regulators (ACER). The objective of the study was to document and contrast the methodologies used by regulatory authorities across the EU in determining and setting the allowed or target revenues of gas transmission companies. The study entailed reviewing all key aspects of TSO revenue setting and the associated methodological approaches employed in the EU, and it provided an evaluation of the methodological approaches based on a conceptual framework developed for this purpose. View the report HERE.
Electricity storage devices are widely expected to become the must-have add-on to electricity systems increasingly supplied by intermittent renewables. As battery technology has rapidly come down in price, deployment to provide fast-delivery ancillary service has reached saturation. The future value of batteries will increasingly be determined by revenues from other markets. This viewpoint sets out the economics of these markets and explains how pricing in alternative markets can be derived and how ECA models the resulting revenue streams for batteries… READ ECA VIEWPOINT HERE
ECA has been contracted by the EBRD to support the Government of Albania update its primary Energy Efficiency Law to ensure full compliance with the requirements of Directive 2012/2/EU (the “Energy Efficiency Directive”) as transposed for Energy Community Contracting Parties. The work forms part of ECA’s policy dialogue support to the EBRD under the Regional Energy Efficiency Programme Plus.
Fiji recently passed a new Electricity Act, which directs the corporatisation of the electricity utility and the adoption of a more rigorous and transparent method of setting electricity tariffs. Through Asian Development Bank funding, ECA is undertaking a cost of service study that will form a key input to future tariff determinations. The study will help stakeholders understand the future costs of Energy Fiji Ltd (EFL) providing electricity on each of Fiji’s main islands, the costs of providing generation/transmission/distribution services, and the costs of serving different customer groups.
On behalf of the electricity Ministry and power utility companies in Sudan, ECA is providing capacity building support to help attract independent power producers (IPPs) to build, own and operate power generation plants and sell the output to the single buyer under long-term power purchase agreements.
ECA is supporting the International Finance Corporation (IFC) in an update of an power system investment planning study for Malawi, with a focus on understanding the underlying potential demand for electricity and the need for new generation investment.