ECONOMIC CONSULTING ASSOCIATES

LATEST NEWS >

ECA presents preliminary findings of hydrogen study at joint ACER-ECS workshop

ECA presents preliminary findings of hydrogen study at joint ACER-ECS workshop

On 25 February 2021, ECA’s Nick Haralambopoulos and David Williams presented at the first of three webinars jointly organised by the European Union’s Agency for the Cooperation of Energy Regulators (ACER) and the Energy Community Secretariat (ECS) on the future of hydrogen. They presented the preliminary findings of a joint ECA-E4tech study being undertaken for the ECS and the Energy Community Contracting Parties (CPs) to assess the potential of hydrogen production, transport and use in the latter. The study is expected to be concluded in March and will contain recommendations on possible actions and demonstration projects that can be adopted by the CPs to further the potential production and application of hydrogen.

Fuel supply strategy for St Helena

Fuel supply strategy for St Helena

ECA has been engaged to advise on arrangements for supplying petroleum products to the island of St Helena in the Atlantic Ocean.

Two approaches to tariff design in the electricity sector – how different are they?

Two approaches to tariff design in the electricity sector – how different are they?

Since deregulation of the supply market in the UK over two decades ago, the regulator has tended to leave it to the supply companies to decide the design of the tariffs charged to end-users. This has changed recently with regulatory interventions to limit the number of residential tariffs offered but in most other countries worldwide the regulators do concern themselves with tariff designs to regulated end-users as well as with allowed revenues. National Association of Regulatory Utility Commissioners (NARUC) in the US is updating its Electric Utility Cost Allocation Manual on how to allocate costs in electricity tariffs. The current version was issued in 1992 and recognised two broad approaches to cost allocation – marginal cost and embedded cost. While accepting the legitimacy of the marginal cost method, it recommended that US utilities adopt embedded cost. Marginal cost is, arguably, more common outside of North America. This ECA Insight examines the two approaches and considers how fundamentally different they are. READ ECA’s INSIGHT HERE

Price spikes in Greece’s new electricity market: a genuine concern?

Price spikes in Greece’s new electricity market: a genuine concern?

On 1 November 2020 Greece reached a significant milestone by launching the European Target Model for the operation of its wholesale electricity market. Initial implementation was reported as being successful. However, as early as December 2020 the Regulatory Authority for Energy (RAE) announced it would investigate the prospect of setting a cap and floor for the balancing market after observing especially volatile and high prices. Price spikes are not necessarily a reason for concern. While regulatory interventions have been required in the wholesale electricity markets of other EU countries and the UK, these need to be carefully evaluated because they have the potential to hinder competitive and smooth market operation, especially in a newly established market. READ ECA’s INSIGHT HERE

Decarbonising infrastructure in Nigeria through local-currency financing

Decarbonising infrastructure in Nigeria through local-currency financing

ECA has been engaged by the Private Infrastructure Development Group (PIDG) to support the development of InfraCredit’s Green Energy Investment Strategy. InfraCredit, a PIDG investee, provides local currency guarantees to enhance the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria. As part of our work, we are currently reviewing the policy context in Nigeria for climate change, as well as climate-change mitigation and adaptation incentives in the specific sectors of interest: power generation (including gas infrastructure), transport and housing. Based on this review, we will support InfraCredit in the definition of a roadmap to transition to an investment portfolio that is aligned to the Paris Agreement.

Supporting demand response and energy efficiency programmes in Vietnam

Supporting demand response and energy efficiency programmes in Vietnam

ECA is supporting the Asian Development Bank in designing demand response and energy efficiency programmes in Vietnam and an accompanying loan to fund initial installations. ECA’s services include a legal review, proposed amendments to existing regulations and financial and economic analysis of programme components.

Reaping the rewards of competition – Why Israel’s power market needs to change

Reaping the rewards of competition – Why Israel’s power market needs to change

The Israel electricity sector is undergoing substantial changes. Most notable, the Government of Israel (GoI) is introducing reforms to create competitive markets both on the supply and retail side. Modelling the Israeli Electricity Market at a unit level using PLEXOS Software, we identify shortcoming and inefficiencies in the current functioning of the power market. Our results show that market operation rules need to change in order to ensure generators are remunerated appropriately in the market and that no perverse investment and bidding incentives remain for generators. READ ECA’S INGHT HERE

Assisting the Philippines in accelerating climate investment

Assisting the Philippines in accelerating climate investment

ECA has been appointed by the World Bank using funding from the NDC Support Facility to assist the Government of the Philippines in accelerating climate investment through carbon pricing instruments. The support follows on from previous assistance provided by ECA on the selection and design of CPIs and will further assess the potential impacts of carbon pricing (initially proposed as an ETS in the power sector) and engagement with stakeholders.

Archives