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Batteries – generation or transmission assets?

Batteries – generation or transmission assets?

Battery Energy Storage Systems (BESS) are on track of becoming an integral component of electricity markets around the world. Although investments for grid scale BESS are still at relatively low levels of US$3 billion per year, they are expected to rise substantially over the next decades. Historically, storage (mainly hydro pumped storage) was regarded as a generation asset by regulators and policymakers. New generation BESS technologies now offer a high degree of flexibility, which sees them offering ancillary services (reserves) in those markets where they are operating. With such an important role to play for grid stability, should BESS assets be considered network assets and be regulated as such? Or should BESS operators be allowed to participate in wholesale and secondary markets as any generator would? Answering these questions can help policymakers and regulators in prioritising the role BESS ought to play in power systems: reducing price volatility, offering reserve services or alleviating network congestion. READ ECA’s INSIGHT HERE

Utility cost recovery: tackle inefficiency before increasing tariffs

Utility cost recovery: tackle inefficiency before increasing tariffs

Raising tariffs to cost recovery levels is often considered a prerequisite of infrastructure sector reforms. While immediate tariff increases are often publicly unacceptable and politically infeasible, case studies across the power and water sectors provide evidence that achieving cost recovery through efficiency gains which reduce the target cost recovery level and win public support is a path to financial viability and sustainable sector improvements. READ ECA’s INSIGHT HERE

Water tariff review in South African metros

Water tariff review in South African metros

We have been contracted by the World Bank to review the current IBT water tariff structure in two South African municipalities, eThekwini and Cape Town. The objective is to simulate the application of Ramsey pricing principles to optimise the current IBT structure and assess the impact of alternative pricing approaches on cost recovery, affordability and efficiency. The analysis will shed light on the trade-offs of tariff design in achieving often competing objectives and inform upcoming tariff determinations.

Allowed revenue methodology for electricity transmission

Allowed revenue methodology for electricity transmission

The Greek energy regulator, RAE, has appointed ECA to review and revise the allowed revenue methodology for electricity transmission. The aim is to better align the methodology with that recently developed (also by ECA) for electricity distribution in Greece and having regard to practical experience in applying the current transmission methodology over the past two regulatory periods. The revised methodology is intended to be in force from the next regulatory period commencing in 2022.

ECA analysis supports Ireland in publishing new consultation on the Energy Efficiency Obligation Scheme

ECA analysis supports Ireland in publishing new consultation on the Energy Efficiency Obligation Scheme

Ireland’s Department of the Environment, Climate and Communications have published a new consultation on the design of Ireland’s Energy Efficiency Obligation Scheme (EEOS) and its role in achieving Ireland’s 2030 targets under the European Union’s Energy Efficiency Directive. ECA undertook policy and economic modelling and analysis to support the development of the consultation, with findings contained in a report published alongside the consultation. The EEOS is a key element of Ireland’s policy platform for achieving decarbonisation and increasing energy efficiency, including through ambitious targets for the upgrading of the country’s residential building stock as outlined in Ireland’s Climate Action Plan.

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.

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