ECONOMIC CONSULTING ASSOCIATES
Regulatory Economics Services from ECA UK

ECA SERVICES / DECARBONISATION POLICY

The decarbonisation of our energy requires coordinated and integrated action across the supply and demand for power, heating, and transport. ECA provides expert analysis and advice in the design and development of the strategies, policies and regulation necessary to accelerate this transition in the global economy. This includes designing the legislation, financial support mechanisms, plans (national, regional and city), and competitive markets that are essential to support rapid growth in low carbon technologies.

With a focus on renewable energy and energy efficiency, our work includes auction design, green and white certificates, feed-in tariffs, flexibility markets, green mini-grids, and energy efficiency obligations.

SELECTED PROJECTS INCLUDE >

SELECTED PROJECTS INCLUDE >

Energy efficiency policy and regulatory advice, Ireland

Ireland is in the process of transposing EU Directive 2018/2002, the revised “Energy Efficiency Directive” which sets energy efficiency targets and policies out to 2030. Article 7 and the associated Energy Efficiency Obligation Scheme (EEOS) are a centrepiece of the directive and domestic energy efficiency policy. The Irish authorities are considering how best to build upon the success of the current EEOS to meet their 2030 obligations. This assignment was to provide expert policy and economic support for this process.

Climate change levy exemption for renewables scheme, UK

ECA advised Ofgem on potential changes to their guidance relating to renewables generators located outside the UK who seek accreditation for Levy Exemption Certificates (LECs). These generators must demonstrate to Ofgem that the energy they generate can feasibly have been sold to UK consumers.

Energy efficiency policy and regulation framework contract, West Balkans

ECA is the lead consortium partner in a € 3 million EBRD framework contract for the provision of consultancy services to West Balkan governments, helping to lay the foundations for EE investments. Economic, technical and legal consultancy advice is being provided to support legislators and investors remove market barriers to EE and accelerate uptake of energy services.

Low carbon energy pathways, Philippines

ECA assisted the World Bank and Philippines stakeholders to assess the feasible and cost-effective Carbon pricing instruments (CPI) options for the energy sector that would help in setting realistic but ambitious Nationally Determined Contributions (NDC) mitigation objectives and their attainment and in developing an implementation and financial plan to implement those identified CPIs and their combination.

NDC implementation, Zimbabwe

ECA assisted the Government of Zimbabwe in the development of its Paris Accord NDC (Nationally Determined Contribution) implementation framework.

Montenegro national renewable energy action plan

ECA provided legal, regulatory and economic advice to the Ministry of Economy, focussing on support in development of the National Renewable Energy Action Plan for submission to the EU under the Energy Community Treaty. This included development of forecast trajectories and modelling of impacts.

DfiD clean energy fund for small and medium size enterprises (SMEs)

ECA worked with DFID on assessing the feasibility of a possible $30 million fund to invest in clean energy SMEs in developing countries. The study helped understand the business models adopted by the SMEs, and their funding needs, so that it could tailor its support in ways which can lead to the greatest developmental impact.

Green minigrids enabling framework, Gambia

ECA was engaged by the Ministry of Petroleum and Energy for a two-part assignment focused on the electricity mini-grid sector. In the first part, we developed a policy and regulatory framework for mini-grids, including drafting all regulatory documents. In the second part, we developed a plan for mini-grids to support national electrification, including GIS analysis and pre-feasibility studies for 10 sites.

Mongolia urban air quality

ECA supported an ADB team in the preparation of a policy-based loan for improving air quality in Ulaanbaatar. Policies supported under the loan included replacing raw coal burning by households with improved fuels and electric heaters and accompanying community engagement activities.

Roadmap for energy efficiency obligations (EEO)

The EBRD and the Energy Community Secretariat has identified the need to develop a “framework roadmap” to support the roll-out of investment grade EEO schemes. ECA led a team of policy experts to review, shape and further develop the Roadmap document. This included directly contacting relevant officials in each country and organising a “roundtable” event of international experts at EBRD’s London offices to help inform the document.

Botswana renewable energy strategy

The RES study undertaken by a team led by ECA focussed on the potential for utility-scale solar power to contribute to Botswana’s power generation mix. The strategy included recommendations on policy and the legal, institutional and regulatory architecture to facilitate the envisaged contribution of renewables to power generation. The study included a significant training component for staff from the Department of Energy and the Botswana Power Corporation.

Energy service companies framework, West Balkans

EBRD, legal, regulatory and economic advice on the framework for the promotion of renewable energy projects. A gap analysis was provided on the regulatory and financial structures that might impede investments in ESCO projects.

Green cities, Rwanda

ECA was part of a consortium which was contracted by Global Green Growth Institute (GGGI) to analyse the potential for green growth of Kigali and 6 secondary cities in Rwanda. The project required developing a ‘Green City’ framework and guidelines appropriate for the Rwandan secondary city context, developing a National Roadmap on the secondary city development and helping strength the capacity of government employees and of GGGI staff.

National energy efficiency action plan for Albania

ECA was appointed by the EBRD to assist Albania in developing a new National Energy Efficiency Action Plan (NEEAP) to be compliant with the transposition of EU Directive 2012/27/EU (the “Energy Efficiency Directive“) for Energy Community countries.

Ethiopia geothermal power purchase agreements

Ethiopia is beginning the process of contracting with IPPs to provide electricity from geothermal and requires a model PPA as a basis for contract negotiation, as well as capacity building in negotiation and understanding the risk allocation issue. ECA assisted by developing the model PPA with workshop presentations and advice on negotiation positions.

Carbon Lock-in assessment tool

DFID asked ECA to produce a study to examine the risk of carbon lock-in in developing countries. ECA was also asked to develop a simple framework to be used by national decision makers, DFID country offices, and other donors to assess and analyse the risks of nationally significant investments and policies. The toolkit included a guide to carbon lock-in, a literature review, a detailed guide, and case studies showing how carbon lock-in can be analysed.

Renewable energy laws and feed in tariffs, Kazakhstan

Kazakhstan is developing a revised Renewable Energy Law that introduces a Feed-in Tariff regime. To implement this, a secondary regulation is needed to allocate the costs of RES support amongst all buyers of RES. ECA was tasked to develop the secondary regulation and bilateral agreement as well as to review the renewables power purchase agreement.

Review of renewable energy subsidies, Indonesia

ECA, together with Castlerock Consulting, was appointed by the Asian Development Bank to develop options for delivering Ministry of Finance subsidies to renewable energy development in Indonesia. Distinct from subsidies targeted at developers, these subsidies will be delivered through existing budget support mechanisms to the state utility, PLN, in order to defray the higher costs of renewables. Initially, the subsidies will target geothermal and hydropower projects. Indonesia has set ambitious targets for the expansion of renewable energy in the power sector, with the share of installed capacity due to reach 23% by 2025.

Uganda geothermal policy, legal and regulatory framework

Assistance to the Ministry of Energy and Mineral Development, in addressing the policy and regulatory barriers for geothermal energy development with a view to attract geothermal investment in terms of PPP and Independent Power Producers (IPP).