Institutional Framework – Institutions and processes - Revision history

Lisafeldmann at 12:08, 30 October 2024

2024-10-30T12:08:05Z

Lisafeldmann at 12:07, 30 October 2024

2024-10-30T12:07:15Z

Johanna at 12:17, 28 August 2018

2018-08-28T12:17:31Z

Ranisha at 15:06, 2 May 2018

2018-05-02T15:06:44Z

Ranisha at 15:04, 2 May 2018

2018-05-02T15:04:40Z

Johanna: /* Further Information */

2018-05-01T09:25:12Z

Further Information

Johanna at 09:16, 1 May 2018

2018-05-01T09:16:52Z

Johanna at 08:36, 1 May 2018

2018-05-01T08:36:46Z

Johanna at 15:45, 30 April 2018

2018-04-30T15:45:11Z

Pia Lovengreen Alessi at 10:18, 30 April 2018

2018-04-30T10:18:31Z

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-== Institutional Framework - Institutions and processes ==
+== Introduction ==
-<br/>[[File:Minigrid Means Impact.jpg|border|right|300px|Grid connection|alt=Grid connection]] Centralized monopolistic grid extension has until recently been the only approach to electrification. It is now accepted, however, that in order to meet the 2030 goal of universal access to energy it will be fundamental to facilitate:<br/><br/>'''1. Open markets to fair competition&nbsp;'''<br/>'''2. Decentralized energy solutions alongside grid-based electrification'''
+[[File:Minigrid Means Impact.jpg|border|right|300px|Grid connection|alt=Grid connection]] Centralized monopolistic grid extension has until recently been the only approach to electrification. It is now accepted, however, that in order to meet the 2030 goal of universal access to energy it will be fundamental to facilitate:<br/><br/>'''1. Open markets to fair competition&nbsp;'''<br/>'''2. Decentralized energy solutions alongside grid-based electrification'''
 <br/>The transition to competitive energy markets concludes the era of the power sector being in the hands of poorly performing state-owned monopolistic power utilities. '''Reforming the power markets''', '''upgrading the current infrastructure''' and '''implementing new investments '''are necessary to expand access, and to economic development.

← Older revision		Revision as of 12:07, 30 October 2024
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−	= Institutional Framework - Institutions and processes =	+	== Institutional Framework - Institutions and processes ==

	<br/>[[File:Minigrid Means Impact.jpg\|border\|right\|300px\|Grid connection\|alt=Grid connection]] Centralized monopolistic grid extension has until recently been the only approach to electrification. It is now accepted, however, that in order to meet the 2030 goal of universal access to energy it will be fundamental to facilitate:<br/><br/>'''1. Open markets to fair competition '''<br/>'''2. Decentralized energy solutions alongside grid-based electrification'''		<br/>[[File:Minigrid Means Impact.jpg\|border\|right\|300px\|Grid connection\|alt=Grid connection]] Centralized monopolistic grid extension has until recently been the only approach to electrification. It is now accepted, however, that in order to meet the 2030 goal of universal access to energy it will be fundamental to facilitate:<br/><br/>'''1. Open markets to fair competition '''<br/>'''2. Decentralized energy solutions alongside grid-based electrification'''

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 = Institutional Framework - Institutions and processes =
 <br/>
-[[File:Minigrid Means Impact.jpg|border|300px|right|Grid connection]]
+<br/>[[File:Minigrid Means Impact.jpg|border|right|300px|Grid connection|alt=Grid connection]] Centralized monopolistic grid extension has until recently been the only approach to electrification. It is now accepted, however, that in order to meet the 2030 goal of universal access to energy it will be fundamental to facilitate:<br/><br/>'''1. Open markets to fair competition&nbsp;'''<br/>'''2. Decentralized energy solutions alongside grid-based electrification'''
 <br/>The transition to competitive energy markets concludes the era of the power sector being in the hands of poorly performing state-owned monopolistic power utilities. '''Reforming the power markets''', '''upgrading the current infrastructure''' and '''implementing new investments '''are necessary to expand access, and to economic development.
@@ Line 13: / Line 13: @@
 == Government ==
 <br/>
-The responsibility of '''electrification''', including access to energy, lies with national Governments. The starting point for most Governments is a vision that is translated into a National Electrification Plan, a kind of “master plan” that may be complemented with a Rural Electrification Plan dedicated to “access to energy” in rural areas. Once the master plan has been adopted, it is often broken down into shorter-term goals and objectives (3-5 years) for implementation.
+<br/>The responsibility of '''electrification''', including access to energy, lies with national Governments. The starting point for most Governments is a vision that is translated into a National Electrification Plan, a kind of “master plan” that may be complemented with a Rural Electrification Plan dedicated to “access to energy” in rural areas. Once the master plan has been adopted, it is often broken down into shorter-term goals and objectives (3-5 years) for implementation.
 When formulating their vision and '''National Electrification Plan''', Governments are usually driven by global initiatives like the SDGs, SEforALL and the Paris agreement on climate change, and therefore are very ambitious. In the process of policy development, Governments must consult broadly and obtain views from all major stakeholders including rural communities, the private sector, international financing institutions, the donor community and non-governmental organisations (NGOs).
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 Finally, as electrification is not an end in of&nbsp; itself, but a means to human and economic development of a nation, it is important that electrification plans are consistent with the social, economic and environmental priorities of other Ministries such as health, education, agriculture, gender equality, etc. '''Synergy between energy access objectives and overall development objectives''' is key to optimizing and implementing cross-sector policies. It is also necessary to ensure adequate national and international funding.
-{{Go to Top}}
+{{Go to Top}}<br/>
 <br/>
 == Regulatory Authority (Regulator) ==
 <br/>
-Regulators are often part of the '''executive branch of Government''', but ideally they should be able to perform their functions '''independently''' to assure the stability and continuity needed to create a stable regulatory framework that protects consumers while attracting needed long-term investments.
+<br/>Regulators are often part of the '''executive branch of Government''', but ideally they should be able to perform their functions '''independently''' to assure the stability and continuity needed to create a stable regulatory framework that protects consumers while attracting needed long-term investments.
 It is clear that '''market-based power sector''' '''reforms''' significantly change the way electrification is managed. As part of these reforms, new private players are integrated in the power sector and state-owned utilities are commercialized. The need to level the playing field to facilitate co-existence between new players and state-owned utilities, requires that appropriate regulation be introduced.
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 Apart from economic and technical regulation, the Regulator is also responsible for the '''good governance''' of the whole process. This includes licensing rural electricity operators through a fair procedure; issuing rules for billing and payment, as well as for entry and exit. It also includes monitoring the performance of rural electricity operators and the adherence to license conditions; assuring non-discriminatory and open access to the network. Where relevant, the Regulatory Authority may establish, or suggest that Government set up, Rural Electrification Agencies to support implementation of the framework in rural areas.
-{{Go to Top}}
+{{Go to Top}}<br/>
 <br/>
 == Rural Electrification Agency ==
 <br/>
-The concept of a Rural Electrification Agency (REA) is relatively new in most developing countries. The main function of these agencies is to act on behalf of Government, and possibly of the Regulator, in '''planning''', '''organizing''' and '''financing''' '''rural electrification activities'''. REAs are usually responsible for preparing the national rural electrification plans and strategies in close cooperation with rural communities and rural development agents, following a bottom-up approach.
+<br/>The concept of a Rural Electrification Agency (REA) is relatively new in most developing countries. The main function of these agencies is to act on behalf of Government, and possibly of the Regulator, in '''planning''', '''organizing''' and '''financing''' '''rural electrification activities'''. REAs are usually responsible for preparing the national rural electrification plans and strategies in close cooperation with rural communities and rural development agents, following a bottom-up approach.
 REAs work in close liaison with the regulatory bodies to design and implement appropriate '''tariff structures''' and '''cross-subsidies for rural areas.''' They also ensure that appropriate '''codes and standards''' are in place and that contractors and certification bodies are available to support rural electrification.
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 A key challenge for REAs is to '''improve financing and investment'''. They should pursue new financing arrangements with various stakeholders and where necessary make recommendations to Government to ensure that policies and legal/regulatory frameworks are supportive.
-{{Go to Top}}
+{{Go to Top}}<br/>
 <br/>
 == Utility Companies ==
 <br/>
-Utility companies – both public and private - play a major role in electrification in both urban and rural areas by '''investing in generation and network expansion'''. In the absence of adequate generation capacity and reliable networks, power would not be available to grid-connected rural systems.
+<br/>Utility companies – both public and private - play a major role in electrification in both urban and rural areas by '''investing in generation and network expansion'''. In the absence of adequate generation capacity and reliable networks, power would not be available to grid-connected rural systems.
 Utilities can influence the rate of electrification and the level of tariffs by utilizing '''least-cost options and innovative technologies'''. They must assure to '''train the necessary manpower''' to manage these new technologies and services both in urban and rural areas.
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 Utilities, together with national Governments, have a responsibility to accurately estimate the “viability gap”, i.e. the required capital '''subsidies''' to ensure feasible and sustainable supply systems, and must furthermore '''ring-fence rural electrification activities''' from commercially viable supply activities. When accurately estimated and correctly applied, subsidies can reduce the required return on total investments, making rural electrification profitable and thus allowing competition to upscale the applicable business models.
-{{Go to Top}}
+{{Go to Top}}<br/>
 <br/>
 = Further Information =
 {{EnergyAccessPortal}}
 *'''[[:Portal:Energy Access|Energy Access Portal]]'''
 *[[Portal:Financing and Funding|Portal:Financing and Funding]]<br/>
 *[[Role of Regulation in Energy Access|Role of Regulation in Energy Access]]
 <br/>
 = References =
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 <br/>{{Access_Footer}}<br/>'''Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi],&nbsp;[http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;Advisor and&nbsp;[http://www.wame2015.org/ WAME]&nbsp;project coordinator'''
 [[Category:Policies_and_Regulations]]

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 = Institutional Framework - Institutions and processes =
 <br/>
 Centralized monopolistic grid extension has until recently been the only approach to electrification. It is now accepted, however, that in order to meet the 2030 goal of universal access to energy it will be fundamental to facilitate:<br/><br/>'''1. Open markets to fair competition&nbsp;'''<br/>'''2. Decentralized energy solutions alongside grid-based electrification'''

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 = Institutional Framework - Institutions and processes =
 <br/>
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 *'''[[:Portal:Energy Access|Energy Access Portal]]'''
 *[[Portal:Financing and Funding|Portal:Financing and Funding]]<br/>
+*[[Role of Regulation in Energy Access|Role of Regulation in Energy Access]]
 <br/>
@@ Line 100: / Line 99: @@
 <br/>{{Access_Footer}}<br/>'''Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi],&nbsp;[http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation]&nbsp;Advisor and&nbsp;[http://www.wame2015.org/ WAME]&nbsp;project coordinator'''
 [[Category:Rural_Electrification]]

← Older revision		Revision as of 08:36, 1 May 2018
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	<br/>{{Access_Footer}}<br/>'''Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation] Advisor and [http://www.wame2015.org/ WAME] project coordinator'''		<br/>{{Access_Footer}}<br/>'''Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation] Advisor and [http://www.wame2015.org/ WAME] project coordinator'''

		+	[[Category:Policies_and_Regulations]]
		+	[[Category:Energy_Access]]
	[[Category:Rural_Electrification]]		[[Category:Rural_Electrification]]
−	~~[[Category:Energy_Access]]~~
−	~~[[Category:Policies_and_Regulations]]~~

← Older revision		Revision as of 10:18, 30 April 2018
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	<br/>{{Access_Footer}}<br/>'''Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation] Advisor and [http://www.wame2015.org/ WAME] project coordinator'''		<br/>{{Access_Footer}}<br/>'''Written by: [http://fsr.eui.eu/people/pia-lovengreen-alessi/ Pia Lovengreen Alessi], [http://fsr.eui.eu/universal-access-energy/ Florence School of Regulation] Advisor and [http://www.wame2015.org/ WAME] project coordinator'''

		+	[[Category:Policies_and_Regulations]]
		+	[[Category:Energy_Access]]
	[[Category:Rural_Electrification]]		[[Category:Rural_Electrification]]
−	~~[[Category:Energy_Access]]~~
−	~~[[Category:Policies_and_Regulations]]~~