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Smarter Development  Through Better Decisions: The Electricity Governance Initiative PRAYAS- PUNE  ENERGYGROUP Smita Nakho...
Urgent challenges of transitioning to  clean  energy … and improving access for the poorest
A Governance Diagnosis <ul><li>Closed decision making process  </li></ul><ul><li>Inadequate information available for scru...
Towards Improved Governance <ul><li>Focus on the process of decision-making and implementation </li></ul><ul><ul><li>How d...
The Electricity  Governance Initiative <ul><li>Contribute to improved communication among stakeholders  </li></ul><ul><li>...
An assessment seeks to create a new dialogue between civil society and sector actors Research Team   A coalition of NGOs a...
POLICY PROCESSES Institutional/ Procedural - Legislative Committee -Executive -Independence  -Reporting  -Reform and polic...
Do energy ministry staff think about environmental issues?
Executive capacity to address environmental and social considerations <ul><li>Elements of Quality: </li></ul><ul><li>A bud...
Are environmental issues the electricity regulator’s concern?
Regulator’s Environmental and Social Mandate x x x x x x <ul><li>Reference to environmental and social responsibilities  <...
Are the public included in decisions about which energy technologies to promote?
Participation in policies promoting clean technologies   x x x x x x x x x x x x x x x x Philippines Medium -High India Me...
Creating a Basis for Change, Generating Dialogue
The Indonesia Assessment has  Improved Transparency
Thai Assessment Draws Attention to EGAT Corporatization Process
An Emphasis on Governance is Timely
Attention to governance can help: <ul><li>Promote fair and innovative approaches to expanding access  </li></ul><ul><li>Ad...
<ul><li>The Electricity Governance Initiative </li></ul><ul><li>http://electricitygovernance.wri.org  </li></ul><ul><li>Co...
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Smarter Development Through Better Decisions: The Electricity Governance Initiative

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This presentation was given at the Climate Change Conference in Nairobi, Kenya in November 2006.

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Smarter Development Through Better Decisions: The Electricity Governance Initiative

  1. 1. Smarter Development Through Better Decisions: The Electricity Governance Initiative PRAYAS- PUNE ENERGYGROUP Smita Nakhooda 7 November 2006 Nairobi – Climate COP 12
  2. 2. Urgent challenges of transitioning to clean energy … and improving access for the poorest
  3. 3. A Governance Diagnosis <ul><li>Closed decision making process </li></ul><ul><li>Inadequate information available for scrutiny </li></ul><ul><li>Little public debate of alternative reform approaches </li></ul><ul><li>Inadequate consideration of public concerns </li></ul><ul><ul><li>Financial interests crowd out public interests </li></ul></ul><ul><li>Adoption of untested reform prescriptions </li></ul><ul><li>Weak democratic legitimacy </li></ul>
  4. 4. Towards Improved Governance <ul><li>Focus on the process of decision-making and implementation </li></ul><ul><ul><li>How decisions are made shape what decisions are made </li></ul></ul><ul><ul><li>Attention to transparency, scope for public participation, mechanisms of accountability </li></ul></ul><ul><li>Good governance is necessary though not sufficient for good outcomes </li></ul>
  5. 5. The Electricity Governance Initiative <ul><li>Contribute to improved communication among stakeholders </li></ul><ul><li>Provide a capacity building platform for improving practice </li></ul><ul><li>Develop an operational framework to assess governance and help identify best practices </li></ul>
  6. 6. An assessment seeks to create a new dialogue between civil society and sector actors Research Team A coalition of NGOs active in power sector issues Advisory Panel Representatives of Government, Regulator, Utilities, Private Sector
  7. 7. POLICY PROCESSES Institutional/ Procedural - Legislative Committee -Executive -Independence -Reporting -Reform and policy change -Planning Agencies -Donor Agencies -Role of Consultants -Civil Society Capacity -Clarity of policy processes -Availability of supporting documentation - Media Coverage Substantive Issues -Asset Evaluation -Privatization -Subsidies -IPPs -Competition <ul><li>REGULATORY PROCESSES </li></ul><ul><li>Institutional / Procedural </li></ul><ul><li>-Authority + Autonomy </li></ul><ul><li>-Financial + Human Resources </li></ul><ul><li>-Function/Jurisdiction </li></ul><ul><li>-Conflict of interest </li></ul><ul><li>-Appeals </li></ul><ul><li>-Training </li></ul><ul><li>-Use of consultants </li></ul><ul><li>-Procedural clarity </li></ul><ul><li>-Disclosure </li></ul><ul><li>-Basis for decisions </li></ul><ul><li>Substantive Issues </li></ul><ul><li>-Performance Reporting </li></ul><ul><li>-Tariff Philosophy </li></ul><ul><li>-Licensing </li></ul><ul><li>-Consumer service and Quality of Supply </li></ul>ENVIRONMENTAL + SOCIAL ASPECTS Institutional / Procedural - Clarity of environmental jurisdiction -Executive, regulatory & legislative mandates -Setting minimum environmental standards -Inclusion of environment in planning and reform - Access to redress on social or environmental grounds -Utility engagement w/ public -NGO capacity to address social + environmental issues Substantive Issues -Labor impacts -Access to electricity -Affordability -Project affected people - Renewables -Environmental & social performance reporting -Greenhouse gas reporting BASELINE INDICATORS: MAPPING THE ELECTRICITY SECTOR
  8. 8. Do energy ministry staff think about environmental issues?
  9. 9. Executive capacity to address environmental and social considerations <ul><li>Elements of Quality: </li></ul><ul><li>A budget to support social and environmental considerations </li></ul><ul><li>Dedicated staff </li></ul><ul><li>Expertise of staff </li></ul><ul><li>Training </li></ul>
  10. 10. Are environmental issues the electricity regulator’s concern?
  11. 11. Regulator’s Environmental and Social Mandate x x x x x x <ul><li>Reference to environmental and social responsibilities </li></ul><ul><li>Considered in tariff setting </li></ul><ul><li>Access to information </li></ul><ul><li>In official journals </li></ul><ul><li>On the regulator’s website </li></ul><ul><li>Low cost or free </li></ul><ul><li>Disseminated through media </li></ul><ul><li>Outreach to weaker groups </li></ul>Philippines Low Indonesia Low Thailand Low India Low- Medium
  12. 12. Are the public included in decisions about which energy technologies to promote?
  13. 13. Participation in policies promoting clean technologies x x x x x x x x x x x x x x x x Philippines Medium -High India Medium Thailand Medium <ul><li>Considers at least three of following: </li></ul><ul><li>Co-generation </li></ul><ul><li>Demand-side management </li></ul><ul><li>Energy saving companies </li></ul><ul><li>Grid renewables </li></ul><ul><li>Distributed renewables </li></ul><ul><li>Improved fossil fuel technologies </li></ul><ul><li>Pollution control technologies </li></ul><ul><li>T&D losses </li></ul><ul><li>Stakeholder consultation </li></ul><ul><li>Use of multiple participation mechanisms </li></ul>
  14. 14. Creating a Basis for Change, Generating Dialogue
  15. 15. The Indonesia Assessment has Improved Transparency
  16. 16. Thai Assessment Draws Attention to EGAT Corporatization Process
  17. 17. An Emphasis on Governance is Timely
  18. 18. Attention to governance can help: <ul><li>Promote fair and innovative approaches to expanding access </li></ul><ul><li>Address environmental, social, and economic impacts of new projects </li></ul><ul><li>Enhance equity and affordability in tariffs </li></ul><ul><li>Build consensus and credibility of decisions </li></ul>
  19. 19. <ul><li>The Electricity Governance Initiative </li></ul><ul><li>http://electricitygovernance.wri.org </li></ul><ul><li>Contact: Smita Nakhooda </li></ul><ul><li>snakhooda@wri.org </li></ul>

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