This document discusses the intersection of energy policy and social policy. Energy policy deals with issues of energy production, distribution, and consumption, while social policy aims to improve human welfare through access to essential services. The document outlines how subsidies intended to help consumers can negatively impact economic efficiency by distorting price signals and reducing incentives for energy conservation and development of renewable alternatives. While some support for vulnerable groups may be warranted, blanket subsidies generally decrease overall welfare by consuming energy that has a lower marginal benefit than its cost. The document argues for pricing energy to reflect its true costs while governments may contribute through targeted subsidies to support universal access for households.
This document discusses public-private partnerships (PPPs) for power generation projects. It provides useful concepts about energy systems including generation, transmission, distribution and different types of power plants such as coal, hydroelectric, and combined heat and power. It then discusses various PPP schemes for power generation including design-build-operate and build-operate-finance models. Key components of typical power purchase agreements are outlined. The document also discusses risks in power generation PPPs including hydrological, construction, performance, market and political risks. It provides an example of risk allocation in hydroelectric power PPPs. Finally, it briefly discusses market failures related to public goods, monopolies, externalities and asymmetric information.
The document discusses regulatory models for the energy and water sectors on the small island of Curaçao. It examines four models: 1) the DEZ model where the government sets tariffs; 2) the DEZ+ model where a regulator has legal mandate to approve tariffs but the government can overrule; 3) an advisory model where an independent office proposes tariffs but the government is still responsible; and 4) an independent model where tariff setting is fully independent from the government. The document argues that while the independent model has benefits, implementing major institutional changes carries risks for systems with weak governance, and recommends a gradual approach starting with a regulatory contract to build legitimacy and stability over time.
Consumer International Presentation- Rami Olwanguestcd5f64
The document summarizes issues related to access to knowledge in Jordan. It finds that the cost of learning materials is high for most Jordanians due to low per capita income. Jordan's copyright law is highly restrictive and lacks exceptions for educational use or limitations on digital rights management. While Jordan has signed international intellectual property agreements, enforcement is limited and there is low awareness of alternatives like open licensing. Internet access in Jordan faces challenges like limited broadband, a digital divide between urban and rural areas, and mostly proprietary government software use.
PosterArtist is poster creation software that allows users to easily design professional-looking posters. It features 200 templates, 1000 images and cliparts, photo editing tools, and the ability to import vector graphics. The software guides users through a 4-step poster creation process of selecting a template, choosing paper options, editing the poster, and printing. New features in 2008 include improved performance and additional templates and cliparts.
Detroit Work Project - Short Term Presentationstranflow
The document summarizes two studies conducted as part of the Detroit Works Project to analyze neighborhood conditions across Detroit: a Residential Physical Conditions Analysis and a Market Analysis. It identifies several typologies of neighborhoods based on indicators like household change, vacant land, housing vacancy rates, and housing conditions. The analyses aim to inform short-term strategies tailored to the realities of each neighborhood in order to stabilize housing prices, restore confidence, and attract residents and investment to Detroit.
The document discusses an integrated performance management system (I-PMS) as an alternative to traditional performance appraisal systems. An I-PMS links strategic objectives, core business strategies, critical success factors, and key performance indicators. The conceptual design phase involves gaining senior management support, creating implementation teams, and developing a performance model. In the detailed design phase, specific key performance indicators are identified and a scoreboard is designed. Ongoing support ensures continuous improvement through evaluation and updating of indicators. An I-PMS provides benefits like identifying performance drivers and facilitating continuous improvement.
Introduction To I P9100 I Pf8100 CustomerPLotterpro
The document provides information on Canon's large format iPF9100 and iPF8100 printers. It discusses Canon's corporate philosophy of Kyosei which means "living and working together for the common good." It also highlights the printers' key features such as the LUCIA ink set, built-in calibration, FINE print heads, media options, and software support.
This document discusses public-private partnerships (PPPs) for power generation projects. It provides useful concepts about energy systems including generation, transmission, distribution and different types of power plants such as coal, hydroelectric, and combined heat and power. It then discusses various PPP schemes for power generation including design-build-operate and build-operate-finance models. Key components of typical power purchase agreements are outlined. The document also discusses risks in power generation PPPs including hydrological, construction, performance, market and political risks. It provides an example of risk allocation in hydroelectric power PPPs. Finally, it briefly discusses market failures related to public goods, monopolies, externalities and asymmetric information.
The document discusses regulatory models for the energy and water sectors on the small island of Curaçao. It examines four models: 1) the DEZ model where the government sets tariffs; 2) the DEZ+ model where a regulator has legal mandate to approve tariffs but the government can overrule; 3) an advisory model where an independent office proposes tariffs but the government is still responsible; and 4) an independent model where tariff setting is fully independent from the government. The document argues that while the independent model has benefits, implementing major institutional changes carries risks for systems with weak governance, and recommends a gradual approach starting with a regulatory contract to build legitimacy and stability over time.
Consumer International Presentation- Rami Olwanguestcd5f64
The document summarizes issues related to access to knowledge in Jordan. It finds that the cost of learning materials is high for most Jordanians due to low per capita income. Jordan's copyright law is highly restrictive and lacks exceptions for educational use or limitations on digital rights management. While Jordan has signed international intellectual property agreements, enforcement is limited and there is low awareness of alternatives like open licensing. Internet access in Jordan faces challenges like limited broadband, a digital divide between urban and rural areas, and mostly proprietary government software use.
PosterArtist is poster creation software that allows users to easily design professional-looking posters. It features 200 templates, 1000 images and cliparts, photo editing tools, and the ability to import vector graphics. The software guides users through a 4-step poster creation process of selecting a template, choosing paper options, editing the poster, and printing. New features in 2008 include improved performance and additional templates and cliparts.
Detroit Work Project - Short Term Presentationstranflow
The document summarizes two studies conducted as part of the Detroit Works Project to analyze neighborhood conditions across Detroit: a Residential Physical Conditions Analysis and a Market Analysis. It identifies several typologies of neighborhoods based on indicators like household change, vacant land, housing vacancy rates, and housing conditions. The analyses aim to inform short-term strategies tailored to the realities of each neighborhood in order to stabilize housing prices, restore confidence, and attract residents and investment to Detroit.
The document discusses an integrated performance management system (I-PMS) as an alternative to traditional performance appraisal systems. An I-PMS links strategic objectives, core business strategies, critical success factors, and key performance indicators. The conceptual design phase involves gaining senior management support, creating implementation teams, and developing a performance model. In the detailed design phase, specific key performance indicators are identified and a scoreboard is designed. Ongoing support ensures continuous improvement through evaluation and updating of indicators. An I-PMS provides benefits like identifying performance drivers and facilitating continuous improvement.
Introduction To I P9100 I Pf8100 CustomerPLotterpro
The document provides information on Canon's large format iPF9100 and iPF8100 printers. It discusses Canon's corporate philosophy of Kyosei which means "living and working together for the common good." It also highlights the printers' key features such as the LUCIA ink set, built-in calibration, FINE print heads, media options, and software support.
The document provides tips for becoming a more effective presenter. It advises against common assumptions such as ideas speaking for themselves or just being yourself. Effective presenting requires business theatrics and focus on techniques like posture, eye contact, voice, and storytelling. The takeaway is the most important message to communicate clearly. Rehearsal is key to improving presentation skills.
The mayor's address outlined a 4-phase process to develop a strategic framework plan for Detroit. It analyzed data on the city's population decline, vacant housing and parcels, employment, transportation, city services spending, and tax revenue to identify opportunities for more efficient use of land and resources. Key facts presented include Detroit's population dropping from over 1.8 million to under 900,000 and over 40% of the city being vacant land. The mayor proposed increasing density and developing vacant land to attract new residents and businesses to improve services and investment.
Kedrova Ekaterina organized several promotional events from 2006 to 2008 including:
1) A Barbie doll auction that raised $151,000 for charity with dolls designed by Russian fashion designers.
2) Family festivals to promote new toy lines and increase customer loyalty.
3) Toy fairs to increase brand awareness and find new partners.
4) Special events partnering Hot Wheels and Jetix to promote brands through websites, TV ads, and discounts.
5) Several other special events partnering with automakers, hotels, and media companies to promote Mattel brands like Barbie and Scrabble.
This document provides a 5-step tutorial for creating a colored pencil sketch effect in Photoshop. The steps are: 1) desaturate the image, 2) duplicate and invert the layer, 3) set the inverted layer blending mode to Color Dodge, 4) add Gaussian blur, and 5) use Hue/Saturation to subtly colorize the sketch. Following these steps transforms a color photo into a black and white pencil sketch that can then be further enhanced with color.
Image Prograf I Pf5100 Customer PresentationPLotterpro
The document summarizes the key features and capabilities of the Canon imagePROGRAF iPF5100 17-inch large format printer. It discusses the printer's LUCIA ink set, built-in calibration system, dual print heads, and Kyuanos color management technology. The document also provides details on Canon's focus on research and development and its wide range of supported media types and sizes.
This document discusses the importance of city branding and outlines key considerations for developing an effective city brand. It notes that a city brand should encompass emotion, experience, aesthetics, history, trust, aspiration, targeting, and consistency. It also lists potential barriers to an effective city brand strategy and questions that stakeholders should consider, such as a city's unique value proposition, hidden assets, guiding principles, and resources needed to achieve the brand's vision and create a better future for the city.
This document provides techniques for appearing more confident when giving presentations. It discusses 10 techniques for appearing confident, including making strong eye contact, having good posture, varying facial expressions and speaking volume, and commanding the material. It also covers opening and closing techniques, using storytelling, handling questions, and using PowerPoint effectively. The overall message is that appearing confident through verbal and non-verbal cues can help audiences be more receptive to the presenter's message.
Supporting-green-electricity-lessons-learned-from-the-spanish-feed-in-tariff-...Gnera Energía y Tecnología
The Spanish economic support system for electricity from renewable energy sources has had a good reputation due to its good results in terms of number of new plants, installed megawatts, industrial development, etc. Nevertheless, in the last years we have assisted to major and sudden legislative changes motivated by different events that have put under discussion the system sustainability. After describing the main green electricity support systems available and the benefits of introducing renewable energies in the electricity market, this paper analyses the causes of the “boom and burst” of the Spanish support mechanisms and the main lessons learned.
//
Principales lecciones aprendidas del sistema de tarifas y primas a las energías renovables en España.
A national perspective on using rates to control power system costs (recommen...bobprocter
This document provides an overview of using time-differentiated electricity rates to control power system costs from a national perspective. It discusses how electricity pricing has resulted in consumption patterns that do not match production and delivery cost patterns, leading to increasing costs. Dynamic pricing is presented as a way to better align prices with underlying costs. The document covers definitions of dynamic pricing, related rate design issues, potential impacts on different customer groups, enabling technology needs, and transition challenges. It argues dynamic pricing could significantly reduce peak consumption and lower future electricity costs if designed and implemented properly while accounting for different stakeholder impacts.
Smart Investing is all about seeing the big trend and leaping on it
before everyone else does. While “zero-subsidy” is a new term in the wind power industry it will likely become an even greater and viable opportunity in the next years. Discover the real trends, risks and opportunities behind this novel approach.
The document discusses some of the risks associated with the UK government's proposed Contracts for Difference (CfD) electricity market reform compared to the existing Renewables Obligation (RO) system. Specifically:
- Market risk is reduced under CfDs through long-term price certainty, but it is unclear how power purchase agreements will evolve to cater to the new system.
- Basis risk exists if the reference price used in CfDs is not reflective of actual market prices. This could undermine the mechanism.
- Liquidity risk may increase without a legal obligation for suppliers to purchase renewable power. Projects will still require long-term power purchase agreements to attract financing, but it is unclear how the power
1. The document discusses India's projected energy demand over the 12th Five Year Plan period, which is estimated to require energy supply growth of 6.5% annually to support a GDP growth target of 9% per year.
2. It outlines India's policies and initiatives to promote energy efficiency and increase domestic energy production to help meet this demand, such as efficiency standards, renewable energy targets, and expanding exploration under NELP.
3. However, it notes that energy prices in India are substantially below global levels for various fuels like diesel, kerosene and LPG, creating economic distortions and undermining energy security, so rationalization of pricing is needed.
The document discusses key concepts in market systems including the production possibility curve, productive efficiency, allocative efficiency, and distributive efficiency. It then covers factors that influence market demand and supply such as income, population, tastes/preferences, and costs of production. Elasticity concepts like price elasticity of demand and supply are also defined. Applications of demand and supply frameworks like the incidence of taxes and subsidies and effects of price floors and ceilings are summarized.
There are three main types of market failures caused by externalities:
1) Overallocation of resources when external costs are present and firms can shift some costs to others. This leads to production beyond the socially optimal level.
2) Underallocation of resources when external benefits exist but firms only consider private benefits. This results in production below the socially optimal level.
3) These market failures can be corrected through government intervention like taxes, subsidies, and regulations or through establishing a market for externality rights. The optimal solution balances the marginal costs and benefits of pollution abatement.
This document discusses innovative financing for green projects and a greener economy. It outlines opportunities in renewable energy but also challenges in financing green projects due to issues like risk, lack of long-term capital and policy uncertainty. It proposes best practice solutions like bundling small projects, using carbon credit revenues to derisk projects, and implementing green taxes. It discusses the role of development finance institutions and export credit agencies in mitigating risk and catalyzing projects. Finally, it introduces Green Capital Advisors, a firm that provides advisory services around sustainable financing policies, programs and projects.
Perspectives on Energy Efficiency Opportunities and Strategies:Technology an...Alliance To Save Energy
On September 14, Executive Vice President for Programs Brian Castelli keynoted the Riso International Energy Conference 2009 at the Technical University of Denmark, where he addressed the role of energy efficiency in reducing greenhouse gases (GHG).
The document outlines concepts from managerial economics including consumer preferences, indifference curves, budget constraints, and consumer equilibrium. It discusses how consumers maximize utility given prices and income by allocating resources across goods in a way that equalizes marginal utility per dollar spent. Graphs are used to illustrate indifference curves, budget lines, and how consumer equilibrium is reached at the point of tangency between an indifference curve and budget line.
RAP EU emergency measures assessment -final.pptxBramClaeys3
Regulatory Assistance Project (RAP) provides an assessment of various emergency policy measures to address the energy crisis in Europe. They find that demand reduction efforts and targeted financial support are most effective. Price signals are still needed to avoid rationing. Wholesale interventions like gas price caps face challenges in ensuring cost savings are passed to consumers without increasing demand and risk of blackouts. Group gas purchases and infra-marginal rent capture may offer opportunities if implemented properly.
The document discusses decision support methods for energy auctions and risk in the new Brazilian electricity sector regime. It proposes a simulation model to optimize energy purchasing costs for distributors. The model integrates an energy demand forecasting model with simulations of the settlement price (PLD) using hydro dispatch optimization software. It also simulates different percentages of estimated load purchased each year to minimize total costs over multiple years amid demand and PLD uncertainties.
This document discusses a proposed transition to a "Natural Grid" energy system through the establishment of a Caspian Capital Partnership and use of "Prepay" energy financial instruments. It proposes a neutral framework to facilitate regional energy cooperation among Caspian nations based on collaborative agreements between stakeholders. Through this system, energy producers could issue prepaid energy credits that are purchased by investors and returned against future energy supply, providing investment in renewable infrastructure development and transition to a lower carbon economy. The goal is a more distributed, resilient and equitable energy sharing system without any single stakeholder having dominant control.
This chapter discusses macroeconomic concepts related to income and expenditure, including:
1) The consumption function and how disposable income affects consumer spending.
2) Factors like expected future income and wealth that can shift the aggregate consumption function.
3) Determinants of investment spending and the distinction between planned and unplanned inventory investment.
4) How the inventory adjustment process moves the economy to a new equilibrium after demand shocks.
5) The income-expenditure model and multiplier process, and how they demonstrate how the economy reaches income-expenditure equilibrium.
The document provides tips for becoming a more effective presenter. It advises against common assumptions such as ideas speaking for themselves or just being yourself. Effective presenting requires business theatrics and focus on techniques like posture, eye contact, voice, and storytelling. The takeaway is the most important message to communicate clearly. Rehearsal is key to improving presentation skills.
The mayor's address outlined a 4-phase process to develop a strategic framework plan for Detroit. It analyzed data on the city's population decline, vacant housing and parcels, employment, transportation, city services spending, and tax revenue to identify opportunities for more efficient use of land and resources. Key facts presented include Detroit's population dropping from over 1.8 million to under 900,000 and over 40% of the city being vacant land. The mayor proposed increasing density and developing vacant land to attract new residents and businesses to improve services and investment.
Kedrova Ekaterina organized several promotional events from 2006 to 2008 including:
1) A Barbie doll auction that raised $151,000 for charity with dolls designed by Russian fashion designers.
2) Family festivals to promote new toy lines and increase customer loyalty.
3) Toy fairs to increase brand awareness and find new partners.
4) Special events partnering Hot Wheels and Jetix to promote brands through websites, TV ads, and discounts.
5) Several other special events partnering with automakers, hotels, and media companies to promote Mattel brands like Barbie and Scrabble.
This document provides a 5-step tutorial for creating a colored pencil sketch effect in Photoshop. The steps are: 1) desaturate the image, 2) duplicate and invert the layer, 3) set the inverted layer blending mode to Color Dodge, 4) add Gaussian blur, and 5) use Hue/Saturation to subtly colorize the sketch. Following these steps transforms a color photo into a black and white pencil sketch that can then be further enhanced with color.
Image Prograf I Pf5100 Customer PresentationPLotterpro
The document summarizes the key features and capabilities of the Canon imagePROGRAF iPF5100 17-inch large format printer. It discusses the printer's LUCIA ink set, built-in calibration system, dual print heads, and Kyuanos color management technology. The document also provides details on Canon's focus on research and development and its wide range of supported media types and sizes.
This document discusses the importance of city branding and outlines key considerations for developing an effective city brand. It notes that a city brand should encompass emotion, experience, aesthetics, history, trust, aspiration, targeting, and consistency. It also lists potential barriers to an effective city brand strategy and questions that stakeholders should consider, such as a city's unique value proposition, hidden assets, guiding principles, and resources needed to achieve the brand's vision and create a better future for the city.
This document provides techniques for appearing more confident when giving presentations. It discusses 10 techniques for appearing confident, including making strong eye contact, having good posture, varying facial expressions and speaking volume, and commanding the material. It also covers opening and closing techniques, using storytelling, handling questions, and using PowerPoint effectively. The overall message is that appearing confident through verbal and non-verbal cues can help audiences be more receptive to the presenter's message.
Supporting-green-electricity-lessons-learned-from-the-spanish-feed-in-tariff-...Gnera Energía y Tecnología
The Spanish economic support system for electricity from renewable energy sources has had a good reputation due to its good results in terms of number of new plants, installed megawatts, industrial development, etc. Nevertheless, in the last years we have assisted to major and sudden legislative changes motivated by different events that have put under discussion the system sustainability. After describing the main green electricity support systems available and the benefits of introducing renewable energies in the electricity market, this paper analyses the causes of the “boom and burst” of the Spanish support mechanisms and the main lessons learned.
//
Principales lecciones aprendidas del sistema de tarifas y primas a las energías renovables en España.
A national perspective on using rates to control power system costs (recommen...bobprocter
This document provides an overview of using time-differentiated electricity rates to control power system costs from a national perspective. It discusses how electricity pricing has resulted in consumption patterns that do not match production and delivery cost patterns, leading to increasing costs. Dynamic pricing is presented as a way to better align prices with underlying costs. The document covers definitions of dynamic pricing, related rate design issues, potential impacts on different customer groups, enabling technology needs, and transition challenges. It argues dynamic pricing could significantly reduce peak consumption and lower future electricity costs if designed and implemented properly while accounting for different stakeholder impacts.
Smart Investing is all about seeing the big trend and leaping on it
before everyone else does. While “zero-subsidy” is a new term in the wind power industry it will likely become an even greater and viable opportunity in the next years. Discover the real trends, risks and opportunities behind this novel approach.
The document discusses some of the risks associated with the UK government's proposed Contracts for Difference (CfD) electricity market reform compared to the existing Renewables Obligation (RO) system. Specifically:
- Market risk is reduced under CfDs through long-term price certainty, but it is unclear how power purchase agreements will evolve to cater to the new system.
- Basis risk exists if the reference price used in CfDs is not reflective of actual market prices. This could undermine the mechanism.
- Liquidity risk may increase without a legal obligation for suppliers to purchase renewable power. Projects will still require long-term power purchase agreements to attract financing, but it is unclear how the power
1. The document discusses India's projected energy demand over the 12th Five Year Plan period, which is estimated to require energy supply growth of 6.5% annually to support a GDP growth target of 9% per year.
2. It outlines India's policies and initiatives to promote energy efficiency and increase domestic energy production to help meet this demand, such as efficiency standards, renewable energy targets, and expanding exploration under NELP.
3. However, it notes that energy prices in India are substantially below global levels for various fuels like diesel, kerosene and LPG, creating economic distortions and undermining energy security, so rationalization of pricing is needed.
The document discusses key concepts in market systems including the production possibility curve, productive efficiency, allocative efficiency, and distributive efficiency. It then covers factors that influence market demand and supply such as income, population, tastes/preferences, and costs of production. Elasticity concepts like price elasticity of demand and supply are also defined. Applications of demand and supply frameworks like the incidence of taxes and subsidies and effects of price floors and ceilings are summarized.
There are three main types of market failures caused by externalities:
1) Overallocation of resources when external costs are present and firms can shift some costs to others. This leads to production beyond the socially optimal level.
2) Underallocation of resources when external benefits exist but firms only consider private benefits. This results in production below the socially optimal level.
3) These market failures can be corrected through government intervention like taxes, subsidies, and regulations or through establishing a market for externality rights. The optimal solution balances the marginal costs and benefits of pollution abatement.
This document discusses innovative financing for green projects and a greener economy. It outlines opportunities in renewable energy but also challenges in financing green projects due to issues like risk, lack of long-term capital and policy uncertainty. It proposes best practice solutions like bundling small projects, using carbon credit revenues to derisk projects, and implementing green taxes. It discusses the role of development finance institutions and export credit agencies in mitigating risk and catalyzing projects. Finally, it introduces Green Capital Advisors, a firm that provides advisory services around sustainable financing policies, programs and projects.
Perspectives on Energy Efficiency Opportunities and Strategies:Technology an...Alliance To Save Energy
On September 14, Executive Vice President for Programs Brian Castelli keynoted the Riso International Energy Conference 2009 at the Technical University of Denmark, where he addressed the role of energy efficiency in reducing greenhouse gases (GHG).
The document outlines concepts from managerial economics including consumer preferences, indifference curves, budget constraints, and consumer equilibrium. It discusses how consumers maximize utility given prices and income by allocating resources across goods in a way that equalizes marginal utility per dollar spent. Graphs are used to illustrate indifference curves, budget lines, and how consumer equilibrium is reached at the point of tangency between an indifference curve and budget line.
RAP EU emergency measures assessment -final.pptxBramClaeys3
Regulatory Assistance Project (RAP) provides an assessment of various emergency policy measures to address the energy crisis in Europe. They find that demand reduction efforts and targeted financial support are most effective. Price signals are still needed to avoid rationing. Wholesale interventions like gas price caps face challenges in ensuring cost savings are passed to consumers without increasing demand and risk of blackouts. Group gas purchases and infra-marginal rent capture may offer opportunities if implemented properly.
The document discusses decision support methods for energy auctions and risk in the new Brazilian electricity sector regime. It proposes a simulation model to optimize energy purchasing costs for distributors. The model integrates an energy demand forecasting model with simulations of the settlement price (PLD) using hydro dispatch optimization software. It also simulates different percentages of estimated load purchased each year to minimize total costs over multiple years amid demand and PLD uncertainties.
This document discusses a proposed transition to a "Natural Grid" energy system through the establishment of a Caspian Capital Partnership and use of "Prepay" energy financial instruments. It proposes a neutral framework to facilitate regional energy cooperation among Caspian nations based on collaborative agreements between stakeholders. Through this system, energy producers could issue prepaid energy credits that are purchased by investors and returned against future energy supply, providing investment in renewable infrastructure development and transition to a lower carbon economy. The goal is a more distributed, resilient and equitable energy sharing system without any single stakeholder having dominant control.
This chapter discusses macroeconomic concepts related to income and expenditure, including:
1) The consumption function and how disposable income affects consumer spending.
2) Factors like expected future income and wealth that can shift the aggregate consumption function.
3) Determinants of investment spending and the distinction between planned and unplanned inventory investment.
4) How the inventory adjustment process moves the economy to a new equilibrium after demand shocks.
5) The income-expenditure model and multiplier process, and how they demonstrate how the economy reaches income-expenditure equilibrium.
This presentation was delivered by Tessa Williams-Robertson, Head, Renewable Energy and Energy Efficiency Unit, CDB, at the Fifth Caribbean Sustainable Energy Forum in The Bahamas in January 2017. For more information about renewable energy and energy efficiency in the Caribbean, visit www.caribank.org.
Tessa Williams-Robertson presented on innovative financing mechanisms to unlock capital for sustainable energy needs in the Caribbean region. An estimated $10-20 billion is needed for renewable energy and energy efficiency projects over the next decade to transition away from expensive imported fossil fuels. Concessional financing from climate funds and development partners can help bridge this financing gap by making projects more viable given regional constraints like small markets and high perceived risk. Public-private partnerships require careful due diligence and appropriate risk allocation to succeed. The CDB is utilizing blended resources including grants, loans, and interest subsidies to fund initiatives like geothermal energy assessment, streetlight retrofits, and a 150kW solar plant.
This document summarizes strategies for reducing emissions from the power sector at lowest cost. It discusses how new business models and policies can make clean energy the lowest cost solution by reducing financing costs. Specifically, it analyzes how long term contracts and policies that reduce risk can lower the cost of renewable energy by 5-15% by attracting lower cost financing. It also discusses how policies can minimize stranded fossil fuel assets and system costs as the grid transitions to more clean energy through approaches like implementing a separate market for renewable energy.
Presentation by CleanEnergy Capital at the July 26 Board of Directors meeting. This presentation discusses potential energy use and pricing for the Carlsbad Seawater Desalination Facility/
This document discusses three questions about electricity in Northern Ireland: whether it is a service or commodity, if Northern Ireland should be in the Single Electricity Market, and if consumers are paying too much. It argues that electricity costs have increased significantly since the 1990s due to privatization and being in the SEM. Reform is needed to make the system more efficient and support the transition to renewable energy at lowest cost.
5. 5
Dependence on the world market for oil
These are external costs, which need to be paid for
A country needs to pay for oil on the international market,
irrespective of how these costs are allocated nationally
Governments may choose how to allocate these costs:
consumers
government (by subsidies)
any remaining costs must be absorbed by the utilities
7. 7
Objectives of energy policy
Energy policy reflects the manner a given (often governmental)
entity has decided to address issues of energy production,
distribution and consumption.
The attributes of energy policy may include legislation, international
treaties, incentives to investment, guidelines for energy conservation,
taxation and other public policy techniques.
Frequently, the dominant issue of energy policy is the risk of supply-
demand mismatch. Current energy policies also address environmental
issues.
Some governments state explicit energy policy, but, declared or not,
each government practices some type of energy policy.
8. 8
Objectives of social policy
Social policy relates to guidelines for the changing, maintenance or
creation of living conditions that are conducive to human welfare.
Social policy is that part of public policy that has to do with social issues
such as public access to social programs and to essential services.
Social policy aims to improve human welfare and to meet human needs
for education, health, housing, energy and social security.
In an academic environment, social policy refers to the study of the welfare
state and the range of responses to social need.
11. 11
Energy consumption is influenced by:
Long term Short term
Consumer
√
preferences
Structure of the
√
economy
√
Available fuels
Available
√
technology
√ √
Energy price
12. 12
The interplay between social policy and
energy policy
Energy consumption is directly influenced by the price
Price
Prijs
Demand curve
Vraagcurve
Hoeveelheid
Quantity
Subsidies to consumers affect the energy price experienced by
consumers, which affects energy consumption.
13. 13
Subsidies have associated costs
Obvious:
Someone has to pay for the amount subsidized
Less obvious:
Disturbed price-signals lead to ‘efficiency costs’
economic scarcity is not reflected in the price leading to
suboptimal allocation of resources
costs are difficult to quantify, but do exist!
15. 15
After a subsidy, the consumer feels Pconsumption
PRICE
supply
curve
Pproduction
P*
demand
Psubsidy
curve
Q* Qsubsidy QUANTITY
16. 16
The money transfer effected by the subsidy
PRICE
supply
curve
Pproduction
For these units, the
value for consumers
P* is less than the cost
of production
demand
Pconsumption
curve
Q* Qsubsidy QUANTITY
17. 17
However, at the cost of a decrease of welfare
PRICE
supply
curve
Pproduction
efficiency
loss
By paying the subsidy, the
government
‘buys’ economic surplus for consumers
P*
and producers at a too high price!
demand
Pconsumption
curve
Q* Qsubsidy QUANTITY
18. 18
PLEASE NOTE!
The consumers pay for energy which has less value than the
total amount paid for it (directly and indirectly).
In the end, the cost of the too expensive units produced are paid
by the consumers themselves, as subsidies are generally paid
for from the treasury.
This is especially true when subsidies are allocated indifferently to
all consumers.
If the beneficiaries of the subsidies are a limited group, the
evaluation is more complex: the cost of the efficiency loss are
socialised, however counterbalanced by the benefits of having more
universal access to the energy supply.
Subsidies are an efficient
mechanism to reduce welfare!
19. 19
Inventory of negative effects of subsidies
Too low prices result in:
... reduction of economic efficiency by consuming energy of which
the marginal benefit is lower than the reference price.
... reduction of incentives for producers to become more efficient
and lower their price.
... reduction of the remunerativeness of alternative (e.g. renewable)
energy production.
Too high consumption results in:
... a higher demand for crude oil which, in turn, leads to increased
payments to foreign parties.
... a reduced incentive for energy conservation.
... higher (environmentally detrimental) emissions.
21. 21
In principle, all costs for the energy supply should
be charged to the consumers, presuming the costs
are reasonable...
Government party
Consumer = ‘any
consuming energy’
In practice, tarification of energy
for households is a sensitive
issue
Utilities Consumers
22. 22
However, the government may contribute to the
costs of energy (by providing subsidies)
Government
Subsidies financed from taxes
are indirectly paid by consumers.
Financing from foreign
assistance is associated with
opportunity cost
Utilities Consumers
23. 23
Any difference (COSTS minus TARIFFS minus
SUBSIDIES) must be absorbed by the utilities
If costs are not recovered, utility’s
Government
revenues will decrease
Lower rate of return may affect reven-
ues for the government (as share-
Subsidies holder) and interest on future loans
Costs Tariffs
Utilities Consumers
25. 26
Present experience with subsidies
In many countries (esp. those with energy markets),
governments conclude that some form of social policy for energy
support is desirable.
It is assumed that society as a whole benefits from universal access
to the energy supply.
However, success of these programmes is not obvious.
However, due to the environmental effects (resulting from the
high energy consumption) and the high economic costs, many
programmes are presently reviewed.
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‘Good subsidies’
A ‘good subsidy’ is one that enhances access to modern
energy or has a positive impact on the environment,
while sustaining incentives for efficient delivery and
consumption.
A subsidy should actually lead to an increased accessibility of
the energy supply
A subsidy should guarantee efficient distribution (i.e. reduction of
illegal consumption) and consumption (i.e. efficient use of
energy)
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1. Subsidies should be focused*
Energy subsidies should be received only by those
targeted to receive them.
Often, subsidies are being received by people who don’t need them,
which provides wrong economic incentives and increase the cost of the
subsidy programme
*UNEP and OECD/IEA, Reforming Energy Subsidies, United Nations Publication, 200,
ISBN 92-807-2208-5, p.21–23.
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2. Subsidies should be efficient
Energy subsidies should not counter the incentives to
producers and consumers to produce/consume energy
efficiently.
Subsidies should be high enough to guarantee access to the energy
supply, but nevertheless such that the consumers still feel the cost of
energy.
E.g. subsiding a relative part of the energy bill is preferred above
capping of tariffs (which makes consumers insensitive to high oil prices
on the world market).
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3. Subsidies should be economically sound
Programmes for energy subsidies should be justified by
a sound analysis of its associated costs and benefits.
It is advisable that governments make an inventory of all economic,
social and environmental costs related to a subsidy before embarking
on such a route. Periodically, such an analysis needs to be revisited, as
time may change certain assumptions.
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4. Subsidies should be practical
The total cost of the subsidies should be affordable to
the government and the administration should not be
too costly.
Sometimes, practical limits should be taken into account, e.g. the total
amount of money available for subsidies. Also, the administrative cost
of the subsidy programme (including monitoring the effect of the
subsidy and prevention of abuse) should be limited.
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5. Subsidies should be transparent
Information on the total amount involved in a subsidy
programme and the parties benefiting from it needs to
be transparent.
In order to prevent abuse and for justification of resources, all financial
transactions within the subsidy programme should be transparent and
controllable.
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6. Subsidies should be limited in time
Any subsidy programme should include provisions for
ending the programme, in order to prevent perpetual
dependence on subsidies and too high costs of the
programme.
Due to changing circumstances, the (economic) effects of any subsidy
programme may change during time. As changes in the subsidy regime
often incur a lot of social debate, it is best to include conditions on
finalizing the programme automatically right from the start. This will
also be an ‘insurance’ against skyrocketing of the costs of the
programme.
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Why guidelines?
Before a subsidy programme is initiated, it is preferable to have a
common understanding of the goals and principles
in order to manage the cost of the programme
in order to maximize the success of the programme
in order to minimize the negative effects of the programme
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Guideline I
Apply a relative price criterion instead of an absolute
price criterion.
Do not cap the tariff to be paid by consumers, but design a subsidy
programme that contributes a relative share of the energy cost. This
will result in some residual demand elasticity.
Furthermore, the magnitude of the subsidy could be related to some
benchmark, e.g. the energy costs in comparable countries.
‘Consumers in your country should not be worse of than consumers in
countries X, Y, Z...’
Such an approach allows fuel price changes to be passed on to the energy
consumers.
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Guideline II
Guarantee that the tariffs cover the cost of service,
including a reasonable profit.
On the long term, it is important that the utility cost are recovered from
the tariffs.
This is not only needed for having financial healthy companies, but also for
being able to perform all necessary investment.
Insufficient guarantees that investments will be remunerated, will deter
foreign investors, which is bad on the long term for a country.
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Guideline III
Pass on all costs related to fuel purchases to the end
users (in the tariffs).
Fuel costs are non-controllable (opex) costs (at least on a short term).
Consumers should ‘feel’ the price signal, and adjust consumption
accordingly.
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Guideline IV
Support (only) those consumers who really need
government support for paying their energy bill.
If it is decided from a social policy perspective that some consumers
need assistance in paying their energy bill, limit the subsidy
programme to those people.
The group of recipients should be carefully defined (and proper use of the
subsidy should be easy to assess), and
Guarantee that the programme will not result in increased consumption.
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Guideline V
Socialize the costs of the energy subsidies among all
consumers in a transparent way.
Since all costs for subsidy programmes are being paid in the end by
the consumers themselves, it is preferable to allocate these costs
directly.
Actually, subsidies are a re-allocation of income.
Several approaches may be followed, e.g. direct inclusion in the energy bill
(as a separate item).
It is important that the costs of the subsidy programme are clear to all, both
the beneficiaries and the people who pay for it.
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Discussion
Thank you very much for your attention!
Rudi Hakvoort
Delft University of Technology &
D-Cision B.V.
E-mail: r.a.hakvoort@d-cision.nl