Update on Regional Regulatory Initiatives

Transcription

1 Update on Regional Regulatory Initiatives By Dr. Eng. Gloria Magombo RERA Chairperson & ZERA CEO Presentation for the 5 th High-Level Meeting of Regional Regulatory Associations of Emerging Markets in Budapest, Hungary on 11 July 2017

2 Presentation Outline 1. About RERA 2. Status of the Establishment of Regulators 3. Electricity Tariffs in the SADC Region 4. Market and Investment Framework for SADC Power Projects 5. Regulatory Empowerment Project (REP) 6. Building Regional Climate Resilience through Electricity Trading and Related Infrastructure 7. USAID Southern Africa Energy Program (SAEP) 8. EU Capacity Building Programme 9. Concluding Remarks 2

3 About RERA (1) The Regional Electricity Regulators Association of Southern Africa (RERA) was established by the SADC Energy Ministers in July 2002 with the following objectives: 1. Capacity Building & Information Sharing 2. Facilitation of ESI Policy, Legislation & Regulations 3. Regional Regulation Cooperation RERA seeks to facilitate the harmonisation of regulatory policies, legislation, standards and practices and to be a platform for effective cooperation among energy regulators within the SADC region 3

4 About RERA (2) Strategic Intents ( ) (in the order of priority) 1. Nurture a regional energy market that is efficient, harmonised, sustainable and able to attract investments 2. Develop the capacity of regulators 3. Promote universal access to modern/clean, cost effective and quality energy services 4. Position RERA to proactively influence developments in the energy sector 4

5 Status of the Establishment of Energy and Electricity Regulators 5

6 Establishment of Regulators (1) 14/15 SADC countries have energy/electricity regulators about 93% - 2 additional regulators have been established in Botswana & Mauritius the DRC is the only remaining country though at an advance stage having passed the enabling legislation and is seeking technical assistance to establish a Regulator DR Congo Tanzania Angola Malawi Zambia Zimbabwe Namibia Botswana Mozambique Swaziland South Africa Lesotho 6

7 Electricity Tariffs and Migration towards Cost Reflectivity in SADC 7

8 Electricity Tariffs (1) SADC Council endorsed that all SADC Member States that have not taken all the necessary steps to reach full cost recovery tariffs to do so by 2019 Latest Tariff Report 2015 (in draft) produced by RERA indicates that it is highly unlikely that most countries would reach full cost recovery tariffs by 2019 to create a sustainable regional power sector that is able to attract (private) investment and promote energy efficiency However, the countries continue to make the politically difficult decisions of offering government guarantees for power projects and implementing the tariff adjustments 8

9 9 Electricity Tariffs (3)

10 Market & Investment Framework for SADC Power Projects 10

11 Establishment of Regulators (2) 10/14 are Members of RERA and visits are planned to reachout to the 4 regulators to be members by end of this year 3 are electricity regulators, 8 are energy regulators & 3 are multisector (energy/water) regulators National Electricity Council of Mozambique has been transformed into an Energy Regulator (ER) and the Electricity Control Board of Namibia would be transformed into an ER by end of this year DR Congo Tanzania Angola Malawi Zambia Zimbabwe Namibia Botswana Mozambique Swaziland South Africa Lesotho 11

12 Market & Investment Framework (1) Further support has been received from the U.S. Department of State, Bureau of Energy and Resources (DOS/ENR) to pilot/implement some near-term (shortterm) priorities in the M&I Framework in the following three flagship SADC Member States that were competitively selected: Botswana (BERA); Namibia (ECB); and Zambia (ERB). South Africa (NERSA) is also participating as a resource during the peer reviews 12

13 Market & Investment Framework (2) As part of this support, RERA is also partner with NARUC of USA to carry out some peer reviews in the support of the implementation of the M&I Framework in three pilot countries first (of the three) peer review activity was in Windhoek, Namibia from April 2017 and focused on Open Access & Wheeling second (of the three) peer review activity is scheduled to take place in Gaborone, Botswana from September 2017 and will focus topics related to Renewable Energy Integration 13

14 Regulatory Empowerment Project (REP) 14

15 Regulatory Empowerment Project IRENA is providing support to RERA as part of the Regulatory Empowerment Project (REP) and Governance of Integrated Resource Plans (IRPs) is a first joint IRENA/RERA Project with a title Planning Governance Project, PGP PGP is in its final stages and regional workshop is tentatively scheduled to take place in November 2017 to the Draft Guidelines have been developed covering regulatory and utility aspects in planning The project will use two (2) Member States (Namibia & Zimbabwe) as pilots to assess readiness and capacity for conducting national power system planning 15

16 Building Regional Climate Resilience through Electricity Trading and Related Infrastructure 16

17 Building Regional Climate Resilience (1) The British Department for International Development (DFID) funded a project through the Climate Resilience Infrastructure Development Facility (CRIDF) to enhance regional power pool developmental planning through incorporation of climate change factors such as: temperature increase; rainfall variability; impact on load forecast; and carbon dioxide (CO 2 ) emissions. 17

18 Building Regional Climate Resilience (2) This project has been completed and was officially handed over to the SAPP in March 2017 As part of the Project deliverables, a Tool for the integrated modelling to assess the impact of climate change on long-term energy generation and transmission planning for interconnected SADC countries has been developed A regional training seminar on the use of the Tool was conducted in February and March 2017 in Pretoria, South Africa 18

19 USAID Southern Africa Energy Program (SAEP) (March 2017 March 2022) 19

20 SAEP (1) A five (5) year USAID Southern Africa Energy Program started in March 2017 designed to address the following five (5) important aspects to investment in the Southern African energy sector: 1. Improving regulation, planning and procurement for energy 2. Improving commercial viability of utilities 3. Improving regional harmonisation and cross border trade 4. Demonstrating and scaling renewable energy and energy efficient technologies and practices 5. Increasing human and institutional capacity 20

21 EU Capacity Building Programme ( ) 21

22 EU Capacity Building (1) RERA and RAERESA, supported by the Secretariats of SADC and COMESA, have successfully mobilised the 4- year technical assistance of about EUR7 million from the European Union (EU) under the 11 th EDF and the Agreement was signed on 30 May 2017 Technical assistance is targeted at: 22 developing regulatory frameworks to nurture a regional energy market that is efficient, sustainable, harmonised and able to attract investments and ensure universal access; strengthening RERA and RAERESA's capacity to proactively influence developments in the energy sector in the region; enhancing the capacity of Member State Regulators; and developing and enhancing the domestication of renewable energy and energy efficient policies and regulatory guidelines to promote investment in clean energy.

23 EU Capacity Building (2) Proposed 2017/2018 Work Plan includes the following initiatives:. 23 Developing the framework for regulatory oversight of the regional market; Supporting the establishment of a regional autonomous regulator for the SAPP (transformation of RERA into a Regional Regulator); Long term technical assistance support to RAERESA and RERA to implement the programme (capacitation of the two Secretariats with experts over the 4-year period); Training, practical learning and exposure to international regionally integrated energy markets through study tours;

24 EU Capacity Building (3) Proposed 2017/2018 Work Plan includes the following initiatives:. Collaborating with the International Confederation of Energy Regulators (ICER) under their programme Women in Energy to promote capacity building through mentorship in the region; Developing a synthesized renewable energy and energy efficiency strategy for the ESA-IO region and ensure that it is gender responsive; A regional workshop to accelerate progress on energy efficiency policies and regulations; 24

25 EU Capacity Building (4) Proposed 2017/2018 Work Plan includes the following initiatives:. Provide technical training on the supply side energy efficiency and support limited technical advisory in implementation of some measures using some countries in the region as case studies; and Develop a communications strategy to sensitize energy consumers about the importance of EE interventions and practices. Implementation of the initiatives entails very close cooperation/ collaboration with the SADC Secretariat, the SAPP, SACREEE and other regional stakeholders 25

26 26 Concluding Remarks

27 Concluding Remarks With the support from the cooperating partners, RERA is poised to make strides in enhancing the regional energy regulatory environment RERA looks forward to sharing information and experiences with other Regional Regulatory Associations (RRAs) in the implementation of the regional regulatory initiatives 27

28 RERA Secretariat Regional Electricity Regulators Association of Southern Africa (RERA) Bonsec Heights, No. 6 Feld Street, Office No. 3 P. O. Box Windhoek NAMIBIA 28 Tel: Fax: / Mob: secretariat@rerasadc.com Web: