Page 12 - CARILEC CE Industry Journal_Oct_2019

28 MW Content Solar, Jamaica, WRB Energy

DRIVING MARKET change capriciously and be subject to shifts in political
TRANSFORMATION: TRADE-OFFS administrations or swayed by individual interests.
ARE INEVITABLE, STAKEHOLDER First and foremost, policy needs to remain constant to
BUY-IN IS CRITICAL AND achieve mutual goals while being realistic and responsive to
market conditions. It’s a balance between understanding
DISRUPTORS WILL EMERGE. the characteristics of the region and the impacts of
technology and economics. Often, there is asymmetry in
With a level, consistent playing field for renewable energy knowledge and a gap between theoretical and real market
development, the market drivers, including utilities, conditions. Policy makers need to understand what makes
independent power producers, investors, and developers sense from a technological and financial perspective.
have the necessary knowledge and insights to make
appropriate investment and economic decisions. Regulators

Utilities can focus on what they do best in forecasting, Regulators want to develop a portfolio standard that
planning, and securing sufficient, least-cost energy makes sense in their region to meet goals, both from
supplies for long-term reliability and high-quality, technological and economic perspectives supporting
affordable service delivery, as well as environmental policy. What technologies meet targets? What
well-being to serve the public good. technologies are appropriate for the geography and
resource—solar, wind, or geothermal? How quickly can
Investors can perform the required economic analysis the echnologies be deployed, and at what cost?
confidently to minimize risk and secure a reasonable Effective regulation and oversight require an open and
return on investment. honest conversation between utilities, government, and
other stakeholders that includes:
Independent power producers and developers are more • Realistic analysis of the market conditions and
assured of the rules of the tender process and the economics
contractual responsibilities, commitments, and • A prudent, technology-agnostic approach
timeframes. • Short- and long-term strategies for energy
sustainability and affordability.
ROLES AND RESPONSIBILITIES Clear, specific regulation helps create a level playing
field that accounts for all costs associated with an
The market drivers each have roles and responsibilities in electric system’s capacity, infrastructure, and
creating a stable energy marketplace that is realistic and maintenance for reliability and efficiency, including
economically sound. frequency, voltage, and reserves.

Policymakers Regulation can also help ensure a well-defined tender process
for the procurement of energy and services that establishes
Ideally, government, utilities, public interest groups, and rules, responsibilities, and equitable pricing models. For
other key stakeholders play a critical role in developing a example, in a tender for renewable energy (intermittent
nation’s energy policy and regulatory protocols power), the additional costs associated with the integration of
collaboratively. Otherwise, policy and regulation can that energy onto the grid need to be acknowledged.

10 CE INDUSTRY Journal