REEEP

Wilton Park delves into regulation

Wilton Park, 24.06.2010 - REEEP International Secretariat

Everyone from the World Bank, Deutsche Bank and Bianca Jagger discussed the need for transition to a low carbon economy the annual REEEP Wilton Park conference. With the support of the International Confederation of Energy Regulators, the event brought together key energy regulators and policy-makers from some 27 countries from Italy to India. The event opened with keynote addresses from Ingrid Fiskaa, State Secretary from the Norwegian Ministry of Foreign Affairs, Chris Snary from the UK Department of Energy and Climate Change, Lord Mogg, the Chairman of Ofgem, Claude Turmes, MEP, and Kuni Shimada, a key Japanese climate expert and negotiator.

Wilton Park 2010 - Jagger et al

Wilton Park always allows for strong networking in a relaxed setting: Rupa Devi Singh, Managing Director and CEO, Power Exchange India Ltd, Mumbai; Usha Ramachandra, Professor, Administrative Staff College of India, Hyderabad; Bianca Jagger; and  Sudha Mahalingam, National Security Advisory Board and Petroleum and Natural Gas Regulatory Board, New Delhi

The three-day conference from 21-24 June zeroed in on the specific challenges of renewable energy regulation, looking at five key questions in detail:
1 .What are the main barriers to policies being followed up by detailed regulations?
2. How does inconsistency between different regulations harm sustainable development?
3. What institutional and structural frameworks are critical for effective regulation?
4. How can transmission and distribution regulation drive low carbon energy development?
5.What regulatory tools are best to drive consumer behavior?

The discussions of these issues, all covered by Chatham House rules of confidentiality, did point up several clear themes:

  • Governments are critical, as they set policy, they control the power sector directly, and in many countries, are themselves the largest consumers of power.
  • The role of regulators can differ between developed and developing countries, particularly on the idea of independence.
  • There is an urgent need for policy and regulation capacity building in developing countries.
  • Renewables do require a much more intelligent grid, but adding this relatively expensive power demands that grid efficiency issues be dealt with first.
  • Finance remains a key barrier to the further development of renewable energy and energy efficiency in developing countries.

Beyond the technical discussions, during the course of the conference,Ms. Jagger, the human rights, social justice and climate change advocate, called for a "Copernican revolution" in moving beyond carbon to a decentralised, sustainable energy system.

Another inspiring moment was a presentation on renewable energy as a viable commercial enterprise - even for the "poorest billion" at the "bottom of the pyramid" by Dipal Barua, who is working to provide 75 million people in Bangladesh with solar power that is cheaper than the cost of kerosene. The Bright Green Energy Foundation is working to train 100,000 woman entrepreneurs at village level to disseminate the technology.

Another session at the conference took participants from Tuvalu in the Pacific - which has no land higher than 5 metres above sea level - to the Himalayas in Nepal. Climate change and the need for cheap, reliable energy are policy challenges in these two countries, and in most developing ones.

An official report of the Wilton Park event will be issued during July.