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Energy Policy
Energy Supply
Energy Demand
 
Social Safety Nets

Energy Supply Interventions

Enhancing oil products supply

  Legislative and regulatory measures Fiscal, financial and institutional measures
Strengthening oil exploration and production activities
  • Include oil exploration in the mandate of the oil companies; for example, a part of their profits must be expended on exploration activities.
  • Promote Regional cooperation in Exploration and Production activities.
  • Introduce fiscal incentives like tax rebates to oil companies to strengthen exploration activities.
  • Lend fiscal support to technological investments to enhance recovery rates from rigs; also allow them benefits of lower interest rates on institutional loans.
Increasing refining capacity, especially to process sour crudes
  • Encourage the establishment of refining capacity for sour crudes.
  • Regulate the conversion of excess capacity, if any, for the processing of lighter crudes into refining capacity for sour crudes.
  • Promote the development of Regional agreements on Refining Capacity.
  • Introduce capital subsidies for sour crude refining facilities and duty exemptions for imported technology to be used in the refining facilities; also allow them the benefits of lower interest rates on institutional loans.
Diversifying sources of oil
  • Create policy initiatives to encourage investments in oil fields abroad by domestic oil companies and directives to explore new sources of oil, for example, tar sands.
  • Promote regional procurement agreements to gain economies of scale through pooled bulk purchasing of oil imports.
  • Promote the investment in regional pipelines and transport systems for the transfer of oil and oil products.
  • Give tax benefits to companies investing in oil fields abroad.
  • Extend the facilities of accelerated depreciation to equipment used by oil companies extracting oil from unconventional sources such as tar sands and very heavy oil deposits.

Diversifying fuels

Diversifying fuels: Transport Sector
  Legislative and regulatory measures Fiscal, financial and institutional measures
Switching to alternative motor fuels
  • Mandate the use of CNG in public transport system and taxis in urban areas.
  • Restrict the use of liquid-fuel based transportation in cities.
  • Mandate oil companies to disseminate biofuels. This could comprise a fixed percentage of their total fuel distribution.
  • Promote regional trade of Natural Gas and Biofuels.
  • Use fiscal incentives like tax rebates to oil companies to disseminate biofuels.
  • Initially subsidize retail biofuel prices to promote its use; subsidies can eventually be withdrawn in a phased manner.
  • Extend low interest loans to agro-industrial ethanol firms.
Promoting the introduction of alternative-fuel automobiles
  • Introduce a labelling system for alternative-fuel vehicles
  • Subsidize the conversion of vehicles to use alternative fuels
Diversifying fuels: Industry Sector
  Legislative and regulatory measures Fiscal, financial and institutional measures
Switching to alternative fuels (natural gas, biofuels)
  • Promote regional trade of Natural Gas
  • Provide capital subsidies to help companies take up new technologies, already in the market, that can run under alternative sources of energy.
Exploiting own resources to produce energy
  • Oblige power utilities to purchase electricity either from cogenerators or produced using renewable energy.
  • Introduce tax credits to ensure acceptable financial returns for those willing to use biomass or agro-industrial residues for power generation or cogeneration.
  • Provide technical and financial support for energy generation from agro-industrial effluents and municipal wastes.
Diversifying fuels: Residential Sector
  Legislative and regulatory measures Fiscal, financial and institutional measures
Promoting the use of natural gas
  • Promote regional trade of Natural Gas
  • Provide connection subsidies to help households to access the natural gas distribution system
Promoting the difussion of solar water heaters
  • Develop regulations requiring new or renovated apartment buildings to be equipped with solar energy systems;
  • Improve the quality of equipment and installations through the use of technical standards and labels;
  • Develop a national or regional certification system that verifies the compliance of marketed products with the technical standards.
  • Subsidize the capital cost of solar water heaters;
  • Reduce the VAT rates on solar equipment;
  • Provide low-interest loans to help households to finance the installation costs.
Diversifying fuels: Commercial/Public Sector
  Legislative and regulatory measures Fiscal, financial and institutional measures
Migrating to alternative energy sources
  • Establish energy legislation and regulation for government facilities to significant increase the use of new renewable energy resources
  • Ensure government agencies compliance with energy management requirements
  • Ensuring inter-agegency coordination of ways to comply with regulations
  • Developing technical reference/guidance documents, measuring and tracking results
Exploiting own resources to produce energy
  • Deployment of renewable energy technology – energy from solar, wind, biomass, and other sources can offset public/commercial facilities’ energy consumption for lighting, cooling, and heating
  • Establishing partnerships through performance contracts between government agencies/commercial entities and energy service companies (ESCO) requiring ESCOs to identify improvements to use renewable resources, including designingand constructing projects and also arranging for necessary financing.
Diversifying fuels: Electricity Sector
  Legislative and regulatory measures Fiscal, financial and institutional measures
Developing renewables
  • Establish Renewable Energy Legislation.
  • Oblige power utilities to purchase electricity produced using renewable energy.
  • Introduce Renewable Portfolio Standard for electricity providers.
  • Provide production incentives for generation from renewable sources.
  • Introduce tax credits for generation from renewable sources.
  • Introduce an accelerated depreciation system for renewable generation assets.
Developing thermal non-oil generation
  • Promote the conversion of existing oil-fired plants to other fuels or multi-fuel firing.
  • Provide capital subsidies to help utilities take up new technologies.
Joining or improving regional power pools
  • Develop regional regulatory framework
  • Develop regional agreements (bilateral, other)
  • Improve regional operation rules and regulations
  • Develop a system of incentives to promote the development of interconnection – transmission lines

Improving efficiency on electricity supply

  Legislative and regulatory measures Fiscal, financial and institutional measures
Improving thermal generation efficiency
  • Adopt mandatory energy audits for power generators
  • Install/upgrade physical facilities and operating process improvements
  • Provide technical assistance to implement an boiler efficiency enhancing program
  • Provide financing for power plant rehabilitation program
  • Increase financial resources for O&M
  • Install/upgrade power plant’s Energy Managememt Systems
  • Improve plant efficiency using predictive maintenance
Improving dispatching of electricity
  • Improve monitoring and control tools
  • Upgrade national/regional control centers:
    • Automatic generation control (AGC)
    • Supervisory control and data acqusition (SCADA) system
    • Remote terminal units (RTU)
  • Update optimization power flow models
Reducing Power Transmission & Distribution Losses
  • Establish a clear and strict disconnection policy
  • Criminalize theft of power
  • Create commercially oriented tariff policy
  • Monitor utility customer service performance
  • Conduct legal actions, investigating cases of electricity theft and conducting criminal prosecution of staff and customers
  • Establish clear construction and operation standards for distribution grids
  • Expand metering improve billing and collections through appropriate use of available technology/systems
  • Perform system energy balances in the distribution grid to identify geographic areas where total losses are the greatest
  • Replace conductors in distribution line feeders where appropriate (reconductoring)
  • Replace or rotate distribution transformers to avoid over-use and sub-use of installed capacity
  • Add or balance phases in feeders where three-phase service is available
  • Install suitable power factor correction equipment such capacitor banks