Insights into Tonga Electricity Commission's Role in Energy Regulation
Explore the functions and collaborations of the Tonga Electricity Commission in achieving renewable energy targets, overseeing economic aspects, and ensuring public safety in Tonga's electricity sector. Learn about the relationship between the government, Utility Tonga Power Limited, and the regulator in driving sustainable energy practices and fair market conditions.
- Tonga Electricity Commission
- Energy Regulation
- Renewable Energy
- Government Collaboration
- Economic Oversight
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Presentation Transcript
TONGA ELECTRICITY COMMISSION 5 tips for a simpler way to work
Perspectives on the achievements from the Regulator Overview of my presentation Relationship between the Government, Utility Tonga Power Limited and the Regulator Tonga . Tonga Electricity Commission roles in trying to achieve the RE Target. Electricity Regulation and its impact on the TERM targets. 1. IPP/PPA 2. Affordable 3. Clean Energy
Relationship between the Government, Utility Tonga Power Limited and the Regulator Tonga . Government Tonga Electricity Commission TPL
Regulator The executing branch of the government responsible for: Implementing policy Ensure fair market conditions and market behaviour even in a concession/monopoly Enforcing legislation Basically defines the playing field for utilities and IPPs/developers -risks Providing permits Approving contractual agreements impacting tariffs and energy supply
Regulator The needs of the regulator are related to information Clear communication with utilities Clear role definitions perhaps enforced by law Energy Framework Bill
Impacts on TERM Targets Ensure that electricity tariff is fair/accurate to the Government, Tonga Power Limited and the people of Tonga TEC core activities are Economic Oversight and Public Safety. 1. Economic Oversight RE projects will result in clean energy and affordable tariff. IPP/PPA 2. Public Safety Wiring of the solar facility project outer Islands.
Government Expansions of renewable electricity generation is often driven by public policy Climate Independence from fossil fuels Costs Public funding of RE projects is also very common In case of higher Level Cost Of Energy of RE Subsidized electricity prices in general
Government The needs of the government relate to: Implementation of policy by the regulator and utility
Utility Can be split into 3 roles Generator Grid operator Balancing responsible Those 3 roles are often bundled, but need not be so Going from sole generator to joint generator with an IPP can be a challenge The Utility retains grid operations and balancing responsibilities while the IPP is more free Loss of control
Utility The need on the Utility side is mainly related to: clarity on timing of grid connection and reliable forecasting of production from the project Support from Regulator and Government in terms of tariff, contract negotiations, analytical input Demonstration of creditworthiness will be a challenge if there are political restrictions on tariffs yet no financial backup
