Electricity in Central America: paradigms, reforms and the energy trilemma

A new global energy era is emerging, one driven by the confluence of energy security, climate politics and energy equity issues. This ‘energy trilemma’ is shaping the global political economy of energy, which in turn influences how decisions are made about how energy is provided—referred to as global energy governance. This article analyzes historical and contemporary developments in Central America’s power sectors. This is a region that has long been an implementation space for global policy priorities, but has been overlooked by those engaging with the challenges of the energy trilemma. During the 1990s and 2000s, the statist model of energy governance gave way to a market-led model in the Central American isthmus. This led to the privatization of state-owned utilities and the promotion of a regional electricity market. During this period, the dominance of largely hydro-based renewable electricity generation diminished to be replaced by imported fossil fuel-based generation. Oil price increases during the early 2000s highlighted the region’s dependence on imports, with some countries turning to energy rationing. Increasingly interventionist state policies, which now seek to reduce oil dependence, improve energy efficiency and expand access to electricity, are being pursued in the region. This interventionist turn reflects the pressures of the energy trilemma, although energy security, particularly the need to reduce dependence on imported oil, remains the most important driver

The Political Economy of Coal

This volume provides an overview of the political economy of coal in diverse country contexts. Coal is the largest source of greenhouse gas emissions globally, accounting for about 40 percent of energy-related CO2 emissions. Continued construction of coal-fired power plants could make the climate targets of the Paris Agreement infeasible to achieve. In spite of sharply declining costs for renewable energy sources, many countries still heavily rely on coal to meet their energy demand. The predominance of coal can only be adequately understood in light of the political factors that determine energy policy formulation. To this end, this edited volume assembles a wide variety of case studies exploring the political economy of coal for across the globe. These includes industrial and developing nations, coal importers and exporters as well as countries that are either substantial coal users, are just beginning to ramp up their capacities, or have already initiated a coal phase-out. Importantly, all case studies are structured along a unifying framework that focuses on the central actors driving energy policy formulation, their main objectives as well as the context that determines to what extent they can influence policy making. This large set of comparable studies will permit drawing conclusions regarding key similarities as well as differences driving coal use in different countries. This book will be of great interest to students and scholars of energy, climate change, resource management, and sustainable development. It will also appeal to practitioners and policymakers involved in sustainable development

Analysis of smart energy systems and high participation of V2G impact for the ecuadorian 100% renewable energy system by 2050

This research presents a 100% renewable energy (RE) scenario by 2050 with a high share of electric vehicles on the grid (V2G) developed in Ecuador with the support of the EnergyPLAN analysis tool. Hour-by-hour data iterations were performed to determine solutions among various features, including energy storage, V2G connections that spanned the distribution system, and long-term evaluation. The high participation in V2G connections keeps the electrical system available; meanwhile, the high proportions of variable renewable energy are the pillar of the joint electrical system. The layout of the sustainable mobility scenario and the high V2G participation maintain the balance of the electrical system during most of the day, simplifying the storage equipment requirements. Consequently, the influence of V2G systems on storage is a significant result that must be considered in the energy transition that Ecuador is developing in the long term. The stored electricity will not only serve as storage for future grid use. Additionally, the V2G batteries serve as a buffer between generation from diversified renewable sources and the end-use stage.Peer ReviewedPostprint (published version

The Political Economy of Coal

This volume provides an overview of the political economy of coal in diverse country contexts. Coal is the largest source of greenhouse gas emissions globally, accounting for about 40 percent of energy-related CO2 emissions. Continued construction of coal-fired power plants could make the climate targets of the Paris Agreement infeasible to achieve. In spite of sharply declining costs for renewable energy sources, many countries still heavily rely on coal to meet their energy demand. The predominance of coal can only be adequately understood in light of the political factors that determine energy policy formulation. To this end, this edited volume assembles a wide variety of case studies exploring the political economy of coal for across the globe. These includes industrial and developing nations, coal importers and exporters as well as countries that are either substantial coal users, are just beginning to ramp up their capacities, or have already initiated a coal phase-out. Importantly, all case studies are structured along a unifying framework that focuses on the central actors driving energy policy formulation, their main objectives as well as the context that determines to what extent they can influence policy making. This large set of comparable studies will permit drawing conclusions regarding key similarities as well as differences driving coal use in different countries. This book will be of great interest to students and scholars of energy, climate change, resource management, and sustainable development. It will also appeal to practitioners and policymakers involved in sustainable development

Pension funds in Central Europe and Russia : their prospects and potential role in corporate governance

Social pension systems in most countries in Eastern Europe and the former Soviet Union face severe financial pressure. Aging populations are increasing that pressure, which stems mainly from in the%design in the %in the flaws and incompatible incentives in the systems. The authors describe the features of the ion systems that have led to the current dire predicament: a big discrepancy between system and demographic dependency ratios, unsustainable targeted replacement rates, the high contribution rates needed, growing evasion, and growing deficits. Radical basic reform is inevitable, they say, but may not be politically feasible or even advisable in the short run. After reviewing experience in other countries, they conclude that restructuring and downsizing the social ion system will leave adequate but affordable (thus sustainable) benefits and will allow for the creation and growth of private pension funds. The shortcomings of company-based defined benefit plans (limited portability, restricted vesting, inadequate funding) suggest that transitional economies should opt in the longer run for non-employer, defined contribution plans based on individual capitalization accounts with full immediate vesting, full portability, and full funding. To cope with the need for a targeted replacement rate, such schemes could operate with variable contribution rates, reset each year in accord with the salary growth of each worker, the cumulative investment return on his/her acount, and the targeted pension benefit. Once private pension funds are established, long-term financial resources should accumulate rapidly. They can then play a major role in modernizing securities markets, stimulating innovation, fostering better accounting and auditing standards, and promoting more disclosure of information. They could also greatly help improve corporate governance and the monitoring of corporate performance. Their"voice"in corporate affairs could be exercised more effectively through collective bodies. They could thus help create more robust structures of corporate governance, lower monitoring costs, and avoid the problems caused by"free riding".Contractual Savings,Pensions&Retirement Systems,Payment Systems&Infrastructure,Non Bank Financial Institutions,Banks&Banking Reform,Non Bank Financial Institutions,Economic Stabilization,Contractual Savings,Banks&Banking Reform,Pensions&Retirement Systems

Agglomerative Magnets and Informal Regulatory Networks: Electricity Market Design Convergence in the USA and Continental Europe

The absence of one broadly accepted design template for liberalised electricity markets induces regulatory competition and institutional diversity. Focussing on continental Europe and the USA, this analysis explores how agents and structures accelerate or impede the move to one standard market design in the electricity sector. It reveals that market design convergence in Europe is driven by the 'Florence Consensus,' a tripartite coalition between the European Commission fostering European integration and the internal market, informal regulatory networks between grid operators, standardisation authorities and regulators, who have been coordinating their actions in the 'Florence Forum,' and epistemic communities exemplified in the Florence School of Regulation. In contrast, the United States' Federal Energy Regulatory Commission lacks support among politicians, many states' public utility commissions, the neo-liberal intelligentsia and even industrial lobbying groups to effectively push for a standardised market design. However, design convergence in the USA may be induced by the gradual expansion of multi-state markets operated by regional transmission organisations.Electricity, Deregulation, Regulatory Competition, Policy Diffusion

How power affects policy implementation: lessons from the Philippines

This article unveils how the complex multilevel governance system of a developing country affects environmental policy implementation. The Philippine Renewable Energy Act is discussed as an in-depth case study. The law was passed in 2008 to increase the share of renewables in the electricity mix, but its implementation remains a challenge. Analysing the complex multilevel governance system of the Philippines, this article shows how interjurisdictional coordination and the distribution of power resources and capacities affect the implementation process. This qualitative research is based on key documents and insights from 48 expert interviews. From a theoretical perspective, research about power in central-local relations can make a useful contribution to current multilevel governance concepts

Privatization : trends and recent developments

This paper takes stock of recent privatization trends, examines the extent to which government ownership is still prevalent in developing countries, and summarizes emerging issues for state enterprise reform going forward. Between 1990 and 2003, 120 developing countries carried out nearly 8,000 privatization transactions and raised $410 billion in privatization revenues. Privatization activity peaked in 1997 and dropped off in the late 1990s and, while still at overall low levels, is slowly creeping back. While there are a large number of studies assessing the impact of privatization on enterprise performance and overall welfare, there are no systematic data on the extent to which privatization has changed the role of state enterprises in the economy. Anecdotal evidence suggests that the state's role has been substantially reduced in Eastern and Central Europe and in certain countries in Latin America. But available evidence also suggests that, despite a long track record of privatization, government ownership in state enterprises is still widely prevalent in some regions and countries, and in certain sectors in virtually all regions.The paper shows that the costs of not reforming state enterprises are high and that continued efforts need to be made to improve their performance by improving privatization policies and institutions; adopting more of a case-by-case approach for complex sectors and countries; and exposing state enterprises to market discipline through new private entry and exit of unviable firms and improvements in their corporate governance.Banks&Banking Reform,Privatization,Municipal Financial Management,State Owned Enterprise Reform,Private Participation in Infrastructure

Coal vs Climate: Indonesia's Energy Policy Contradicts Its Climate Goals

Being the fourth-largest country in the world and hosting the third-largest share of global rainforest stocks, Indonesia plays an essential role in international climate protection. While the government has implemented forest and peatland protection measures, national energy planning heavily relies on fossil fuels, and is in clear conflict with the country's climate goals. Indonesia is one of the largest coal producers and exporters worldwide. The current expansion of coal combustion for domestic electricity supply is likely to lead to long-term dependency thereon in upcoming decades. Indonesia's rush for coal, commencing early in the new century, is a result of the country's decentralisation reforms and the persistency of structures of corruption and politico-business entanglements. The 2015 plans for extensive expansion of the coal fleet brings together the government's infrastructure plans and the interests of the domestic coal industry, which lost part of its market due to a drop in international demand. The government's energy planning contradicts its goals to reduce greenhouse gas emissions and expand the share of renewable energies. A more sustainable long-term strategy is still missing, and no serious plans for an energy transition exist so far. Especially Indonesia's continued reliance on coal, further to the tremendous environmental and social impacts open-strip mining and the construction of new power plants bring about, have led to intensifying criticism both internationally and domestically. This pressure has led to some minor policy corrections, but without changing the general energy pathway of the country. European policymakers should actively support initiatives working towards a more just and environmentally sustainable energy system. Once Germany is convincingly implementing measures to decarbonise its own energy system, meet its climate goals, and thoroughly implement its coal phase-out, it could figure as a best practice example for emerging economies like Indonesia. Until then, European banks and enterprises should divest from any coal-related business and shift towards supporting the development of renewable energies