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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUALpage 9.142SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Short Term (8)Conclusions• Relatively easy regulatory and policy initiatives can initiaterenewable energy investments• Some good examples available in Uganda, Kenya, Tanzania,Mauritius• Such initiatives will:– Show opportunities and bottlenecks– Provide input for medium and longer term supportinstrumentsModule 9SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICAQuestions/Activities“Which of the described support mechanismscould be relatively easily implemented inyour country to stimulate renewable energyinvestments?”DiscussModule 9
MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.143SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Medium to Long TermFeed-in Tariffs• A minimum guaranteed price for output or• A premium on the market price for output• High degree of certainty for investors• Costs to be covered by a levy per kWh (on consumers, ontaxpayers, or on both)Module 9SUSTAINABLE ENERGY REGULATION AND POLICYMAKING FOR AFRICASupport Mechanisms Applicable inthe Medium to Long Term (2)Quota Mechanisms• Obligation for electricity suppliers or customers• Supported by tradable green certificates• Penalty when there is non-compliance• Government sets level of output• Leaving choice of technology to the market• Incentive to comply ~ level of the penaltyModule 9
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