Rethinking regulation
Unlock the Regulation door to achieve ‘Well below 2 cents’
Main players
The key to successfully accomplishing the mission:
CASH IS THE NEW FUEL
Achieving a ‘well below 2 cts’ target can only happen if cash is available at the right price, in the right quantity, for the right tenure, in the right location.
Regulatory transformations
Regulatory transformations are required both on the investor side and the investee side to enable cash to move from where it is and to de-risk where it needs to go.
Better regulation can improve the predictability of cash flows and optimise the financial models of solar power generation assets to the benefit of all stakeholders.
The Ambrogio
Project
WHAT WE DID
To help regulators measure the impact of their regulatory choices on the cost of solar power in their respective countries TWI, together with KPMG, Norton Rose Fullbright, Dentons and Trilegal, has developed a game based on a UNDP financial model.
With this simple tool, decision makers can very simply test with more than 20 regulatory items and immediately see the variation in the levelised cost of solar electricity.
The Integrated Legal Framework Template
WHAT WE DID
TWI also drafted a template for an Integrated Legal Framework, addressing in one document the key topics to be addressed when structuring new solar friendly regulations.
(Available in the final report – Appendix 2).
And you,
what would you do?
Next mission
Rethinking transactions
Scaling solar power deployment requires the simplification and automatisation of transactions. After having radically decreased the cost of renewable power, we need to focus on the reduction of soft costs.
Rethinking financing
The obvious challenge is to shift the affordable institutional trillions to the new energy system, starting with renewable power generation but followed closely by energy management and storage.
Rethinking leadership
Creating a systemic approach and developing collective solutions to set up a new market framework.
Rethinking uncertainty
Because uncertainty cannot be evaluated and priced, what we need is a leap of faith: the necessary strong commitment we need to make when everything is a blur, to federate all the stakeholders.
Rethinking communication
Sustainable energies are generally misunderstood and underestimated. A simple and federative narrative is necessary to change people’s perception and gather everyone around a common goal.
Rethinking Policy
Essentially decentralised and close to demand, the renewable energy system empowers people. It requires clear policies and symbolic political messages.
Rethinking regulation
Achieving a ‘well below 2 cts’ target can only happen if cash is available at the right price, in the right quantity, for the right tenure, in the right location.
Our final report
This 200 pages report provides a summary of nearly four years of work carried out by TWI to accelerate the transition to affordable, reliable, sustainable and modern energy for all, starting with solar power.
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