Project Title

Distributed Energy Resources Regulation and Rate Design 

Project Year

2018   

Project Number

EWG 16 2018A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EWG 16 2018A 

Project Title

Distributed Energy Resources Regulation and Rate Design 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency 

Project Year

2018 

Project Session

Session 2 

APEC Funding

99,000 

Co-funding Amount

33,000 

Total Project Value

132,000 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chile 

Co-Sponsoring Economies

Japan; Mexico; Singapore; Chinese Taipei; United States 

Expected Start Date

01/01/2019 

Expected Completion Date

31/12/2019 

Project Proponent Name 1

Corissa Petro 

Job Title 1

International Department 

Organization 1

Ministry of Energy 

Postal Address 1

Alameda 1449, Edificio Santiago Downtown II, Piso, 14, Santiago, Chile 

Telephone 1

(56-2) 3656800 

Fax 1

Not Applicable 

Email 1

cpetro@minenergia.cl 

Project Proponent Name 2

Danilo Jara Aguilera 

Job Title 2

Renewable Energy Division 

Organization 2

Ministry of Energy 

Postal Address 2

Alameda 1449, Edificio Santiago Downtown II, Piso, 14, Santiago, Chile 

Telephone 2

(56-2) 3656800 

Fax 2

Not Applicable 

Email 2

djara@minenergia.cl 

Declaration

Corissa Petro and Danilo Jara Aguilera 

Project Summary

The recent developments of distributed energy resources are putting the distribution system and its regulation under new challenges. Aspects like the massive adoption of distributed generation and the expected arrival of batteries and electric vehicles lead to rethinking the regulation of electricity distribution networks and the way it is paid. Therefore, it is necessary to have a deep understanding of the complexity of the changes related to these challenges. For this, it is relevant to bring together actors and experts to explore these topics and new regulation trends. 

Consequently, we propose a seminar with experts and academics from different parts of the world to help building a base for the discussions on new tendencies in distribution sector regulation.

The seminar will be held in Chile. The first two days will be dedicated to exploring the experience of the APEC economies, and given the smaller size of the group the format will be similar to a workshop.. During this day it will be space for discussion about regulatory development in the different economies. The last day will be an open seminar for the public, where academics, experts, private sector participants and selected experience from the participant APEC economies will be presented.

Relevance

Relevance – Region: APEC has set two energy-related regional aspirational goals. The first seeks to reduce APEC’s aggregate energy intensity by 45% from 2005 levels by the year 2035 (established in the 2011 APEC Economic Leaders Declaration), and the second seeks to double the share of renewables in the APEC energy mix by 2030 (established in the 2014 APEC Economic Leaders Declaration).

These regional goals contribute to the arrival of a new economy based on an increasingly low-carbon energy matrix.  In this context, the new low prices of renewable and variable energy sources require a change in how the market and sector are structured. The demand side of the system now can participate and contribute with ancillary services and generation, changing the way grids are organized and operated. Latin America has been a pioneer in regulating the energy sector and the broader arrival of renewables put a top priority in analyzing how the distribution sector is regulated. Understanding the future challenges that energy distribution will face and how to address them is a top priority to modernize the energy sector in Chile and other developing and developed economies, as well as to meet the global and economy-specific goals in de-carbonization of the energy matrix.

Relevance – Eligibility: This project addresses the relation between electricity distribution regulation and the transition to a low-carbon energy mix, including challenges associated with the incorporation of renewable energies.

Relevance – Capacity Building: The conclusions obtained from this project will be valuable information for APEC members, given that the energy transition and the modernization of the power distribution sector are transversal issues. These conclusions will serve as input for APEC members that seek to increase the participation of renewable energies in their energy matrix and that are interested in the regulation and modernization of power distribution sector. 

In this sense, the objectives of this project are closely aligned with the APEC goals and objectives for capacity building, especially the attainment of sustainable growth and building member economies’ capacity in areas relevant to achieving long term goals (ie. sustainable energy development). 

Furthermore, the project design seeks consistency with the APEC operational principles for capacity building. The first two days will be dedicated to exploring the experience of the APEC economies that participate in the activity. During this day it will be space for discussion about regulatory development in the different economies. The last day will be an open seminar for the public, where academics, experts and selected experience from the participant APEC economies will be presented.

Objectives

In order to support the development of changes in electricity distribution regulation to enable the distributed energy growth is crucial to close the knowledge gaps and promote an interchange between different and relevant actors. By sharing individual economies’ best practices related to distributed generation and modernization of energy distribution, together with APEC’s previous work in these areas, the representatives of economies will:

1) Understand the new regulatory and tariff design context and challenges in the distribution sector;

2) Review comparative experience about distribution regulation innovation based on some study cases presented during the seminar; and

3) Gain insight regarding successful regulatory practices and lessons learned, based on past international experiences in initiatives like the metering programs.

Alignment

Alignment - APEC:  The transition towards an increasingly sustainable energy sector is a global priority, which has been addressed by APEC Leaders through the establishment of two aspirational goals: (1) to double the share of renewable energy within APEC’s energy mix, including in power generation, by 2030 over a 2010 baseline and (2) to reduce APEC’s aggregate energy intensity by 45 percent from 2005 levels by 2035.  In fact, many recent APEC Leaders’ Declarations recognize the importance of issues related to clean energy. By supporting the incorporation of distributed generation as well as associated regulations and tariff design, this proposed project will contribute to the capacity building for the achievement of these APEC goals and will support sustainable development. 

It should also be noted that this Seminar would complement other APEC initiatives, projects and workshops on this topic, including: EWG 11 2017A “Empowering a Distributed Energy Resource Future through Regulatory and Market Reforms”. 

Alignment – Forum: This project supports the EWG Work Plan’s focus on renewable energy deployment and, as mentioned, will build upon a previous EWG project.

The Vision Statement established in the EWG Strategic Plan for 2014-2018 states that “We envision an APEC region that has strong energy security and energy efficient and sustainable communities, and that strives for the development of cleaner energy resources…”. In addition, it highlights the relevance of energy security and the transition to a lower-carbon economy and envisions an APEC Region that will “…continue to be an innovation hub with a skilled workforce for cutting edge renewable and energy efficiency technologies and supportive policies in areas of power generation and distribution,…”  Finally, the Strategic Plan states that the EWG will achieve its mission through workshops, seminars, exchanging views, as well as dissemination of information, as well as other activities. 

Furthermore, the current Energy Working Group’s Work Plan responds to specific priorities from Leaders and Ministers, which include strengthening energy security, improving energy access, as well as advancing clean and renewable energy, among other issues.  As stated in the Work Plan, “the EWG is accelerating efforts on renewable energy to help meet the aspirational goal endorsed by the Leaders’ in 2014, i.e. to double the share of renewable energy within APEC’s energy mix, including in power generation, by 2030 over a 2010 baseline.” 

Distributed generation is a significant component of increasing the share of renewable energies in the power generation mix, given that it enables citizens to directly produce energy from renewable sources.  As indicated in section 1 of this proposal, the new low prices of renewable and variable energy sources require a change in how the market and sector are structured. Furthermore, now that the demand side of the system can participate and contribute with ancillary services and generation, changing the way grids are organized and operated.  Therefore, the issues related to regulation and rate design addressed in this seminar will be critical to enabling the increased deployment of greater shares of renewable energy through distributed generation. 

In this sense, the project proposal is aligned with both the EWG Strategic Plan and Work Plan.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: This project is aimed to create an opportunity for sharing experiences and ideas among different APEC economy members and local Chilean participants related to the development for a new regulation and tariff system to encourage and enable the development of distributed generation. In this context: 

1)  The main output for this project will be a 3 day Seminar to be held in Chile, possibly implemented around  September or October 2019. The first two days will be dedicated to exploring the experience of the APEC economies, and given the smaller number of participants the format will be similar to a workshop. During this day it will be space for discussion about regulatory development in different economies. The last day will be an open seminar for the public, where academics, experts and selected experience from the participant APEC economies will be presented. For us, it is very important to transfer knowledge and promote discussion in the civil society. 

2) This project also aims to develop a summary with the results of the Seminar, which will be an APEC publication that is approximately 10 – 15 pages in length. This document will include the technical information and links to the presentations, as well as the main issues that were addressed during the discussions that took place. Therefore, it will present a broad vision among the representatives of the economies of APEC regarding the best practices and issues addressed regarding the modernization of energy distribution regulation and distributed generation.   Given that the document will have a technical focus, it will include information taken from the participant evaluations regarding next steps, other topics that should be addressed, and other useful information for future APEC work. 

The target audience for the document will be international and APEC economy-level experts, as well as Chileans working in the sector, including government officials, distribution companies technicians, distributed generation project developers, academics, among others. 

This activity will allow networking between speakers and participants to exchange technical information, opinions and experiences on Distributed generation that will be invaluable for the next challenges that economies will face in the short term future regarding distributed generation. 

Outcomes: The intended outcomes of this activity are:

1) To have provided information that will allow the participating economies to begin or continue to advance in the development of policies or specific measures that promote the development of distributed generation, particularly in areas of regulation and tariff models. It is expected that the participating economies, starting from what is presented, will obtain additional inputs to update and improve the economies' regulations regarding distributed generation and energy distribution. The summary document will allow the technical materials and discussions to be accessed by a wider audience.

2)  To have shared information and formed a contact network that will be a concrete contribution to APEC and the Energy Working Group’s continual work in the area of distributed generation and renewable energies, as well as efforts on renewable energy to help meet the aspirational goal endorsed by the Leaders’ in 2014, i.e. to double the share of renewable energy within APEC’s energy mix, including in power generation, by 2030 over a 2010 baseline.

3)  Specifically, we expect to obtain an overview of the current situation in distributed generation regulation in the APEC economies, as well as the new outlines the currently are guiding the regulatory development in those economies. The discussion generated in the Seminar will be very useful for those economies that could be thinking in upgrade the current distributed generation regulation like Chile, were we expect to introduce a new distribution energy sector bill during 2019.  In this line, this activity will be very useful to establish a cooperation network that will be very useful after the Seminar. 

Beneficiaries: The beneficiaries of this project will include the members of the APEC economies and local participants involved in renewable energy, distributed generation and energy sector regulation, as well as academia and participants from relevant industries like distribution companies, distributed generation vendors and others. Special effort will be made to include speakers and participants of both genders, and to identify issues of specific relevance to women in APEC economies. Given that the distribution regulation has an important effect on the private sector, representatives of utilities, professionals and other technology vendors, must be included during the third day seminar activity, in order to give the local industry access to the topics and discussion touched on during the activity. 

The discussion that will take place during the activity will be useful for APEC economies to incorporate additional information and insight in their internal process reforming and modernizing the distributed generation regulation. The general public in the APEC region will be the long term beneficiaries as they will benefit from more informed decision making, technological development opportunities, and new employment opportunities associate with new business related to energy distribution and distributed generation due the modernization of the sector. 

Within the public sector, the target audience will include participants in the energy distribution, environment and/or energy ministries within the decision-making line, as well as, the decision-makers in universities and technical training centers in distributed generation. 

In addition, the summary document will allow the presentations and results to be disseminated among a wider audience, and can serve as input for future APEC activities in this line.

Dissemination

The dissemination material will consist of a summary document, including the contents of expert presentations and documents put forward by the participants during panel discussions. This document will be an APEC publication and will contain Seminar materials, as well as an analysis of best practices and issues to be addressed with regards to distributed generation and energy distribution regulation modernization. The material will be made available to  the general public free of charge through the internet, and it is expected that this information will be relevant to the work of international experts, policy makers in addition to the target audience, that is, government officials, academics, energy utility and other companies’ professionals, technology vendors, among others. The same material will be uploaded on the APEC website through the APEC Secretariat. For example, the presentations could be made available on the Chilean Ministry of Energy’s website, and possibly other appropriate websites.

Gender

Women will be encouraged to participate in all aspects of this project. Women are involved in the design of this project and will continue to seek the involvement of women in the planning and implementation of the project. We will make all efforts to promote the participation of women, including through our network of contacts who have worked with our Ministry to organize recent activities focused on women in clean energy. The PO will seek to include information on the impacts of distributed generation on domestic market and SME, where women and households play and important role, during at least one session.  If relevant expertise is not found, this topic will be included as a discussion topic among participants. Although this is a new issue to be explored, it is expected to that the APEC Gender Pillars that will be addressed are: skills & capacity building and innovation & technology. 

In addition, the project proponents will ensure that the evaluation forms to be distributed at the end of the Seminar will include information on gender for disaggregating of data for project assessment and will help in evaluation of specific responses of women and men.  The PO is committed to collect sex disaggregated data for all speakers and participants (not only APEC-funded) at the project event.

Work Plan

Timeline

Tasks

Deliverables

Stage 1 Project Planning  (Nov - Feb)

1)  Coordinate internal support team: An internal support team will be coordinated. This team will work in the organization of the activity.

2)  Topic selection: The specific topics for the Seminar will be selected for the organization.

- Topic and speaker selection

- Program first version

- Preliminary version for material

Stage 2 Logistical

Arrangements (March – May)

3)   Contact international experts: Based in the topics selected previously, International and local experts related to power distribution topics will be invited.

4)  Location arrangement: An appropriate location for the activity will be selected. 

- Identification of potential speakers

- Preliminary speaker nomination

Stage 3 Finalization of Preparations (June - September

5)  Participants preliminary registration:  An preliminary process of invitation and registration for different relevant actors in the industry will be conducted.  The registration will include a brief survey to assess the previous knowledge level of the topic for attendants.

6)  Attendance Confirmation: A confirmation process will be conducted to promote attendance and establish the final list of attendants

- Preliminary participant list

- Final version of material

- Location arrangements

Stage 4 Seminar Implementation (September or October)

7)  Seminar: The activity will be held as programmed.  As mentioned, the initial two days will be a smaller format similar to a workshop, and the final day will be an open seminar.

- Data recollection

Stage 5 Final results and Dissemination (November – December)

8)  Post Seminar activities: After the Seminar, a compilation of the main conclusion will be executed, aimed to extract main conclusions and best practices. This will also include the information gathered through the APEC evaluation. In the case of Chile, the information will serve as input for the discussions on power distribution reform.

9)  Preparation of the Summary Document with technical materials and highlights of the central discussions and results, The document will be prepared following APEC endorsement and approval procedures.

10) Drafting, endorsement and submission of the Completion Report and all Supporting Documents to the Secretariat. 

- Recollected Data analysis

- Summary Document.  The document will be an APEC Publication and will follow the corresponding guidelines. 

- Completion Report prepared, endorsed and submitted to the Secretariat.

Stage 5 Participation in the Long Term Evaluation of APEC Projects (Second Semester 2020)

11) Respond to requests from the APEC Secretariat

Risks

1)  Possible speakers having calendar issues. To avoid this, arrangements of the Seminar should be locked in at an early stage. 

2)  Not all speakers provide presentations in a timely manner. To avoid this, we will be working closely with Secretariat, member economies and Energy working group to ensure timely submittal.  We will request that the speakers’ presentations be sent at least one month in advance. 

3)  Information presented is not of high quality. To avoid this, we will minimize this risk by working closely with the speakers to ensure they are well-informed. By requesting their presentations several weeks before the activity, this possibility that this risk will take place will be lowered. 

4)  Low interest in participation. To avoid this, we will minimize the risk by continuing consulting with prospective economies about their interest in specific focused areas, nomination of speakers, comments on the topics of Agenda, and solicit their participations through various channels and opportunities such as discussing and promoting the activity in the EWG meeting(s), email and video conferences when needed.  Within Chile, invitations can be sent to public agencies as well as private institutions, including municipalities, universities, industries, as well as other relevant actors. 

5) Participants’ low ability to influence related policies in their home economies after the completion of the project. To avoid this, invitations to the activity would target participants of a certain seniority level. In the public sector, participants of transport, environment, economy and/or energy ministries within the decision-making line or those who work with senior decision makers are a target audience.

Monitoring and Evaluation

Given that this project seeks to identify and address key issues related to distributed energy resources regulation and rate design, important indicators of success will be the attendance of a varied and diverse actors of the industry, the participants’  evaluation of the activity’s relevance to their economy as well as the use of findings and best practices in future APEC work. For this, this Project includes a list of indicators that will measure the achievement of each objective. 

Objectives

Immediate Outcomes

Indicators

i) Understand the new regulatory and tariff  design context and challenges in the distribution sector

Significant participants engagement and inputs into gap analysis efforts.

1) Number of participants in Seminar, disaggregated by economy, types of organizations, and gender.

2) The increase in the level of knowledge of the participants, measured through surveys before and after the activity. 

ii) Review comparative experience about distribution regulation innovation based on some study cases presented during the seminar 

Participation of a diverse group of decision makers and expert in distributed generation and rate design for energy distribution

1) Number of participants expositors disaggregated by economy and subregion, types of organizations, and gender. 

2) Satisfaction measured with a survey 1 week after the activity. 

iii) Gain insight regarding successful regulatory practices and lessons learned, based on past international experiences in initiatives like the metering programs.

Significant participants engagement and inputs into gap analysis efforts

1)   Number of participants in the Seminar, disaggregated by economy and subregion, types of organizations, and gender. 

2) The increase in the level of knowledge of the participants, measured through surveys before and after the  activity.







































In this regard, the project’s targets will be:

·  Number of participating economies (speakers and participants): 10

·  Number of participants in the activities: 15 participants in Days 1 and 2, and 80 in the seminar on the third day. The target numbers include APEC participants and local Chileans.

·  Percentage of female speakers and participants: 20%

·  70% Participants’ evaluations indicate an increase in knowledge after participating in the activity.

Linkages

APEC has carried out a significant number of projects, strategies and research related to renewable energy, while individual APEC economies have also carried out policy efforts.  On one hand, the objective of this activity is to disseminate and build upon this work, especially among economies beginning stages of facing this challenge on a large scale.

This project will provide the opportunity to discuss and update to relevant groups within APEC, especially the groups related to renewable energy technologies. Also, this project will complement the work of other projects related to the topic, for example, EWG 11 2017A – Empowering a Distributed Energy Resource Future through Regulatory and Market Reforms.

APEC, as a well-respected multilateral convening body, is in a very good position to provide guidelines to developing APEC economies like Chile and other Latin-American economies on the oftentimes politically sensitive topic of energy market reform, especially the challenges that represent the transformation of the energy distribution sector as enabler of future development for distributed generation technology and feasible business models associated with them.

Sustainability

The material from the activity will be disseminated, in particular the contents of experts presentations. The assistants will be encourage to further use of the material as a means for future actions to build up the respective mechanism and framework under their responsibilities. 

Further availability of the outputs will be made available to non-participants free of charge through the internet (for example, on the Chilean Ministry of Energy’s website and, if possible, on other websites associated with APEC).The process of reaching the outcomes will involve direct participation from the attending economies and this would serve to educate these candidates on succeeding the work in the future. The Seminar would be a place to share information, best practices among the participants and discussing future actions regarding the subjects addressed. 

It will be encouraged that a contact network would be formed among the participants to enable future exchange of information and development of the work.

In particular the this activity would serve as a tool to identify training need for future projects, especially given that the summary report will include information from the participant evaluations regarding possible next steps and issues that can be addressed in future APEC work. It is important to note that the “utility of the future” and in general, the regulation of distributed energy resources is a trending topic today, due the necessity to implement efficient and effective measures to fight the climate change effects. A lot of economies today are wondering how to integrate distributed energy resources in their energy matrix, so the knowledge and learning generated in this activity will be very relevant for each participant economy as well as in efforts to reach the APEC goal of doubling the share of renewables in the APEC energy mix by 2030.

Project Overseers

Corissa Petro is the Deputy Head of International Affairs at the Chilean Ministry of Energy.  Her portfolio includes APEC and other multilateral international energy entities, as well as bilateral relations with Asia-Pacific economies.

Danilo Jara is a professional of the Renewable Energy Division at the Chilean Ministry of Energy. His work is focused in the modernization of the distributed generation regulation and the integration of small-scale renewable energy to the electrical system.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

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