How can energy regulators make decisions that help accelerate the energy transition, and do they have the mandate to do it?
Energy regulators around the world have many responsibilities; making sure that the lights stay on, that energy is fully accessible, and that consumers can afford it. But with the energy sector at the forefront of emission reductions to reach international climate changes commitments, and climate impacts putting energy infrastructure at risk, how can regulators make decarbonisation part of their day-to-day decision making? While many regulators do not have decarbonisation goals explicitly as part of their mandate, some have interpreted their mandates to include action on climate change, and some have sought changes to their legal basis in order to make decisions that accelerate the energy transition.
The Regulatory Energy Transition Accelerator is conducting a review into different ways that energy regulators take decarbonisation into account in their decision making. This panel will be an opportunity to explore some case studies from around the world of mandates that have changed, including climate impacts on energy systems in risk assessments, and incentivising carbon free electricity production.
KEY QUESTIONS:
1) How much room for manoeuvre do you have to interpret your own mandate, and how much do you rely on your government to set your objectives?
2) Can regulators assess climate risks in the same way that market risks are assessed?
3) What would decision making processes look like if decarbonisation was a key goal?
