In Iran, some of governmental organization such as SUNA and SABA proposed some financial incentive to self-regulatory industries. For example, any high energy consuming complex that would decrease its energy consume by 4% annually, could receive financial aids, loans and certificates.

It seems that there are not enough governmental incentives to have energy saving manner in Iran. 

It is mandatory for all building newly constructed in Dhaka city (in Bangladesh) to have a solar panel as an alternative energy source.

Dear Nazmul,

Thanks. Are there any sanctions if you have not?

Dear Mariusz Swora,

In Argentina there are no economic incentives to promote innovations in the Energy System. On the contrary, the government has been subsidizing energy bills for the last 12 years, promoting an intensive use of Energy, leaving little space for innovations and innovators.

Subsidies reduce the cost of energy for consumers or industries, promoting an increased demand, depleting Oil and Gas reserves.  In my opinion, in Argentina we have a "negative economic incentive" in the regulatory framework of Energy to promote innovation.

Of course, this system cannot be sustained in the long term and we have been facing a shortage of Energy Supply for the last 6 years.  It shall be reformed in the near future.

Here I am giving you the energy efficiency and conversion rules and Bangladesh national building code for green and sustainable energy.

Dear Nazmul, thanks for those files.

It's really sad what Alejandro said about Argentina. Seems to me that the problem there concerns lack of satisfactory investments in energy infrastructure and genration. In such a case it's hard to talk about investments in R&D. On the other hand investments in infrastructure have a positive effect on the economy of a particular country. Maybe this is the way to think about it in Argentina even though Times got tough for the economy of your country. I am a little bit shocked about the subsidization you wrote about. Can you give me some references to explore it deeper? 

Hi Mariusz,

It's sad, but we all know there are remedies!

Douglass North, Nobel Prize in economics stated that if in a country piracy has big profits, what you'll get in that society are good pirates. In Argentina there is an "inconsistent system of economic incentives" through all the economy. For example: Gas produced in the Province of Neuquen, was paid US$ 3.5 per BTU, from Bolivia US $ 7 and LNG imported from QATAR US $ 16.

Which is the signal for energy firms doing business in Argentina? Do not invest in Argentina, because the return is higher in Bolivia. What's the outcome? From being net exporters of Energy, approximately US $ 8 Billion, we are now net importers for US $ 17 Billions.

In Argentina there are price controls on different goods and services, e.g. electricity, telecommunications, running water, natural gas, and in food and consumer goods.. Prices imposed by the government do not cover the costs of producing them, so the consequence is that investment suffers and we have been experiencing a shortage in supply or a deterioration in their quality.

Approximately 8 million people receive direct social subsidies or social benefits in Argentina, out of a total population of 40 million and an economic active population of 16 million. This cannot be sustained in the near future. These people do not pay the electricity or services they consume, the government (actually the rest of the population) pays for them.

All these domestic distortions do not incentivize productivity, competitiveness nor prosperity.

All this economic delusion has been financed by the extremely high prices of the soya bean crop, agrifood commodities and in the beginning of the actual political cycle by the exports of Gas and Oil. Now the party is over, and we have to pay the bill.

About the amount of the social subsidies or subsidies in general, there is a great secrecy, but some private organizations made estimates. The National Statistics Agency distort the PCI, poverty levels and GDP estimates. The IMF reprimanded Argentina for the quality of the statistical information it provides, and has been working on the implementation and monitoring of a new PCI during this last year.

The good news is that with the reformulation of the system of economic incentives for the energy industry, proven oil and gas reserves will be put into production.

This institutional environment does not foster "innovation nor innovators" in the field of energy regulation or in the supply of any public utility.

Regards from Argentina,

Dear Alejandro,

Thanks once more, wish that good news you wrote about will become a reality. Good luck to you!

Best regards from Poland,

Thanks Mariusz!

Poles that came to Argentina are hard working and nice people and made a tremendous contribution to our prosperity in the past!

Good luck to you, too!

Dear Professor Mariusz,

In Brazil, concerning regulation aimed at energy innovations (R & D), the National Bank for Economic and Social Development (BNDES) established in 2013, encouraging companies to create innovation projects in three areas:

Smart Grids and Transmission Networks for Ultra-High Voltage (UAT)

Power Generation by Alternative Sources

Hybrid Vehicles and Energy Efficiency Vehicle

http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/produtos/download/inova_energia_edital.pdf

The projects benefited are still in progress...

Best regards,

Vanessa

Dear Vanessa,

Thanks for those  very interesting examples! There are in fact similar (except maybe EVs and HVs) directions of direct support in Poland in various forms of subsidies from National Fund for Environment Protection and Water Management (for electricity prosumers, smart grids etc.). Are there any initiatives like e.g. British Ofgem's RIIO in Brazil? I'm thinking of incentives adopted by a regulator to reward pro-innovative projects undertaken by energy enterprises? In Poland, the energy regulator is suppose to give such incentives for deployment of AMI by energy firms.    

Best regards,

Mariusz

Dear @Mariusz, the complete data about Serbia are given in the following document, pp 46-47. " ...However, the relevant implementing regulations allowing for the application of state-subsidised mechanisms favouring RES producers have been adopted

only with respect to electrical-power producers, whilst the relevant regulations for RES heating producers are still pending." Incentive measure – feed-in tariff (EUR cent/kWh) for Serbia are given! Renewables Support Mechanisms Across Europe is very fine resource regarding your thread!

http://www.cms-dsb.com/Hubbard.FileSystem/files/Publication/66d448bf-8611-4409-bb4f-4ccee4bbbcf9/Presentation/PublicationAttachment/d2078c0b-4df4-45f2-9e72-359f37f345fb/CMS_Renewable_Energy_Guide_April_2013_b.pdf

Dear Ljubomir,

Thanks for the link. The document is very interesting from the point of view of RES suport systems (like FiT or green certificates). Anyway, I am interested in slightly different approach to innovations which is regulatory support for innovations, when e.g. regulator gives energy enterprise  an extra reward in a tariff (e.g. for a RD&D project). I already gave the example of British RIIO which is aimed at incentives, innovations and outputs (Revenue=Incentives+ Innovation+Outputs). It's interesting that rewarding innovations as a regulator you must take into account the accompanying risk and uncertainty. Some regulators do that considering innovative approach as a value bearing in mind that innovations may potentially reduce network costs. Do you think such an approach is possible to adopt in Serbia?

Best

https://www.ofgem.gov.uk/network-regulation-%E2%80%93-riio-model

Thanks for your response and good reading. Yes, I do think that  such an approach is possible to adopt in Serbia! Actually, it is a MUST! Of course, as You have mentioned, risk and uncertainty should be carefully considered! It is not an easy model! EBRD force our Goverment to do it!

In Switzerland, there is a national research fund dedicated to R&D related to energy efficiency and renewable sources of energy.

Dear Claude-Alain,

The REPIC platform which probably you refer to is very interesting tool of support for R&D in the areas you mentioned. Do you know maybe of any initiatives from the energy regulator aiming at increasing innovations among energy utilities? Regarding that you have REPIC, is there still a place for e.g. rewards in tariffs for R&D projects of energy utilities in Switzerland?

Dear Dr. Mariusz,

Yes, the INOVA ENERGY project is to provide financial assistance for innovative proposals submitted by companies and approved by BNDES.. Other programs like INOVA are: CT ENERG and CT PETRO (FINEP-Funding of Studies and Projects).

Another way of incentives are state funds. One example is the background for Solar Energy of the State of Ceará and the Program "Goiás Biodiesel".

Now on regulation, completing my answer, legislation has gained momentum in 2000 to promote innovation in the electricity sector through the Federal Lawn. 9991, determining that the concessionaires should allocate a percentage of their net operating revenue in Research and development.

The same was determined by the National Agency of Petroleum by Decree No. 33/2005, establishing the criteria for application of resources and defining what should be considered R& D within companies in the area of natural gas.

Some examples:

AES  Brasil – (electricity)

http://www.aesbrasil.com.br/conteudo/pesquisaedesenvolvimento

Tractebel Energy – (solar)

http://www.tractebelenergia.com.br/wps/portal/internet/imprensa/press-release/conteudos/Release_Operacao_Usina_Solar

Comgas ( BG Group/Cosan) – (natural gas)

http://www.comgas.com.br/pt/imprensa/Paginas/Comg%C3%A1s-inicia-capta%C3%A7%C3%A3o-de-projetos-inovadores-para-2014.aspx

Thank You for your interest in my answer. I hope I have understood your question.

Best Regards,

Vanessa

Dear Vanessa,

Thank you very much for your in-depth analysis. I'am starting to explore the webpages.

Best regards,

Mariusz

In Iran, some of governmental organization such as SUNA and SABA proposed some financial incentive to self-regulatory industries. For example, any high energy consuming complex that would decrease its energy consume by 4% annually, could receive financial aids, loans and certificates.

It seems that there are not enough governmental incentives to have energy saving manner in Iran. 

Dear Maysam,

Thanks for your answer and interesting example of energy saving incentives from Iran. Such incentives may indirectly generate employment of innovative solutions by energy firms. It is interesting however how to cope with r&d in the energy sector mitigating high level of risk that is associated with any activity in this regard.

best regards,

Mariusz  

Dear @Mariusz, dear friends, this document belongs here. 

A ROADMAP FOR DEPLOYING RENEWABLE ENERGY SOURCES IN SERBIA AND THE REGIONAL PERSPECTIVE

 "The energy policy aimed at securing a future for sustainable energy should be based on three key themes: improving fossil fuel technologies to have a lower environmental and social impact; applying renewable technologies on a wider scale; and introducing energy efficiency measures in the fields of energy conservation, distribution and consumption. Authors of this paper strive to point that renewable energy will continue to play important role in the transition towards a competitive, secure and sustainable energy systems in the future, especially having in mind that the global electricity demand is constantly increasing, as is its share in overall energy usage.

The challenges of the energy strategy, driven by climate changes and energy security, are reflected in creating an energy market with competitive prices, ensuring security of supply, reducing CO2 emissions and saving energy. In this paper, key policy themes related to renewable energy utilization in the power sector are analyzed; as well as obstacles to their deployment and the main challenges facing decision makers. Negative impacts of electricity production from various sources on environment, climate and health are discussed, along with the support mechanisms and schemes, which are still necessary to make most renewable energy technologies competitive. The variability of electricity production from intermittent sources (wind, solar) has been also addressed, as well as the renewable energy cost and benefit analysis and the model of the Levelized Cost of Electricity, which enables a fair comparison of different electricity generating technologies..."

http://www.cirsd.org/renewable-energy-study