Energy Sector Regulation

🇺🇸 🛠 Navigating the Regulatory Pathway: Steps for US LNG Projects Approval ➡️ 1. FERC Pre-filing: The journey begins with pre-filing procedures at the Federal Energy Regulatory Commission (FERC) a minimum of 6 months before formally filing. ➡️ 2. Submission of Materials: Following pre-filing, applicants must compile and submit comprehensive materials to FERC, the Pipeline and Hazardous Materials Safety Administration (PHMSA), and coordinating agencies. This step involves detailed documentation of project plans, environmental assessments, safety protocols, and impact analyses. ➡️ 3. Letter of Determination from PHMSA: PHMSA plays a crucial role in evaluating the safety aspects of LNG projects. A letter of determination from PHMSA signifies compliance with federal safety standards, confirming the project's readiness to proceed to the next phase. ➡️ 4. Final NEPA Document: The National Environmental Policy Act (NEPA) requires the preparation of an Environmental Impact Statement (EIS) or Environmental Assessment (EA) for LNG projects. The final NEPA document assesses the environmental effects of the proposed project and outlines mitigation measures to minimize adverse impacts. ➡️ 5. FERC Final Order: Upon completion of the NEPA process, FERC issues a final order, which serves as the regulatory authorization for the project. This order outlines the terms and conditions under which the project can proceed, incorporating environmental considerations and stakeholder feedback. ➡️ 6. Joint Record of Decision: The Joint Record of Decision (ROD) represents a formal agreement among regulatory agencies regarding the approval of the LNG project. It consolidates the findings of various agencies involved in the review process, providing a comprehensive basis for project approval. ➡️ 7. Authorization to Start Construction: With regulatory approvals in place, developers receive authorization to commence construction activities. This milestone marks the transition from planning to implementation, signaling the beginning of physical development. ➡️ 8. Non-FTA Approval: For LNG exports to countries without Free Trade Agreements (FTA) with the US, developers must obtain non-FTA approval from the Department of Energy (DOE). This step ensures compliance with statutory requirements governing LNG exports. ➡️ 9. Final Investment Decision (FID): The FID represents the formal commitment of financial resources to proceed with the project. It is a significant milestone indicating confidence in project viability and market demand. ➡️ 10. Construction Begins: With all regulatory and financial prerequisites met, construction activities commence, marking the culmination of the approval process and the beginning of project realization. Source Center for LNG https://lnkd.in/gyViJ93F #LNG #USLNG #FERC #DOE #FID #PHMSA

T&C for Purchase and Sale of Carbon Credit Certificate by Central Electricity Regulatory Commission (Cerc) India’s strides toward energy efficiency and carbon market development showcase its commitment to achieving climate goals. Let’s delve into the key highlights: 🔹 𝐄𝐧𝐞𝐫𝐠𝐲 𝐂𝐨𝐧𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐨𝐧 𝐀𝐜𝐭, 2001 India’s energy efficiency journey began with the Energy Conservation (EC) Act, 2001, establishing the Bureau of Energy Efficiency (ऊर्जा दक्षता ब्यूरो). Programs like PAT (Perform, Achieve, Trade) and Energy Saving Certificates (ESCerts) have driven significant energy savings—25.77 MTOE in 2022-23 alone! 🔹 𝐃𝐨𝐦𝐞𝐬𝐭𝐢𝐜 𝐂𝐚𝐫𝐛𝐨𝐧 𝐌𝐚𝐫𝐤𝐞𝐭 𝐄𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧 Aligning with the Paris Agreement and India’s updated NDCs, the EC Act was amended in December 2022 to introduce the Carbon Credit Trading Scheme (CCTS). This set the foundation for India’s domestic carbon market, aiming to integrate compliance and offset mechanisms by December 2023. 🔹 𝐄𝐥𝐞𝐜𝐭𝐫𝐢𝐜𝐢𝐭𝐲 𝐀𝐜𝐭, 2003 & 𝐂𝐚𝐫𝐛𝐨𝐧 𝐂𝐫𝐞𝐝𝐢𝐭 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐒𝐜𝐡𝐞𝐦𝐞, 2023 Under the Electricity Act, 2003, the CERC spearheaded power trading and established power exchanges. With the advent of CCTS, CERC now regulates carbon credit trading, ensuring transparency and market integrity through power exchanges. 🔹 Key Features of Draft Regulations: 1️⃣ 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐄𝐧𝐭𝐢𝐭𝐢𝐞𝐬: Registry: Managed by GRID-India to oversee registration and compliance. Administrator: BEE ensures seamless carbon credit management and market coordination. 2️⃣ 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 & 𝐎𝐟𝐟𝐬𝐞𝐭 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: Compliance Market: For entities meeting prescribed GHG norms. Offset Market: Enables registration of projects that reduce or avoid emissions. 3️⃣ 𝐂𝐚𝐫𝐛𝐨𝐧 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞𝐬 (𝐂𝐂𝐂𝐬): Represent 1 ton of CO2 equivalent reduced or removed. Traded on power exchanges via monthly bidding sessions under strict oversight. 4️⃣ 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 & 𝐎𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭: CCC prices are discovered through bidding within floor and forbearance prices approved by CERC. Mechanisms to address price volatility and market irregularities. 🔹 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 & 𝐄𝐱𝐭𝐢𝐧𝐠𝐮𝐢𝐬𝐡𝐦𝐞𝐧𝐭: Procedures for banking and extinguishment of CCCs ensure long-term sustainability and market balance. 🔹 𝐅𝐮𝐭𝐮𝐫𝐞 𝐏𝐫𝐨𝐬𝐩𝐞𝐜𝐭𝐬: As the Indian carbon market evolves, it will play a crucial role in advancing the country’s decarbonisation goals while providing economic opportunities for industries transitioning toward sustainability. 💡 Takeaway: India’s policy landscape exemplifies how nations can align climate ambitions with economic growth. The CCTS 2023 positions India as a leader in domestic carbon markets, fostering accountability and driving innovation in emissions reduction. What are your thoughts on India’s carbon market potential and its impact on industries? Let’s discuss in the comments! 👇 #EnergyEfficiency #CarbonMarkets #Sustainability #ClimateAction #India

REC 2.0: VPPAs, RCO and multipliers are set to reshape the market! On 22 September 2025, the Central Electricity Regulatory Commission (CERC) issued draft First Amendments to the REC Regulations, 2022. The draft signals a fundamental shift in how compliance and markets will interact: ↳ 𝗥𝗖𝗢 𝗿𝗲𝗰𝗼𝗴𝗻𝗶𝘀𝗲𝗱: Renewable Consumption Obligation (RCO) under the Energy Conservation Act, 2001 is now formally part of the REC framework, extending compliance pathways to designated consumers alongside utilities. ↳ 𝗩𝗣𝗣𝗔𝘀 𝗳𝗼𝗿𝗺𝗮𝗹𝗶𝘀𝗲𝗱: RECs issued to generators under Virtual Power Purchase Agreements (VPPAs) will be deemed transferred to the corporate buyer. Once transferred, they are extinguished, non-tradable, but available to carry forward for RPO/RCO compliance. ↳ 𝗜𝘀𝘀𝘂𝗮𝗻𝗰𝗲 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲𝘀 𝘁𝗶𝗴𝗵𝘁𝗲𝗻𝗲𝗱: DISCOMs and open access buyers seeking RECs for excess procurement must now file within three months of State Commission certification. Miss the window, lose the entitlement. ↳ 𝗖𝗲𝗿𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗲 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗶𝗲𝗿𝘀 𝗿𝗲𝘀𝗲𝘁: For projects commissioned after the amendment takes effect, multipliers will be determined by a scored method of tariff, technology maturity, and capacity credit/peak support, with validity for 15 years. Existing projects retain the current table. The proposed amendments are more than procedural updates. By recognising RCO, linking VPPAs, and resetting multipliers, CERC is making the REC mechanism more technology-sensitive and investment-relevant. For developers, lenders, and corporate buyers, the implications are immediate: → VPPAs must be structured carefully to align REC transfers and extinguishment. → Compliance now squarely includes designated consumers, not just utilities. → Bankability and portfolio returns could shift depending on where multipliers land for emerging technologies like offshore wind, BESS, and hybrids. Stakeholders may submit comments on the draft amendments by 23rd October 2025. Is your organization ready for REC 2.0? Let us know your thoughts in the comments.

📣Last 26th June both the 🇪🇺Directive 2024/1711 and the Regulation 2024/1747 as regards improving the Union’s electricity market design #EMD were published in the official Journal of the EU 📑. 👇Just in case you are asked about the key elements of the #Directive or you need a 2-minute summary, I would like to share with you the following: ✅In legislative terms: 🇪🇺It amends the Directives (EU) 2018/2001 and (EU) 2019/944 🏁It will enter into force next 16 July. 🗓️Member States must transpose it by 17 January 2025. By way of derogation, new art. 4 and 15a by 17 July 2026. ✅I leave you below 🖐️five points I consider #NEW ones: 1️⃣ #EnergySharing is now part of the EU energy legislation and this Directive makes clear that active consumers (of any kind) have the right to energy sharing in a non-discriminatory manner. 2️⃣ #ProtectionFromDisconnections becomes a firm right for vulnerable customers and customers affected by energy poverty. Under this Directive, regulated prices are possible as well for vulnerable customers and customers affected by energy poverty. 3️⃣ #ElectricityPricesCrises is well defined in the Directive through concrete price conditions. If these conditions are met, under the proposal by the EC, the Council can declare a regional or Union-wide electricity price crisis and trigger certain public interventions in price setting for electricity supply. 4️⃣ #SupplierRiskManagement must be regularly assessed by national competent authorities. Stress tests and reporting requirements on suppliers could be tools by which to assess supplier hedging strategies. 5️⃣ #FlexibleConnectionAgreements should have a proper regulatory framework in which transmission system operators and distribution system operators offer this connection possibility in areas where there is limited or no network capacity availability for new connections. #MoreEurope #MoreMarkets

MERC on 05-Aug-23 published the Draft regulations for Green Energy Open Access for the state of Maharashtra. - This seeks to align the MERC (Distribution Open Access) Regulations, 2016 with GEOA Rules which were notified by the Ministry of Power in June-22 - The following amendments are proposed : 1) Eligibility - Consumers having Contract Demand or Sanctioned Load of 100 kW or more shall be eligible to avail GEOA - Entities through multiple connections aggregating 100 kW or more located in same electricity division of a Distribution Licensee, shall also be eligible to take power from GEOA 2) Maximum Limit - There shall be no limit of supply of power for the captive consumers taking power under GEOA - Open Access consumers sourcing power from renewable energy generators, capacity limit up to Contract Demand or Sanctioned Load shall not be applicable 3) Net Metering : - Consumers having Roof Top Renewable Energy Generating Systems can simultaneously avail OA under these Regulations - The earlier provision specified that in case of consumers having roof-top solar connections and availing Open Access simultaneously, the credit for solar generation shall be adjusted on Gross metering basis for such period for which open access is availed. - This provision had been incorporated in view of the anticipated billing complications in such cases, which has been streamlined and is no longer a concern, hence it has been reworded and incorporated in the newly proposed Regulation, thereby effectively allowing clients to avail Net Metering & Open Access simultaneously 4) Central Nodal Agency - In case of Short-Term GEOA, Maharashtra State Load Despatch Centre - In case of Medium / Long Term GEOA, the State Transmission Utility 5) Cross Subsidy Surcharge - Shall not be increased during twelve years from date of operation by more than 50% of the surcharge fixed for the year in which OA is granted - Shall not be applicable if green energy is utilized for production of green hydrogen/ ammonia 6) Additional Surcharge - Applicable to Consumers who have availed Open Access to receive supply from a source other than the Distribution Licensee to which they are connected - Waived if power is used for production of Green Hydrogen / Ammonia or if sourced from Waste to Fuel / Offshore wind projects 7) Metering - Customers below 1 MW sanctioned load fall in LT category & would find it difficult to install Special Energy Meters considering the CT/PT requirement - For such consumers GEOA would be allowed based on ToD meter, without insisting on the SEM 8) Banking - Banking charges shall be adjusted in kind @ 8% of the energy banked as per the Forum of Regulators draft guidelines - This increases from 2% under the 2016 Regulations - The un-utilised surplus banked energy shall be considered as lapsed at the end of each banking cycle - RE generating station shall be entitled to get RECs to the extent of the lapsed banked energy #Solar #RE

Are you Eligible? Earlier this month, April 2024, the Nigerian Electricity Regulatory Commission (the Commission or NERC) issued a revised Eligible Customer (EC) Regulation 2024. The last regulation on this subject was issued in 2017. An Eligible Customer is one that is approved under the directives issued by the Honorable Minister of Power under the EPSRA 2005 and under a declaration made by the Commission to purchase power from a licensee other than a distribution  licensee Five categories have been provided by NERC. 1. Point to Point Connection An end-user whose average or planned consumption is not less than 6MWh/h over the course of 90 days (three months), that is directly connected or to be connected, vide a metered 33kV delivery point, to the generation facility of a generation licensee it intends to purchase electrical energy from. 2. New Connection to 33kV Network An unconnected end-user whose planned average consumption is not less than 10MWh/h over the course of 90 days (three months), to be connected to a metered 33kV delivery point on the distribution network of a distribution licensee. 3. Existing DisCo's Customer Transitioning to Eligibility An end-use customer whose average consumption is not less than 10MWh/h over the course of 90 days (three months), that is connected directly to a metered 33kV delivery point on the distribution network under a distribution use of system agreement for the connection and for the delivery of electrical energy. 4. Existing Customer Connected to Transmission Network An end-use customer whose average consumption is not less than 20MWh/h over the course of 90 days (three months), that is connected directly to a metered 132kV or 330kV delivery point 5. New Connection to Transmission Network An unconnected end-user whose planned average consumption is not less than 20MWh/h over the course of 90 days (three months), to be connected to a metered 132kV or 330kV delivery point on the transmission network of a transmission licensee. Some observations from the EC Regulations 2017 are that: the minimum thresholds for eligibility have changed significantly. under the Old regulation to be an eligible customer, the customer or group of customers must have a  2MW/h minimum energy consumption of over one month. Under the new regulation, the measurement period is over 90 days (or three months). Apart from the point to point connection, the minimum thresholds for eligibility have gone up to 10MWh/h and 20MWh/h. The aggregation of customers for the purpose of determining eligibility was omitted from the new regulations. This gives the distribution companies more opportunities to serve customers that fall below the eligibility criteria without fearing that they would become eligible The Discos should also charge the distribution use of system (DUOS) charge in circumstances where the Discos network is being used.

It’s fascinating that, after health and banking, the most active consumer and B2B data access fights are around… smart meter energy data. Spurred by a Jigar Shah tweet, I went down a rabbit hole. Shah noted that smart meters (deployed more than a decade ago and paid for by customers) still haven’t delivered, because utilities keep interval data locked away. Unlocking it is the fastest path to lower bills and demand-side participation. Sound familiar? For consumers, that means real-time visibility, shifting usage to cheaper/cleaner hours, and integration with apps that automate savings. For businesses, it’s the raw material for Virtual Power Plants and demand response. Siloed data blocks both, while open access could turn sunk infrastructure into a platform for efficiency and resilience. Texas is the standout example here. The state mandated smart meter deployment and created the "Smart Meter Texas" portal, which is a sort of energy HIE that lets customers and authorized third parties access 15-minute usage data. That framework was meant to spur retail competition, give consumers visibility, and support aggregators. Texas even experimented with direct Home Area Network (HAN) connections, though regulators later pulled back due to low adoption and cost. Still, the architecture for customer-controlled data access is there, and it’s far ahead of most states. Meanwhile, at the national level, the Green Button Connect standard (we're going to run out of colors at this rate) has emerged as the common API and consent framework. It gives customers a “download my data” button and, more importantly, the ability to authorize third parties to fetch usage data directly from their utility in a standardized, secure way. California requires its utilities to implement it; New York, Illinois, and others are following. It makes sense the energy sector ended up here. Unlike, say, retail data or telecom records, energy usage is regulated infrastructure, universally deployed, and ratepayer-funded. That creates both a public interest argument (customers paid for the meters, so they should control the data) and a commercial one (unlocking demand response, VPPs, and efficiency services). The lesson? The systems and players are different, but the problems are the same. B2B information sharing rarely happen sin a vacuum, even when the overall system would benefit, because it usually removes the asymmetric advantage of opacity. Consumer data sharing doesn't happen in a vacuum, because it always implicates privacy, trust, and control—the moment individual data leaves a utility, a bank, or a health system, it raises questions of consent, liability, and potential misuse. That means both B2B and consumer-facing data access only move forward when regulators step in to create common rules, level the playing field, and build the safeguards that make openness politically and commercially viable.

The introduction of The Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024 represents a comprehensive effort to reform and regulate the electricity market in Kenya, with a focus on enhancing competition, efficiency, reliability, and sustainability within the sector. So, what the highlights? 1. Market Structure and Governance: The regulations provide a framework for the governance and operation of the electricity market, including guidelines on market design, structure, and rules. This aims to promote competition, efficiency, and transparency within the market. 2. Open Access Provisions: The regulations introduce provisions for open access to transmission and distribution systems, allowing for non-discriminatory access by various market participants. This change enhances market access and competition, potentially leading to better services and pricing options for consumers. 3. Bulk Supply Regulations: The regulations define and regulate bulk supply arrangements between licensees, ensuring that the supply of electrical energy to consumers is facilitated efficiently and in compliance with specified guidelines. This change clarifies the process for bulk supply and resale activities within the electricity market. 4. Tariff Approval and Transparency: The regulations establish a framework for tariff approval processes, requiring licensees to seek approval from the Authority for various tariffs related to generation, retail, network services, and ancillary services. This enhances transparency in pricing and ensures that tariffs are in line with regulatory requirements. 5. Consumer Protection and Dispute Resolution: The regulations likely include provisions for consumer protection and mechanisms for handling complaints, disputes, and appeals within the electricity market. This change aims to safeguard the rights and interests of consumers and provide avenues for resolving issues effectively.

Energy Affordability Crisis: Americans Are Worried About Their Utility Bills $20 billion in utility rate hikes were requested or approved in just the first quarter of 2025. Meanwhile, 80 million Americans are struggling to pay their energy bills. This isn't just an economic issue—it's a regulatory failure. A fresh nationwide survey from PowerLines and Ipsos has uncovered a troubling disconnect between everyday Americans and the systems determining their energy costs. The findings reveal both widespread financial strain and a critical knowledge gap about who controls these essential services. Let's break down what's happening across the country: 1. The Immediate Consumer Impact - 73% of Americans report feeling concerned about rising utility costs - 63% feel increased financial stress specifically from energy bills - Nearly two-thirds have seen their bills increase in the past year alone - This concern crosses political lines—Republicans, Democrats, and Independents report similar levels of stress - Total utility debt has now reached a staggering $17 billion nationwide 2. The Regulatory Blind Spot - 60% of Americans aren't familiar with who oversees their utility rates - 90% cannot correctly identify their public utility commission as the regulatory body - These relatively unknown commissions approved $9.7 billion in rate hikes in 2023 alone - Most regulatory meetings happen during work hours when affected consumers can't attend - Utility companies vastly outresource both regulators and consumer advocates 3. The Market Dynamics - Residential electricity costs have jumped nearly 30% since 2021 - Natural gas prices have surged 40% since 2019—far outpacing inflation - Climate disasters are driving massive infrastructure spending by utilities - Current regulatory models guarantee utilities profits on these infrastructure investments - Many vulnerable households must choose between energy bills and necessities like food or medicine The root of the problem isn't just rising costs—it's a systemic imbalance in how rates are determined. When 80% of Americans feel powerless over their utility costs, and most can't even name who regulates them, the system is fundamentally broken. Three critical questions for energy leaders: 1. How can we redesign regulatory models to balance infrastructure needs with affordability concerns? 2. What outreach strategies could help more consumers engage with utility commissions? 3. How might current federal policy changes further impact household energy costs in the coming years? #EnergyAffordability #UtilityRegulation #ConsumerAdvocacy #EnergyPolicy