Weak Power Regulatory Frameworks in Developing Countries; a System Operator perspective

This is my personal opinion as Power System Operator; experience of more than two decades, one could be agree or disagree what is written below.

Developing countries around the world has faced significant challenges in implementing effective regulatory frameworks for its POWER SYSTEM. These challenges have resulted in:

Power System Operation Slides - YouTube

1. Lack of Accountability;
2. Lack of Transparency;

both of the above points are creating difficulties in attracting investment, and maintaining infrastructure. The reasons behind the weak regulatory frameworks are multifaceted and can be traced back to a variety of factors.

One of the primary reasons for weak regulatory frameworks is a lack of POLITICAL WILL. The power sector is a critical component for any economy, and it is closely tied to the country's political landscape. The government has historically been heavily involved in the power sector, which has led to a lack of independence and effectiveness of regulatory bodies.

The government has also been reluctant to implement policies that would increase transparency and accountability in the sector. This has made it difficult for regulatory bodies to effectively oversee the power sector and ensure that it operates in the best interests of consumers and investors.

LACK OF INSTITUTIONAL CAPACITY

Another reason for weak regulatory frameworks is a lack of INSTITUTIONAL CAPACITY. Regulatory bodies require qualified personnel with specialized market base knowledge and expertise to effectively regulate the power sector. However, seem they struggled to attract and retain qualified personnel in regulatory institutions. This has resulted in a lack of technical expertise and capacity in regulatory bodies , which has made it difficult for them to effectively oversee the power sector.

LACK OF REGULATORY COMPLIANCE

In addition to a lack of political will and institutional capacity, weak regulatory frameworks along poor COMPLIANCE can also be attributed to a lack of financial resources.

For example: a best man-made grid code is useless if it is not properly understandable/followed from top to bottom operational hierarchy of any power system. A proper understanding of these grid code are very important at-least to the operational level key positions. A set of exam/goal could be set by authority for all operational levels in better way along attractive compensation as gift to motivate for better result outcome is suggested.

Regulatory bodies require adequate funding to effectively carry out their functions. However, these countries has faced significant financial constraints in recent years due to COVID-19, which has made it difficult to provide regulatory bodies with the necessary resources to effectively regulate the power sector.

LACK OF COORDINATION

Another factor contributing to weak regulatory frameworks is a lack of coordination between regulatory bodies. However, there is often a lack of coordination between these bodies, which has led to inefficiencies and inconsistencies in the regulatory process.

MISSING LINK ?????

As System Operator I see below missing link which could address easily:

1. Involvement of ACADEMIA is missing ? (What I notice is most of utilities are hiding event data, reluctant to share, if even they share..., sharing limited info which suit them)
2. No Lesson learned (no such concept), same event repeated again and again just investigation team is change from authority level.. who took notice ????
3. No Open Data Policy which need to adopted at-least to researcher.. students or experts who are interested... should be allowed to ACCESS TO BIG SYSTEM DATA.
4. Feedback Policy Allowed data access should be given with AGREEMENT for better learning/ result oriented feedback/ recommendation for enhancement operation of power system along its regularities' affair.
5. Grid Code Updating Frequency Countries should develop national grid codes for the interconnected power system along frequency of its updating otherwise all this exercise will be useless as power system is moving quite fast from steady state to dynamic behavior when we speak about its operational mode by induction of new technology day by day.
6. Improper Procedure & Operational Instruction Due to induction of latest technologies (like renewable generation...) the power system procedures and operational instructions are outdated also need frequency of updating time to time on all level (generation, transmission, distribution, trading...)
7. No Innovation day this is another missing part; these event encourage staff to give new idea which could be cost saving or in other means... utilities should spend some time and money on this to get better floating ideas.
8. Improper Training & Seminar; Trainings are done but operational working staff is mostly missing (specially shift staff from generation, transmission, distribution); who are mainly controlling those equipment had no idea what's going on in technological era. Budget allocated, consumed again and again but no benefit reach to the grass level, as dummy training exercise are done in excel sheets; this is another dilemma hitting any power system ????
9. Safety Rules & Regulation Safety rules on ground are missing, no proper authorization at any level nor is the focus; many utilities still doing live line switching from a substation operator while control room engineer are working as dummy from EMS; nor proper recording/issuance of safety documents are done properly at all voltage levels, poor paper log books are maintained instead they should be using electronic logs.

Proper Authorization System is suggested for all operational desk of power utilities (top to bottom) with full safety protocols on ground with procedures along issuance of electronic safety documents as a check for avoiding any unforeseen incident. EMS tagging should be implemented along safety lock, key safety within switchgear/switchyard for all voltage levels; if SAP is added into this, that will be additional benefit.

Utilities should encourage its all technical staff for writing technical papers & give them free hand to have their say about company policies.., working environment, discuss technical issues asper their perspective.

Few lines from a world bank report as recommendations:

World Bank Report: RECOMMENDATIONS

1. Legal frameworks in all regions should be updated to include restrictions on cross appointment of higher management between utilities and the regulator.
2. To preserve institutional memory and to allow for the transfer of knowledge, provisions for staggering the tenure should be included in sector legal frameworks in all regions especially in South Asia, Europe and Central Asia, and the Middle East and North Africa which are highly deficient.
3. Regulators are more effective when they are independent and have less political interference. Provisions in legal frameworks on the appointment and dismal of the board should align with international best practice.
4. The way in which regulators attract, retain, and motivate staff is a key determinant of the ability of the regulator to fulfil its functions, act independently and take decisions that are objective. Best practices show that the salary scales of regulatory authorities should be as high as those of the regulated utility companies, and staff in regulatory authorities should be appraised following agreed key performance indicators
5. Particular attention should be made to ensure that quality of service codes cover technical performance, quality of service performance and grid connection and access requirements.
6. Countries should develop national grid codes for the interconnected power system

CONCLUSION ??

Finally, weak regulatory frameworks can also be attributed to a lack of public awareness and participation process which has made it difficult for regulatory bodies to effectively represent the interests of consumers. The power sector is a critical component of any economy, and it is essential that consumers are aware of their rights and responsibilities.

The reasons behind weak regulatory frameworks are multifaceted and can be traced back to a variety of factors. These include a lack of political will, institutional capacity, financial resources, coordination between regulatory bodies, and public awareness and participation. Addressing these challenges will require a concerted effort from the government, regulatory bodies, and other stakeholders in the power sector.

By working together as Team, it may be possible to implement effective regulatory frameworks that ensure transparency, accountability, and sustainable growth in the power sector hopefully.