Sustainable Tariffs for Island Systems
The Asian Development Bank (ADB) and Secretariat for the Pacific Community (SPC) invited Riley Allen to present methods for establishing sustainable energy tariffs for island systems at a conference on electricity and water sector reform. Most of the twelve participating island nations located in the Pacific and Eastern Caribbean depend disproportionately on diesel for power generation. As a result, some face electricity prices of 60 cents per kWh and higher. Many have set ambitious targets for transitioning to renewable energy sources, but lack the policy pathways and integration strategies for attaining their goals. Mr. Allen recommended regulatory frameworks for clean energy solutions that align utility performance with least-cost solutions, such as integrated resource planning, energy efficiency, and renewable energy sources. He also encouraged the use of integration strategies and optional retail services that facilitate flexible loads to complement the variable energy resources.