Principles of Regulation to Promote Energy Efficiency in the Black Sea Region

The initiative is a collaborative effort between national regulatory agencies in Armenia, Azerbaijan, Georgia, Moldova, Turkey, and Ukraine, with the support of the United States Agency for International Development (USAID) and the National Association of Regulatory Utility Commissioners (NARUC). The 'Principles of Regulation to Promote Energy Efficiency in the Black Sea Region' document provides a concise overview of the incentives and obligations that National Energy Regulatory Authorities (NERAs) can apply to encourage energy-efficient behavior. The document is the result of a year-long drafting process involving the national regulatory agencies in the region, with the Organization of MISO States (OMS) serving as a project resource and NARUC serving as a project manager. The document is divided into nine sections, which provide a comprehensive overview of the regulatory framework for energy efficiency in the Black Sea region. Section 1 sets the context for the Principles, while Sections 2 and 3 provide definitions and indicators of energy efficiency and describe the policy context for energy regulators, respectively. Sections 4 and 5 discuss supply-side energy efficiency issues in generation and networks, respectively. Section 4 focuses on regulatory practices to promote energy efficiency in electricity and heat generation, while Section 5 discusses the regulation of revenue recovery for electricity network operators. Sections 6 and 7 examine final customer tariff setting and regulatory arrangements for demand response programs, respectively. Section 8 discusses regulatory assistance in implementing state-level energy efficiency programs, while Section 9 addresses measurement and verification needs in the context of energy efficiency programs. The document also includes annexes that provide additional information on European energy efficiency obligation schemes, financing sources for energy efficiency programs, and a glossary of terms. The 'Principles of Regulation to Promote Energy Efficiency in the Black Sea Region' aim to promote the application of good regulatory practices with regard to energy efficiency in the region. The document is intended to provide a framework for NERAs to encourage energy-efficient behavior and promote the use of energy-efficient technologies and practices. The document highlights the importance of energy efficiency in reducing import dependence and improving supply security. It notes that energy efficiency offers several low-cost opportunities to reduce energy consumption and promote the use of renewable energy sources. The document also emphasizes the need for regulatory authorities to play a key role in promoting energy efficiency and encouraging the use of energy-efficient technologies and practices. The 'Principles of Regulation to Promote Energy Efficiency in the Black Sea Region' provide a comprehensive framework for NERAs to promote energy efficiency in the region. The document is a valuable resource for regulatory authorities, policymakers, and other stakeholders who are interested in promoting energy efficiency and reducing energy consumption in the Black Sea region.