Re-Delays: Analyzing the cost of regulatory delays to renewable energy project development

August 18, 2016
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Client:  International Energy Agency
Period:  2016


Work

The premise behind RE-DELAYS is that the development of renewable energy must be governed by a stable, transparent and efficient regulatory framework to compete effectively with conventional generation. Delays in the regulatory process, whether they are related to policy or project development, can lead to increase costs and create an environment of uncertainty for investors and developers alike. On a macro level, costly delays can undermine the growth and economic potential of the renewable energy industry and also impede entry of nascent energy technologies. On the other hand, significant regulatory delays may present opportunities for advancement in technologies, lowering capital and operating costs.

The objective of the IEA-RETD RE-DELAYS project is to better understand and quantify the impact of regulatory delays and uncertainty to inform regulatory reform initiatives and promote greater efficiency in the global market for renewable energy deployment. The project will involve the development of a flexible financial model to be used by the IEA-RETD to estimate the cost of regulatory delays to renewable energy players and to the broader economy. The model will be validated through six country case studies covering multiple continents and offshore/onshore wind, solar PV and conventional hydro technologies. Two categories of regulatory delays and uncertainties will be covered in the study: Delays related to renewable energy policy decisions and delays related to administration and regulation.