Norway
Mr. Chairman, poor institutional and regulatory frameworks create serious
obstacles to the delivery of modern energy services in many countries.
Regulatory frameworks often raise the largest barriers to decentralized options
for energy supply, including alternative energy technologies for locations not
served by electricity and fuel distribution networks. Poorly formulated taxes and
subsidies often undermine energy service markets by favouring one fuel over
another, sending consumers the wrong signals, and creating disincentives for
entrepreneurial solutions to energy supply. Another problem is the use of topdown
approaches that allow users, particularly the poor, little say in how energy
services are designed and delivered.
What does experience show how best to tackle these issues?
Sound sector policies provide the basis for improving access to energy for rural
and urban populations.
During the last two decades the electric power se ctor has been undergoing
massive restructuring worldwide. The main thrust of the restructuring drive has
been to break up electricity companies and separate generation, transmission and
distribution functions and introduce competition at each level. Such sector
reforms have been designed to enhance efficiency and effectiveness in countries
where the electricity supply systems are technically and commercially mature,
and electricity demand is growing slowly. Reform advocates have assumed that
the basic assumptions that make such reforms attractive are also present in poor
developing countries with low degrees of electrification and high rates of rural
poverty. However, recent studies of electricity sector reform in developing
countries illustrate with clarity the difficulties encountered when attempting to
?blueprint? rich country ?best sector organization practice? onto poor
developing countries with vastly different market, institutional and cultural
settings. There is no-one-size fits all and sector reforms have to be tailormade to
the specific country context.
Macroeconomic policies should avoid discriminating against or favouring
particular energy technologies. However, we support using subsidies and taxes
as a tool to encourage the use of more climate friendly energy technologies.
It is also essential to ensure the participation of local communities, investors,
and consumers in the design and delivery of energy services. Decentralized
approaches, including systematic local capacity building, need to be part of the
solution.
According to Transparency International (TI) the public works and power
sectors are internationally perceived to be the most corrupt sectors worldwide.
The energy sector, with its complex mix of public and private actors and often
enshrined central monopoly power, is prone to corruption. Corruption is clearly
fostered by the lack of transparency and accountability. Without addressing
corruption we will not be able to increase access to sustainable energy services.
Mr. Chairman, the response of the Norwegian government to this challenge is to
make energy a priority area of Norwegian development cooperation. Last year
we launched the Norwegian Petroleum for Development Initiative. This
initiative seeks to build on existing activities but significantly expands support
to countries requesting inputs and cooperation on various aspects of Norwegian
petroleum experience. Governance issues, environmental protection, revenue
management, transparency and anti-corruption activities as well as democratic
control of petroleum sector management will feature strongly in this new
Initiative, in line with expanding focus on such challenges by key stakeholders
in oil and gas countries. A similar initiative is now planned for the power sector
with particular emphasis on renweable energy and in particular on hydropower.
Thank you.
obstacles to the delivery of modern energy services in many countries.
Regulatory frameworks often raise the largest barriers to decentralized options
for energy supply, including alternative energy technologies for locations not
served by electricity and fuel distribution networks. Poorly formulated taxes and
subsidies often undermine energy service markets by favouring one fuel over
another, sending consumers the wrong signals, and creating disincentives for
entrepreneurial solutions to energy supply. Another problem is the use of topdown
approaches that allow users, particularly the poor, little say in how energy
services are designed and delivered.
What does experience show how best to tackle these issues?
Sound sector policies provide the basis for improving access to energy for rural
and urban populations.
During the last two decades the electric power se ctor has been undergoing
massive restructuring worldwide. The main thrust of the restructuring drive has
been to break up electricity companies and separate generation, transmission and
distribution functions and introduce competition at each level. Such sector
reforms have been designed to enhance efficiency and effectiveness in countries
where the electricity supply systems are technically and commercially mature,
and electricity demand is growing slowly. Reform advocates have assumed that
the basic assumptions that make such reforms attractive are also present in poor
developing countries with low degrees of electrification and high rates of rural
poverty. However, recent studies of electricity sector reform in developing
countries illustrate with clarity the difficulties encountered when attempting to
?blueprint? rich country ?best sector organization practice? onto poor
developing countries with vastly different market, institutional and cultural
settings. There is no-one-size fits all and sector reforms have to be tailormade to
the specific country context.
Macroeconomic policies should avoid discriminating against or favouring
particular energy technologies. However, we support using subsidies and taxes
as a tool to encourage the use of more climate friendly energy technologies.
It is also essential to ensure the participation of local communities, investors,
and consumers in the design and delivery of energy services. Decentralized
approaches, including systematic local capacity building, need to be part of the
solution.
According to Transparency International (TI) the public works and power
sectors are internationally perceived to be the most corrupt sectors worldwide.
The energy sector, with its complex mix of public and private actors and often
enshrined central monopoly power, is prone to corruption. Corruption is clearly
fostered by the lack of transparency and accountability. Without addressing
corruption we will not be able to increase access to sustainable energy services.
Mr. Chairman, the response of the Norwegian government to this challenge is to
make energy a priority area of Norwegian development cooperation. Last year
we launched the Norwegian Petroleum for Development Initiative. This
initiative seeks to build on existing activities but significantly expands support
to countries requesting inputs and cooperation on various aspects of Norwegian
petroleum experience. Governance issues, environmental protection, revenue
management, transparency and anti-corruption activities as well as democratic
control of petroleum sector management will feature strongly in this new
Initiative, in line with expanding focus on such challenges by key stakeholders
in oil and gas countries. A similar initiative is now planned for the power sector
with particular emphasis on renweable energy and in particular on hydropower.
Thank you.
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