Page 61 - CARILEC CE Journal CEMAY2021

▶ Customer-Side Economic – Payments and Savings costs—more choice for consumers, which is
incredibly important. The opt-in system is entirely
▶ Utility-side Economics – Funding and Revenue voluntary.
In terms of regional utilities, the IUS offers
▶ Programme Administration and Design a real opportunity to maintain relevance in an
increasingly technology-driven environment,
▶ Training, Quality Control and Monitoring/ with higher penetration for EE and RE on the
Verification demand-side. As utilities are expected to lose
revenues, ESCOs and energy services offer ways
Such a comprehensive approach is intended to yield to unleash new revenue streams. Furthermore,
“real market analysis” and an investment pipeline the utility benefits from a lower cost of capital,
and financing options for the respective countries. economies of scale, which ultimately attracts
external partners and enhances the institutional
WHO BENEFITS? capacity for undertaking EE and RE initiatives.
It is anticipated that the IUS model and its variations
will suitably capture the goals and internal capacity FUTURE OUTLOOK
of the utilities as well as the regulatory structure(s) Looking ahead, the objective is to institutionalise
within which they operate. In effect, the entire the IUS Model, transferring ownership to a
Caribbean region can benefit from the widescale regional institution such as the Caribbean
implementation of the IUS model. Electric Utility Service Corporation (CARILEC)
By increasing sustainable energy production, or the Caribbean Centre for Renewable Energy
delivery and use, CARICOM Member States will have and Energy Efficiency (CCREEE) to support the
a meaningful opportunity to decrease their (fossil) long-term, independent rollout of the IUS Model
fuel consumption and boost their energy security. throughout the Caribbean region. It will also be
Furthermore, their dependence on fuel imports and valuable to engage an independent entity such
all the contingent challenges posed will be decreased. as CROSQ to evaluate suppliers and service
The IUS model also presents an actionable path to providers involved in the IUS program.
clean economic growth, improving the quality of life Supporting the institutionalisation of the IUS is
for all citizens. Thinking big picture allows Member also a vital objective of the current third Phase of
States to take action towards mitigating greenhouse the IUS Pilot Programme. The ultimate goal under
gas emissions and provide the basis for improving this segment is to enable regional institutions
the resilience to the effects of climate change. with the technical know-how to provide guidance
More specifically, this initiative has the potential and advice on the IUS model to utilities and
to yield positive benefits for utilities, customers, relevant stakeholders as the Model is upscaled
regulators, investors, financial institutions, technical over time.
partners and energy service providers. Financial This institutionalisation at the regional level will
institutions are integral to the re-financing aspects facilitate the sustainable exchange of information
of the IUS program. and lessons with key actors, integrating this
Customers will enjoy the on-bill financing of framework/model into energy planning scenarios,
modern energy services, which reduce their energy knowledge sharing and broader rollout.

CONCLUSION
The IUS offers a pioneering, multi-stakeholder option for addressing challenges in the energy landscape.
Framed correctly, and piloted successfully, this can be a real game-changer for not merely proposing
RE and EE optimisations, but securing the funds to sustainably enhance regional energy production,
delivery, and use!
An IUS model, supported by an “appropriate mix” of energy policy-makers and utility decision-makers,
can provide an opportunity for utilities to remain relevant in the future with higher penetration of
demand-side EE and RE technologies. The ultimate beneficiaries are citizens, who could benefit from
the on-bill (and other) financing of modern energy services, which reduce their energy costs.

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