Energy Regulation and Industry Performance

The assignment provides an overview of the importance of regulating energy industries effectively to enhance performance and increase value in the industry. It discusses the role of government in maintaining standards and regulations, citing examples from countries that have performed well in this area.

FUNDAMENTALS OF ENERGY
AND THE WORLD ECONOMY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
How should governments regulate their energy industries? Which countries have done best
and why?.................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Having a good regulatory environment will help the government to perform their duties well
in order to maintain their work effectively. Present report will focus on how government should
regulate their energy industries and countries that have done best in this field.
MAINBODY
How should governments regulate their energy industries? Which countries have done best and
why?
In today's world, energy is considered as an important topic worldwide. Solar energy, hybrid
vehicles, nuclear power, and renewable energy, etc. all are considered in this factor. Government
should come up with new and improved strategies which can help in preserving or protecting
these energy sources in various countries (Government Regulation and Programs, 2018).
Energy industries includes, in particular, the energy industry comprises:
 The petroleum industry, including oil companies, petroleum refiners, fuel transport and
end-user sales at gas stations.
 Gas industry which including natural gas extraction and coal gas manufacture, as well as
distribution and sales.
 The electrical power industry, including electricity generation, electric power distribution
and sales (Meurant, 2012).
 The coal industry and nuclear power industry.
 The renewable energy industry, comprising alternative energy and sustainable energy
companies, including those involved in hydroelectric power, wind power, and solar
power generation, and the manufacture, distribution and sale of alternative fuels
(Government’s role in the electricity sector, 2018)
Fundamentals of Energy Regulation also helps the government in providing an insight to
the wide range of electricity generating technologies, which includes, renewable energy sources
available today or under development, an overview of the future sustainable energy systems and
environmental issues as well. Government has implemented various rule sand regulation which
has helped them in regulating all their energy industries effectively (Arfin and Sarpeshkar,
2012). These rules can include, various programs which helps in dealing with the production,
distribution, and use of energy and its conservation as well. With the help of all these regulation

it will become easier for the government to perform their duties well which is very important in
them in saving the energy.
Regulatory economies is one of the ways in which they can regulate these type of
industries effectively. In this method, government implement some laws that are mandatory for
these industries to follow in order to maintain their work and operations effectively. Most
important type of industry is the renewable industry which helps in saving a lot of resources of
the world in order to generate energy which can used effectively by the individual. Risk
reduction is one of government’s most important roles in promoting private investment in the
electricity sector (Nyman, 2018). Reducing the number of potential unknowns is especially
important where there is little or no experience with renewable technologies at the national or
local level. Government leadership in reducing energy wastage in these industry, can take many
forms. Areas where it may be appropriate for the government to play a role include:
 National energy planning,
 Resource evaluation,
For government, it is very challenging for them to regulate the use of energy in these energy
industry in order to maintain a good operational management. When governments implement
such rules and policy decisions it will be very helpful for them in regulating these industries. For
regulating energy industries effectively, legislation and regulation are two primary tools used by
the government (Sadeghi-Mobarakeh and Mohsenian-Rad, 2018). These helps in taking a strict
action against these industries to perform their duties very carefully. Legislation can help to
remove legal, economic and social barriers to investments in new technologies and investments
in specific energy industry.
Best way possible which a government can take is to test all the policies and regulations
effectively before implementing it into action. This practise will be very effective in governing
these energy industries worldwide. This can be achieved by producing a proposed legislation or
law in the community before it is enacted in the respective industry. Strive to overcome disorders
at the outset of putting a legal regime into motion before course correction becomes difficult if
not impossible (Pérez-Arriaga, 2014). In today’s world, there is a great need of renewable energy
as this help in protecting the environment as well. There are various principles which any
government can implement in their system in order to regulate the use of energy in a particular
country, respectively.

 Implementing laws that will help in focusing the proper use of energy by these industries.
Focused and appropriate approach helps or assist to have a better outcome and can also
achieve their aims and target of those laws and policies.
These laws and regulations will help in supporting renewable resource investments. It helps
establish the certainty for investors to evaluate the risks of investment and to allow investment in
a country’s renewable resource sector, respectively (Li and et.al., 2018).
For any country to become successful, it is very important to have a strong government
background that help them in regulating their work properly. Experience worldwide teaches that
countries who try to develop renewable resources, relying only on a patchwork of unrelated laws,
have generally not succeeded. The goal of regulation is the promulgation and preservation of the
public interest (Chen 2018). The objectives of traditional regulation of the electric utility industry
have been to:
 Ensure reliable power at the lowest price for the consumer;
 Establishing processes that result in sufficient revenues to attract additional investment in
electricity infrastructure as required to ensure reliable power at a reasonable price; and
 Designing rate structures (tariffs) and incentives (price signals) to encourage the wide use
of electricity (Chen 2018).
There is a huge need to implement some rule and regulation in order to regulate all the
energy industries in order perform well in the organization. If government implies all these
regulations perfectly in their system them it will help them in enhancing their performance.
Policy strategists can learn valuable information from countries that have already developed their
resources.
Among all the industries which is operating their business worldwide, United States has
the best regulations in which they regulate their energy resources. In United States there are
several laws and regulation which they have made in order to perform well in the industry. These
laws basically helps them in dealing with all the processes that is important for them, such as,
production, distribution, and use of energy, respectively (Nepal, Jamasb and Sen, 2018). There
are various regulatory bodies which is performing their duties perfectly in this sector, for
example,
 Energy Department

 Commission of Federal Energy Regulatory
 U.S. Nuclear Regulatory Commission
 Federal Power Act of 1920
 Energy Policy Act
 Atomic Energy Act
All the above mentioned government agencies is helping in regulating all these energy
industries in the United States effectively. Energy department of United States is an agency or
organization which helps in regulating all the policies which related to energy use and its safety
in the industry, respectively. The main aim of this department is to improve the national,
economic, and energy security of the United States (Clark and Wójcik, 2018). This department
also helps in developing some new and improved technology which can help the industry to
come up with innovative ideas with the help of which they can enhance their performance to a
high level.
On the other hand, Federal Energy Regulatory Commission (FERC) is a type of agency
which performs their functions individually and independently. This helps in regulating the
transfer of electricity, gas and oil within the state. This organization also helps in monitoring all
these processes effectively. This Federal Energy Regulatory Commission also assist in building
liquefied natural gas (LNG) terminals and interstate natural gas pipelines in the country which
can help in regulating the energy resources of the country (Gomez-Exposito, Conejo and
Canizares, 2018). Similarly, U.S. Nuclear Regulatory Commission in the country helps in
regulating or monitoring all the methods and process that is related to the use of nuclear power in
United States, respectively. Main objective of this commission is to protect public health, safety
and the environment of the country. This agency also regulated in providing the license to
particular company or an individual for developing any organization which is dealing with the
use of nuclear material.
Above mentioned are all the various agencies which is operating in United States in order
to regulate the energy industry effectively (Begg, Van der Woerd and Levy, 2018). Other than
this, they also have some regulation as well with the help of which they can regulate their energy
industry very well. These regulations includes,
 Energy Policy Act of 2005: This policy helps in dealing with the energy problems
which is arising in the country. This also helps in changing US energy policy by

providing different types of tax incentives and loan guarantees for energy
production. This helps to enhance the use of energy efficiently. With the help of this
policy also helps in conserving the energy as well. This policy will help the United
States to enhance their performance there in order to regulate their energy industries
effectively.
 Atomic Energy Act: This is the law in the United States, which is applicable for both
military and civilian uses of nuclear material in the country. It law usually covers, the
development and its regulation of all the nuclear materials and facilities in the United
State. This act will assist the government to regulate all the rules which is related to
atomic energy.
All these policies and regulation has helped United States in becoming in one of the best
countries which has concentrated on their laws and rules in order to regulate and maintain their
standards while regulating their energy industries.
CONCLUSION
From the above report it can be conclude that it is very important for the government to
maintain and regulate their energy industry effectively in order to enhance their performance
which will help the increasing their value in the industry as well. Also this assessment has also
explained about country that is performing well in this field.

REFERENCES
Books and Journals
Arfin, S .K. and Sarpeshkar, R., 2012. An energy-efficient, adiabatic electrode stimulator with
inductive energy recycling and feedback current regulation. IEEE transactions on
biomedical circuits and systems. 6(1). pp.1-14
Begg, K., Van der Woerd, F. and Levy, D. eds., 2018. The business of climate change:
Corporate responses to Kyoto. Routledge.
Chen, K., 2018. Energy management in illuminating systems. Routledge.
Clark, G. L. and Wójcik, D. eds., 2018. The New Oxford Handbook of Economic Geography.
Oxford University Press.
Gomez-Exposito, A., Conejo, A. J. and Canizares, C., 2018. Electric energy systems: analysis
and operation. CRC press.
Li, K. and et.al., 2018. The role of local private participation in China’s transition to
domestically developed renewable energy technologies. Journal of Cleaner
Production. 173. pp.217-224.
Meurant, G., 2012. Cellular energy metabolism and its regulation. Elsevier.
Nepal, R., Jamasb, T. and Sen, A., 2018. Small systems, big targets: Power sector reforms and
renewable energy in small systems. Energy Policy. 116. pp.19-29.
Nyman, J., 2018. Rethinking energy, climate and security: a critical analysis of energy security
in the US. Journal of International Relations and Development. 21(1). pp.118-145.
Pérez-Arriaga, I. J. ed., 2014. Regulation of the power sector. Springer Science & Business
Media.
Sadeghi-Mobarakeh, A. and Mohsenian-Rad, H., 2018. Performance Accuracy Scores in CAISO
and MISO Regulation Markets: A Comparison Based on Real Data and Mathematical
Analysis. IEEE Transactions on Power Systems. 33(3). pp.3196-3198.
Online
Government Regulation and Programs. 2018. [Online]. Available through:
<https://energylaw.uslegal.com/government-regulation-and-programs/>
Government’s role in the electricity sector. 2018. [Online]. Available through:
<http://www.oas.org/dsd/publications/unit/oea79e/ch08.htm>

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