Energy Transition: Balancing Economic, Political, and Social Realities

Ecuador has significant solar potential, and the growing demand calls for sustainable energy solutions. Photovoltaic (PV) microgeneration in buildings is an ideal alternative. Identifying barriers to the widespread adoption of this technology is based on expert consultation and multi-criteria analysis, followed by proposals to overcome these challenges. The methodology of this study includes a systematic literature review (SLR), surveys of industry professionals, and statistical analysis of the collected data. The results highlight barriers such as the high initial cost, government-subsidized tariffs, bureaucratic processes and permits, ineffective regulations, limited awareness, lack of financing, distribution and operational network challenges, and insufficient government incentives. The proposed solutions suggest developing incentive policies to promote investment in PV microgeneration, training programs to enhance technical and cultural knowledge of solar energy, simplifying regulatory processes to facilitate project implementation, and providing accessible financing to reduce economic barriers. Additionally, the recommendations include the implementation of demonstration and outreach projects to showcase the feasibility and benefits of PV microgeneration, thus improving the social and technical acceptance of these systems. These actions aim to foster a faster and more effective energy transition in Ecuador. Full article

Net metering (NM) is among the potent regulatory tools used globally for supporting distributed generation and renewable energy sources. This paper examines the trajectory of NM in a developing country such as Pakistan, analyzing the impact of regulatory changes, confidence-building strategies, hindering factors, and technical/financial issues. The three-stage methodology involves three components, namely techno-economic analysis, stakeholder engagement surveys, and impact analysis of financing mechanisms. This study emphasizes the importance of clear regulatory and financial frameworks, grid upgrades, and public–private partnerships for technology distribution in the context of a developing country with weak grid utilities and an import–export energy ratio. It also explores the role of financial incentives, such as tax breaks and subsidies, to encourage investment in NM systems from the perspective of lucrative rates, impact on paybacks, and return on investments, and proposes concrete solutions to enhance financial inclusion for ambitious renewable energy goals. Until April 2023, over 56,000 NM/distributed generation facilities were commissioned, with an installed capacity of 950 MW. By May 2024, the number of NM consumers reached ~100,000, with a 1950 MW capacity, nearly doubling. However, the import and export ratio of IESCO changed most, with 61% exports and 39% imports, directly impacting the revenue stream. A total of 60% of banks have adopted actions linked with green banking criteria, aiming to limit their environmental impact. The change in tariff will result in reduced ROI for NM consumers to 20%, and increase the payback period from less than 4 years to 13 years. Government subsidies, tax breaks, and green financing frameworks are proposed to encourage investment, but have been abruptly halted, and were previously at a 6% interest rate. This research aims to provide insights into effective market evaluation methodologies for NM programs and offer policy recommendations to strengthen legislative and institutional frameworks governing NM. Full article