• Primary Program Energy Transitions and Electric Power
  • Research Interests Electricity reform, climate change, and energy policy and renewables

Biography

Dr. Rolando Fuentes is a research fellow focusing on business and regulatory models for the Utilities of the Future project. He has extensive experience in the energy and environmental sectors as an academic and policymaker. Rolando was the director of international negotiations at the Mexican Ministry of Energy and later became director of hydrocarbons projects. Before joining the Mexican government, he was a fellow of the London School of Economics, where he lectured and taught courses in Environmental Impact Assessment and Environmental Policy, and supervised master’s dissertations. Rolando has also been an associate of the Oxford Institute of Energy Studies and IHS Cambridge Energy Research Associates (IHS CERA), and was a recipient of the British Chevenning Scholarship in 2001.

 

Publications

See all Rolando’s publications
  • Discussion papers
  • Instant Insight
  • KAPSARC journal articles
  • External journal articles
Using Insurance to Manage Reliability in the Distributed Electricity Sector: Insights From an Agent-Based Model

Using Insurance to Manage Reliability in the Distributed Electricity Sector: Insights From an Agent-Based Model

Our results suggest that consumers would transfer some of the inherent risks of a blackout to the utility for a price lower than their willingness to pay to achieve their desired level of protection, creating economic value. The purchase of insurance would help most consumers avoid a complete loss of power. Our simulations show that of those households that would otherwise experience a complete loss of power, on average between 1% and 15% can fully cover their excess energy needs through insurance. Between 50% and 70% of these households are budget constrained but would still be able to partially cover their excess energy needs.

July 21, 2019
Reorganizing Power Markets: A Reliability Insurance Business Model for Utilities

Reorganizing Power Markets: A Reliability Insurance Business Model for Utilities

A market in which individuals pursue their own self-interest normally maximizes aggregate economic well-being. But households that install Distributed Energy Resources (DERs) in order to obtain savings in their electricity bill, impose an external cost on other customers. At scale, their actions can lead to higher electricity tariffs for utility customers and, in the extreme case, a utility death spiral. In this paper, we propose a market mechanism that may ameliorate this potential distortion based on the creation of a market for risk. Utilities would provide reliability insurance services to households to protect them against the failure of their own DER systems. Creating such an insurance market would allow customers to choose a premium according to their preference for reliability. It could also limit the potential utility death spiral efficiently, as the path would be driven by market mechanisms that arise after reassigning property rights and liabilities between utilities and their customers.

November 26, 2018
The Renewable Energy Policy Paradox

The Renewable Energy Policy Paradox

One major avenue for policymakers to meet climate targets is by decarbonizing the power sector, one component of which is raising the share of renewable energy sources (renewables) in electricity generation. However, promoting renewables in liberalized power markets creates a paradox.

September 8, 2016
Can Adoption of Rooftop Solar PV Panels Trigger a Utility Death Spiral?

Can Adoption of Rooftop Solar PV Panels Trigger a Utility Death Spiral?

The growing penetration of distributed energy resources (DER) such as solar and wind power is causing major changes in the electricity market. One key concern is that existing tariffs incentivize ‘free riding’ behavior by households, which leads to a cycle of rising electricity prices and DER adoption, thereby eroding utility revenues and start a death spiral. We developed a model using data from two cities in the U.S. to explore this issue.

May 15, 2016
How does Saudi Arabia’s recent energy performance compare with other G20 countries?

How does Saudi Arabia’s recent energy performance compare with other G20 countries?

The 68th annual edition of the BP Statistical Review, released recently, is a comprehensive account and analysis of global energy data. Saudi Arabia will be hosting the G20 summit in 2020, and the release of BP’s annual compilation provides a good opportunity to benchmark the Kingdom against its G20 peers. The G20 summit is an international economic forum for the  governments and central bank governors from 19 countries and the European Union. Member countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, and the United States.

August 20, 2019
How to Reform the Power Sector in Mexico? Insights from a simulation model

How to Reform the Power Sector in Mexico? Insights from a simulation model

International Journal of Energy Sector Management

2018
Analyzing renewable energy and climate conditions effects on societal welfare worldwide

Analyzing renewable energy and climate conditions effects on societal welfare worldwide

The Energy Journal

2017
Can Electricity Reform Help Mexico Achieve Carbon Emissions Reductions?

Can Electricity Reform Help Mexico Achieve Carbon Emissions Reductions?

Journal of Environmental Economics and Policy

2014
In search of the Mexican way: How to kick start competition in the electricity sector and achieve lower tariffs

In search of the Mexican way: How to kick start competition in the electricity sector and achieve lower tariffs

Oxford Institute for Energy Studies WP

2014
Future Business Models for Power Markets: What can We Learn from the ‘Sharing Economy’?

Future Business Models for Power Markets: What can We Learn from the ‘Sharing Economy’?

Oxford Energy Forum

2014

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