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Biography

Dr. Rolando Fuentes was 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
  • Methodology paper
  • Data Insight
  • Instant Insight
  • Commentaries
  • KAPSARC journal articles
  • External journal articles
  • Think20 (T20)
How Can Energy Storage Catalyze the Electricity Policies of Gulf Cooperation Council Members? Issues and Options

How Can Energy Storage Catalyze the Electricity Policies of Gulf Cooperation Council Members? Issues and Options

Saudi Arabia and other Gulf Cooperation Council (GCC) members are working in parallel to reform their electricity markets and achieve ambitious renewable energy deployment goals. The motivation for this agenda is multifaceted, and increasing economic efficiency is one of several reasons for these efforts. By introducing markets in the power sector (i.e., liberalizing this sector), these countries aim to reduce the sector’s reliance on the public budget.

27th September 2021
Distribution Networks Tariff Design in the Era of Decentralization:  A Business Model Approach

Distribution Networks Tariff Design in the Era of Decentralization: A Business Model Approach

In this paper we discuss the unexplored two-way relationship between distribution network tariff design and the emergence of new business models in the power sector. Distribution network tariffs have traditionally used a cost accounting method. We suggest, instead, the use of a business model framework to analyze the extent to which emerging business models in the power sector change the way electricity distribution network services are priced and packaged.

25th November 2020
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.

21st July 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.

26th November 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.

8th September 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.

15th May 2016
Behavioral Aspects of Energy Transition: A KAPSARC-Energy Systems Catapult (ESC) Joint Methodological Report

Behavioral Aspects of Energy Transition: A KAPSARC-Energy Systems Catapult (ESC) Joint Methodological Report

KAPSARC’s work on innovation in electricity transitions has focused on unbundling services in the electricity sector (KAPSARC 2016) and developing the microeconomic foundation for a reliability service. Our research has investigated the experiences of industries resembling the electric power sector and those involved in the sharing economy that have recently faced technological disruptions. In Fuentes (2016), we argued that reallocating risk across the electricity market, and the apparent paradox between (spare) capacity and price signals (scarcity) could open up a new role for incumbent electricity firms. 

11th March 2020
The Implications for the Power Sector from Innovation by Startup Companies

The Implications for the Power Sector from Innovation by Startup Companies

We compiled a multi-regional database of 320 startups from 36 countries whose focus is on new technologies in the electricity sector. To reach this number, we performed internet searches with neutral key words such as ‘startups,’ ‘electricity,’ ‘innovation,’ and avoided searching for specific technologies to reduce biases. We used four languages for these searches: Arabic, Chinese, English and Spanish.  

25th May 2022
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.

20th August 2019
Charting the Evolution of Electricity Sector Startups: A Methodological Note

Charting the Evolution of Electricity Sector Startups: A Methodological Note

This commentary provides an update on ongoing research on innovation in the electricity sector. This project aims to identify emerging technologies early, anticipate changes, and discern the key drivers and their connections in the innovation landscape. This research can serve as a toolkit for policymakers in the Gulf Cooperation Council (GCC) and other nations striving for economic diversification. Economic diversification can be realized by directing investments toward startups in the electricity sector. Such investments not only promote technological innovation but also reduce the reliance on oil resources, aligning with the overarching aim of diversified and resilient economies.

10th March 2024
What Innovations Are Chinese Electricity Startups Pursuing?

What Innovations Are Chinese Electricity Startups Pursuing?

We provide a snapshot of the innovations that Chinese electricity startups are pursuing and compare them with the innovation efforts of their worldwide and Gulf Cooperation Council (GCC) counterparts. We contrast types of innovation, technological domains and focuses on megatrends within the industry.

13th June 2023
Innovation by Gulf Cooperation Council Electricity Startups: A Global Comparison

Innovation by Gulf Cooperation Council Electricity Startups: A Global Comparison

The electric power sector is the cornerstone for achieving the energy transition goals of economic progress, energy security and environmental improvements. Substantial and timely innovations are necessary to accomplish these goals. In this commentary, we investigate innovations in the electric power sector by startups in the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) region. We compare their innovations to those of their worldwide counterparts.

28th February 2023
Climate and Power System Reliability in the Aftermath of the Texas Blackouts

Climate and Power System Reliability in the Aftermath of the Texas Blackouts

The February 2021 blackout in Texas underscored the importance of reliable and resilient power systems. In this commentary, we discuss the roles of regulators, markets, fuel and generation supply chains, and interdependent infrastructures, and finds that they need to be reconsidered and redefined to successfully meet the future challenges of increased electrification and severe weather.

25th August 2021
Testing the Limits of Electricity Market Design

Testing the Limits of Electricity Market Design

We live in an unprecedented time for the energy sector. According to the BP Statistical Review of World Energy 2019, electricity generated from renewable sources is at a historic high, with about 2,500 terrawatthours (TWh) produced in 2018 (Figure 1). This is more than three times that produced in 2010.

9th March 2020
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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