Khalil Elahee, Director of MARENA: "Time-of-Use is an Energy Equity Reform"

Khalil Elahee, the director of the Mauritius Renewable Energy Agency (MARENA), emphasizes that the introduction of the Time-of-Use Tariff is fundamentally an energy equity reform. According to him, this system, already implemented in several countries, represents a key step for the Mauritian electricity system by allowing for a fairer management of demand and paving the way for a sustainable energy transition.

Why is the Time-of-Use Tariff an important step for the Mauritian electricity system?Firstly, the Time-of-Use Tariff (ToU) is not a Mauritian invention. It is applied in many countries, including Réunion. In Mauritius, it is already in effect for electric vehicles and, exceptionally, for certain industries. This mechanism aims to reflect the real costs of electricity: consumers pay based on their usage and the time of consumption.

Currently, ToU is mainly used as a demand management tool between 6 PM and 9 PM, a period of high consumption. However, at its core, it is primarily about equity. The current domestic tariff from the CEB, as shown on the back of the bill, is neither sufficiently progressive nor truly aligned with real-time production costs. For instance, beyond 300 kWh, the tariff increases very little.

This situation penalizes the majority of small consumers, who find themselves doubly disadvantaged: they pay proportionally more and consume less during peak hours compared to large energy-intensive users.

ToU currently only applies to large commercial consumers. Why this choice, and what is the real impact of these clients on the network?They have smart meters and are among the largest energy consumers. Therefore, it is essential to start where the impact will be maximal. Moreover, this sector pays an average of the highest tariffs and shows faster growth than others. It is essential to prioritize actions towards new high-demand clients. However, this approach should not come at the expense of the 90% of clients who, despite their number, consume little individually. The goal is to target a few hundred large consumers who have real potential to better manage and optimize their own demand.

Many believe that ToU is an additional constraint. How can it instead become an economic opportunity for the concerned businesses?This is not a constraint, as the real risk without new plants is load shedding, which can affect everyone. Furthermore, building new plants takes time, and even then, it is essential to prevent demand from becoming uncontrollable. The situation is also financially unsustainable in the long term.

The opportunity lies first in reducing waste and moving towards better energy efficiency. This can involve load-shifting, meaning moving certain activities to off-peak hours when electricity is cheaper. Of course, this is not always possible for all operations.

Thus, the other option is to produce one's own electricity, notably through solar photovoltaics, either on-site or through remote installations. The company can gain energy autonomy, especially with batteries that allow storing energy produced during the day. In case of surplus, it can also sell this electricity back to the CEB during peak hours at a preferential rate.

This is somewhat of an inverted ToU, a "Time of Sale", which becomes attractive for the business while contributing to network stability and reducing the risk of national load shedding.

The scheme remains voluntary for now. How can we concretely encourage stakeholders in the commercial sector to adopt it?The government, in its wisdom, made this decision. Personally, I would prefer the scheme to be mandatory but targeted at new energy-intensive clients. Admittedly, there will be ‘teething problems’, but the system can improve over time. Flexibility is necessary, and even if the scheme becomes mandatory, its deployment will be simpler.

The commercial sector has a vested interest in collaborating: in a year or in 10 years, when tariffs increase, these businesses will be fully protected. It is an opportunity to think long-term, act today, while enhancing their image and contributing to environmental protection.

You emphasize the importance of battery storage. Why is this a central element of ToU?Imagine if everyone produced solar electricity during the day. There would then be an abundance of energy. What to do with this surplus? In Australia, for example, it is distributed for free. Elsewhere, consumers may need to be compensated for using this electricity to maintain network stability during certain hours.

Here, I think it makes sense to link this production to battery storage, especially to cover the risk of load shedding between 6 PM and 7 PM.

Without storage, what risks do we run in the development of solar photovoltaics in Mauritius?Without storage, in a small island state without network connections to other territories, as is possible on continents, we would face increased network instability. Our network, already quite outdated, does not easily support large variations. Therefore, in the future, we will need to develop "smart mini-grids" or even "smart micro-grids" at the scale of large buildings or subdivisions.

Otherwise, we would have to invest massively in the distribution and transmission of centralized systems like the ones we know today. Why not think differently for the next generation? The goal: Decentralized, Decarbonized, Democratized, and Digitalized energy – the 4Ds. The cost of storage has significantly decreased over the last 10 years, and it is time to commit to this path, starting with large consumers and gradually including smaller ones. All while encouraging a diverse energy mix to strengthen the resilience of our system.

ToU fits into a broader logic of demand management. What does this notion concretely mean for consumers?For consumers, this means they become "consum-actors", that is, both consumers and producers, or "prosumers" in English. With the Time-of-Use Tariff, this is just the beginning. The next step will be the installation of renewable energy, for example, on rooftops. The same smart meter can then adapt to consumption, sales to the grid, and purchases from the grid. This revolution, which also relies on artificial intelligence, is already a reality elsewhere, and it will eventually be imposed here.

When could the Time-of-Use Tariff be extended to the residential sector and small consumers?First, smart meters need to be installed. But that’s not all: it is essential to explain and educate the population. We face a genuine crisis of trust, as some perceive everything negatively. ToU, which could represent a real advantage, often generates distrust even though it offers genuine benefits. Therefore, it is crucial to take the time to clarify how it works, explain the advantages, and address consumer concerns.

The Sustainable Energy Bill is highly anticipated. How will it strengthen ToU and the energy transition as a whole?To me, the Sustainable Energy Bill (SEB) goes far beyond a simple Renewable Energy Bill, as it considers energy demand and not just production. We cannot limit ourselves to renewable energy projects alone: we must adopt a holistic vision. A holistic approach includes transport, land use planning, waste management, environmental protection, land use, and the blue economy.

Thinking about the future also means integrating artificial intelligence, which directly raises energy issues, particularly for clean energy. Sophisticated energy management systems, whether at the scale of a home or an organization like a bank or hospital, are becoming essential.

The SEB will also require new developers to produce at least part of their energy, which aligns with the fundamental human right to access clean and affordable energy for every citizen.