Post on 12-Apr-2022
Overview of Sustainable Energy
Development in Caribbean
Community
XVI Regional Forum:
Cogen, EE and Other RE in Central America,
Belize City, Radisson Hotel, November 9-11, 2010
Joseph Williams
Manager, Energy Programme
Caribbean Community
Sustainable Energy Development
• Sustainable energy is the provision of energy to meets the needs of the present without compromising the ability of future generations to meet their needs.
• Sustainable energy sources– All renewable sources,
• Solar, Wind-power, Hydropower, Geothermal, biofuels, Ocean, etc.
– Improved efficiency from use of energy efficiency technologies
• Note: Natural Gas as a cleaner fossil fuel source is considered to have significant role as a transition fuel
WHY?• Long Term Energy Security
– RE is only Indigenous Supply Option for many Countries; allows for diversification of supplies
– Hedge Against Oil Price Volatility; buffer against shocks
• Climate Change & Environment
– Clean Energy Source/Lower Carbon Footprint
• Economic Development & Poverty Reduction
– Jobs employment opportunity – manuf; servicing
– Energy Access Solution & Poverty Reduction (Haiti, Guyana, Belize, Suriname)
CHALLENGES OF CARICOM SIDS
The 5D’s
4
• Dots (Small states)
• Discrete (most separated by Sea)
• Diverse (resources, structures)
• Debt (rel high indebtedness)
• Disasters (prone to natural)
CARICOM Context
5
Energy
Total Energy Bill: USD 6.5 billion in 2004, to USD 12 billion in 2007 (Al Binger); est US$14B in 2008; exceeded food bill
Small peak demand approx 3,000 MW
Markets small and fragmented - small power systems – eg 10 MW
High dependence on imported petroleum and products
Electricity Utilities - About half has some private participation
Some of highest electricity tariffs globally (US45 c/kWh -08)
Energy Access vary widely (<25% Haiti, 100% in some OECS)
No cross-border electricity trading
Energy Consumption Trends – sample(Jamaica, Barbados, Guyana, Bahamas , Haiti )
6
Power Generation and Transportation dominates Demand
Progress in SE Dev in CARICOM?
• Since first Oil Shock approx 3 years ago, countries identified importance EE and diversification supplies using indigenous REs
• Over the years intensity of effort varied with the price of oil.
• Small progress observed in last few years but still much too slow.
Today in CARICOM
• CARICOM Energy Programme to drive process
• 12 MS started ; 3 approved
• Heads declared on RE & EE
• T&T, energy leader-onboard
• Installations – 3 wind parks
• Production 2011; BNS finance
• E10 in Jamaica- transport
• IDB more $ than ever before
• Today: cipore.org
Three Years Ago in CARICOM
• No Energy coordination at Regional level; only CREDP
• Two draft policies
• No declaration on energy
• RE & EE not discussed in T&T
• 1 Wind Park – Wigton
• Geothermal – only talk
• Biofuels – Conceptual
• Multi-laterals - little to none
• RE info platform absent
CHALLENGES
1. Inadequate Policy Framework – Most CARICOM countries
have no established NEP
• For RE, Policy needed to level playing field
• For EE, Policy needed – for transportation sector eg. vehicle import, Appliance labelling, minimum building efficiency standards
ACTIONS
CARICOM Energy Policy
12 CARICOM Countries started developing policies; 3 approved
Regional & Sub-regional energy policy
CARICOM ENERGY POLICY Cont’d
Universal access to
sustainable and secure supplies
of energy
Diversification of energy
sectors as a foundation for
economic development
Optimization of domestic
production of energy in an
environmentally sound manner
Relationship between energy and international competitiveness
of regional industries
10
Four pillars which underpin the regional policy
Status of Framework for RE & EE
Country & Pop Mil Energy Policy Regulation Elec Utility & Lic RE Access
Antigua & Bar 0.08 Draft started 2010 No Indepnt; Gov Pub – Act; Indefin 0 100
Bahamas 0.32 Draft started 2010 No Indepnt; Gov Pub/Pvt; Lic 2054 0 99
Barbados 0.27 Draft since 2006 Fair Trading Com Pvt; Lic 2028 0 100
Belize 0.32 No Policy PUC – Multi sect Pvt; Lic 2015 44 90
Dominica 0.075 Draft 2009 Indep; IRC Pvt-Unbundled 2015 25 100
Grenada 0.11 Draft 2010 No Indepnt; Gov Pvt; Lic 2073 0 99
Guyana 0.75 Expired 2004 IRC Pub; Lic 2024 0 90
Haiti 9.30 No Policy No Indepnt; Gov Pub; 20 25
Jamaica 2.7 Approved 2009 Off of Utility Reg Pvt/Pub; IPP; 2021 6 95
St. Kitts & Nvs 0.048 Draft 2009 No Indepnt; Gov Pub ; Act; Indefinite 0 95
St. Lucia 0.16 Approved 2010 No Indepnt; Gov Pvt; Lic 2045 0 100
St. Vin & Gren 0.10 Approved Policy No Indepnt; Gov Pub; Act; to 2033 30 99
Suriname 0.492 Draft RE Started 09 No Ind; Gov Reg Pub; Act; to 2022 95 79
Trin & Tobago 1.29 Draft RE Started 09 Indp Multi sectr Pub/Pvt – Indefinite 0 95
CHALLENGE
2. Legal & Regulatory Framework
• Utility Structure & Licence – By Legislation or Licence: Monopoly, Integrated, Long period of for licence
– Utilities traditionally don’t explore RE -risk, higher cost, lack of knowledge; Issues of intermittency, integrating issues
– Traditional expansion planning- give RE disadvantage
– Where liberalization and privatization effective regulation is needed to ensure market work
ACTIONS
• Some countries start reform process – BAH, DOM
• Model Legislation will be developed in 2011
• 6 Countries to be assisted
• Regional Workshop for key stakeholders on the transition
VERTICALLY INTEGRATED UTILITY
PARTIAL UNBUNDLING SINGLE BUYER MODEL
CHALLENGES 3. Limited institutional capacity
Capacity weak in ministries
4. Banks - Lack of knowledge of & confidence in RE & EE
5. Limited access to investment capital
– Fund, window, facility needed
6. Countries need lower oil prices, but this tend to make RE & EE solutions less attractive
ACTIONS(3). Capacity Strengthening; Panel of
Experts to be established
(4) Awareness building & capacity strenghthening; RETScreen
(5) IDB Smart Fund; Green Fund; WB risk guarantee mechanism; Access Mitigation fund CC
(6) Awareness week in All countries 2010; Joint effort by CC; EU, CDB; OAS
CHALLENGES
7. Sector based decision making and planning
8. Absence of baseline data
9. Lack of understanding of the importance and potential of energy saving and energy efficiency
ACTIONS
(7) Institutional arrangement to support inter-sectoral
(8) Part of C-SERMS to do region-wide baseline RE & EE
(9) Demonstrations in commercial & Industrial under I-SEAPS Project; Showcase all successes across region; EE Platform to be established similar to cipore.org
CHALLENGE
10. Small fragmented markets especially in electricity Sector
– Lack of economies of scale and scope
– Small land space
– High Tariff -partly because of need for large standby/ spinning generation reserve
OPPORTUNITY/ACTION
(10) Inter-connections of electricity systems (via sub-marine cable) & fuel market (pipeline)
• Preliminary study done
• Nevis to be connected to St Kitts – possibly 1st Project
• Dominica to French Departments Mart & Guad
– CARICOM/EU Infra-structural Fund
PROPOSED INTEGRATION INITIATIVES WITHIN CARICOM
Gas Market Eastern Caribbean Gas Pipeline:
• Tobago, Barbados,Martinique, St. Lucia,Guadeloupe
• 1,000 km
• Pipeline gas half ascostly as distillates
• Highly economic
18
Adopted from the 2010 Study conducted bythe World Bank titled: Caribbean RegionalElectricity Generation, Interconnection, andFuels Supply Strategy.
Source: World Bank 2010
Regional Initiatives cont’d
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Electricity Market IDominica Interconnections
Geothermal• Dominica-Martinique
-100 MW,
-70 km,-US$588/kW-Highly economic
• Dominica-Guadeloupe-100 MW,
-70 km,-US$588/kW-Highly economic
Source: World Bank 2010
Nevis – St. Kitts
- Geothermal
- 50 MW,- 5 km,- US$328/kW-Highly economic
Nevis – US Virgin Islands - Geothermal - 80 MW, - 320 km, - US$ 3,540/kW - Marginally economic
Regional Initiatives cont’d
20
Electricity Market IINevis - St. Kitts/Nevis-US VI/Nevis-Puerto Rico
Nevis –Puerto Rico - Geothermal
- 400 MW,- 400 km,- US$ 1,790/kW-Highly
economic
Regional Initiatives cont’d
21
Electricity Market IIDominican Republic – Haiti Land Connection
• HFO steam plant 250 MW,
• 560 km, US$1,900/kW • Uneconomic unless from lower cost energy source
Regional Initiatives cont’d
22
Electricity Market IVNorthern Caribbean Interconnection
Source: World Bank 2010
Regional Initiatives cont’d
23
Other initiatives not considered under the
World Bank Study: Hydroelectric power
from Guyana to:
- Brazil (state of
Roraima)- Trinidad- US Virgin Islands- Puerto Rico- Dominican Republic
Hydropower orhydrocarbon tradebetween Guyana andSuriname.
Electricity Market VGuyana Hydro Interconnection/ Suriname - Guyana
Source: World Bank 2010
Source: World Bank 2010
OPPORTUNITY: Inter-connections of Electricity Infrastructure
Would require:• Interpretation of Treaty of Chaguaramas establishing
CARICOM– Also Legislative Reform to allow for importation of electricity
• Regional Regulatory Framework– At Minimum there would be need for regulatory coordination– Is the Proposed Eastern Caribbean Regulatory Authority
(ECERA) an Adequate Model?
• Large Investments: via Private Public Partnership
CHALLENGE:11. TRANSPORTATION
All vehicles are imported;
There is a large used-vehicles market
Virtually no work is being done on energy efficiency in transportation in Region.
- Jamaica introduce E-10 Bio-ethanol programme – save US$72M; increased RE in mix from 5% to 9% ; There is apparent issue of compettion with inputs rum export
- Needed: wide analysis and chacterization of transportation to quantify opportunity for EE and basis of policy
12. Lack of long term, sustained vision for sustainable energy development
• Attention to SE fluctuates with price of oil
• Climate Change Issue may change this
• Barbados SWH industry is good eg result of sustained policy for the sector
Actions: Regional Energy Policy; CARICOM Energy Programme; Caribbean Sustainable Energy Roadmap & Strategy [C-SERMS] envisions sub-regional projects;
CHALLENGE
ACTION - Regional Level• Development of a Caribbean Sustainable
Energy Roadmap and Strategy (C-SERMS); 1. RE, EE, BE Resource Assessments – ALL Countries2. Map existing efforts and identify gaps3. Set Ambitious Targets for RE & EE4. Green Electricity Sector Brand (100% RE possible in 6)5. Secure Government Commitments to targets6. Platform for engaging on-going input of all stake holders7. Strategies:
• Energy Centre – capacity building; project development; financing; R&D• Stronger link between Universities and SE Industry• To achieve targets at national levels and• Implement Regional Projects
CARIBBEAN SUSTAINABLE ENERGY ROADMAP
& STRATEGY
Sustainable Energy Platform
Regional Energy Policy
Regional Climate Change Strategy
Sect oral
Strategies:
Industrial;
Agriculture,
etc
Existing
Resource
Assessments
New Initiatives & Projects;
Financing Mechanisms
Incentives; Policy Actions
Regional Mechanism to Facilitate Projects
Implementation
Existing Initiatives &
Projects
Additional New
Assessments of
Resources
&
Energy Sector
Assessments to
Identify Gaps
CONCEPTUAL FRAMEWORK For Development of
Caribbean Sustainable Energy Roadmap & Strategy (C-SERMS)
BACKGROUNDBrief History - Energy Initiatives
• 1973-79: Trinidad and Tobago Oil Plan for CARICOM
• 1982 – Regional Energy Action Plan (USAID Project)
• 2002 – OAS – GSEII
• 2003 – Regional Task Force on Energy: Produced DraftRegional Energy Policy in 2007
• 2004 – Projects: Caribbean Renewable Energy Development Programme (CREDP): - GEF/UNDP & GTZ
• 2005 – PetroCaribe: Series of Bi-laterals; Budgetary Support (Has component for RE projects and support)
• 2005/6 –Trinidad & Tobago Energy Plan for CARICOM
• 2008 – CARICOM Energy Programme – to implement a Programmatic Approach to Energy Development in Region
Some Current Energy Projects & Initiatives in CARICOM
1. CREDP/UNDP & - ended Dec 2009 [ Finance, capacity, Awareness, Policy]
2. CREDP/GTZ /ADA Phase II includes EE [€ 5.25M + €0.75M from ADA]
3. CARICOM/EU Capacity Support € 1.5M [RE capacity support 2010-11]
4. CARICOM/UNDP – I-SEAPS – US$170K [EE and RE in public sector buildings
5. C-SEP for OECS & Bahamas – led by OAS – €1.6M [2008 – 2011]
6. CHENAT – Tourism Sector - Energy Audits
7. IDB –
1. Water Sector EE
2. SEF Barbados and Bahamas - US$2M + 50M Loan
3. C-SERMS – CARICOM Secretariat
8. Electricity Supply Option for Region – World Bank [Study]
9. ACP-EC Energy facility: Geothermal Energy Dominica
10. Energy & Climate Partnership of Americas (ECPA); Flexible frameowrk focussed on EE, RE, Access, Clean Energy Technology
Some Current Energy Projects & Initiatives in CARICOM
11. EU – Interreg III feasibility of Geothermal power production in Dominica and electricity export to French Territories
12. ACP-EC Energy Facility Geothermal Energy Dominica
13. Special Facility for Assistance (SFA)/EDF Energy Related support in SLU, SVG?
14. World Bank/OECS – ECERA
15. IDB: Barbados – Preparation of Sustainable Framework
• PV Programme, CFL, Bio fuels
16. IDB: Bahamas Sustainable Energy Framework
17. IDB: CREBAP [not yet implemented]
18. Renewable Energy & Energy Efficiency Strategy of PetroCaribe (even though, bi-lateral arrangements)
19. PALCEE by OLADE in Jamaica and Grenada
20. UNDP/Barbados – OECS Proposal for EE Awareness
21. National Programmes – Biofuels, EE,
22. Low Carbon communities of The Americas
SE Initiatives in the CARICOM
• Range of National Initiatives
– Barbados & Bahamas
– Jamaica – EE OLADE, IDB, WB, OAS
– Belize – UNDESA, OAS, IDB
– Suriname – IDB
– St Lucia – Policy support & Awareness
– St Vincent & Grenadines – EE in Govt sector
What is Being Done?• Capacity Building
– Energy Programme– CREDP (UNDP & GTZ)– CARICOM EU- Capacity Programme– IDB – Sustainable Energy Framework & Policy Based Loans– World Bank – Early stage Project Development– Cooperation with OAS, OLADE, Other Partners
• Awareness Building– CREDP;
• Video and Media• Establishment of Caribbean Information Portal on Renewable Energy (CIPORE)
www.cipore.org
– CARICOM Energy Programme - RE Awareness Building Strategy– CARICOM EU-Capacity Programme
ENERGY ACCESS
• Mammoth Challenge in Haiti
• Significant Challenge in Jamaica, Guyana, Belize, Suriname
• RE can provide some solutions – remote areas
• LPG strategy; Natural Gas should be considered; Also Diesel
CountriesPopulation (CCS Stats)
% of CARICOM Pop
Per Capita GDP (US$) -09 IMF
Percent with Access
Population with No Access
Percent of Total No Access
Antigua & Bar 87,506 0.5% 13,852 100% 0 0%
Bahamas 338,300 2.1% 21,529 99% 3,383 0.0%
Barbados 274,848 1.7% 13,003 100% 0 0.0%
Belize 322,100 2.0% 4,045 90% 32,210 0.4%
Dominica 71,612 0.4% 4,948 100% 0 0.0%
Grenada 109,724 0.7% 5,969 99% 1,097 0.0%
Guyana 766,183 4.8% 2,629 90% 76,618 1.0%
Haiti 9,300,000 57.7% 733 25% 6,975,000 94.9%
Jamaica 2,687,200 16.7% 4,390 95% 134,360 1.8%
Montserrat 4,875 0.0% 8,877 100% 0 0.0%
St. Kitts & Nvs 51,300 0.3% 10,315 95% 2,565 0.0%
St. Lucia 170,331 1.1% 5,671 100% 0 0.0%
St. Vin & Gren 100,510 0.6% 5,291 99% 1,005 0.0%
Suriname 517,052 3.2% 5,676 79% 108,581 1.5%
Trin & Tobago 1,308,600 8.1% 15,581 99% 13,086 0.2%
Total 16,110,141 54.4% 7,347,906 45.6%
Areas for Support at Regional Level
1. Wide Scale Assessment of RE Potential – Mapping + detail for high priority
2. Wide scale assessment of EE beginning with public sector
3. Public Sector EE Leadership Strategy– Green Procurement
– Demonstration EE buildings
– Support ESCo – Model of financing
• Time has potential to be fully quantified and characterized so that investment projects can proceed; Also info needs to be in hands of governments
• Huge opportunity for Governments to lead
Areas for Support at Regional Level
4. Facility of Financing Micro and Small Scale RE & EE Projects;
5. Support to Commercial Banking Sector to support RE & EE Projects in Region
– Fund; Capacity Building in Banks
6. Support for R&D in Universities – Small Equipment; Student study Pgrams & Exchanges
7. University-Industry R&D and SE Career Linkages
8. Revamping of Energy Information system –(bottom up); Re-define data capture system;
• Few requests received every month
• Comm Bank participation needed for ustainability
• Request from Universities for small support
• Timely and good quality energy info lacking for sector diagnosis, planning, performance monitoring
Areas for Support at Regional Level
7. Implementation Energy Balance and Model Framework; Re-define performance indicators
8. Sustainable Energy Agency/ Centre to provide structured support for capacity building, technical assistance to govt; project development ; R&D
• OLADE Model to be explored;
• To be proceeded by review of regional energy info infrastructure
• Proposal made under ECPA for RE Centre in T&T; Jamaica has Centre of Excellence for RE which could be regional
Areas for Support at Regional Level9. Panel of Advisors for
Backstopping support for Government
10. RE & EE Training and Certification Programme in collaboration with Universities
• Urgently needed
• Needed
Areas for Support at Regional Level11. Appliance Labelling
Strategy
– Standards; Testing & EE Labelling
– Urgent for CFLs
12. Development Building Codes & Standards & Capacity Building in Building Design and Development Sector
• OECS submitted proposal to EUEI
• Jamaica developed draft EEBC;
• Absent in rest of Caribbean
Areas for Support at Regional Level13. Need for EE
demonstration Project showcasing range of technologies
14. Support for Interconnection of electricity systems via sub-marine cable in OECS Caribbean beginning in ST Kitts and Nevis
• Project called I-SEAPS supported by UNDP has been launched; Targets CARICFOM HQ Building; Grenada; Antigua & Barbuda; Significant scope for expansion
• Idea is for St Kitts Nevis to lead and become a kind of demonstration; Dominica is next in line for development
Areas for Support at Regional Level15. Transportation Sector:
wide analysis and characterization of transportation to quantify opportunity for EE and basis of policy
16. Energy Awareness
Coordinated approach needed; CARICOM Secretariat seeking to do same with OAS, OECS, CRECS Project
• Urgently needed as transportation sector is more than 50% in many territories
• Some specific ares of support especially in Banking sector needed
Energy Access to Haiti
• Decentralized RE Options
• Transmission through DR to support selected industrial part
• Include SE priority in the re-construction process
Thank You Joseph Williams
Manager, CARICOM Energy Programme
Caribbean Community Secretariat
energy@caricom.org
jwilliams@caricom.org