Caribbean Sustainable Energy Roadmap (C-SERMS), Phase 1 Summary and Recommendations for Policymakers - Katie Auth Mark Konold Evan Musolino ...
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Caribbean Sustainable Energy Roadmap (C-SERMS), Phase 1
Summary and Recommendations for Policymakers
Katie Auth
Mark Konold
Evan Musolino
Alexander Ochs
Working Draft as of June 2013
Executive Summary
The Caribbean region currently stands at a crossroads, faced with several critical challenges associated
with the generation, distribution, and use of energy. Despite tremendous renewable energy resources,
the region remains disproportionately dependent on imported fossil fuels, which exposes it to volatile
and rising oil prices, limits economic development, degrades local natural resources, and fails to
establish a precedent for global action to mitigate the long-term consequences of climate change, which
pose a particularly acute threat to small-island states and low-lying coastal nations.
The Caribbean Community (CARICOM) is poised to play a crucial role in the regional transition to
sustainable energy. CARICOM represents 15 diverse member states: Antigua and Barbuda, The
Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis,
St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. Although the geography,
culture, and economic structures of these states vary widely, they face many common energy challenges
and opportunities.
Recognizing the need to develop a coordinated regional approach to expedite the increased use of
renewable energy and energy efficiency and chart a new, climate-compatible development path that
harnesses indigenous renewable energy resources, maximizes energy use, minimizes environmental
damage, and spurs economic growth and innovation, CARICOM adopted its regional Energy Policy in
2013 after a decade in development. To facilitate the process of translating intentions into action, the
CARICOM Secretariat commissioned the first phase of the Caribbean Sustainable Energy Roadmap and
Strategy (C-SERMS), designed to build on existing regional efforts and to provide CARICOM member
states with a coherent strategy for transitioning to sustainable energy.
In this C-SERMS Phase 1 Summary and Recommendations for Policymakers report, the Worldwatch
Institute provides an overview of the region’s current energy situation, recommends regional targets
for renewable power capacity, energy efficiency, and carbon emissions reductions in the short-term
(2017), medium-term (2022), and long-term (2027), and outlines key strategies for achieving those
goals. A more detailed baseline assessment can be found in the corresponding Baseline Assessment and
Report prepared by Worldwatch.
This report explores the options for energy reform across a wide range of sectors, nearly all of which
face significant energy challenges:
In the power sector, current generation relies heavily on dirty and expensive fuels, and is often
insufficient to meet the needs of local populations. These challenges are often accentuated by
isolated grid networks, high technical and non-technical losses, small overall generation capacity,
outdated equipment, and a lack of financial resources to make needed advancements.
Transportation accounts for a significant share of total energy consumption in nearly all member
states, while energy production, manufacturing, and extractive industries account for a majority of
energy consumption in certain member states.
The tourism sector presents unique opportunities for rapid and significant impact because of its
high energy consumption and enormous economic importance regionally.
Fortunately, extremely strong potential for utilizing domestic renewable resources exists across the
region. Initial technical assessments indicate enormous opportunities for sustainable energy solutions
1
based on energy efficiency improvements and the development of both baseload and variable
renewable resources including geothermal, hydropower, modern biomass, solar, and wind. Current grid
and storage infrastructure, however, is generally insufficient to support such developments on a large
scale. Although still relatively marginal in terms of their overall contribution to the region’s energy mix,
renewable energy technologies are already playing an increasingly significant role throughout CARICOM.
Harnessing observed potential will require that a number of key technical assessment gaps be filled.
Detailed energy efficiency, renewable energy, and grid and storage assessments are still lacking in many
areas across the region and, in cases where these have been conducted, they are often not
communicated or are not made publicly available.
Despite the strong potential for energy efficiency and renewable energy observed in all CARICOM
member states, the development of sustainable energy systems will not occur organically. The
successful expansion of sustainable energy depends largely on the presence of a long-term vision, the
effectiveness of existing policy and regulatory structures, and the surrounding governance and
administrative framework.
To date, all 15 member states have adopted a national energy policy or have a document in advanced
stages of development. National policymakers across the region have set domestic targets to promote
renewable energy use. Many member states have already taken the lead in developing and
implementing domestic policy mechanisms to support an increase in renewable energy and energy
efficiency. At the regional level, policymakers have jointly established net-billing as the appropriate
minimum standard for policy support across CARICOM. Despite these important initial steps, sustainable
energy development across the region continues to be limited by policy and data gaps, administrative
ineffectiveness, and often inefficient and uncoordinated implementation efforts.
Regional collaboration among member states could transform the CARICOM energy sector. Based on an
initial assessment of renewable resource potentials, existing energy policy frameworks, and
international best practices, Worldwatch has developed and recommended regional sustainable energy
targets for renewable power capacity, energy efficiency, and reductions in carbon dioxide (CO2)
emissions in the short, medium, and long terms. In this report, Worldwatch recommends targets of 20
percent renewable power capacity by 2017, 28 percent by 2022, and 47 percent by 2027; a 33 percent
reduction in energy intensity by 2027; and power sector CO2 emission reductions of 18 percent by
2017, 32 percent by 2022, and 36 percent by 2027. These ambitious targets, many of which were
adopted at the 41st Special Meeting of the Commission on Trade and Economic Development (COTED)
on Energy, unite the region under a common vision and establish CARICOM as a global leader in
renewable energy promotion.
Through regional collaboration, CARICOM’s 15 member states have a tremendous opportunity to
maximize their individual resources and spearhead renewable energy development by working together
toward common and coherent goals. The CARICOM Energy Policy and the C-SERMS project are both
critical steps toward a more cohesive approach to regional energy planning. Many obstacles remain,
however, that must be overcome through the promotion of priority projects, policies, and initiatives at
the regional and national level.
This study identifies and categorizes key initiatives that, if undertaken, will mitigate the unique
information, finance, policy, and capacity barriers faced by the region and foster the development and
deployment of renewable energy and energy efficiency across CARICOM. In addition to the full slate of
high-impact activities, Worldwatch recommends three immediate next steps in translating regional
commitments into sustained actions, facilitating CARICOM’s sustainable energy transition.
2
Full transformation of the CARICOM energy sector will be a long-term process requiring extensive
commitment and dedicated collaboration among all member states and relevant regional and
international actors. The regional approach outlined by C-SERMS will ensure that member states are
supported by a network of actors and institutions united under a common vision. With continued
commitment to transforming the regional energy sector, CARICOM and its 15 member states can
become global leaders in sustainable energy development.
3
Caribbean Sustainable Energy Roadmap and Strategy Phase 1 (C-SERMS-I)
Summary and Recommendations for Policymakers
Recognizing the need to develop a coordinated approach to addressing regional energy challenges, the Caribbean
Community (CARICOM) began developing its Energy Policy in 2002. Approved in 2013, the document promotes a
shift to sustainable energy through increased use of renewable energy sources and improvements in energy
efficiency. In 2009, the Secretariat commissioned the Caribbean Sustainable Energy Roadmap and Strategy (C-
SERMS), designed to build on existing regional efforts and to provide CARICOM member states with joint regional
sustainable energy targets and a common, coherent strategy for transitioning to sustainable energy systems.
The C-SERMS-I Baseline Report and Assessment provides an overview of the regional energy situation, identifies
critical information and data gaps, and recommends short- (2017), medium- (2022), and long-term (2027) targets
for renewable energy share, energy efficiency improvements, and carbon dioxide emissions reductions in the
power sector. This C-SERMS-I Summary and Recommendations for Policymakers summarizes the major findings
of the Baseline Report and Assessment and recommends a strategic series of priority actions that CARICOM and
its member states can undertake to achieve their goals.
The Need for C-SERMS
The Caribbean region currently stands at a crossroads, faced with several critical challenges associated
with the generation, distribution, and use of energy. (See Figure 1.) Disproportionate dependence on
imported fossil fuels exposes many Caribbean countries to volatile and rising oil prices, limits economic
development, degrades local natural resources, and fails to establish a precedent for global action to
mitigate the long-term consequences of climate change, which pose a particularly acute threat to small-
island states and low-lying coastal nations. In the power sector, these challenges are often accentuated
by high electricity tariffs, isolated grid networks, small overall generation capacity, outdated equipment,
and a lack of financial resources.
Technical Socioeconomic Environmental
•Isolated grid •High electricity •Local air, freshwater
networks tariffs and ocean pollution
•Small overall •Vulnerability to •Deforestation
generation capacity rising, volatile fuel •Degradation and
• Inability to meet prices depletion of natural
existing and future •Missed habitats,
demand opportunities for ecosystems and
•Outdated domestic resources
equipment investment and jobs •Global climate
•Low efficiency •Energy poverty change
© Worldwatch
Figure 1 Key energy challenges in the Caribbean
4Fortunately, the region has enormous opportunities for sustainable energy solutions based on energy
efficiency improvements; the development of renewable resources such as biomass, geothermal,
hydropower, solar, waste-to-energy, and wind; and intelligent grid development.
The Caribbean Community (CARICOM) Secretariat is poised to play a crucial role in the regional
sustainable energy transition. CARICOM represents 15 diverse member states: Antigua and Barbuda,
The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and
Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. (See Figure 2.)
Although these states vary widely in terms of geography, culture, socioeconomic structure, and other
important features, many among them face similar energy challenges.
Figure 2 CARICOM member states
CARICOM member states share an interest in charting a new, climate-compatible development path
that harnesses indigenous renewable energy resources, improves energy savings and efficiency,
mitigates global climate change, and spurs economic growth and innovation.
A Regional Approach to Energy in the Caribbean
The passage of the CARICOM Energy Policy in 2013 demonstrates the region’s understanding that a
coordinated approach to addressing regional energy challenges offers significant advantages. While
individual CARICOM member states can have a significant impact on expanding the efficient use of
energy and renewable energy technologies, a more cohesive and coordinated regional approach will
facilitate a broader, more durable transition and help achieve sustainable energy goals most cost
effectively. (See Figure 3.)
5Draw on a common vision and shared goals
Share best practices, experience, and
expertise
Leverage combined economic resources
and complementary renewable energy
resources
Take advantage of cost-effective energy
supply options by creating a regional
energy market
Bundle projects to attract finance
Build regional supply chains
© Worldwatch
Figure 3 Advantages of a regional approach to energy in the Caribbean
C-SERMS I Methodology
Based on a preliminary assessment of current energy systems, renewable resource and energy
efficiency potentials, and existing energy policy frameworks, the C-SERMS Phase I Baseline Report and
Assessment recommends short-, medium-, and long-term sustainable energy targets for renewable
power generation, energy efficiency, and reductions in carbon dioxide (CO2) emissions, and conducts
gap analysis across a number of energy sectors. (See Figure 4.) This Summary and Recommendations for
Policymakers report summarizes the key findings of that analysis, and draws on a combination of
regional and international best practices to outline key elements of a strategic plan for CARICOM to
reach its goals.
6© Worldwatch
Figure 4 C-SERMS I methodology
Current Energy System Analysis
In general, CARICOM member states exhibit heavy—and in many cases, nearly exclusive—reliance on
fossil fuels (mainly residual and distillate fuel oils as a result of the widespread use of diesel generators).
Because few CARICOM member states have any significant domestic fossil fuel resources, regional
reliance on fuel imports is extremely high. The one big exception is Trinidad and Tobago, where energy
production is a major cornerstone of the economy, accounting for 44 percent of nominal GDP and 58
percent of government revenue in 2010.i
Despite oil’s regional predominance, natural gas also plays a significant role in regional energy
production and consumption. Trinidad and Tobago transitioned its hydrocarbon sector from oil to
i
Trinidad and Tobago produces energy at levels far above those seen in other CARICOM states, accounting for roughly 96
percent of regional primary energy production in 2010. It also consumes much more than the other member states, accounting
for 75 percent of all primary energy consumed within the region in 2010.
7primarily natural gas in the early 1990s; by 2011, the country’s natural gas output was approximately
eight times higher than its oil production.1 Trinidad and Tobago is solely responsible for the region’s
primary energy production outweighing consumption, as the other 14 member states cumulatively
consume more primary energy than is produced.2 (See Figure 5.)
2.5
Total Primary Energy (Quadrillion Btu)
2
1.5
1
0.5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
CARICOM Production CARICOM Consumption
CARICOM Production without T&T CARICOM Consumption without T&T
Figure 5 Primary energy production and consumption in the CARICOM region, 2001–10
With the exception of domestic use, however, natural gas from Trinidad and Tobago is primarily
exported for sale in markets outside of CARICOM. The current scale of LNG shipping infrastructure,
coupled with certain economic challenges, has proven prohibitive for CARICOM’s small-island states in
developing liquefied natural gas (LNG) import infrastructure, and Trinidad and Tobago currently exports
significant quantities of natural gas to major consumers in other parts of the world. Nevertheless, some
member states continue to consider the option of LNG—particularly in light of advances in
infrastructure technology. Outside of Trinidad and Tobago, Barbados has developed an extensive
domestic natural gas network connecting 16,575 residential and 640 commercial customers.3 Jamaica is
considering natural gas for the planned expansion of its generation system, with 360 megawatts (MW)
of natural gas-fired combined-cycle capacity scheduled to come online by 2015.
Certain key developments could dramatically improve the sustainability and independence of the
Caribbean energy sector in coming years, as outlined in Figure 6.
8Geothermal energy Improved energy
development efficiency
Expanded use of
Regional electricity
distributed
interconnection
renewables
Increased Future Eventual use of
deployment of
Sustainable Energy nascent renewable
mainstream
System in the energy
renewable energy
Caribbean technologies
technologies
© Worldwatch
Figure 6 Potential future game changers in the Caribbean energy system
Electricity Sector
CARICOM member states face a number of common challenges in the electricity sector, from high fuel
costs and isolated grids to the lack of effective regulations and incentives to promote renewable
generation. (See Figure 7.)
Lack of effective
regulations and
Tenuous
Capacity High technical incentives to
Small market financial
additions High fuel costs Isolated grids and non- promote
size viability of some
needed technical losses renewable
utilities
generation and
efficient use
© Worldwatch
Figure 7 Major challenges in the electricity sector
9In the absence of policies and measures designed to increase energy conservation and efficiency,
electricity demand is expected to grow dramatically over the coming years, necessitating the expansion
of generation capacity in all 15 CARICOM member states.4 (See Figure 8.)
Antigua and Barbuda
The Bahamas
Existing Capacity
Barbados
2027 Projected Capacity Needs
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
Montserrat
St. Kitts & Nevis
St. Lucia
St. Vincent & the Grenadines
Suriname
Trinidad & Tobago
0 500 1000 1500 2000 2500 3000 3500 4000
Installed Capacity (MW)
Figure 8 Existing capacity and projected capacity needs in 2027, business-as-usual scenario notwithstanding future efficiency
and saving policies and measures (See Annex A in C-SERMS Phase 1 Baseline Report and Assessment)
Although most CARICOM member states have high rates of electricity access, expanding electricity
access remains a priority in several countries including Belize, Guyana, Suriname, and particularly Haiti,
where only 25 percent of the population has access to power. Given the overall size of Haiti’s population
(nearly 10 million people), only approximately half of CARICOM’s nearly 17 million people have
electricity access.
The various institutional and market structures in the region’s electricity sector, including where
independent power producers (IPPs) are allowed to operate, are discussed in later sections.
Transportation Sector
Although it varies widely throughout the region, the transportation sector’s share of total energy
consumption in most member states significantly exceeds the global average. Despite the sector’s
importance for energy consumption in CARICOM, transportation is currently the energy sector for
which the least information is available.
10The impacts and potential solutions for disproportionate transportation energy consumption in the
Caribbean are often overlooked because of the sector’s complexity and the lack of reliable data. In
addition to significant fuel requirements and greenhouse gas emissions, fossil fuel combustion for
transportation energy has substantial negative effects on local pollution, noise, congestion, health, and
safety.5 The costs associated with existing transportation systems impact the overall cost of goods and
services in the region and have been recognized as one of the “most important barrier[s] to
development for small islands,” highlighting the importance of shifting to more efficient transportation
systems.6 Due to the cross-border nature of certain modes of transportation, namely aviation and
maritime, filling data gaps and transforming the sector will require a concerted effort at both the
regional and national levels.
Technological advancements in the transportation sector have increased the feasibility of a number of
options for fuel switching and fuel replacement, including the introduction of hybrid and electric
vehicles as well as the increased use of liquid biofuels. The small size of many CARICOM member states
is well suited to the 100–200 mile (160–320 kilometer) range of currently available electric vehicles.
Although biofuel production is generally not seen as an appropriate solution in smaller island states, the
development of a regional biofuels market would present an opportunity to maximize the strong
bioenergy potential found in mainland CARICOM member states and select islands that could be
harnessed for the production and distribution of liquid biofuels region-wide. Furthermore, CARICOM
member states have a tremendous opportunity to reform the transportation sector by introducing
currently underutilized public transportation measures, thereby limiting the need for personal vehicle
use across the region.
Carbon Dioxide Emissions
Although CARICOM accounts for only a very small share of global carbon dioxide emissions (0.24
percent in 2010),7 preliminary analysis of energy-related emissions indicates significant opportunities
for reductions. A concerted effort on the part of all 15 member states will provide CARICOM with the
authority to serve as a leading voice and set a strong precedent for mitigation action at the global level.
Trinidad and Tobago has by far the highest overall CO2 emissions from energy consumption within the
region, and its emissions have increased significantly over the past decade. This stands in marked
contrast to the other 14 member states, where emissions per capita are generally low compared to
global figures. However, there is still a great deal of room for improvement. Unfortunately, without
updated emissions accounting it is difficult to fully assess the extent and impacts of sectoral emissions
across the region.
The power sector has an extensive carbon footprint, both worldwide and in CARICOM. In a business-as-
usual scenario based on the region’s existing generation mix, power sector CO2 emissions within
CARICOM member states are expected to increase significantly between 2012 and 2027, reflecting
capacity additions and increased generation.8 (See Figure 9.)
1130
24.3
(million tonnes CO2e per year) 25
20.9
Projected Emissions
20 17.8
15
10
5
0
2017 2022 2027
Figure 9 Projected business-as-usual power sector greenhouse gas emissions in CARICOM (See Annex A in C-SERMS Phase 1
Baseline Report and Assessment)
Gap Analysis: Electricity, Transportation, and Carbon Dioxide Emissions
Several critical data and information gaps exist in the Caribbean. While information is most readily
available for the electricity sector, detailed energy data in this and other sectors—particularly
transportation—is severely lacking. This impedes analysis and strategic planning. While some degree of
clarity can be obtained with respect to energy production and consumption as well as specific fuel usage
across the region, current data limitations make it extremely challenging to assess energy end-use in
CARICOM. (See Table 1.) Without this information, an accurate breakdown of sectoral energy use cannot
be developed. Additionally, assessing the economic effects of the region’s energy system is hindered by
lack of available data on value and volume of fossil fuel imports.
Table 1. Gap analysis: electricity, transportation, and carbon dioxide emissions
Identified Gap
Electricity Thorough analysis of electricity end-users
Data often not collected or reported
Detailed data on fuel import costs
Data lacking on economic impact of current energy matrix
Assessment of grid functionality and storage potentials
Information lacking on the extent to which existing electricity networks must be updated
Detailed data on power plants in operation
Readily available information lacking on the current status and operation of existing plants
Updated power sector capacity plans
Available information often out of date; existing plans may change without public notification
Transportation Coordinated data collection and analysis of transportation
Data often disorganized or uncollected
Updated sector plans and strategies
Available information often out of date
12Carbon Dioxide Updated emissions reduction plans and strategies
Emissions Available information often out of date
Updated greenhouse gas inventories
Information provided to UNFCCC often out of date
Sectoral emissions data
Collected data lacking specificity required for effective policy design
© Worldwatch
Renewable Energy and Energy Efficiency Potential
To enable integrated energy planning, the potential for changes in the energy sector must be measured
and assessed. For CARICOM and its member states, this necessitates a more thorough understanding of
the current experience with and potential for renewable energy, energy efficiency, and grid and
storage solutions. (See Figure 10.)
Renewable
Energy
Integrated Energy
Planning Technical
Assessment Needs
Grid and Storage
Energy Efficiency
Solutions
© Worldwatch
Figure 10 Technical assessments needed for integrated energy planning
Renewable Energy
Existing renewable energy assessments demonstrate significant potential for development and
deployment of renewables in the CARICOM region, including biomass, geothermal, hydropower, ocean
energy, solar, and wind. These existing assessments, although often reliant on different methodologies
and levels of detail, provide a general overview of the available renewable energy resources in each
member state. Most technologies are already being used throughout the region, although far from their
full potential. To facilitate greater deployment, original assessments should be completed where gaps
are identified, and additional, more detailed, assessments should be completed for member states and
resources demonstrating the greatest potential.9 (See Table 2.)
13Table 2 Documented renewable resource potential in CARICOM member states as share of current peak demand
Hydro Wind Geothermal Solar Biomass/
Other
Antigua and
Barbuda
The Bahamas
Barbados
Belize ** * *
Dominica
Grenada
Guyana
Haiti
Jamaica
Montserrat *
St. Kitts and Nevis
St. Lucia
St. Vincent and the
Grenadines
Suriname *
Trinidad and
Tobago
Extremely High Medium Low
Key: None Unknown
High (>100%) (50-100%) (20-50%) (0-20%)
© Worldwatch
(*) denotes estimated potential based on limited available assessments and personal communication with regional experts,
must be confirmed. (**) denotes potential deemed ‘developable’ in limited assessments, must be confirmed.
Geothermal: Many CARICOM member states, particularly the islands making up the volcanic arc of the
Lesser Antilles, have significant untapped geothermal resources. Development of this resource in
member states such as Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and
the Grenadines could dramatically alter the energy balance of these islands and the region as a whole if
regional grid interconnections are developed to enable renewable energy exports, thereby significantly
increasing the region’s overall renewable share. Currently, no CARICOM state has developed geothermal
power, although exploratory drilling and preliminary investigations are under way in several places.
Hydropower: Large hydropower comprises the majority of renewable power generation within
CARICOM. Development of large-scale hydropower facilities such as the 165 MW Amalia Falls project in
Guyana stands to play a significant role in the changing energy mix.10 Like geothermal, hydropower
presents opportunities to broaden and interconnect regional energy markets, particularly in mainland
member states like Guyana and Suriname. Small hydro plants, typically classified as generating less than
10 MW of electricity, have significant ecological and often human rights advantages, but development
14feasibility (especially for run-of-the-river systems) requires specific site characteristics that preclude its
use in several small-island CARICOM member states. Elsewhere, the potential for small, sustainable
hydro deployment is enormous, particularly for providing electricity access to remote, currently
underserviced populations, e.g., in the mainland countries as well as Haiti.
Modern biomass (including bagasse and biogas): Belize is a regional leader in the use of bioenergy as a
baseload energy source. Many CARICOM member states, particularly those on the mainland and the
larger island states, have good biomass potential. Waste-to-energy technologies have drawn some
attention throughout the region, although their viability is restricted in those states with limited waste
collection capacity or comparatively small populations, as these do not generate the volumes of waste
necessary to make waste-to-energy plants economically viable. In Haiti, the identified potential for
waste-to-energy technologies has so far been constrained by infrastructural challenges and a lack of
waste collection capacity.
Ocean energy: Energy technologies including wave and tidal and ocean thermal energy conversion
(OTEC) have been identified as a priority area under the Small Island Developing States (SIDS)
Sustainable Energy Initiative (SIDS DOCK),ii as they offer significant potential throughout the region,
presenting opportunities including power generation and the use of deep-sea cooling in the tourism
sector. Marine energy technologies remain in the development phase, however, and still have
prohibitively high costs that limit their deployment in the short-term.11 CARICOM member states are
currently taking steps to advance pilot projects for OTEC, although the technology’s long-term potential
in the region is restricted by factors including uncertain technology development and project scale.
Solar: All CARICOM member states possess strong solar energy potential and opportunities to use
various solar technologies for power generation, heating, and cooling—making solar technology a
crucial, but yet mostly unused, regional sustainable energy solution. The high component costs that
have traditionally plagued solar technologies have declined significantly in recent years, with solar PV
module costs falling nearly 50 percent in 2011 alone, making solar cost-competitive with fossil fuels
under certain conditions.12 Several CARICOM states have already demonstrated enormous success using
solar water heating (with Barbados being a global leader in this technology) and solar photovoltaic (PV)
energy.
Wind: There is also strong regional potential for wind power development. Many experts consider wind
the most viable renewable energy technology for rapid expansion in the region over the next two
decades.13 Currently, however, few CARICOM member states have developed utility-scale wind
infrastructure, aside from Jamaica, which now has over 40 MW of installed wind capacity, and St. Kitts
and Nevis, which has 2 MW installed.
Many renewable energy technologies can be employed at relatively low costs compared to current
electricity generation in the region. Figure 11 provides a comparison of the global range of generating
costs for various renewable technologies (blue bars) with the range of residential electricity tariffs in
CARICOM (lines at 4.5 and 38.2 US cents/kWh).14 It also notes current residential energy prices in
CARICOM member states that demonstrate strong potential for a given renewable energy source.
ii
SIDS DOCK is a sustainable energy initiative comprising member countries of the Alliance of Small Island States (AOSIS) with a
focus on achieving sustainable economic development through transformational change in the energy sector.
1545
40 Montserrat Antigua & Barbuda
Typical Energy Cost (US cents/kWh)
35
Dominica St. Vincent & the Grenadines
30 Jamaica The
Bahamas
25 Guyana
St. Lucia
Belize
20
15
10
5
Suriname
0
Figure 11 Global power generation cost ranges by technology, compared to the range of electricity tariffs in CARICOM as well as
specific tariffs in member states that demonstrate particularly good potential for a given resource.
Note: Figure depicts the global range of generation costs for a number of renewable energy technologies, places them within
the range of CARICOM electricity tariffs (4.5–38.2 U.S. cents/kWh, and provides example tariffs in select countries with strong
potential for that particular resource.
Although global generating costs and region-specific residential electricity tariffs are not directly
comparable, they do indicate on a basic level the cost effectiveness of renewable energy technologies,
especially in the context of a region with notoriously high electricity prices.
Energy Efficiency
In tandem with renewable energy technologies, energy efficiency and energy conservation measures
can be deployed across all economic sectors to reduce energy demand, and are often both the
cheapest and fastest way to lessen the economic, social, and environmental costs of energy.iii Energy
efficiency is crucial because of its compounding effects: when a user demands one less unit of energy
because of efficiency measures, the system typically saves much more than one unit of produced energy
because of avoided losses during generation, transmission, and distribution. Especially in countries like
Haiti, where technical and non-technical losses are relatively high, end-user efficiency savings can
translate into much greater savings in generation.
iii
While energy efficiency, which results in the use of less energy to perform the same task, and energy conservation measures,
which look to reduce overall energy use, differ, for the purposes of this analysis energy efficiency is used to describe both sets
of energy reduction solutions.
16As a result, efficiency improvements can amplify the benefits of developing utility-scale renewable
energy by increasing the impact of added renewable power capacity. As compared to centralized utility-
scale power, distributed renewables are often more efficient because they minimize the transmission
losses associated with moving power over long distances.
Opportunities for efficiency measures at the building and household level should be harnessed for
energy and cost savings. Buildings themselves can be made significantly more efficient through proper
insulation, white roofing, and smart architecture/landscaping. In-home products such as household
appliances continue to consume comparatively large volumes of electricity, with their inefficiency
exacerbated in the Caribbean by the prevalence of outdated equipment and a lack of strong efficiency
standards for new appliances. As regional economic development increases, the corresponding growth
in energy demand from these types of appliances and other household products, such as air
conditioning systems, will need to be managed through efficiency standards.
Economic sectors that should be targeted for energy efficiency measures and technologies are those
that: 1) account for a large share of a member state’s energy consumption; 2) are highly energy
intensive or inefficient; or 3) are priority components central to the national economy. Across the
CARICOM region, such sectors include: electricity generation, electricity transmission, hotels and
tourism, mining, the residential sector, and government. Energy efficiency in the transportation sector
must also be addressed through specifically targeted measures that differ from those that can be
deployed in other sectors.
Grid and Storage
Grid and storage solutions have strong potential to transform CARICOM’s existing energy sector. Across
the region, existing grid infrastructure is largely out of date and often insufficient to meet the
population’s current and growing energy needs. This is evidenced by the region’s high technical losses
and, in select member states, a lack of reliable electricity access.
Without further development, existing grid networks will be unable to successfully address the technical
challenges associated with the increased share of renewable energy envisioned by CARICOM and its
member states. New grid infrastructure will be necessary to manage variability and to integrate
complementary renewable energy sources into transmission and distribution networks to supply reliable
power. Smart grid advancements have the potential to manage demand by shifting loads to off-peak
hours and better utilizing domestic renewable energy resources. At the household level, the
deployment of smart meters, combined with appropriate policy mechanisms, would allow customers to
generate their own renewable power and sell excess electricity back to the grid.
Electricity storage has the potential to play an increasingly important role as greater shares of variable
renewables are integrated into grid networks. Storage solutions are currently being assessed in a
number of member states including Antigua and Barbuda, where policymakers are looking into
pumped storage hydropower as a component of wind development.
The development of inter-country infrastructure enabling some degree of electrical integration and/or
regional energy trade could be a potential game changer for CARICOM’s power sector. Already, some
CARICOM member states use submarine interconnection cables to link individual islands, and a number
of preliminary studies have been conducted that together confirm the feasibility and assess the
implications of electricity interconnection in various parts of the Caribbean.
17Technical Assessment Gap
The completion and communication of technical assessments for renewable energy, energy efficiency,
and grid and storage solutions is the backbone of integrated energy planning. Unfortunately, throughout
CARICOM this is often lacking. Even in areas where the necessary assessments have been completed,
the results are often not communicated and the assessments themselves are unavailable. To facilitate
project development, Table 3 provides a list of identified gaps and the challenges they present. Specific
recommendations to fill these gaps are addressed in later sections.
Table 3 Technical assessment gap
Identified Gaps
Lack of widespread calculation, understanding, and communication of
renewable energy’s cost effectiveness
(continuing perception of renewable energy as prohibitively expensive)
Unavailability of renewable energy assessments and technology feasibility
studies
Renewable (data often not disseminated for project development)
Energy Higher-resolution assessments for priority geographic locations not
and Energy conducted and/or communicated
Efficiency (in member states without existing detailed resource assessments, research
should focus on priority areas near greatest potential and demand)
Analysis of opportunities for resource complementarity in integrated
energy planning not conducted and/or communicated
(individual assessments usually assess one renewable resource in isolation,
missing critical opportunities for complementarity)
Energy audits not conducted and/or communicated
(limited data on the energy efficiency of sectors, businesses, etc.)
Grid and Assessment of grid functionality and storage potentials not conducted
Storage and/or communicated
(information lacking on the extent to which existing electricity networks must
be updated)
© Worldwatch
Existing Energy Policy Framework
Despite the strong potential for energy efficiency and renewable energy observed in all CARICOM
member states, the development of sustainable energy systems will not occur organically, at least not to
the extent or at the pace needed to rapidly harness their full socioeconomic and environmental
benefits. Regional and national governing bodies must be proactive in implementing policy
frameworks that promote the investments needed to encourage energy efficiency improvements and
allow renewable energy projects to take hold.
No single policy mechanism can successfully transform a nation’s entire energy sector. Instead,
policymakers must design and implement an appropriate policy mix that matches unique domestic
conditions. International experience shows that countries that have successfully promoted renewable
energy and energy efficiency score high on three essential building blocks: 1) a long-term vision that
includes goals and targets; 2) concrete policies and measures to achieve these goals and targets; and 3)
18effective administrative processes and governance structures for implementing and revising these
mechanisms.iv (See Figure 12.)
Long-term
vision
Successful
Promotion
of
Sustainable
Energy
Effective
Concrete governance
policies and structures and
mechanisms administrative
processes
© Worldwatch
Figure 12 Components of successful sustainable energy promotion
Long-term Sustainable Energy Vision
Establishing an official long-term vision for sustainable energy development that lays out clear goals and
priorities and commits all government stakeholders to a common and cohesive strategic agenda
represents a crucial component of effective sustainable energy planning. CARICOM has taken a
significant step forward by finalizing its Energy Policy. In addition to this regional vision, all 15 CARICOM
member states now have a national energy policy in place or in some stage of development, a significant
improvement from when development of the CARICOM Energy Policy began a decade ago.15 (See Table
4.)
Table 4 Existing national energy plans in CARICOM member states
National Energy Policy Name of Policy Document
Antigua and Barbuda In Draft (Feb. 2012) Final National Energy Policy
Bahamas Proposed (Sep. 2010) Second Report of the National Energy Policy
Committee
Barbados Submitted (Dec. 2006) The National Energy Policy of Barbados
Proposed (June 2010) Sustainable Energy Framework for Barbados
Belize In Draft (Nov. 2011) Draft National Energy Policy Framework
Submitted (Sep. 2012) MESTPU Strategic Plan 2012–2017
iv
For more information on these three essential components of sustainable energy planning, see the Worldwatch Institute’s
work on Sustainable Energy Roadmaps, in Alexander Ochs and Shakuntala Makhijani, Sustainable Energy Roadmaps: Guiding
the Global Shift to Domestic Renewables (Washington, DC: Worldwatch Institute, 2012).
19Dominica In Draft (Dec. 2011) Draft Sustainable Energy Plan of the
Commonwealth of Dominica
Grenada Approved (June 2011) The National Energy Policy of Grenada
Guyana Approved (May 2010) National Low Carbon Development Strategy
Haiti In Draft (Feb. 2011) National Energy Sector Development Plan
Jamaica Approved (Oct. 2009) Jamaica’s National Energy Policy 2009-2030
Montserrat Approved (Sep. 2008) Montserrat Energy Policy, 2008-2027
St. Kitts and Nevis In Draft (Apr. 2011) Draft National Energy Policy
St. Lucia Approved (Jan. 2010) Saint Lucia National Energy Policy
St. Vincent and the Grenadines Approved (Mar. 2009) The Government’s National Energy Policy
Suriname Submitted (Nov. 2010) Renewable Energy Policy of Suriname
Trinidad and Tobago In Draft (Jan. 2011) Framework for Development of a Renewable
Energy Policy for Trinidad and Tobago
© Worldwatch
Most CARICOM member states have already set domestic sustainable energy targets across a number of
sectors.16 (See Table 5.)
Table 5 Existing renewable energy, energy efficiency, and emissions reduction targets in
CARICOM member states
Emissions Reductions
Renewable Energy in
the Transport Sector
Renewable Energy
Energy Efficiency
Electricity from
Renewables
Supply
Antigua and Barbuda
The Bahamas
Barbados
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
Montserrat
St. Lucia
St. Kitts and Nevis
St. Vincent and the Grenadines
Suriname
Trinidad and Tobago
Key: In Place In development Suggested
© Worldwatch
Governance and Administration
Governance and administrative structures can be either important enablers to the increased
deployment of sustainable energy or critical barriers to its growth. International experience suggests
that governance and administrative reforms must play a central role in the development of any nation’s
energy sector. The CARICOM region is currently characterized by a vast array of agencies and structures
20responsible for various aspects of energy sector governance (see Table 6), and a variety of institutional
and governance challenges persist. (See Figure 13.)
Overlapping/opposing mandates and priorities among
various government agencies and institutions
Few CARICOM member states have significant capacity
dedicated exclusively to sustainable energy issues
Resource constraints (human capacity, small budgets, limited
staff, diverse responsibilities)
In some member states, continuing dominance of single
utility monopolies in the electricity sector
© Worldwatch
Figure 13 Institutional and governance challenges in CARICOM
21Table 6 Institutional and Governance Structure of the Energy Sector in CARICOM Member States
Privately
Allowed
Owned
Owned
State-
Designated Institution for
IPPs
Member State Ministry Regulator Utility
Renewable Energy
Antigua and Barbuda Ministry of Public Works and the Environment Energy Desk, Office of the APUA X
Prime Minister
The Bahamas Ministry of the Environment Utilities Bahamas X X
Regulation and Electricity Corp. (BEC) (GBP
Competition and Grand C)
Authority Bahama Power
Corp.
Barbados Ministry of Finance, Economic Affairs, and Renewable Energy and Fair Trading Barbados Light X X
Energy Energy Conservation Unit Commission and Power
within the responsible
Ministry
Belize Ministry of Energy, Science & Technology, and Public Utilities Belize Electricity X
Public Utilities Commission Ltd.
Dominica Ministry of Public Utilities, Energy, Ports, and Energy Unit within the Independent DOMLEC X X
the Public Service responsible Ministry Regulatory
Commission
Grenada Ministry of Finance, Planning, Economy, GRENLEC X X
Energy & Cooperatives
Guyana Ministry of Natural Resources and the Guyana Energy Agency Public Utilities Guyana Power X
Environment Commission and Light
Haiti Ministry of Energy EDH X
Jamaica Ministry of Science, Technology, Energy and Centre of Excellence for Office of Utilities JPS X X
Mining (MSTEM) Sustainable Energy Regulation
Developments (CESED)
Montserrat Ministry of Communication, Works and Labor Montserrat
(Energy Development Committee) Utilities Ltd.
St. Kitts and Nevis Ministry of Public Works, Housing, Energy and Public Utilities SKELEC & X X
Utilities (St. Kitts) \ Ministry of Commission NEVLEC
Communications, Utilities, Posts, Planning,
Natural Resources and Environment (Nevis)
St. Lucia Ministry of Sustainable Development, Energy, Energy Policy Advisory Ministry of Public LUCELEC X X X
Science and Technology Committee Utilities
St. Vincent and the Ministry of Energy Energy Unit VINLEC X X
Grenadines
Suriname Ministry of Natural Resources Energy Unit of the Ministry Energie X X
of Natural Resources Bedrijven
Suriname (EBS)
Trinidad and Tobago Ministry of Energy and Energy Affairs; Renewable Energy Regulated T&TEC X
Ministry of Public Utilities Committee Industries Comm.
© WorldwatchConcrete Policies and Measures
Once the vision has been established, direct support mechanisms for renewable energy and energy
efficiency are necessary to support the development and deployment of these technologies and to meet
overarching energy targets. Although such measures have been widely implemented across the region
(see Table 7), a significant need for policy evaluation and the development of additional measures
remains.17
Table 7 Renewable energy and energy efficiency support policies in CARICOM member states
Renewable Energy Energy Efficiency Transportation
Tax Reduction/ Exemption
Tax Reduction/ Exemption
Green Public Procurement
National Energy Efficiency
Prohibited Use/ Import of
Fuel Efficiency Standards
Import Tax Exemption/
Public Demonstration
Net Metering/ Billing
Public Loans/Grants
Incandescent Bulbs
Appliance Labeling
IPPs Permitted
Blend Mandate
Feed-in Tariff
Tax Credits
Tax Credits
RPS/Quota
Reduction
Standards
Standards
Antigua and
Barbuda
The Bahamas
Barbados
Belize
Dominica
Grenada
Guyana
Haiti
Jamaica
Montserrat
St. Kitts and
Nevis
St. Lucia
St. Vincent and
the
Grenadines
Suriname
Trinidad and
Tobago
© Worldwatch
Key: In Place In development Suggested
Note: “Suggested” indicates that the measure has been cited or discussed in some official state capacity (including in an official planning
document or in public remarks) but has not yet been implemented. Only self-generation from wind and solar PV is permitted through
NEVLEC.
Even when a policy exists, its impact depends on its design and the way in which it is implemented. A
cohesive regional energy strategy requires an assessment of the effectiveness of existing policy design
and implementation across the region. The same applies to existing national energy institutions and
governance structures.Policy Gaps
Although certain policy measures have been enacted, their ultimate effectiveness depends on factors
including design, implementation, and institutional capacity. Analytic information regarding these
factors must be developed. (See Table 8.)
Table 8 Policy assessment gaps
Identified Gap
Administration National-level assessments of institutional effectiveness
and Governance
Policy National-level assessment of policy effectiveness and efficiency
Mechanisms (ensuring that policies address the primary obstacles to energy efficiency and
renewable energy development)
© Worldwatch
Regional Targets
In order to harness renewable energy and energy efficiency potential, appropriately ambitious regional
targets need to be set. Worldwide, targets are increasingly being adopted at the national, regional, and
international levels. Here, as a primary input to the C-SERMS process, Worldwatch has developed and
suggested short-, medium-, and long-term targets for the share of renewable energy in the CARICOM
electricity mix, energy efficiency improvements, and carbon dioxide emissions reductions. These
targets are designed to provide an ambitious vision for fostering a dramatic increase in renewable
energy and energy efficiency across the region and to help establish CARICOM as a global leader in
sustainable energy development.
Proposed Targets for Share of Renewable Energy in CARICOM’s Electricity Mix
The regional targets for overall renewable energy electricity share were based on the cumulative
documented resource potential in member states. This potential was compared to projected generation
capacity needs calculated to 2027 under a business-as-usual scenario. Based on this analysis, CARICOM
may set overall goals of 20 percent renewable power capacity by 2017, 28 percent by 2022, and 47
percent by 2027. Achieving these regional goals will require targeted actions at the national level
supported by regional collaboration.
Individual shares of that regional target were then apportioned to specific member states based on a
combined analysis of country-specific resource assessments, renewable energy baseload potential,
viable additions of intermittent renewable energy resources, and existing national targets. (See Figure
14.)
24© Worldwatch
Figure 14 CARICOM Target Methodology
Table 9 presents the CARICOM Sustainable Energy Targets adopted by CARICOM member states and a
preliminary matrix of suggested national targets to meet the regional goals.18 It is expected, however,
that member state-specific targets will be discussed and assessed within CARICOM, and that final
national efforts will reflect this internal debate.
Table 9 Regional and national renewable energy targets
Regional CARICOM Sustainable Energy Targets
Base Year 2012: Share of renewable energy in electricity generation capacity is 8%
Short Term 2017 20%
Medium Term 2022 28%
Long Term 2027 47%
Suggested National Targets
Estimated National Renewable Estimated Renewable Energy Share
Country Share of Installed Capacity to Meet of Generation in 2027
Regional Target of 48% by 2027 (based on installed capacity target)
Antigua and Barbuda 61% 62%
The Bahamas 55% 51%
Barbados 67% 55%
Belize 76% 85%
Dominica 56% 100%
Grenada 70% 100%
Guyana 84% 90%
Haiti 46% 52%
25Jamaica 58% 40%
Montserrat 34% 100%
St. Kitts and Nevisv St. Kitts: 57%; Nevis: 67% St Kitts: 100%; Nevis: 100%
St. Lucia 69% 100%
St. Vincent and the Grenadines 59% 81%
Suriname 52% 60%
Trinidad and Tobago 52% 29%
© Worldwatch
Due to data availability constraints, these CARICOM Sustainable Energy targets and corresponding
theoretical national targets were initially calculated as a share of installed power capacity needs in each
member state. Using capacity is an imperfect measure. Within the power sector, more detailed
resource assessments and power plant performance data would enable development of generation-
based targets that could provide additional guidance to CARICOM member states. Based on currently
available data, initial modeling has produced estimates for the potential generation share of each
theoretical national capacity target. (See Table 9.) Overall, filling significant data gaps with respect to
energy statistics in other sectors, most notably transportation, would facilitate regional and national
target setting for renewable energy shares of total energy use.
Proposed Target for Energy Intensity Improvements in the CARICOM Region
Energy efficiency improvements are also crucial to the development of the region’s future energy
supply, and are often the quickest and most effective way to reduce costs in the energy sector. Energy
efficiency improvements should make it possible for CARICOM member states to meet and even exceed
renewable energy goals by reducing overall energy consumption below the assumed trajectories used to
calculate renewable power targets. Efficiency can be measured using a variety of metrics. Based on
international experiences and projections, Worldwatch recommends a target for CARICOM of a 33
percent reduction in energy intensity by 2027.
Proposed Target for CO2 Emissions Reductions in the CARICOM Region
Although net CO2 emissions from CARICOM member states remain negligible compared to global figures,
demonstrating a concerted regional effort to increase energy services while mitigating harmful
emissions will constitute a strong negotiating position and set a precedent for international action.
Many small-island states, including Dominica and Grenada in CARICOM, have already set ambitious
national goals.
Various metrics and methodologies can be used to set emissions reduction targets for CARICOM. Based
on initial research in the region and on observed international best practices, Worldwatch recommends
short-, medium- and long-term targets for emissions reductions within the power sector against
business-as-usual projections. The proposed emissions reduction targets are based on emission
projections resulting from the modeled generation mix designed for each member state to meet the
adopted regional renewable energy targets.19 (See Table 10 and Annex A, Baseline Report and
Assessment.) Worldwatch further suggests preliminary estimated national commitments required to
meet these regional goals by 2027. These national recommendations should serve as a preliminary guide
for translating regional targets to national action. Each suggested target is subject to change based on
more-detailed national assessments and dialogue between member states.
v
St. Kitts’ installed capacity and generation figures included imported geothermal power from Nevis.
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