1. Energy Efficiency in Barbados Ministry of Finance, Economic Affairs & Energy 5 August, 2008

2. Background Barbados is the most easterly island in the Caribbean archipelago as shown in Figure 1. With a population of approximately 272,000 people residing in an area of 435 km 2 (166 miles 2 ). Barbados has limited on-shore mineral and hydrocarbon resources, which have been efficiently exploited over the last few decades. Offshore resources have considerable potential, with an offshore license area of several thousand square kilometres The country has transitioned from an agrarian to a service-based economy. Tourism has become the single largest foreign exchange earner and the sugar cane industry is undergoing fundamental restructuring to survive in a post preferential markets’ environment. Figure 1: Map Showing Barbados, the Caribbean and Central America

3. Background cont’d Mitigation of the impact of high oil prices will be enhanced by the following measures: Increased exploration for and equitable exploitation of onshore and offshore oil and gas resources. Diversification of the fuel mix with a transition to natural gas as the primary fossil fuel. It is anticipated that the fuel mix will be 70% natural gas by 2026. A comprehensive energy conservation and energy awareness programme. Reduced dependence on fossil fuels by the promotion of renewable energy. The following renewable energy targets have been set: 10% of national energy usage will be from renewable sources by 2012 20% of national energy usage will be from renewable sources by 2026 Figure 2: Energy Intensity Data for Barbados (1993 – 2004) Figure 3: Per capita Energy Consumption in Barbados (1983-2005)

4. Energy Efficiency in Barbados Barbados has made headway in solar water heating and we will assist our manufacturers of solar water heaters to improve that their product are used in our hotels, restaurants and luxury houses. Government will take the lead using its properties in generation of electricity from solar, wind and waste for its own facilities and for sale into the national electricity grid. This initiative will also be accompanied by any necessary fiscal incentives to encourage the efficient generation of energy from these alternative sources. Additionally, Government will also lead the way in retrofitting its buildings and facilities, and in revamping its fleet of vehicles in as feasible and economical a manner as possible in order to conserve its own use of energy, particularly of fossil fuel energy.

5. Energy Efficiency in Barbados Currently, there exists in the Income Tax Act provision for the cost of energy audits up to $2,000.00 to be deducted as part of the general Income Tax Allowance for Home Improvement of $10,000 in any one year. A separate allowance called the Energy Conservation and Renewable Energy Deduction of a maximum of $5,000.00 per year over each of five (5) years to cover the costs of an energy audit and fifty per cent of the cost of retrofitting a residence or installing a system to reduce electricity from a source other than fossil fuels. Figure 4: Handel Callender of Native Sun NRG

6. With respect to the Public Sector Energy Conservation Programme (PSECP), this programme consists of the following elements: General Ministry Programme. Ministries should identify, with advice from the Renewable Energy & Energy Efficiency Unit (REEU), a programme of activities that is specific to their Ministry. Vehicles Energy Conservation Programme. This programme includes, inter alia, the purchase of energy efficient vehicles and vehicles with specific engine capacity. Air-conditioner, Freezer and Refrigerator Programmes. These programmes entail, inter alia, the purchase of energy efficient units and effective maintenance. Electrical Appliances Programme. Ministries and Departments would be mandated to purchase the most energy efficient appliances. Energy Efficiency in Barbados

7. Buildings Conservation Programme. This programme entails making Government buildings energy efficient, the auditing and subsequent retrofitting of these buildings and the use of solar power in emergency shelters. Lighting Programme. This programme primarily mandates all Government buildings to have fluorescent lights. In order to ensure the effective implementation of the programme, it was proposed to implement a system of penalties against Departments which fail to meet their conservation obligations. At the same time, incentives would be provided for those agencies which demonstrate practical energy conservation efforts. Energy Efficiency in Barbados

8. Conclusion The Government of Barbados is committed to seeking holistic ways to manage its energy resources. As oil prices hover close to $125 a barrel, the urgency of finding timely, sustainable solutions becomes increasingly relevant to all segments of the population. Ultimately, it becomes clear that the solution will be achieved through a combination of energy saving measures ranging from energy conservation to the increased use of various renewable sources particularly solar, wind and biomass.

9. Thank you Ministry of Finance, Economic Affairs & Energy energydiv@sunbeach.net Energy Efficiency in Barbados