Energizing the Island Community A Review of Policy Standpoints for Renewable Energy in Small Islands E. Kathy Stuart Graduate Student - M.A. in Island Studies University of Prince Edward Island, Canada

The Imported Energy Cycle Economic growth=> more energy consumption=> more imported fossil fuels=> more GDP consumed by energy=> less for health and social services

Largest Consumers of Fossil Fuels Electrical Power Generation Transportation

Energy Profile of Small Islands Islands tend to import rather than export fossil fuels Fossil fuels are costly on islands due to transportation, storage and scale issues Island industries tend to be less heavy users Supply issues are more critical than demand

Renewables, for instance Sun and Wind Volcanoes Rainfall Ocean waves Tidal power Ocean heat pumps Solar water heaters Biomass Recycled heat Waste for incineration District heating Sails for boats Clotheslines Wind for desalination Solar stoves Bicycles

Energy Prescriptions in the 90’s from the Metropolis Conserve energy Educate the public on conservation Supplement diesel with stored solar power Increase fuel prices Remove energy subsidies to consumers Research and develop alternative energy

Island Response to Energy Prescription for Islands Islands are not heavy industrial users Islands deserve a fair share of the supply Islands are price takers, not price setters Energy R& D is very costly and long-term Alternative energy technology is still under development in big economies Energy waste needs to be reduced

The Traditional Electricity Industry Territorial rather than global in scope Vertically integrated monopoly Single transmission network Goal to achieve economies of scale Objectives: to expand supply, minimize cost, improve operating efficiency

Power Sector Reform Globalization Privatization Free market economics => competition, increasing efficiency, maximized profit Commercialization, restructuring Customer/consumer benefits Do small islands benefit?

Reform Limitations in Small Islands Resource allocation and competition Resource utilization and reliability criteria Private sector investment Institutional support Subsidies

Appropriate Power for Islands Private energy company owned by island Carefully assess energy profile including renewables--get best available advice Carefully assess outcomes of reform--apply strategy for community buy-in Keep pace of reform manageable Allow independent power production Host demonstration projects