Renewable Energy Initiatives in the Caribbean Paper presented at Workshop on Climate Change Enabling Activity – Jamaica by Mona Whyte Caribbean Energy Information System

CEIS Participating Countries in the Caribbean Region

Classification of countries

ENERGY IN THE CARIBBEAN CHARACTERISTICS  HIGH DEPENDENCE ON OIL AS A MAJOR SOURCE OF COMMERCIAL ENERGY, WHICH IN THE MAJORITY OF CASES IS IMPORTED WITH IMPACT ON THE BALANCE OF TRADE. 3RELATIVELY HIGH INCOME FROM TOURISM 3EXPOSED TO NEGATIVE IMPACT OF CLIMATE CHANGES AND ENVIRONMENTAL DAMAGES (SEA LEVEL RISING, HURRICANES, FLOODING, CORAL REEF IN DANGER)

ENERGY IN THE CARIBBEAN contd 3DEPENDENCE ON TRADITIONAL BIOMASS FUELS LIKE FUELWOOD, CHARCOAL AND PLANT AND ANIMAL WASTE 3UNEQUAL DISTRIBUTION OF AVAILABLE RESOURCES OF OIL, COAL, NATURAL GAS AND HYDROENERGY POTENTIAL 3SUBSTANTIAL RENEWABLE SOURCES OF ENERGY,

ENERGY IN THE CARIBBEAN contd 3LOW ELECTRIFICATION RATE IN SOME LARGE HINTERLANDS (GUYANA, BELIZE) 3LOW DENSITY OF RURAL POPULATION 3LOW PURCHASING POWER 3ECONOMIC DIFFICULTIES 3LITTLE ACCESS TO INTERNATIONAL FINANCING

THE PETROLEUM SITUATION IN THE CARIBBEAN

The Petroleum Situation in the Caribbean Total commercial electricity generation in 1997 in the 16 CEIS countries was approx GWh of which about 93 % came from fossil fuels resulting in 21Mio tons of CO 2. In figures of 1997, the increase from 2% to 5% would result in an avoidance of CO 2 emissions of some tons/a

Energy Consumption in the Caribbean Data does not include energy consumption for Bahamas, Belize, Cuba and Suriname THE REGION CONSUMES ON AVERAGE 90 MILLION BBLS OF PETROLEUM EACH YEAR  BETWEEN 1993 AND 2002 ENERGY CONSUMPTION HAS GROWN BY OVER 36%  CONTINUES TO GROW AT A RATE OF APPROXIMATELY 4% PER ANNUM  THIS CAN BE CONVERTED TO TONS OF CO 2 PER YEAR

Energy Import Costs vs Total Merchandise Import Costs THE REGION SPENDS ON AVERAGE US$2.54 BILLION EACH YEAR ON PETROLEUM IMPORTS. PETROLEUM IMPORTS REPRESENT SOME 21% OF ALL OTHER IMPORTS (DRUGS, FOOD ETC)

Energy Imports Costs vs Earnings THE REGION EARNS ON AVERAGE EACH YEAR US$14.4 BILLION FROM EXPORTS OF GOODS AND SERVICES (Bauxite, sugar, rice bananas, gold, petroleum products, tourism etc) FROM THIS US$14.4 BILLION, US$2.5 BILLION OR 17% OF EARNINGS HAVE TO BE USED TO PURCHASE ENERGY

WHAT ARE WE DOING ABOUT THIS

RENEWABLE ENERGY IN THE CARIBBEAN

Renewable Energy Projects in the Caribbean BARBADOS 10 MW windfarm at Lamberts St Lucy to come on stream later in the year Certification program of companies which manufacture solar water heaters from Florida Solar Energy Centre. 38,000 residential solar water heaters. Establishment of a Renewable Energy Centre for Training and exposition BELIZE Challillo Dam to come on stream shortly. Provide additional storage for existing “run of river”facilities Will move output from 359GWhs to 440GWhs 2MW hydroplant HydroMaya southern part of the country. Belcogen – 13 MW bagasse co-generation plant from sugar factories. Will sell excess to grid

Renewable Energy Projects in the Caribbean DOMINICA Have identified some 7 to 9 Wind sites. Need to move to data collection. 7 MW of installed capacity already. Participates in the GeoCaraibe initiative which is looking at development of geothermal energy in St Kitts, Dominica, and St Lucia Draft geothermal Bill to look at regulation and legislation.). GUYANA 12 MW windfarm at Hope Beach on the East Coast – late 2005 – early MW Moco – Moco Hydro power plant out of commission – experienced severely damaged penstock

Renewable Energy Projects in the Caribbean GUADELOUPE 4MW Pilot geothermal plant since MW wind farm JAMAICA 20 MW Wind farm at Wigton – Manchester Expansion of Hydropower at Laughlands – St. Ann Establishment of Policy for all Public Sector entities – schools, hospitals, Government Buildings needing hot water must use Solar Energy US$10M Upgrade of Petrojam Ethanol Plant to begin production of Ethanol by late July 2005

Renewable Energy Projects in the Caribbean ST. LUCIA MOU signed with company – United network of the Eastern Caribbean to look at the exploration of geothermal energy in St Lucia. Participates in the GeoCaraibe initiative which is looking at development of geothermal energy in St Kitts, Dominica, and St Lucia. Draft geothermal Bill to look at regulation and legislation. St Lucia/ UNIDO project for Credit Unions to finance for the Domestic market. ST. VINCENT Plans to establish a 2MW windfarm based on studies showing sites in Myreau and Canuoan Currently have a capacity of 5.2MW of hydropower. Plans for expansion of 2 existing plants at South Rivers and Richmond to about 2MW.

Renewable Energy Projects in the Caribbean HYDR0 POWER Has installed capacity of 25MW (Belize). Has installed capacity of 57.4 MW (Cuba). Has installed capacity of 7.6 MW (Dominica). Has installed capacity of 21.5 MW (Jamaica). Has installed capacity of 5.6 MW (St Vincent). Has installed capacity of 189 MW (Suriname ) WIND POWER Have identified some 7 to 9 Wind sites. Need to move to data collection. Dominica 12 MW windfarm at Hope Beach on the East Coast – late 2005 – early Guyana 10 MW windfarm at Lamberts St Lucy to come on stream later in the year- Barbados 18.1 MW wind farm – installed. (Guadeloupe) 20 MW windfarm at Wigton, Manchester - installed (Jamaica)

Renewable Energy Projects in the Caribbean SOLAR ENERGY Certification program of companies which manufacture solar water heaters from Florida Solar Energy Centre.(Barbados) 38,000 residential solar water heaters.(Barbados) Establishment of a Renewable Energy Centre for Training and exposition (.Barbados). Establishment of Policy for all Public Sector entities – schools, hospitals, Government Buildings needing hot water must use Solar Energy (Jamaica) St Lucia/ UNIDO project for Credit Unions to finance for the Domestic market.(St Lucia). BIOMASS o Belcogen – 13 MW bagasse co-generation plant from sugar factories. Will sell excess to grid o US$10M Upgrade of Petrojam Ethanol Plant to begin production of Ethanol by late July 2005

Renewable Energy Projects in the Caribbean GEOTHERMAL OAS/GTZ GeoCaraibe initiative which is looking at quantifying the resources and development of geothermal energy in St Kitts, Dominica, and St Lucia. Draft geothermal Bill to look at regulation and legislation. (St Kitts, Dominica, St Lucia. 4 MW Pilot geothermal plant since – (Guadeloupe) MOU signed with company – United network of the Eastern Caribbean to look at the exploration of geothermal energy (St Lucia).

OTHER INITIATIVES Caribbean Renewable Energy Development (CREDP) Caribbean Energy Efficiency Project The Caribbean and the Clean Mechanism Project

Caribbean Renewable Energy Development (CREDP)

OBJECTIVES IMPROVE BUSINESS ENVIRONMENT IN RE FOR THE PRIVATE SECTOR: -Private sector will only investment in RE projects if the energy policy environment is supportive. -Divert investments from oil / petroleum based energy sector towards RE investments through provision of incremental costs and other supporting measures. -Involve the utilities as key partners Significant RE investment in the Caribbean Utilities are key players in the energy sector

FEASIBILITY ASSESSMENT PHASE BARRIERS STUDY –EXAMINED BARRIERS TO RENEWABLE ENERGY DEVELOPMENT –BARRIERS WERE FOUND AT THE LEVEL OF POLICY FINANCING CAPACITY BUILDING AWARENESS/INFORMATION

IMPLEMENTATION / CO-ORDINATION CARICOM Secretariat responsible Project Management Steering Committee for oversight

FUND MANAGEMENT An Investment Fund for project financing based on equity of the private sector and (partly concessionary) loans of the financial sector with a moderate investment volume of US$10M A Financial Assistance Fund on a non-grant basis of some US$1.6M A Technical Assistance fund on a grant basis. A Loan Guarantee Fund for the protection of the borrower

The Caribbean and the Clean Mechanism Project

Power Sector Baseline Study Capacity Building

POWER SECTOR BASELINE STUDY Objectives: Simplify the CDM Project review process and reduce transactions costs. Attract Investment to the Region Contribute to the necessary infrastructure to support project development.

POWER SECTOR BASELINE STUDY Rationale for a regional baseline approach vs an individual country approach –A smaller island states individually did not have the advantage of economies of scale. –A larger grouping of countries could attract larger investments to the region as a whole result of projects arising from CDM activities. –Most of the countries Power Sectors had similar generating histories, fuel use and technologies.

Capacity Building Three regional workshops were held to train Persons in baseline analyses and benchmarking: St. Lucia Grenada Barbados

Caribbean Energy Efficiency Project

OLADE/GEF/UNDP Energy Efficiency Policy and Regulation Commercial Enterprise Development Awareness and Information Management Training and Human Capacity Building Financing Alternatives