1. CARILEC

2. An Association of Electric Utilities

3. CARILEC An Association of Electric Utilities The Caribbean Electric Utility Service Corporation (CARILEC) is an association of electric utilities, suppliers, manufactures and other stakeholders operating in the electricity industry in the Caribbean Established in 1989 with nine (9) members Currently, CARILEC comprises a total of one hundred and seven (107) members. This includes thirty five (35) Full Members that are electric utilities and sixty eight (68) Associate Members that are companies involved in some aspect of servicing the electric utility business and six (4) Affiliate Members.

5. Main services provided include:  Training and Development  Networking & Knowledge Sharing - Conferences  Technical studies and Surveys  Disaster Restoration Coordination  Advocacy CARILEC Services

6.  Some independent Power Producers (IPPs) but majority vertically integrated utilities  A lack of effective regulations in most member states limits both innovation and efficiency.  High dependency on imported fossil fuel for power generation despite tremendous renewable energy resources  Although electricity access is generally high across the region, some states face low quality of service and significant unmet demand Overview of Caribbean Power Sector

7.  Small, fragmented and isolated power systems with very limited possibilities for interconnection.  No economies of scale to be exploited. Higher prices for inputs as bulk purchase is limited. Resulting in a relatively high cost of electricity  High reserve capacity margins in order to provide sufficient generation availability for maintaining reliability of supply.  Some of the highest electricity tariffs worldwide  High technical and non-technical losses. Overview of Caribbean Power Sector

8.  Increasing concern about environmental impacts  Increasing electricity demand  Concerns about Sustainability for future generations Overview of Caribbean Power Sector Recent Important Trends in the Power Sector

9. Challenges with Renewable Energy Integration Isolated islands that are not electrically interconnected, variation in the electrical characteristics in each island Limited ability to achieve economies of scale Lack of adequate legislation in most Caribbean member states. Legislation is often outdated and does not accommodate renewable energy technology issues including: Grid tied distributed resources or Distributed Energy Resources (DER) IPP legislation for private utility scale projects Lack of sufficient technical studies to inform energy policy and legislation Overview of Caribbean Power Sector

10. The need to increase Renewable Energy penetration rates and strategies The need to increase renewable energy penetration is a key priority for consumers and other stakeholders. However, given the real challenges, a number of strategies must be employed to ensure that this is done without causing undue disruption in the quality of the electricity supply Overview of Caribbean Power Sector

11. Strategies for increased renewable energy penetration Technical studies (Sustainable Energy Programming IDB) Training (Certifed Energy Manager, Power Plant Operator) Integrated Resource Planning (CWR Project with LUCELEC) Legislative reviews (St.Lucia, St.Kitts) Exploration of Storage technologies (Aruba) Knowledge Sharing (CAREC Platform) Overview of Caribbean Power Sector

12. CARILEC welcomes and supports regulation in the Caribbean and believes that it will play a crucial role in further shaping and developing the power sectors in the region. To assure that regulation is effective, the design of the regulatory framework needs to properly incorporate the specific characteristics and realities of the Caribbean region. CARILEC Position on Regulation and Renewable Energy

13. A stable, competent, and independent regulatory framework is important to assure a financially healthy sector in which investments can be undertaken to facilitate the growth in demand and thus sustain economic development of the Caribbean countries. CARILEC Position on Regulation and Renewable Energy

14. The electric utility should continue to be responsible for planning of the power system and the identification and tendering of new capacity, including those based on renewable technologies. CARILEC Position on Regulation and Renewable Energy

15. Where competition is introduced in electricity generation this should be based on the Single Buyer Model. This applies to additions of both conventional and large-scale renewable capacity. The utility should also be in the position to bid for new capacity. CARILEC Position on Regulation and Renewable Energy

16. For small-scale renewable energy, regulation should be in place that allows customers to use and interconnect these systems to the main grid taking into account technical conditions and with the allocation of a viable grid services fee that reflects the utility cost of providing grid services to such customers. CARILEC Position on Regulation and Renewable Energy

17. Incentives in the area of tariff setting and quality standards should be fair and symmetric. Utilities should not only be penalized for low performance but should also have the ability to be rewarded in case of good performance. CARILEC Position on Regulation and Renewable Energy

18. Governments, with the help of the utility, should actively promote and support renewable technologies. Where applicable, Government can provide incentives but these should be outside the tariff system and should not affect the utility financially. CARILEC Position on Regulation and Renewable Energy

19. Regulation in the Caribbean should be in line with the principles of best- practice regulation namely independence, communication, consultation, consistency, predictability, flexibility, capacity, effectiveness, accountability, and transparency. CARILEC Position on Regulation and Renewable Energy

20. CARILEC and its member utilities will continue to play a constructive role as subject matter experts in the further progressing of the regulatory landscape in the Caribbean in order to move towards an effective regulatory framework for the Caribbean power sector. CARILEC Position on Regulation and Renewable Energy

21. THANK YOU!

22. Questions?