Latin America and the Caribbean Energy Efficiency Program.

1. Energía y Ciudad: Dr. Diego Arjona Argüelles Latin America and the Caribbean Energy Efficiency Program. Case of Grenada. LAC IV Energy Efficiency Seminar Dominican Republic Wednesday, August 3rd, 2 011

2. Latin America and the Caribbean Energy Efficiency Program Presentation Overview • Introduction and Background • Activities for the Regional Consultant of PALCEE • Information for the Analysis of the Institutional Framework; • Basis for the Analysis of the Energy Efficiency Institutional Framework; • Exchange of Ideas for a Preliminary Proposal for an Institutional Framework for Energy Efficiency; • The Energy Efficiency Institutional Structure; • Agents of acceleration and implementation.

3. Latin America and the Caribbean Energy Efficiency Program Introduction: PALCEE Program in Grenada. • We wish to express our unfeign appreciation and gratitude to the Austrian Government through the Austrian Development Cooperation and the Austrian Energy Agency for their invaluable contribution of financial and technical assistance to may PALCEE a successful reality. • Equally we convey our thanks to OLADEfor their usual kind consideration and unflagging support and note-worthy assistance. • Our appreciation and gratitude is also extended to the Regional Consultant , Dr. Diego Arjona, for his distinguished contributions to the advancement of this project. • Thanks to all those whose contributions may remain invisible.

4. Latin America and the Caribbean Energy Efficiency Program Objectives for the Regional Consultant of the PALCEE Program in Grenada. • The central objective is the strengthening of the institutional framework in the region to facilitate the implementation and operation of energy efficiency policies that guarantee long term activities and permanent results. • For Activity I of the PALCEE Program, the regional consultant developed a diagnosis of the current institutional framework in Grenada with two objectives: • Thefirst objective is to have a complete understanding of the current situation in the energy sector and the interactions between it and other economic activities.

5. Latin America and the Caribbean Energy Efficiency Program Objectives for the Regional Consultant of the PALCEE Program in Grenada. • Thefirst objective is to have a complete understanding of the current situation in the energy sector and the interactions between it and other economic activities. • The analysis of the consultant includes an assessment of public policies that have been implemented. • With all these elements the consultant will develop the proposal for an institutional structure for energy efficiency. • Thesecond objective is to provide the other members of the team with the elements to make their contributions and evaluate the preliminary proposal. • The first draft of the document will be improved in a workshop with the participation of national and international experts.

6. Latin America and the Caribbean Energy Efficiency Program Activities for the Regional Consultant of the PALCEE Program in Grenada. • Activities in the PALCEE Program imply the coordination among different actors that may lead to a proposal that can be used by the Grenadian authorities as a planning tool for strengthening the Energy Efficiency Institutional Framework.

7. Latin America and the Caribbean Energy Efficiency Program Activity II: Energy Efficiency Institutional Framework Proposal. • Based on the analysis performed in Activity I of this project, the regional consultant prepared proposals for the Energy Efficiency Institutional Framework in Grenada. • The proposal took into account the European (especially the Austrian case) and Latin American experiences, on the guidelines to be considered in the institutional framework, and the required steps for its implementation. • Austrian Energy Agency’s assistance through OLADE, will allow each consultant to be aware of the European experiences that can be applied to each country in the project. • Latin American experiences will be channeled through OLADE.

8. Latin America and the Caribbean Energy Efficiency Program Information for the Analysis of the Institutional Framework. • OLADE provided information from the SIEL (Energy Law Information System) which included The Grenada Constitution Order of 1973. • Beyond this information, the consultant has performed an extensive review of available information concerning the current Government Structure of Grenada, as well as information that refers to other activities that will be involved in the promotion and deployment of energy efficiency actions. • The consultant has also studied information related to the energy sector in Grenada. • The main consumers of energy in the country have also been reviewed in order to target the main sectors.

9. Latin America and the Caribbean Energy Efficiency Program Government of Grenada. • Governor General • The local representative of the Queen of England in the country. He is appointed by the Queen based on the recommendation of the Grenada Prime Minister. • Prime Minister • The Prime Minister’s Office has three ministries and six departments attached to it. All fall under the directorship of Prime Minister • The Cabinet • A department within the Office of the Prime Ministerthat is responsible for providing policy advice to the Prime Minister, • Office of the Prime Minister • Ministry of Agriculture, Forestry & Fisheries • Ministry of Carriacou and Petite Martinique Affairs • Ministry of Education and Human Resource Development • Ministry of Environment, Foreign Trade, Export • Ministry of Finance, Economic Development, Energy and Foreign Trade • Ministry of Health • Ministry of Housing, Lands and Community Development • Ministry of Labour, Social Security and Ecclesiastical Affairs • Ministry of Legal Affairs • Ministry of Social Development • Ministry of Tourism • Ministry of Works, Physical Development and Public Utilities • Ministry of Youth Empowerment & Sports • Grenada gained independence from Britain in 1974 and is an independent nation within the British Commonwealth. • The State of Grenada comprises the main island of Grenada, and its smaller island dependencies Carriacou, and Petite Martinique. • Grenada Ministries • Government

10. Latin America and the Caribbean Energy Efficiency Program Ministry of Finance, Planning, Economy, Energy & Cooperatives. • The Minister of Finance, Planning, Economy, Energy, & Co-operatives exercises general control and direction.  The administrative head of the Ministry is the Permanent Secretary.  • Role of the Department of Energy & Sustainable Development are the following: • Rational Use of Energy and Energy Efficiency. • Petroleum Exploration and Development. • Energy Information Systems. • Alternative Energy Applications/ Renewable energy. • Public Awareness Activities on Energy Conservation and Efficiency.

11. Latin America and the Caribbean Energy Efficiency Program Ministry of Finance, Planning, Economy, Energy & Cooperatives. • STAKEHOLDERS; Grenada’s energy sector public and private entities. • Grenlec • Chevron • SOL EC Ltd • PetroCaribe Grenada Ltd • Grensol • Seek Solutions • Caribbean Sun Energy Limited and Caribbean Bunkers Grenada Limited • Mr. Valentine Duncan • Mr. Benedict Baptiste • Mr. Terrence Clarkson • Mr. James Post

12. Latin America and the Caribbean Energy Efficiency Program Energy Sector Characteristics. • In 2006, an estimated 98.8% of all gross supply allocated to the transportation, industrial, residential, and commercial sectors’ energy needs was primarily from imported petroleum products. Biomass completed the other 1.2% of that supply. • The ongoing increase in oil prices and the continued decline of US dollar continue to put upward pressure on the fuel charge to customers. As a consequence, Grenada has to spend as much as half its export revenues on imported fossil fuels.

13. Latin America and the Caribbean Energy Efficiency Program Energy Sector Characteristics (Cont’d). • This imposes a burden on the country’s economy and balance of payments, especially when the price of oil rises on the world market. • In 2006 Grenada consumed about 2,043 barrels of oil per day to meet its diverse needs • Grenada Electricity Services Ltd (GRENLEC) is the sole provider of electricity for the Caribbean islands of Grenada, Carriacou and Petit Martinique. In 1994, GRENLEC became a public company.

14. Latin America and the Caribbean Energy Efficiency Program Energy Sector Characteristics (Cont’d). • Total installed electricity capacity (2007): 45.1 MW, with peak load running at 24 MW. • In 2006, Grenada produced 167.2 million kWh and consumed 144.2 million kWh. • National electrification rate (2008): 99.5%.

15. Latin America and the Caribbean Energy Efficiency Program Current Energy Institutional Framework. • The Department of Energy was established in 1982 within the Planning Division of the Ministry of Finance with the assistance of the United Nations Development Program (UNDP), with the following objectives: • Ensure adequate, reliable, and economical energy services to sustain economic development, while satisfying the current and projected demands; • Encourage and promote the use of renewable energy technologies and energy efficiency alternatives; • Promote Energy Efficiency and Energy Conservation at all levels of the economy, in order to achieve optimum economic use of renewable and non-renewable sources of energy; • Encourage the establishment of Energy Service Companies (ESCOs); • Enhance the security of energy supply and energy services for all sectors of the economy; • Promote, encourage and facilitate petroleum exploration and development in an environmentally friendly (Sustainable) manner.

16. Latin America and the Caribbean Energy Efficiency Program Department of Energy & Sustainable Development: Functions and Services provided. • The calculations for the prices of the petroleum products used in Grenada are computed monthly by the Division.   • Data collecting, collating, monitoring and reporting on the energy sector nationally. • Liaison with regional and international organizations to satisfy stakeholders’ queries. • Attention is given to all requests for street light installations within the State of Grenada.  • The doors of the Division are open to students and interested persons who seek information, data and advice about energy related matters. • The education and awareness of the public on energy conservation, energy efficiency and other related issues.

17. Latin America and the Caribbean Energy Efficiency Program Grenada’s National Energy Policy • A National Energy Policy has been finalized by the Working group on Energy Development based on the following objectives:

18. Latin America and the Caribbean Energy Efficiency Program National Energy Policy • A document presented on October 28, 2010 by the Working Group on Energy Development referred to the issue of institutional strengthening. • The National Energy Policy suggests the transformation of the Energy Division into a National Sustainable Energy Office with a structure shown below. General Administration & Support Services

19. Latin America and the Caribbean Energy Efficiency Program National Energy Policy • The Low Carbon Development Strategy is a ten year action plan that includes the energy sector: • National Energy Efficiency Program • Geothermal & Renewable Energy Program • Offshore Hydrocarbon Program • The Government launched a public sector energy conservation program in early 2010 and has accumulated baseline data on energy consumption at the Ministry level. • The goal being to reduce energy consumption (electricity and transport) by 10% by Q4, 2012, using 2009 as a base year.

20. Latin America and the Caribbean Energy Efficiency Program National Energy Policy • There are some actions already developed in the energy sector, specifically related to the strengthening of its institutional framework, that will be deeply analyzed and take into consideration for PALCEE: • Development of the Government Energy Conservation Programme • Establishment of energy committees in various ministries. • Establishment of a National Sustainable Energy Development Committee. • The Anticipated Formulation and Enactment of an Energy Efficiency Bill.

21. Latin America and the Caribbean Energy Efficiency Program Basis for the Analysis of the Energy Efficiency Institutional Framework. • The Analysis of the Institutional Framework in Grenada has been enhanced considering the opportunities for the establishment of an energy efficiency institutional framework. • The analysis has been made considering different options for the creation of an energy efficiency authority and the programs that may be entrusted to such an structure. • The design of such entity must be based on the National Energy Policy. • The Legal and Institutional Framework must be designed so that this structure can promote and institutionalize Energy Efficiency at the level of different stakeholders in different sectors. • The model of an Inter-Agency Commission has been analyzed as an option for Grenada. This would imply the participation of various public and private partners in this effort.

22. Latin America and the Caribbean Energy Efficiency Program Referenced Institutional Models. • Source: Energy Sector Management Assistance Program (ESMAP), An Analytical Compendium of Institutional Frameworks for Energy Efficiency Implementation, 2008

23. Latin America and the Caribbean Energy Efficiency Program Basis for the Analysis of the Energy Efficiency Institutional Framework. • Each one of the sectors that may be considered for energy efficiency actions operates under its own institutional framework. • A energy efficiency structure should be designed so that a minimum staff could participate in several sectors and promote energy efficiency. • Committees could operate under the framework of this structure in order to support each of the sectors. • An Energy Efficiency Act in Grenada could formally create the “National Energy Efficiency Unit” as an entity that is lead by the Ministry of Finance, Planning, Economy, Energy & Cooperatives and give specific responsibilities to other Government Agencies and private stakeholders as to their participation in the Steering Committee.

24. Latin America and the Caribbean Energy Efficiency Program Behaviour Change and Market transformation. • As it was previously discussed, industrial, commercial and residential sectors are energy consumers and the aim of the institutional framework is to create conditions for change in the actions of the society. • Change of behavior can be as simple as remembering to turn off the lights when they are not in use or as complex as the decisions that may be taken in an engineering project. • The aim is to provide elements and conditions that will help all members of society to take the path of energy conservation or energy efficiency as the opportunity arises. • Market transformation is a key element since most energy consumers follow patterns that are based on their specific lifestyle. Energy efficient technologies can provide energy savings taking into consideration(or even improving) the expectations of comfort, safety and quality of the energy consumers. • Transformation towards a market of energy efficient equipment and services will provide environmental and economic advantages.

25. Latin America and the Caribbean Energy Efficiency Program Accelerating Energy Efficiency, Behavior Change, Financing and Market Transformation. • Acceleration of energy efficiency deployment • Incremental costs management • Education • Public awareness • Specific knowledge • Group and individual behavior • Standards and Labels • Equipment replacement • High efficiency processes and equipment • Technology innovation

26. Latin America and the Caribbean Energy Efficiency Program Three Areas of Activity. • The internal organization of the Austrian Energy Agency may teach a lesson that could be followed for the design of Grenada’s National Energy Efficiency Office. • This basic concept for the internal organization is similar to that of several Energy Efficiency both in Europe and Latin America. • A circle is created starting with data analysis and planning for energy efficiency projects and programs. • A second element is the technical consulting that enhances the quality of the actions and provides details and specifications to the projects and programs. • A third element is the implementation of energy efficiency actions. • The circle brings us back to monitoring the performance and thus data analysis and planning.

27. Latin America and the Caribbean Energy Efficiency Program Energy Efficiency Structure: Internal Organization Based on Three Areas of Activity.

28. Latin America and the Caribbean Energy Efficiency Program Energy Consuming Sectors. • Complexity in the design of an energy efficiency institutional framework arises when you consider all the sectors that need support to improve their energy intensity. • Since most economic and many social activities utilize commercial energy, resources from various sources, both private and public, must be aligned towards energy efficiency. • Stakeholders that operate in various sectors must embrace energy efficiency. • Promotion and implementation of energy efficiency may present its peculiarities in each sector. • However, the institutional framework proposal aims can be the same for all sectors: change of behavior and market transformation, using elements to accelerate implementation. • The basic cycle considered in the institutional proposal can also be repeated: analysis and planning, technical support, implementation, monitoring and back to analysis and planning

29. Latin America and the Caribbean Energy Efficiency Program Sectors to be considered in the design of the Energy Efficienty Institutional Framework.

30. Latin America and the Caribbean Energy Efficiency Program Exchange of Ideas for a Preliminary Proposal for an Institutional Framework for Energy Efficiency. • The preliminary proposal could be based on an Inter–Ministry-Agency committee that will concentrate the efforts of several Ministries and Government agencies and Private sector involvement towards a national energy efficiency effort. • Each of the Ministries/Agencies that will participate in the committee will have specific functions that will be agreed by the members of the committee and then reported back. • These functions will be assigned according to the specific expertise and functions of each agency. • A small functional structure will support the committee members with information and technical expertise so that actions can be enhanced. • The functional structure will also support society and economic agents as they organize themselves to participate in the national energy efficiency efforts.

31. Latin America and the Caribbean Energy Efficiency Program Institutional Energy Efficiency Framework. Inter – Agency/Ministry Committee Functional Structure Organized Society

32. Latin America and the Caribbean Energy Efficiency Program Exchange of Ideas for a Preliminary Proposal for an Institutional Framework for Energy Efficiency. • The functional structure appears in the following slide with the name of National Energy Efficiency Unit. • The Unit’s Policies , Priorities and Program of Activities would emanate from the Energy Efficiency Steering Committee. • The Board of Directors includes Agencies and Ministries in the Grenadian Government that have a direct interaction with energy consumers and, through their actions, may facilitate the implementation of energy efficiency. • Ministries may implement energy efficiency through specific projects or programs or by including energy efficiency as elements for other programs. • One of the aims of the National Energy Efficiency Unit is to support society/public as it organizes for an energy efficiency effort. • Examples can be given as to this support: • The Tourism Industry Energy Efficiency Sub-Committee. Just to give an example. • Such Sub-Committees will promote the participation of public and private stakeholders and their effort will be reported to the Energy Efficiency Steering Committee.

33. Latin America and the Caribbean Energy Efficiency Program National Energy Efficiency Unit. Steering or Advisory Committee Energy Efficiency Coordinator Analysis and Planning Coordinator. Technical and Consulting Coordinator. Implementation Coordinator. Administrative and Financial Coordinator. Basic Structure Energy Efficiency Loan Programs and Financial Schemes Agents of acceleration and implementation Industry: Equipment and Services Providers Energy Efficiency Committees Public – Private Partnerships

34. Latin America and the Caribbean Energy Efficiency Program Cost of the Functional Structure. • Due to its nature, energy efficiency can provide a considerable economic advantage to the country with a relatively low cost to the Government. • To give an example, a decision made to promote compact fluorescent light bulbs or even LEDs in order to replace incandescent bulbs can be orchestrated to provide savings that will exceed the cost. • A decision made by an energy intensive industry to implement an energy efficiency program will reduce the national oil requirements. • The institutional framework may start with a limitation of resources but the results that it will likely provide will help it become a more dynamic organization as it will attract public and private participants. • Energy efficiency is considered by many as a “low hanging fruit” strategy to reduce climate change and produce economic advantages.

35. Latin America and the Caribbean Energy Efficiency Program National Energy Efficiency Steering Committee. • The following slides present some ideas for the formation of the National Energy Efficiency Steering Committee. • The Honorary President of the Board is His Excellency the Prime Minister, while the Functional President is His Excellency the Minister of Finance. • The other Members of the Steering Committee represent various Ministries and Agencies. Specific functions and responsibilities are suggested for each Member of the Board. The following slides will underline some basic ideas on the actions that may be taken by each one.

36. Latin America and the Caribbean Energy Efficiency Program National Energy Efficiency Steering Committee. President of the Board. Minister of Finance, Economic Development, Energy and Foreign Trade Department of Economic Management and Planning Honorary President of the Board. His Excellency the Prime Minister • Minister of Works, Physical Development and Public Utilities Grenada Bureau of Standards Ministry of Environment, Foreign Trade, Export Ministry of Foreign Affairs and Tourism • Ministry of Carriacou and Petite Martinique Affairs Grenada Chamber of Industry & Commerce Ministry of Housing Lands and Community Development Energy Efficiency Coordinator Ministry of Education and Human Resource Development

37. Latin America and the Caribbean Energy Efficiency Program His Excellency the Prime Minister. • Honorary President of the Board of Directors.  • Energy efficiency could be included as a key element in the planning process of the Government of Grenada.  • The participation of a representative of the Prime Minister Office in the energy efficiency efforts could be the inclusion of concepts in various actions taken by the Government or promoted among the social and industrial sectors.  • Coordination of the design of public policy to define the actions of the Board of Directors.  

38. Latin America and the Caribbean Energy Efficiency Program His Excellency the Prime Minister (Cont’d). • Provides guidance to all Ministries as to National Priorities.  • Leads the coordination of efforts among Ministries.  • His office reviews and evaluates the results and performance of energy efficiency efforts.

39. Latin America and the Caribbean Energy Efficiency Program The Honourable Minister of Finance, Economic Development, Energy and Foreign Trade. • President of the Board of Directors.  • Guidance on Energy Policy. • Establishes Energy Efficiency Policy. • Establishes Renewable Energy Policy. • Establishes Green Energy Policy. • Coordinates Energy Efficiency Programs with other Ministries.

40. Latin America and the Caribbean Energy Efficiency Program Head of the Department of Economic Management and Planning • Coordination with the Ministry of Finance, Economic Development, Energy and Foreign Trade of a Public Sector Energy Efficiency Program. • Government buildings. • Public buildings. • Government fleets. • Public lighting • Design of financial schemes for the acceleration of energy efficiency. • Design of energy efficiency loans program with private and development financial institutions.  • Promotion for the importation of energy efficiency equipment.  • Coordination of the design of non-energy efficient equipment replacement programs.  • Development of Energy efficiency programs in heavy, medium size and small industry.  • Energy efficiency programs for commercial establishments.

41. Latin America and the Caribbean Energy Efficiency Program Ministry of Foreign Affairs and Tourism • Design, development and coordination of a Tourism Energy Efficiency Program.  • Search and coordination of international assistance and development programs.

42. Latin America and the Caribbean Energy Efficiency Program The Grenada Bureau of Standards. • Energy efficiency standards and labels are one of the best tools for market transformation. In cooperation with the committee, such standards could become either mandatory or voluntary.  • Development of standards for equipment of energy efficiency  • Promotion of regulations that may limit the importation of inefficient equipment.

43. Latin America and the Caribbean Energy Efficiency Program Minister of Works, Physical Development and Public Utilities • Review of energy efficiency opportunities in the design of public works. • Incorporate energy efficiency in the design of physical development actions. • Analyze opportunities and deploy actions for energy efficiency in public utilities.

44. Latin America and the Caribbean Energy Efficiency Program Ministry of Environment, Foreign Trade, Export. • Development of a National Sustainable Energy Policy based on Energy efficiency as it is one of the first options to reduce the environmental footstep of the economy.  • As energy efficiency reduces the amount of energy consumed in the production of goods and services and the lifestyle of the population, it reduces the combustion requirements and thus the carbon dioxide emissions. Environmental policy should consider energy efficiency as a key element towards a low carbon society.  • Investment promotion strategy on energy efficiency.

45. Latin America and the Caribbean Energy Efficiency Program Ministry of Housing, Lands and Community Development • Energy efficiency in housing: • Energy efficient housing designs, • Bioclimatic architecture • Housing constructions standards, • Promotion of insulation materials, • Promotion of high efficiency domestic equipment (lighting, domestic appliances, furnaces, etc.).  • Cooperation with other Ministries in the design of financial schemes to promote energy efficiency in housing.  • Project to improve energy efficiency in water pumping (examples: non- efficient motors replacement, load factor correction, pressure controls, etc.). 

46. Latin America and the Caribbean Energy Efficiency Program Ministry of Education and Human Resource Development. • Development of energy efficiency educational campaigns at different levels of the population.  • Inclusion of energy efficiency lessons at different levels in the elementary school curricula.  • Promotion of energy efficiency training at the engineering and economic levels of the university.  • Collaboration with the Ministry of Mining and Energy in the design of national energy efficiency awareness campaigns.

47. Latin America and the Caribbean Energy Efficiency Program Ministry of Carriacou and Petite Martinique Affairs • Promotion of energy efficiency in Carriacou and Petite Martinique. • Analyze energy efficiency opportunities in Carriacou and Petite Martinique. • Deployment of energy efficiency actions and programs in Carriacou and Petite Martinique.

48. Latin America and the Caribbean Energy Efficiency Program Grenada Chamber of Industry and Commerce • Promotion of energy efficiency among its membership. • Analyze energy efficiency opportunities in the Private Sector. • Encourage the deployment of energy efficiency actions and programs within its membership. • Establish and develop Public-Private Sector Partnerships to foster/promote energy efficiency.

49. Latin America and the Caribbean Energy Efficiency Program Energy Efficiency Coordinator • Candidate presented by the Ministry of Finance, Economic Development, Energy and Foreign Trade and ratified by the Members of the Board of Directors.  • The Energy Efficiency Coordinator is the Executive Secretary of the National Energy Efficiency Steering Committee and reports to same.  • His function in the Committee is to inform, make proposals and take the necessary actions to fulfill the agreements taken by the Board.  • He is the Head of the National Energy Efficiency Unit.  • He is the general coordinator of energy efficiency actions. He represents the Unit in funds, partnerships and budget meetings.  • He is the spokesman for energy efficiency in Grenada.

50. Latin America and the Caribbean Energy Efficiency Program Basic Functional Structure. • The following slide presents the concept for the internal organization of the institutional structure of the National Energy Efficiency Unit. • The structure starts with the Energy Efficiency Coordinator. This top Officer is not a member of the Board of Directors. However, he sits on all the meetings, receives instructions and reports to the Board. Board Agreements are implemented by him. His functions include the general coordination of all efforts and the operation required to establish agreements and generate conditions for energy efficiency. • Officers for Analysis and Planning, Technical Support and Implementation are included in the structure. • Finally an Administrative Officer is also included. His functions also include support in the design and operation of funds and partnerships. • The initial structure may even require an officer taking more than one function, however, as the agency offers results and becomes dynamic there will be opportunities to strengthen each area.